What Are the Cryptocurrency Malpractices That You Need to Be Aware of?
Be aware, that someone out there is looking to rob you of your hard-earned money!
Since the first day these digital coins have been introduced, cryptocurrency scams were in there. There is a risk attached to it of fraud and loss. Blockchain technology is meant to be safe. Every node present on a blockchain network is working for the security of users. Still, the hackers manage to bypass the security.
There are billions of dollars lost due to hijackers and hackers. Every year people lose millions of dollars due to security breaches and hacking. There are numerous security protocols in place. Still, blockchain technology like any other technology is not completely risk-free.
Through this article, you are going to learn and identify various scams that have happened to people throughout the years. Before pointing out the scams and frauds, check out the list of all risks involving cryptocurrency. So, without any further ado, let’s get to it.
Risks involving cryptocurrency
The risks of cryptocurrency do not only involve fraud and theft. There are numerous other risks in the cryptocurrency market. If you have a woocommmerce payment gateway selected as cryptocurrency, you should be aware of the risks. If you are using usdt payment and used payment methods, then the list of risks is for you. The risks of cryptocurrency are:
- Irregularities in the rules
The rules and regulations for cryptocurrency are not specified and are very irregular. There is always a high risk involved if the rules are not specified for anything. Especially for monetary exchanges.
- Volatile market
The cryptocurrency market is too volatile. You can gain a lot in moments. You can also lose everything in a matter of seconds.
- Tax regulations
Tax regulations are unspecified for cryptocurrency. In some countries, cryptos are considered to be an asset, whereas, in other countries, it is still considered money. The uncertainty makes it a risk factor.
- Unclear market trends
The market trends of cryptocurrency are unclear. Unlike forex trading, cryptocurrency is too volatile. There is no way to understand the market concept for cryptocurrency.
- Cyber-security attacks
The major risk in the cryptocurrency market is cyber-attack. The hackers can own your blockchain and you may lose everything within seconds. Numerous cases have been seen where hackers looted billions of dollars from the cryptocurrency market within seconds.
Malpractices you need to be aware of
Now that you know all the risks mentioned above that are related to cryptocurrency. Now, you are specifically going to know the malpractices that you should be aware of. If you are known to the word malpractices, you are more likely to be safe from cyber-attacks. Let’s see what they are.
- Giveaway
Giveaway scams are the most common cryptocurrency scams. You should be aware that no legitimate giveaway would ask you to send your coins first. There are some real giveaways too. You should know the difference.
If a person or an organization is asking you to send some coins so they can give away free coins to you. There is a possibility of a cryptocurrency scam. Always keep in mind that. You should always be cautious about the social media messages of giveaways. Sometimes the pop-ups on your web pages are also a scam.
Even if you see a comment section on a social media platform about free giveaways, never fall for that. They are fake or bot accounts. Always be on high alert.
2. Mobile Apps or Webpages
Another cryptocurrency scam is fake applications or web pages. Always be cautious in downloading third-party apps. Never open a link that you are unaware of.
Sometimes the apps are made just for malpractice and hacking. When you download it, everything seems normal. However, on the other end, the hacker is getting all your information. Also, if you ever get an ad for an app for free giveaways of crypto, never download it.
The same goes for web pages. Never open a link saying free giveaways. That is just a scam or malpractice. Always be aware of what you are doing if you are using a blockchain payment gateway for your business.
3. Ponzi Schemes
Cryptocurrency is a volatile market. If someone is showing you high-profit returns, be aware that it is a scam. There is no way or guarantee to find out exactly what kind of profit or return your investment would give. If someone is giving you a certain investment opportunity, it’s a red flag.
The same goes with a pyramid or Ponzi scheme. A firm or organization exists that requires individuals to involve more individuals and so on. The top coordinators get all the profits and perks. While other individuals just recruit more people and lose their own money.
How to avoid cryptocurrency scams?
Follow the following points to be safe from cryptocurrency malpractices.
- Never give anyone advance money for free giveaways.
- Only scammers promise high returns on investment.
- Never invest in cryptocurrency unless you do your research.
- Never open an unidentified text or a link.
- Never use unidentified third-party apps for cryptocurrency sales and purchases.
- Never invest in acting on the advice of someone online you just met.
- Always use a secure and versatile blockchain network for your woocommerce payments.
How to report if you are scammed?
You have already got to know about all the possible scams and you should always be on your guard. Be alerted so, you never get scammed. However, if you are already scammed besides all your awareness, here’s how you can report it.
- Open the link reportfraud.ftc.gov and report the scam.
- You can report the scam to CFTC and SEC by these links:
Final Thoughts
The cryptocurrency market despite all the efforts is still an insecure place. You can lose millions of dollars in seconds. The only way you can avoid getting scammed is if you are always on your guard.
Always make sure to do your research before investing. Never fall for free giveaway scams. Avoid opening unidentified links or applications. If you follow everything like this, your chances of falling prey to cryptocurrency malpractices become zero to none. Be safe!