What is crypto currency? It is an industry that’s attracting a lot of excitement and a lot of scammers as well. Here’s what you need to know and what you need to avoid. Crypto currency is an emerging technology and in time, it hopes to replace traditional money. Its major appeal is that it is decentralized, which means there’s no authority like a bank or government overseeing the virtual currency. The whole point is to have control over your money. For example, two people anywhere in the world can directly send each other money without a bank involved. The technology that powers crypto currency is called blockchain and has brought great innovations to our entire economical system!
Basically, it’s an extremely secure online database that is very difficult to tamper with. Rather than a central database that is vulnerable to hackers a blockchain database is distributed across many computers. With all these copies of the database circulating it’s incredibly difficult to manipulate or to take down the valuations for crypto currency. Companies can have a high value which is why there’s so much buzz surrounding it. But that also makes it a great opportunity for scammers like Sami Loyal, with there fake bait and switch on telegram!
To buy crypto currency you have to use real money and while you don’t have to deal with a bank you do have to deal with a third-party CRYPTO exchange platform. There are many examples of these exchanges closing overnight and losing people’s money in the process. Take Bit Connect for example, Bit Connect was once a very popular exchange that wiped out roughly two point five billion dollars in value after it shuttered operations after many accusations that it was running as a Ponzi scheme. Bit Connect said it closed because of bad press and repeated attacks on Twitter. You can also see crypto giveaway scams. Scammers will impersonate a well-known figure and then set up a fake giveaway using their name. They’ll impersonate someone like Richard Branson often copying the original Twitter account and then they will use the fake account to con people into thinking that Richard Branson is actually giving away crypto currencies online. Simple, just send him your money first. It seems totally legit until you realize your money is gone.
Some scams are even more elaborate. Scammers will create fake Twitter accounts to run coordinated disinformation campaigns all just to manipulate the price of crypto currency. John McAfee the man behind McAfee Antivirus software promotes different crypto currencies on Twitter all the time, looking closer at the post, there are two f ‘s in the fake account and the official McAfee account has only one F. When this fake account promoted a specific crypto currency people believed it and bought up the coin. On the communication app telegram, people were asked to promote the false tweet and were given exact times to buy and sell the coin. This is exactly what the pump and dump scheme is. Copycat scams are not unique to the crypto industry but they are particularly effective because crypto currency is still emerging. It’s full of uncertainty to avoid being tricked remember to check the URL of the website that you’re visiting or the username that you’re getting your information from. Telegram has a huge amount of scammers tied into it! Be careful out there!
Just make sure that you are investing in the crypto currency platform that you are going to use. Check the details and extensively review all information before you proceed. If it sounds too good to be true, it probably is. Bitcoin and other crypto currencies are getting quite expensive to purchase. It’s now a huge commitment of cash resources to get into the crypto currency market. Be safe and wise and hopefully crypto currency investing will treat you well.