Common Scams with Cryptocurrency
People often fear Bitcoin as some Ponzi Scheme or Scam because, quite often we come across these incidents. We see on the newspapers, on television about people getting arrested for scamming common people by promising them assured returns on cryptocurrency.
Today, I will discuss some points which you should consider before investing in any crypto project or coin. This might not sound flashy, but trust me it will help you to better manage your funds.
Companies Promising Guaranteed Returns
Always be extra cautious when someone tells you about fixed rate of return every year when you invest in their scheme on cryptocurrency. No one, not even the industry experts can promise assured returns on Bitcoin, Etherium etc year on year. Be sure to double check before investing in these type of companies. Never trust people who promise you assured interest rates. It’s quite likely that they will loot money from users and do something shady with it.
Bitcoin has value as people believe it to have it. It’s an asset and not any currency. We can’t say it’s legal or not because in India, we don’t have any regulation yet. Government is yet to pass a bill on crypto. If you are buying crypto, make sure you trust the company which is selling it and has a market reputation. Go with big names like Binance, WazirX, BitBNS etc. They have a daily trading volume of more than $6 million, which makes them a bit more trustable than local people promising you assured returns.
Promising to be the next Bitcoin
Many crypto projects have already failed because they tried to become the next Bitcoin. Bitcoin is not comparable to any existing project in cryptocurrency. If you have no idea about crypto, then it’s safe for you to go and buy some Bitcoin by yourself. In the market, you will find many companies claiming that their project will be the next bitcoin. Always run from these people, don’t put your savings in these companies.
Recently, Twitter CEO bought $477 Million as an asset in Bitcoin. If these big people are believing it to be the future then you really need to think twice before calling Bitcoin a scam. Every single nation in the world is working on some tokenised project.
No plan of action
Some projects have no plan of action behind their token. They simply think that it would go up in value. Never invest in those coins. They are most likely to be a scam. Every token has an utility and their price goes up if it does it’s intended job properly.
If you need any more help you can get to me on Twitter anytime.