Many people believe that cryptocurrencies are a scam. That is fairly understandable since we did witness many. This, of course, doesn’t mean that the entire crypto-industry is also a scam. People tend to get the shortest and most unreliable information especially when they start to show interest in cryptocurrency and their main goal is to gain extra money fast. This is why we need to read more and this list here will help many understand how easy scams can occur.
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Fraudulent Exchange Sites
Because of the interest for cryptocurrencies skyrocketed, many found the opportunity to create fake exchange sites. We witnessed sites gaining extreme popularity and vanish overnight along with the cryptocurrencies on them. Also, customer service is usually uninformed and has little knowledge on the subject. In just a few days one exchange held over 60 percent of all transactions across the world. Very shortly after we witnessed that nearly a million had been stolen. One of the safest exchanges you can use to protect your investment is CoinBase and Kraken.
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Fake ICOs
The easiest way to scam people is to create a fake ICO. The only thing you need to do is to make people buy and invest. ICOs are a fast and easy way to easily start a new company. Ethereum, for example, was the main encouragement to create this fake ICOs, but of course, they cannot be held responsible.
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Fake Wallets
When choosing a wallet for storing your altcoins, make sure you do a very extensive research. Anyone can create a phone app that says you can store your coins safely. This is a very common mistake with users who just start to use cryptocurrencies. Be careful when you choose a wallet because you might end up losing all your money.
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