The crypto market became one of the most popular options for traders in recent years. It is not a surprise considering how quickly values have reached some extraordinary numbers. The great thing about this market is that you can have flexibility since there are thousands of different units to invest in. The most popular ones are Bitcoin, Dogecoin, Ether, Cardano, and more.
Moreover, we have to mention the high volatility, which represents a core feature and the main reason why so many people are interested in trading with crypto in the first place. Still, it is crucial to learn more about different factors that are causing frequent changes in values. A great solution for trading would be to use a special software where you can track the most recent changes, like the one that you can find at the-bitcoin-millionaire.com/pl.
One of the main advantages of the system behind crypto is a high level of security and anonymity. On the other hand, it is important to learn more about staying safe as someone who keeps these units. One of the best methods to prevent issues is to always read more about some online exchange to be sure that it is safe and reliable. Also, the method you choose for storing the crypto can make a difference. In this article, we are going to introduce you to some common scams related to this market and how to avoid them.
1. Pyramid Schemes
It was especially common during the first few years after the introduction of Bitcoin that many organizations tried to scam a lot of people by convincing them that they have a great solution and new option that will reach or even surpass the value of BTC in the future.
One of the best examples of that is One Coin, which wasn’t even a cryptocurrency. It was a system where people had to connect others to the network, and the value of OC was determined by the number of people included. The main problem was that the digital currency that was introduced through this system had no value at all.
2. Manipulations on the Market
This can be seen in both stock and crypto markets. There are methods large investors or groups of scammers are using to influence the prices of some assets. However, some of them are illegal, and you should pay special attention to them.
Some of the most common methods are front running, spoofing, and churning. The front running in the crypto market is when people who are dealing with mining notice that there will be an increase in transactions and use that in their favor by making some traders before finalizing the process.
Spoofing is when people are trying to present fake statistics and motivate people to buy some assets by thinking that the price will be much higher. When it comes to churning, it is the best example of why it is important to hire a reliable broker. In this process, a person can make transactions on your portfolio without your knowledge.
3. New Options on the Market
We all know that a lot of people are now interested in investing in some asset right after it becomes available on the market. The goal is to determine a coin that might reach the same potential as some of the most popular options today.
For example, you will now have a huge profit if you decided to invest in Dogecoin several years ago. Still, keep in mind that scammers might try to take advantage of this situation by introducing a fake white paper or coin only to attract a lot of investors and then disappear. Therefore, you should always check the background and more details before you decide to invest in new assets on the crypto market.
4. Hacker Attacks
The best solution for keeping your crypto safe is to use an offline wallet. We understand that using your phone and PC can be much more convenient, along with some cloud platforms where you can save your assets. However, the issue is that hackers are keeping track of the most recent updates related to safety measures on these platforms.
Besides that, pay attention when you are choosing the online exchange because you will need to register and share private data there, along with your e-wallet and other details. Also, even the best exchanges had some issues in the past. There were cases where hackers managed to steal millions in crypto.
How To Avoid These Problems?
First of all, be aware that emails you might get from unknown addresses might include links that could lead to downloading malicious files on your device without you even noticing that. Therefore, if you receive such an email, be sure to don’t open the content. The same is when you get messages on social media with links that could also lead to some corrupted content.
Also, pay special attention when you are choosing the online service where you can buy, trade, or convert crypto. The best solution is to always use an offline wallet and well-known services like Binance, Kraken, e-Toro, and more.
Moreover, if you notice that someone is trying to motivate you into investing in some option that you never heard of, beware that it could also be a scam. The same is with affiliate links and other systems where you need to connect with other people in order to make a profit.
The Bottom Line
The key is to be sure that the devices you are using when trading with crypto have proper security software, and that you are using the right services for your actions. Also if you are interested in funding white-paper or coins that are waiting to be introduced to the market, be sure to check their backgrounds.
In the end, it is never a good option to keep your assets on some online exchange because even the most popular services had some issues in the past. Also, this market is not functioning through referrals, and there is a great chance that each offer you get with this option is a potential fraud.