Cryptocurrency scams: know the main ones and learn how to escape from traps

Cryptoactives like bitcoin are also targeted by criminals; see how to avoid being the target of these scams.

The criptomoedas started calling more and more attention. One of the reasons has been its appreciation. The bitcoin , for example, arrived reaching record price of more than $ 63,000 in April, a superior value to 120% in 2021 until that month. It wasn’t just investors or people without much knowledge of this market who started looking at digital currencies. This scenario also proved attractive to criminals, who started to apply scams involving cryptocurrencies .

Reports of investors who fell for scams, or even the arrest of criminals, began to gain space in the news. Earlier this month, for example, the Federal Police arrested five people who would be linked to the Bitcoin Banco group , in addition to the company’s president, Cláudio Oliveira, called the “King of bitcoin”, among others investigated. He is accused of promoting fraud through cryptocurrency trading platforms that may have diverted R$1.5 billion from 7,000 customers.

According to cryptographic intelligence company CipherTrace, cryptocurrency fraud reached $1.9 billion in 2020 .

The professional investor and MBA professor in digital finance and blockchain at FAE Centro Universitário de Curitiba, Felippe Percigo, explains that bitcoin has historically had a very high value that ends up being taken advantage of by scammers. “Many of the criminals use this history of profitability, link the currency to any product and sell the idea of ​​investing in cryptoactives when, in fact, they are just using the bitcoin name to sell products and commit fraud”, he says.

Percigo warns that financial schemes that use cryptoactives as an attractive factor are still very common and tend to cause great losses. “It’s hard for a person to earn high and steady profits, even if they have data that support such earnings. It is very unlikely that this is actually happening. It’s important to pay attention”, he says.

Orlando Telles, research director at Mercurius Crypto, points out that most investors do not understand how this type of investment works and, therefore, end up believing in promises and losing their capital.

This is what the cryptocurrency expert Sabrina Coin also defends. She explains that it is necessary for the person to study the cryptoactive market and, thus, will be able to identify possible scams more quickly. “The cryptocurrency market won’t make you rich overnight and, having that in mind, you won’t fall for scams”, he advises.

Coin also argues that cryptocurrencies are here to stay, that they are already on a path of no return and will allow for more forms of payments than we already have, bringing decentralization to both the financial market and the government system. She warns, however, that it is necessary for investors, or futures interested in buying cryptocurrencies, to be cautious.

How to avoid cryptocurrency scams

As there are many scams, it is necessary to pay extra attention when it comes to investments in cryptocurrencies so as not to fall prey to criminals. Check out the main tips:

  • Be wary of promises of exorbitant earnings : the purchase of cryptocurrencies has to come from the person himself. No official sales outlet advertises offering cryptocurrencies, nor does it guarantee good returns.
  • Care of personal data : never provide your data to digital platforms that you are not familiar with or are not used to using. If you receive any contact or email requesting it, check the case with the company responsible for your portfolio. Also, similar to the brokerage platform you are used to investing in, check the logo, email address and avoid clicking on unknown links. When in doubt, contact your broker. False offers are often advertised by criminals.
  • Analyze cryptocurrencies that you don’t know about : study, get informed and check if a certain cryptocurrency being offered really exists.
  • Use antivirus : protect your cell phone and computer with antivirus, which end up working as a safety net to protect you from dangerous access on the internet.
  • Beware of downloads : make sure the developer is trustworthy, pay attention to the app’s recommendations, as well as the requested permissions. Thus, it is possible to avoid the risk of intrusion and data theft.
  • Get to know the market : getting informed, exchanging experiences and studying is fundamental for anyone interested in investing in cryptocurrencies. Otherwise, the investor may be susceptible to scams.
  • Invest safely: when buying cryptocurrencies, always look for the main asset sales platforms, which are already well known and used in the market. Furthermore, it is recommended to search for the most known and traded cryptocurrencies, such as bitcoin and ethereum , for example. For those who are more familiar with the cryptoactives market, but are already used to variable income on the stock exchange, there is another way to safely invest in cryptocurrencies, which is through ETFs, such as HASH11 . With it, it is possible to invest in cryptocurrencies directly at B3, without having to search for specific brokers or third parties.

One thought on “Cryptocurrency scams: know the main ones and learn how to escape from traps

  • June 12, 2022 at 11:11 pm

    Thanks for this useful information about cryptocurrency scams,,nice one


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