Are Internet Scammers Giving Cryptocurrency a Bad Name?
The BBC published a story about Dr. Ruja, the woman behind the famed OneCoin cryptocurrency which promised extraordinary returns for investors. Dr. Ruja who is currently on the run has bolted with the investments of thousands of people all across the globe who invested in her shady cryptocurrency called OneCoin. This investment amounts to several millions of dollars.
Ever since the advent of the internet, all sorts of scams has existed to rob people off their money. These scams come in many forms, ranging from online visa scams, relationship fraud to various types of gift redemption programs, where users are lured to landing pages in order to harvest their credit card information.
The rise of cryptocurrency has brought on an added layer of scammers who are involved in various “get rich quick” cryptocurrency schemes.
These schemes come in many forms.
Promise of a new cryptocurrency:
These schemes are particularly popular in the crypto community. Every day, press releases are published social media and crypt forums on an upcoming cryptocurrency that will rival and surpass bitcoin and be the most widely used and accepted cryptocurrency.
People are then advised to invest cash into this burgeoning coin whiles they sit back and enjoy great financial returns due to their early investment.
Trading Schemes: Trading platforms that promise ridiculous returns. Or promising to sell cryptocurrency to users at a ridiculously cheap rate.
ICO Scheme: Scammers convincing the crypto community to invest in an upcoming Intial coin Offering (ICO) that has the potential of massive returns in the future.
And many more clever schemes to make money off unsuspecting users.
The general rule of thumb about these internet scams is that users need to be mindful of offers that sound too good to be true or any marketing promotions that requires bank details, personal information or card detail.
As a blog with the aim of championing the cause of the Blockchain and the various use cases for cryptocurrency in Africa, it is worrying to observe the rate at which many people associate cryptocurrency and Blockchain technology with fraud. This perception recedes the progress that cryptocurrency and Blockchain technology has made over the years.
The consensus is that cryptocurrency is used by unscrupulous people who are engaged in illegal dealings and have something to hide. Many people I’ve had personal conversations with about the importance of cryptocurrency are quick to point out to someone they know who have fallen a victim to cryptocurrency fraud.
To prevent these continued incidences of cryptocurrency fraud. All internet users must note the following.
Understand that the cryptocurrency industry is new
It is still early days in the crypto game. Some pundits have noted that cryptocurrency is where the internet was in its early stages (which is the 70s).
Hence it’s going through a phase where many people are making sense of the technology and how they can contribute various use cases to turn a profit. There’s is more ground to cover before cryptocurrency becomes widely used and accepted.
The use cases for Blockchain and Cryptocurrency are many and diverse ranging from Blockchain gaming to Law and Land Title Registration amongst others. Innovative entrepreneurs across the globe are providing various solutions via Blockchain Technology that can be helpful to it users. With every new technology, fallouts occur, product failure is a natural part and there is a level of turbulence before equilibrium is reached.
Don’t invest what you’re not willing to lose
The key note for many people who are eager to be a part of the cryptocurrency space is to invest amounts they are comfortable losing. Many currencies are still in a testing phase and there’s a likelihood of the coin going south.
It should be at the back of every investors mind that crypto is fairly risky and anyone who plays in the market stand the risk of losing all their investment.
Therefore its imperative to invest amounts that you’re comfortable losing.
Trade cryptocurrency on only well-known, trusted and approved sites.
Cryptocurrency exchanges come up day in and day out, whiles some succeed. Others fail. It is important to trade on well trusted and well known trading platforms. Be careful of sites that promise ridiculous sign up bonus and its aggressive on getting you to invest more.
Many other protection strategies exist and due diligence is required before making any investment.
