Cryptocurrency such as Bitcoin, Ethereum and other altcoins are digital money without any physical existence. You can transfer cryptocurrencies to someone online but there will be no intermediary like a Bank or other financial institution. Although cryptocurrencies are meant for digital payments and avoid transaction fees and also for investment purposes, they are also used to commit frauds. We can witness thousands of Cryptocurrency scams and Initial coin offering (ICO) scams every year.
You might be aware of the Bitcoin boom when it became so much popular due to the continuous rise in its prices recently. People are getting more and more interested in Bitcoins and other types of cryptocurrencies but scammers have also used them as a means for committing frauds. There are cryptocurrency scammers and also scam cryptocurrency brokers who might offer you unrealistic returns on investments and fanciful proposals. Never trust a cryptocurrency broker if he:
- assures you of guaranteed returns
- promises you that he will double or multiply your money in a very short time.
- seems unregistered or unregulated broker with negative reviews
- continuously calls you and urges you to invest more and more money.
Many cryptocurrency scammers use your computer for mining cryptocurrency without your permission. This is done through some malicious codes sent to your computer and they get connected to your computer through it.
You should always have a thorough investigation about a particular cryptocurrency broker if you want to trade safely. Regulation, positive reputation and trust is required when you trade with a crypto broker. Read the website of the broker carefully and understand all Terms and conditions before you start investing with it.