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How to Identify Potential Cryptocurrency Scams

doc 2022 05 05 06 41 26

Cryptocurrency is a digital asset that uses cryptography to secure transactions and control the creation of new units. Its decentralized nature means it is not subject to government or financial institution control. Cryptocurrency is ideal for online transactions as it eliminates the need for third-party interference. However, this also makes cryptocurrency a prime target for scammers.

In the first decade of its introduction, cryptocurrency users have seen their fair share of fraud. The latest and perhaps the biggest cryptocurrency scam is the Bitconnect Ponzi scheme. Its affiliate programs and high return bots made it appear authentic. The platform revolved around trade volumes, and when its false claims and illegal activities became public, it triggered mass sell-offs. Platform users lost millions of dollars, and the platform crashed. It also sent shockwaves that hit bitcoin’s value.

OneCoin is another coin that has appeared on multiple fraud watchlists. These projects may gain popularity, but it is important to look for indications to prove a coin or company’s legitimacy. Scams like Squid Coin and other meme coins gather interest to exploit investors. These scams are becoming harder to spot with many popular brands getting involved. 

Identify potential cryptocurrency scams

Cryptocurrency scams come in many forms, but they all have one goal – to steal your money. Scammers will often create fake cryptocurrency exchanges or wallets that look identical to the real thing. They will then use these platforms to dupe people into sending them cryptocurrency. These scammers disappear and move on once they have received the cryptocurrency, leaving the victim with no option to retrieve their money.

Keep a close eye on affiliate programs

Another thing to keep a close eye on is affiliate programs. These are programs where members earn commissions for recruiting new investors. While there’s nothing inherently wrong with affiliate programs, scammers abuse them often. Be sure to check out the program thoroughly before investing any money.

Beware of inflated prices

A common cryptocurrency scam is the “pump and dump” scheme. In this scheme, scammers will artificially inflate the price of a cryptocurrency by buying it in large quantities. They will then sell this cryptocurrency at an inflated price and profit from the unsuspecting investors who bought in at higher prices.

Use reputable exchanges and wallets

Always do your research before investing in any cryptocurrency. Only use reputable exchanges and wallets that have been around for a while. Watch out for emails and social media posts that promote cryptocurrency get-rich-quick schemes. If something sounds too good to be true, it probably is. 

Better be safe than sorry

Beware of anything that seems overly complex or difficult to understand. Cryptocurrency can be confusing, but most legitimate investment opportunities are relatively straightforward. If something seems fishy, it’s probably best to steer clear. If you keep these things in mind, you’ll save yourself from falling victim to cryptocurrency scams. Remember: when in doubt, err on the side of caution!

How REV3AL Provides Protection

REV3AL’s technology uses multi-level authentication to protect digital assets on the blockchain and prevents them from alteration or duplication. It works like a door with multiple high-grade locks, biometric password protection, and facial recognition! 

Thieves can’t break all these systems at once. They would rather go for low-hanging fruits instead of your highly secured assets. REV3AL draws inspiration from protection standards like the GIA – the international diamond standard – which etches a unique identifier into diamonds to verify their value and quality. REV3AL’s system employs similar high-end security standards to protect artists, creators, and collectors.

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