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Cryptocurrency seemed to have been on the decline from 2017 until it came roaring back in 2020. During the early months of the pandemic, people in lockdowns were looking for new ways to spend their time and money online. Cryptocurrencies seemed like the logical choice for convenient transactions and a way to make some extra money trading.
Although many crypto deals advertised on social media seem to target novices with guarantees of huge returns, it is important to be cautious and do research before trading these risky digital assets. The number of crypto scams has increased dramatically over the past few years and many are almost indistinguishable from legitimate opportunities.
If you have lost money through a crypto scheme, seek fund recovery assistance to trace transactions through the blockchain and locate your funds.
Crypto Trace’s team of experts in the financial field knows what to look for when investigating brokers and how to spot early signs of problems. Consult our reviews if you want to work with a crypto broker but want to know if they are reliable and legitimate.
Like any other type of investment, it is important to do research and due diligence before committing any funds to a trade or a broker.
Bitcoin premiered as the first digital currency in 2008, and since then, thousands of new crypto coins have hit the market. You can choose from many publicly traded coins, such as bitcoin, ethereum, litecoin and solana. Of all of these types, bitcoin is the most stable, although compared to other types of investments it is still quite volatile.
Keep in mind that cryptocurrencies are a high-risk investment, and not like buying a blue-chip stock from a company that has been around for generations. Staying aware of risks before going in is the key to successful cryptocurrency investing.
Also remember that although hot new coins may be exciting, many of these fresh ICOs are not worth anything. If you want to get in on ICO action, invest only with a regulated ICO platform.
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Every cryptocurrency has a slightly different way it is valued and managed. Cryptocurrencies are mined through mathematical problems solved by computers. Bitcoin and some other cryptocurrencies set a limit on how many of these coins can be mined. This helps create value and demand for these crypto coins. However, ethereum works differently and uses decentralized contracts or “dapps”
Before investing in a type of cryptocurrency, calculate its market cap by multiplying the price of the coins by the number of coins. Look at the trading volume and the amount of money is paid for mining. The hash rate measures the efficiency of mining coins and making transactions. Also, another way to look at crypto valuation is to see how many addresses on the blockchain are active in a certain period.
Perhaps even more important than choosing a digital coin to invest in is to select a regulated broker with extensive experience in cryptocurrency trading. Look for a broker with a top-tier license from a high-profile regulator. Validate claims of licensing by checking the information on the regulators’ websites.
A regulated cryptocurrency broker will provide a wide selection of services, including the use of a crypto wallet to keep your cryptocurrency secure and safe ways to invest in ICOs and trade several types of cryptocurrencies. Once your money is with a broker you feel you can trust, you will be on solid footing for cryptocurrency investing.
The dark side of cryptocurrency trading is the number of crypto scams that have hit the market in recent years. According to CNBC, $7.1 billion was stolen in crypto scams in 2021, which was an 81% increase over 2020. The fact that 2020 was also a year filled with news about crypto scams is also sobering.
One way to stay safe from crypto fraud is to avoid trading with an unregulated broker or an unregistered crypto platform. Sometimes these fraudulent schemes can look like legitimate services. For example, a broker will have a license from a top regulator, but the license is expired, has been revoked, or is counterfeit.
The following are common types of crypto scams:
If you have lost cryptocurrency to a fraudulent merchant or broker or to any type of dispute, you may wonder if it is possible to get it back. Many people believe that fund recovery is not possible on the blockchain.
However, these are generalizations and are becoming quickly outdated. Investigators and law enforcement have been quite successful in unmasking scams on the blockchain. This was seen during the Colonial Pipeline ransomware affair. The FBI managed to find the people behind the hack and even retrieved almost all of the $4.4 million they demanded.
Investigators can use tracking software, information from cryptocurrency platforms, intelligence reports, and court orders for access to crypto codes and keys to discover who is behind certain cryptocurrency transactions. Then they can trace a trail of transactions and locate the money so it can be returned to the client.
Crypto Trace works with regulators and law enforcement by providing crypto reports and intelligence reports which gives them a full picture of the situation and clues to identifying who is behind the transactions. Crypto Trace experts also consult with clients and discuss fund recovery strategies that work.
Don’t go it alone. Crypto Trace experts have worked with numerous clients on crypto intelligence reports and have created successful outcomes. It is important to report Crypto scams immediately after they are discovered to improve the chances of retrieving your funds.
Consult with Crypto Trace experts today and provide a full account of what happened so we can get started drafting an intelligence report. The sooner we can help you, the more likely it is that your crypto broker complaint will have a positive outcome.
Reporting a crypto scam means having all of the communications available so Crypto Trace experts can get a full picture of how the fraudsters operate, what methods they use, what exactly they did and any hints they might have dropped regarding actual identities and their whereabouts.