简体中文
ภาษาไทย
繁體中文
Indonesia
How to identify investment virtual currency scams? 4 ways to avoid cryptocurrency scams!
2022-03-22
2475
This article focuses on 4 ways to prevent virtual currency fraud.
1.Why is it easy to be scammed when investing in virtual currency?
The information of virtual currency is all stored on the Internet,and it is continuously verified by unspecified people to ensure that it cannot be tampered with.
The advantages of decentralization of virtual currency are that the information is open and transparent,the transaction is anonymous and confidential,no third-party intervention is required,it is not easy to trace,and the transaction is irreversible.However,these characteristics of virtual currency have also become a common tool for fraud groups.
2.How to distinguish investment virtual currency fraud?
Common virtual currency scams:ICO,OTC,fake exchanges.
1)Common virtual currency scams 1:ICO scam pattern
ICO fraud identification method:All ICO projects that need to be promoted by meeting,chatting on social software,and on-site briefings are all very suspicious.At present,there are other problematic projects in the market,which may not last for 2 years,so it is also a filtering method not to touch the newly issued virtual currency within 2 years.In addition,the complete white paper can also be found on the Internet,or the ICO will be listed on a well-known exchange,and the exchange will conduct an audit first,which is also a filtering method.
The full English of the word ICO is Initial Coin Offering.The original intention of ICO is to allow virtual currency to operate independently as a currency mechanism,and a feasible business model is provided to supporters through virtual currency issuance.
However,the lack of supervision and auditing of projects has caused the problem of mixed dragons and snakes.Many ICOs rely on marketing to gain people's trust and investment,but in the end they do not use the capital to realize the business model.
Many investors buy ICOs in hopes of getting a quick return,ignoring the risk factor.
ICOs are still not regulated by the U.S.Securities and Exchange Commission(SEC)financial authorities and financial institutions in various countries,so if they are defrauded,the funds may never be recovered,and everyone can initiate an ICO,and many scam groups will scam in the name of ICO.
Virtual currency is a product of the Internet age.In theory,everything should be carried out on the Internet.However,ICO projects with problems must be difficult to promote.Therefore,the promotion methods adopted are usually not in line with the Internet age,including the need for business.Meeting promotions,briefings,attracting people,etc.From the way of promotion,you can see whether there is a problem with a project.
Problematic cryptocurrency ICO projects are most often defrauded by fraudulent groups using the Ponzi scheme model.They recruit people to join the club and get high commissions.It is a typical pyramid,rat club,and Ponzi scheme.With the money of new entrants,go to The most famous Ponzi scheme of virtual currency is OneCoin(OneCoin).According to the figure below,it can be seen that China has the largest source of funds from January to June in 2016.In several Monthly time to attract about 4.2 million euros.
2)Common virtual currency scams 2:OTC scams
OTC fraud mode:similar to general online auction fraud.
OTC fraud identification method:OTC(Over-the-counter)transactions refer to transactions that are not conducted on official exchanges.
In fact,since virtual currency is decentralized,there is no so-called"official"exchange,and anyone can directly complete transactions with others through a computer.
In fact,the solution is to go through the exchange,but remember to choose a big exchange,if you choose an unknown exchange,you may still have doubts.
In recent years,there is also a scam group that will impersonate the social accounts of celebrities,and publicly ask everyone to use virtual currency to remit money to a designated account on the Internet,claiming that they will get feedback.
3)Common virtual currency scams 3:Fake exchange scams
Fake exchange fraud identification method:Fake exchanges usually use Line and WeChat as customer service,which is also a warning sign.Any well-known platform uses email or online customer service on the official website for service,and Line is rarely used.Or WeChat to do customer service.Fake exchanges usually freeze the account when the funds are sent out,not allowing you to send it out,or asking you to add a few percent of the tax to it.But any formal exchange,virtual currency can be transferred between different exchanges and wallets.
In many virtual currency communities,it is common to see someone posting,asking why its virtual currency account is frozen and the money cannot come out.
Most of them are unknown small exchanges.At first glance,there are quotations,which can be bought and sold,but money can go in but not come out.
When you want to withdraw,these fraudulent exchanges will also tell you that they want you to pay another 20%tax,or increase the deposit and how much transaction volume can be collected before withdrawing.
Thinking further,fake exchanges are usually difficult to promote,and they cannot be ranked on the Internet,and it is difficult for Google to search for more detailed information.At present,I have heard some victims mention that most of them still recommend exchanges to you after chatting through social groups,chats,and dating software.So don't sign up for exchanges through online chat,you can basically avoid this problem.
Well-known exchanges are easy to find on the Internet,and there is a lot of information.There are also a few counterfeit well-known exchanges,which are very similar in logo or appearance,causing confusion.Such counterfeit exchanges cannot be found on the Internet,and they are usually promoted through chat.
3.4 ways to avoid investing in virtual currency scams
To sum up,a few basic principles to prevent virtual currency investment fraud:
1.Use well-known manufacturers and services,including exchanges and wallets,and you should find world-renowned ones.There are many global exchanges,but it is recommended to choose the bigger ones.Everyone is very worried about security issues when trading virtual currency.The mutual exchange market has introduced the top 10 virtual currency exchanges in the world.In principle,they are not on this list.The exchange does not need to be considered.Can read:
Virtual currency investment teaching:what is virtual currency?What virtual currency exchanges and investment platforms are there?How to invest in virtual currency to make money?
2.Novices only invest in well-known virtual currencies.Don't touch those you haven't heard of or don't understand.There are a lot of virtual currencies.Basically,if you are a newbie in the currency circle,you should only touch well-known virtual currencies(such as Bitcoin,Ethereum),and understand that this is an investment with high volatility and risk.
3.Avoid believing in any offline or group promotion,virtual currency does not need promotion.As mentioned earlier,the most vulnerable to fraud is OTC over-the-counter transactions,which are basically not traded on safe and regulated exchanges.Don't think it's fun to have someone chatting with you on the Internet.In the end,when these people talk to you about investing,you need to be more vigilant.
4.Increase the knowledge of virtual currency.If you want to invest in ICO,you must first read the white paper.If you want to invest in virtual currency,please learn more about virtual currency.
4.Quick key sorting:How to invest in virtual currency without being defrauded?
Virtual currency has the characteristics of decentralization.The advantages are that the information is open and transparent,the transaction is anonymous and confidential,no third-party intervention is required,and it is not easy to trace.However,because of these characteristics,it has also become a commonly used tool for fraud groups.
Common virtual currency scams include ICO scams,OTC scams,and fake exchange scams.
If you want to avoid virtual currency investment scams,you must find well-known exchanges and wallets,don’t touch virtual currencies you haven’t heard of,and don’t invest in virtual currencies that others sell to you.
The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.
CM Trade
As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.
[Products]
The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.
[System]
2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate
[Service]
Comprehensive market news, professional market analysis, 7*24 hours online customer service
[Advantage]
Low cost, high leverage, flexible one-stop all day two-way trading.
[Authority]
Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.
Follow us to learn more
Free AccessDaily Trading Strategy
Download Now
CM Trade Mobile Application
Economics Calendar
MoreYou May Also Like
