Bitcoin Investing: How to Avert Yourself From Cryptocurrency Scams?
Bitcoin is one of the most popular crypto coins in the cryptocurrency market. It is the first decentralized P2P payment system that is fueled by its users, with zero involvement of any middlemen. Since its inception in 2009, it has seen many ups and downs in its price. Presently, Bitcoin has a market cap of around $91 billion.
Staying Better Informed and Investing Wisely
It is always better to be on the guard while investing in such a volatile market. It is a good idea to keep investing, but do not go overboard with it. You may see the price trend of the Bitcoin and assume that the price may rise drastically and you can earn a good amount, but the opposite may happen to make you lose money. So invest in such a way that even if the market goes from bull to bear, it won’t hurt you. So keep a tab of the market and invest wisely. If you are somebody who is investing a small amount every month, then continue doing so; do not change this course.
Before making any financial decision, it is always wise to know about it. Before taking the jump:
- Have a thorough knowledge of the instruments that you plan to invest in
- Take a moment to review the current trends in the market
- Study the market condition if you plan to invest there
- Take the advice of people who have knowledge about it
It is the same when you plan to invest in the crypto market. Before putting your money in buying Bitcoins, make sure you understand what it actually is and how it functions, what are the factors that influence the price of Bitcoin and then make a calculative decision as to how much you can afford to invest in it.
In recent times, there have been so many crypto exchanges that have had to pull down their shutters for various reasons. This year itself, five exchanges- Cryptopia, Liqui.io, CoinPulse, QuadrigaCX, and CoinExchange.io have either closed permanently or indefinitely. So before you invest in the exchange, make sure you have all the details such as transaction fees, buying and selling the policy and other important information. If this is your first time, try finding an exchange that has comparatively lower fees and lets you have control over the fees paid. Make sure to transact on a reputable exchange that has good customer support.
Fraudulent Ways of Getting Cheated
The easiest way to trick investors is by creating fake apps and websites. Some of these apps are also available for download on Google Play and the Apple App Store. However, alert stakeholders can identify these fake apps and have them removed. There are reports that thousands of people have already downloaded these fake apps and are using them. There are also Bitcoin gambling apps or websites; stay clear of them as some of them are maybe fraud and may run off with your assets.
There are many impostor social media accounts of celebrities and executives, so before following an account, make sure that it is the authentic one. It is the same in the case of accounts of cryptocurrency companies; also, the problem of impersonating bots is rampant. These fake Twitter or Facebook accounts, in most cases, give offers that have impossible results. Sometimes small amounts of cryptocurrencies are demanded to become a member of the specific community groups or accounts. Never fall for these traps, there is a possibility that you may not get your assets back.
In this digital world, communications are mostly done through email. If you have the slightest doubt about the email received about the logo on the email or the writing of the email, then make sure to verify with the officials of the company before making your decision. Try verifying over the telephone or physically visiting their office if possible, never click on the link provided in the email to visit their website, the chances are that it is a fraud website. Scammers generally announce fake initial coin offerings to lure gullible investors and steal their funds. Take your time to read the details and understand it.