The cryptocurrency landscape might seem alluring and offers you an easy platform to make a lot of money, but it is not cool as it seems. Crypto environment is full of scams and fraud that can hit you hard.
However, if you are determined to give it a try, there are some common scams that you need to be aware of, before moving further in the risky space of cryptocurrency.
Stay aware of giving way:
This is the most popular scams that take place on social media website like twitter, where scammers will ask people to send BTC and ETH to a certain address and promises to double or triple them in return. It may seem an obvious fraud; however, every day most of the people lose their money falling for this scam.
With the increasing popularity of cryptocurrencies, more people are now using exchanges to trade crypto However if we talk about security, even a well-known cryptocurrency exchange is not 100% secure.
Crypto landscape has experiences many cases when popular exchanges have disappeared overnight, for instance, bit stamp in 2015 went offline due to hacking, and Mt. got a popular exchange after heading to great hike shut down blaming hackers for the huge loss.
So to stay secure, use the best exchange platform such as Elsecoin that can ensure your security while trading cryptocurrency.
Don’t fall for a guaranteed return in ICO:
ICO, initial coin offering is a fundraising method. A legitimate ICO will never fake investors with the guaranteed return; in fact they talk about their positive review, strategies, verify team members with AML and KYC and work on other strategies to move ahead.
However a scam ICO will tempt investors with the guaranteed return and ask them to send bitcoin, ethereum or other popular currency and doesn’t pay them back with tokens.
As the crypto trading is expanding, a wide verity of risk has surrounded the crypto space. However, with cryptocurrency developing further as an asset class, we accept to have more security and advancement in future. Till then, using these strategies mentioned above, you can mitigate the potential risk and scams.