Connect with us

Exchange

How to Identify a Cryptocurrency Con Game

Published

on

How to Identify a Cryptocurrency Con Game

Cryptocurrency has taken the world by a storm revolutionising financial institutions and payment systems. However, Cryptocurrencies have also become the target of fraudulent characters who target crypto users. There are different ways these fraudsters dupe crypto users of their money. It is, however, imperative that you know what these scams are and protect yourself from them

Signs You are about to Fall for a Heist

There are telltale signs that you are about to be the victim of a crypto scam. You can identify these signs by looking out for the following;

  • Is the website secure? You have to ensure that any crypto website you log into particularly for payment has an address that starts with “https” instead of “HTTP”. If this is not the case then the website is not secure and any data you send to the website will be compromised. 
  • Sometimes, scammers duplicate a website or crypto product and you might be on a scam website. You have to ensure that the website’s URL is free from spelling and grammatical errors as this can be a sign that it is a scam.
  • What does the website say? Most often scam websites do not have an “About us” page and details about the people behind the company can be shady. For instance, when you check for the names of the company’s founder, you might not find him anywhere on the internet or find out he is associated with shady dealings. That is a sign that you shouldn’t invest in whatever the product is about. Legitimate cryptocurrency projects are usually transparent about their founders, investors and people involved in the project

Sometimes scammers take the time to ensure they cover their tracks properly. Times like these, you just have to trust your instincts and check out for any red flags.

Crypto Pitfalls to Avoid

Now that you know how to check for cryptocurrency scam alerts, you need to know the common crypto scams and how to avoid them.

Ponzi, pyramid and MLM Schemes

A Ponzi scheme promises investors huge returns. But the truth is that Ponzi schemes pay older investors from the investment of newer instors. It is a typical example of robbing Peter to pay Paul. So long as there are new investors a Ponzi scheme will pay its investors. Convinced that the scheme is legit, investors who have received their payouts will convince newel investors in. These investors will pump in their money into the scheme and sooner or later, the scheme collapses and the founder is nowhere to be found.  

On the other hand, multilevel marketing (MLM) schemes claim to sell a product but to earn from the scheme you have to bring in more people. You earn from your downlines. So you might end up advertising a product to your family and friends who might earn nothing from the so-called product.

To save yourself from falling into the hands of fraudsters, always ensure that you avoid schemes that promise outrageous returns. Also, be on the lookout for cryptocurrency projects that promise to give you profits for introducing new investors to enjoy bigger profits.

Fake Wallets and Exchanges

So many exchanges exists and a newbie in the cryptosphere can easily fall prey to fake exchanges and wallets. These exchanges bear all the markings of a real and legitimate exchange but they are out to cause harm to unsuspecting users. Most of these exchanges have even been found on Google play store making them look like legitimate apps.  A typical example is Poloniex which had duplicated apps hoping to swindle unsuspecting users. They almost succeeded as they had gotten 5,500 downloads before it was flagged down by Google.

Once you download these fake exchanges and wallets, they can steal important account details or restrain you from retrieving your money. To be on the safe side, read reviews about wallets and exchanges before downloading them. Also, do not download random crypto apps from Google Play. Ensure that the apps are well known, trusted and have real people behind them and not shady characters.

Phishing
A more familiar scam is Phishing.  Scammers send you unsolicited emails that look like they were sent from you bank and a click will take you to a site that once you input your account details they can log into your real account and cause devastating damages. To avoid phishing scams, you have to ensure to double check URLs before proceeding to click the link. Protect your private key and never disclose it not even to someone who claims to be from the exchange.

While this is not a full checklist of crypto-related scams they are very common. You have to ensure that you protect your self from falling a victim. A lot of persons have fallen prey to scam crypto projects. In April 2018, more than 300,000 investors lost a total of $660 million to an MLM scam called Pincoin and iFan ICOs. Equally, in January 2018 Bitconnectwas criticised for being a Ponzi scheme and promising investors 40% returns.

Do you know anyone who has fallen victim to a crypto scam? Have you noticed any suspicious crypto product? Share your opinion with us in the comment section below.

Image credit: Pixabay

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

Spread the news
Advertisement
Comments

Altcoin News

Binance to Support IOTX MainNet Token Swap

Published

on

The IOTX mainnet token swap to be supported by leading cryptocurrency exchange, Binance. The crypto ecosystem giant made this known via its blog.

Withdrawals will be suspended from the 15th of January, 2020 by 0:00 AM (UTC) pending till the token swap is completed.

IoTeX describes itself as an open source platform, building the Internet of Trusted Things, where all physical and virtual ‘things’ — humans, machines, businesses, and DApps — can exchange information and value at global scale. It was founded in 2017.

