Here Are Some Top Controversies About Investing In Bitcoins

With famous coins like Bitcoin and Ether skyrocketing in value recently, more potential investors, buyers, and Holders are attracted to the field than ever. The thing is, so are the criminals. So are the scam artists, the Pump N’ Dump groups, and the hackers who’ll go any lengths required to scam you out of your valuable digital assets. It is important to consider all the risks associated with crypto, so that you can make the most out of your investments.

So, is crypto a safe investment to deal with? First, let us help you explore the term ‘Safety’ in cryptocurrency. By the term ‘Safety,’ it is not simply implied that the investors are guaranteed to profit based on their investment in cryptos. Considering the volatile nature of cryptocurrencies, there’s always a chance of losing your investment or at least incurring a net loss.

In regards to that, you should be aware that the world of crypto is rife with hackers, criminals, and scam artists, which is why the financial investors always need to take the proper precautions.

The Answer: A Resounding Yes!

Surprised to hear it? Not even the expert assumptionists can guarantee that there aren’t risks with crypto. It is no doubt cryptocurrency crimes are rising steadily day by day, according to data from sources like the Federal Trade Commission. However, one good news is that there are ways to counter almost all of them.

Rather than giving you a vague description of how and why we’re diving into detail. The following section will focus on the most considerable safety risks associated with crypto and how you can protect your valuable digital assets from them:

Scams Involving Fake Cryptocurrencies

What the risk Is: These are the most common types of scams. Suppose you’ve signed up for crypto news sites or trading platforms. In that case, you’ll see emails and even phone messages offering to double or even triple your holding if you pay an agreed-upon amount in crypto to an anonymous wallet. According to the FTC, asking for payment in crypto is a sure sign that you’re being scammed.

How You Can Avoid It: Even if you disregard the FTC’s advice, it’s bad practice in general to accept unsolicited offers related to crypto. Do your research before making any offers, and only trade on trusted platforms like Coinbase or thecryptogenius.io, a fast-rising crypto exchange trusted by millions.

Being Hacked or Digitally Compromised

Remember when we said crypto crimes were on the rise? In regards to that, there always remains the chance of getting invested assets or cryptocurrencies hacked. Even large exchanges aren’t entirely impervious to this, and if you’re storing coins on an exchange account, they’re going bye-bye if the exchange is compromised.

Now, to avoid such unwanted situations, you need to follow basic crypto security procedures. Instead of keeping your assets on a hot wallet (an online wallet), it is advised to store most of your assets on a cold wallet or follow up with the traditional offline method. Also, it is advised not to keep funds remaining on an exchange account.

Be Aware of The Pump N’ Dump Schemes

The risk is: While not as common as the other two, Pump N’ Dump schemes are still somewhat typical. A core group of scam artists pumps crypto that doesn’t see much traffic with a significant investment, falsely driving the price up. When other people, noticing the crypto’s sudden rise in popularity, pour their money in as well, this core group sells their assets much higher than they bought them for.

In regards to that, any coin that has risen in price noticeably without any apparent reason undeniably holds the risk of being a Pump N’ Dump scheme. In such cases, you should watch out for what you invest your money at.

Conclusion

At the end of the day, it is no doubt cryptocurrency has become simple, inexpensive and quick money making strategy. This has led the world of crypto has reached to unexpected lengths and heights that no financial investor could have predicted.

If you feel like showing interest in the cryptocurrency money opportunity, to invest, make sure you follow up with all the mentioned above important factors cum crypto-safety practices and deal with the overall subject accordingly.

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