Scams are everywhere, but blockchain technology and cryptocurrencies have made them more prevalent by making financial instruments such as money and stocks difficult to steal. But what if these worlds collide? Now imagine breaking your leg in the middle of a huge hiking trip that leaves you stranded miles from medical supplies and you have been warned about bears all along. If you had chosen to invest in cryptocurrencies, would that situation have left your life worse off? Find out how to avoid cryptocurrencies scams!

 

How to Avoid Cryptocurrencies Scams

 

Cryptocurrencies hit the world stage in the form of Bitcoin in 2009 and this has lead to a surge of cryptocurrency scams. There are many reasons why cryptocurrencies are getting hacked including human error, hackers, and fraudsters. The most common traps that people fall into when talking about cryptocurrencies are to talk up their project without proper evidence or money to fund it and also claim that it will outperform Bitcoin despite there being no proof to back-up their claims. The internet has given rise to cryptocurrencies. The growth of cryptocurrency has made it possible for fast and easy ways to fund a person or organization’s needs or wants. With so many benefits, it is completely understandable why someone would want to purchase cryptocurrencies. However, the problem comes when the person does not entirely understand what they are buying into or when they market themselves as a “safe option.”

 

Top 5 Ways to Spot a Potential Scam

 

One of the most important things to consider when investing into any cryptocurrency is a company’s reputation. Another thing to keep in mind when it comes to cryptocurrencies is that it’s not just about investing; many companies enjoy buying, selling and trading them for profit. There are plenty of complicated scams that avoid detection through cleverly written and detailed logos, websites and other advertisements. In 2018, there are many cryptocurrency related scams. Here are the top 5 ways to spot a potential scam:

-The promoter won’t show their identity

-The brokerage is a ‘one stop shop’ for all your needs

-The site has no white paper and no code listing

-Their answer doesn’t make sense; “it’s a secret trading tool” or automatic dividends made multiple times per day Learn more about the cryptocurrency trading scene by checking out these five tricks to AVOID potential scams. The cryptocurrency market has given scammers plenty of material to work with, like pretending to chat on Telegram and asking for information that is already on Wikipedia. Don’t be fooled by them!

 

Why a Member of Congress is Advocating for More Government Regulation

 

The Chairman of the US House Committee on Foreign Affairs, Congressman Richard Roskam, is promoting for more governmental regulation of cryptocurrencies as part of his plan to defend against any scams that exist. These scams could not only alter the American economy, but also put regular users into dangerous situations.

 

Is the fear of taxes enough to prevent losses?

 

Thieves often use the fear of taxation to steal your cryptocurrency. Unfortunately, it might happen to you even if you’re technically not doing anything wrong. You’ll be lured into believing some false stories about how potentially taxable profits are possible; and luckily, taxes don’t apply until you sell or exchange what you own for fiat. If something doesn’t seem right, just remember that cryptocurrencies aren’t federally regulated yet, so there could be a risk in using them

 

When Should You Invest in Cryptocurrencies?

 

There are now three main reasons why you should invest in cryptocurrencies. The first reason is that the value of a cryptocurrency is skyrocketing, unlike any other investment with a long time to maturity and it could be too late to buy bitcoins, litecoins and other digital coins once they start to go up. Another one is that cryptocurrencies are safer than equity investments as they are based on blockchain technology which makes it difficult for data theft or money laundering. Finally, the government institution in highest power in different countries will not accept them because they keep causing massive tax evasion problems.

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