cryptocurrency Trading Risks


Knowing the risks of investing in cryptocurrency

The entire virtual currency market reached a capitalization of nearly $2 trillion dollars in just 12 years. By the end of 2017, the price of a single bitcoin was $13,889.99.  The suit accused the individuals who ran them of fraud, misrepresentation, and misappropriation of bitcoin.

Is cryptocurrency high-risk? Yes, it can be. Criminals eye digital currency because it promises instant profit. Law enforcement authorities in every major country are constantly on the alert for crypto scams in general and bitcoin scams in particular. They are the most dangerous cryptocurrency trading risks. 

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Bitcoin Scams Are Inventive

Quite literally, operators of bitcoin scams think of everything. Want to commit suicide? There are Facebook pages advertising poison pills you can order by paying in bitcoin. Apart from the brashness and ghoulishness of it, the pills are fake. The bitcoin scam wasn’t. It was real. And the bitcoin that was paid (and lost) was also real.

Since 2015, moreover, cryptocurrency has become the payment of choice for kidnappers. Since then, bitcoin ransom has been demanded by kidnappers in at least 12 countries as the price for freeing their hostages.  

Pump and Dump Crypto Scams

What made Pump and Dump especially viable for crypto criminals and especially dangerous for crypto investors was the glut in under-sold bitcoin alternatives (there were 45 of them by the end of 2017). By the way, speaking from his own experience, Belfort called cryptocurrencies “a wolf in sheep’s clothing.” He added that initial coin offerings (ICOs), the gateways for new cryptocurrencies, were “the biggest scams ever.”

Bitcoin Scam Investment Clubs

They may be popular, but the only ones who profit from online crypto “clubs” are the criminals who run them. Their sites certainly look legitimate. They’re sure to feature photos of satisfied members who claim they made megabucks by trusting the hidden cryptocurrency pros who stand behind the curtain.
But the last time you see your assets will be when you hand them over to these bitcoin scams.

Crypto Scam Exchanges

Fake cryptocurrency exchanges are easy to find. This type of crypto scam is all over cyberspace. They are especially dangerous for first-time investors, who will find it hard, if not impossible, to distinguish fake exchanges from legitimate ones. In December 2017, Korean authorities closed down one of them, BitKRX.

It purposely misrepresented itself in order to provide itself with a veneer of legitimacy. A fake exchange is a very useful front for a bitcoin scam.

Fake Wallets

No crime fits cryptocurrencies as well as fake wallets, do. “Altcoins” are bytes of data, rather than metal. Therefore, owners have to park them somewhere online in a “digital wallet.” Innovative criminals with good marketing skills set up their own crypto scam digital wallets.

The operators of the fake digital wallet fade into the digital sunset. Another ideal venue for crypto scams.

Social Media Crypto Scams

Victims had to be found and suckered into the crypto scam before it was too late. And it turned out to be a very successful bitcoin scam. The scammers walked away with 12.5 bitcoins, then the equivalent of $121,000.

Not bad for one night’s work. They lost out on another $278,000 because an alert cryptocurrency exchange intervened to prevent it.

Ponzi and Pyramid Schemes

Needless to say, most cryptocurrency investors acquire digital currency because they believe that their investments are going to appreciate in value at a rapid pace.

So why would someone offer you a higher interest than the market currently bears? The most obvious answer is that the offer is a red light for crypto scams in the form of a Ponzi or pyramid scheme.

Lost Money?
find out How Our Scam Detection Services Can Help You

We begin with consulting thoroughly with clients and getting an idea what happened in their case. We ask for documents and details about the case so we can get started with crypto investigation. We apply advanced technology, including software usually available only to law enforcement, bitcoin forensics and a thorough database for scam detection. 

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How You Can Get Started on the Bitcoin Recovery Process

Is bitcoin recovery possible? Yes. Is there any government-run bitcoin recovery service? No. Can Globaltradeassets assist with bitcoin recovery? In most cases, yes.

Can Globaltraceassets assist me to recover my funds from a bitcoin scam? In most cases, yes. Is there such a thing as cryptocurrency chargeback in general or bitcoin chargeback specifically? No, at least not yet, although under certain exceptional circumstances you can obtain a chargeback if the crypto you thought you bought using a credit or debit card was never supplied.