How to spot a bitcoin scam
Some may still be skeptical of bitcoin, but most of us have experienced its incredible rise, its devastating plunge, and its steep climb. Despite all this volatility, there are still people investing in it with patience, the appropriate knowledge, and a sound strategy. If you want to learn more about bitcoin, read this guide to learn all you need to know about the cryptocurrency. This guide is part of the Cryptocurrency Investor Guide.
Please note: Bitcoin scams are very hard to identify with certainty, as bitcoin price movements can be incredibly erratic. Therefore, they are hard to show on graphs like the one below.
Cryptocurrencies and ICOs
It’s possible for cryptocurrency scams to surface even in the crypto space. An infamous example is the notorious Mt. Gox exchange. When Mt. Gox collapsed in 2014, US$450 million worth of bitcoin went missing, leading to the collapse of Mt. Gox and, eventually, a bitcoin price crash. On the bright side, cryptocurrency scams are often small in scope. It’s possible that these scams would have gone unnoticed or unnoticed by an investor in 2017.
But even with smaller scale scams, just like with any other investment, there’s still a need to be wary of scams. Here are some important crypto scams to watch out for.
Regulations and scams
Until the FCC delivers final approval of the plan, states will continue to regulate. Some states, such as New York, passed laws against bitcoin-related scams and speculation. Other states, like Hawaii, are watching regulations closely and considering their own.
Where to learn more
Coin Center has an excellent web portal that breaks down all of the potential cryptocurrency regulations. The website can also provide information on regulations in other countries, and some other websites offer in-depth analysis. For example, the Miami New Times has run an in-depth investigation of virtual currency and what it means for law enforcement, consumers, and business owners.
After carefully considering what kind of cryptocurrency is right for you, considering the kind of cryptocurrency your business can benefit from, and understanding the benefits of blockchain technology, your cryptocurrency journey has begun. Now you just need to pick the right option, whether that’s bitcoin or another one. As with everything in life, there’s never just one way to do something, so be creative and flexible.
Above all else, your cryptocurrency journey starts with a question: What’s in it for me?