How to avoid scams
1. Never send money to people you don’t know personally.
2. Read through the company’s description. Are you getting a straight answer? Are there any red flags you should be aware of? Are there any internal posts that are not a direct answer to questions you ask, or are there any reference to something that you didn’t ask? Are the company’s internal procedures also visible to the public? Check social media to see what the company has to say about its team, culture, and direction.
3. Double-check their claim. Don't send money if you don’t feel comfortable with the company or its team. Check with a friend or trusted partner about their impression of the company, and also verify the company’s claims and their story with their website, or a private source that is familiar with the company.
What are the best ways to research companies?
Check out their Facebook profile:
By setting up your Facebook page and getting active on the social media site, you can have a close look at who is posting. A good profile shows all sorts of details, like background information about a company and all the team members. However, don't just type the company name into the search bar. Use specialized tools to dig deeper and find more information on a particular company. Here are a few options to try:
Search. The biggest online database of startups is CrunchBase. It's also one of the oldest and most comprehensive sources of information on cryptocurrencies and blockchain companies. Unlike many other major tech websites, CrunchBase doesn't create a search function.
Who is on the other side of the Facebook posts?
Are you communicating with somebody you know? Or somebody who doesn't exactly look like the usual people you interact with? What about their friend list? If they're a company, ask for more details about the people you’re dealing with, or check their About page to see if there are any red flags you should be aware of.
Will you receive a refund?
Are you buying something for real or for scam? How quickly do you want a refund? Do you need to mail a check or use a money transfer? Know exactly how the company will handle your transaction, so you can stop contacting them if it's not working out.
Bitcoin isn’t likely to replace government-issued currencies anytime soon, but the rise in use of bitcoin and other cryptocurrencies will likely continue to grow. Financial experts agree that cryptocurrencies present a positive effect on the world of finance, making it simpler for people and businesses to conduct transactions without the meddling of banks.
If you’re curious about the idea behind cryptocurrencies, the best way to learn more is to learn as much as you can about bitcoin and its competitors. The more you know about blockchain technology, the more secure your money will be, and the more likely it is that you’ll be able to access the internet and communicate with the rest of the world without fear of being scammed.