Bitcoin and other cryptocurrencies have been gaining more popularity and attention as days roll by. Besides being a great investment opportunity, cryptocurrencies have numerous other advantages. People have been enticed by their anonymous nature and also easy overseas transaction power. Additionally, they are used to book flights, purchase gift cards, book hotels and purchase property. There are no ways for third parties to intercept, track or even identify Bitcoin transactions. Transaction fees are generally lower compared to credit cards transactions or PayPal. All this are great reasons on why we should adopt Bitcoin.
Although we enjoy all this pros in using Bitcoin or other cryptocurrencies, like every other business, you should be cautious. Since cryptocurrencies are decentralized and unregulated, The decentralization of Digital currency has made scammers to take advantage and many incidents of scam cryptocurrencies have happened.
Due to these fraudulent activities, some law firms now specialize in cryptocurrency litigation. Law firms are involving themselves in order to help victims. Lawyers now can get involved if cryptocurrency has been used to launder money, evade taxes, hide assets or even a case of fraudulent ICOs .Besides, they can also get involved if any laws have been broken in relation to cryptocurrencies.
Tips to Avoid Scams
There are a couple of things one should do in order to avoid scams in the cryptocurrency business. Here are some of them:
- Do a due diligence- research is very important when investing. Just like any other investment, before you splash your cash read and dissect a ICOs white paper. Make sure you’re working with reliable people. Take time and learn about the whole company and their whole team.
- Ask questions- if you have any concerns about the company, just ask for clarifications. Legitimate firms will always offer help to potential clients.
- Discuss risks-legit firms are always clear on the risks. Scammers will always give you very unrealistic and hefty guarantees.
- Be vigilant-most of us are have maybe heard about cryptocurrencies for the first time. The fuss about its value is attracting a lot of potential users. Many people get scammed by being promised unrealistic prices.be on the watch for exchanges that promise offers that are too good to be true. They probably are.
- Ask about withdrawals- affirm that is trustworthy will always be clear and transparent about withdrawals. Discuss the fees involved, time frames and any other relevant information.
- Strictly use trustworthy sources-use hardware wallets that store your private keys. Hardware wallets are more secure from hackers since they are offline gadgets. However, some hackers sell hardware gadgets that have a way in for them to access your cryptocurrencies. The best way to avoid this unpleasant surprise is to purchase gadgets only from trusted sources.
The law can somehow protect cryptocurrency users but the best protection is avoiding scams. It is best to shield yourself rather than seeking help from law firms. Taking the above measures not only does it save you money and time, but also provides you with essential knowledge on cryptocurrencies.