What is a scam in the context of cryptocurrency?
For active users on the Internet, the term scam is often used to describe a number of different deceptive practices. Unfortunately, the booming cryptocurrency industry is not completely immune to scams, despite some security mechanisms, and they’re just as prevalent there as they are elsewhere.
Again and again, for example, individual traders want to sell coins that do not actually exist. A popular scam is also to promise the sale of coins and not to deliver in the end.
How can Internet users protect against scams?
In order not to become a victim of such a scam, cryptocurrency prospects and Internet users should deal carefully with respective businesses. Often times, Googling the name of the currency in order to find out if it actually exists is enough to determine its legitimacy.
In addition, purchases should never be paid in advance, nor should money be transferred to an unknown account if only the promise of delivery of coins exists.
Collecting your own information is especially important when the offered exchange rate is exceptionally good – there is likely a catch in the matter. Secure means of payment with insurance are also highly recommended.
There is always a residual risk of falling victim to a scam in term of dealing with the cryptocurrencies. However, if some basic rules are followed, this can be significantly reduced. These rules include doing your own research, visiting the provider's website, and talking with friends and other trustworthy investors.