Binance also revealed it will handle all technical requirements involved in the swap process for all users holding the IOTX token in their Binance accounts.

Whenever even after the mainnet migration a user sends ERC-20 IOTX tokens to Binance, Binance guarantees the tokens will be converted to the mainnet IOTX and the user will not be able to withdraw the ERC-20 IOTX Tokens after the swap.

We will make a separate announcement after the mainnet swap is complete to notify users when withdrawals for IOTX (native coin) will open, Binance concluded.

In November 2019, IOTX revealed via a blog post the roadmap it intended to follow in ultimately bringing staking/voting using the IOTX token to its mainnet.

In the post, it gave a summary of schedule for staking/voting using the IOTX token.

Iotex

Mainnet Alpha (Apr 2019 – Oct 2019): staking on Ethereum using IOTX-E (ERC20) only

Mainnet Beta (Nov 2019 – Q1/Q2 2020): staking on both Ethereum and IoTeX using IOTX-E (ERC20) and IOTX (Native), respectively

Mainnet GA (Q1/Q1 2020 and on): staking on IoTeX using IOTX (Native) only. Note: all existing votes/tokens on Ethereum will be automatically converted to IoTeX

IoTex also stated that exchanges with IOTX-E currently listed will at their own different time perform official token swaps to IOTX (native) currency throughout Q4 2019 & Q1 2020.

The Internet of Trust Things platforms also stated that the final cutoff to swap IOTX-E to Native IOTX will be announced in Q1 2020.

Spread the news
Continue Reading

Exchange

Binance Futures to Launch LTC/USDT Perpetual Contract with 75x Leverage, To Add Most Top 20 Cryptocurrency Soon

Published

on

Binance has revealed it will launch a perpetual contract on the LTC/USDT trading pairs.

The contract will offer traders up-to 75x leverage and it’s expected to be open for trading by the 9th of January, 2020 at 08:00 AM (UTC).

In order to avoid market manipulations, the platform will implement a pricing limit of ±1% on the mark price within the first 15 minutes of trade commencement. 

Hours ago, the fifth perpetual futures contract was also launched with the EOS/USDT pair. This commenced trading with between 1-75% leverage and also set a pricing limit of ±1% on the mark price within the first 30 minutes post trading commencement. 

CEO of Binance also made it known via twitter that it will soon add on the Futures platform most of the top 20 cryptocurrency on coinmarketcap. 

 

 

Binance Futures was launched and went live in September, 2019 after a beta test. The platform allows traders to take future contracts on various cryptocurrency listed on the platform.

Speaking on the technology powering the platform, Binance said “Binance Futures leverage trading is powered by a sophisticated risk engine and liquidation model that delivers fast results to users, including many safety features that serve to protect them as much as possible.”

According to Binance, within the first two months of launch, the Binance Futures platform had reached an all-time high (ATH) daily trading volume of more than 370,000 BTC an equivalent in USD of $3 billion as at today. 

The ecosystem giant has reiterated its priority to protect its customers from losses. To this effect it offers stop-loss orders, take-profit-limit orders and several other options to close a position before the point of liquidation. 

Binance Futures aims to bring sustainable crypto-based futures trading to the industry so that users feel safe even when dealing with potentially high risks.” – Binance

 

Spread the news
Continue Reading

Exchange

Binance Acquires Decentralized Application Platform DAppReview

Published

on

Binance, a global blockchain ecosystem has acquired decentralising applications platform dAppReview. DappReview is the leading information and analytics platform for decentralized applications.

Binance through the acquisition of DappReview will support DappReview to further develop the dapps ecosystem and foster greater blockchain adoption.

Founded in February 2018, DappReview has become a platform for decentralized applications exploration and guidance with over 300,000 active users monthly spread across 9 dozen countries. Over its short time since inception, it has become the platform of choice for Dapp developers helping them to introduce their dapps to its global userbase.

According to Binance, DappReview will maintain its independence in technical development and operation, and Binance will offer support in non-technical fields including marketing and business development. DappReview will release a new suite of products in Q1 of 2020.

Speaking on the acquisition, Binance CFO Wei Zhou was quoted saying “On-chain applications are still the missing piece for mass blockchain adoption. The DappReview team has shown its commitment to dapps and strong execution in building a leading global dapps platform within a year of establishment. Binance and DappReview share a mutual goal of driving blockchain applications,”

The acquisition is part of Binance’s consistent efforts in building a robust global blockchain ecosystem. This isn’t the first acquisition in recent time. Less than a month ago, Binance in November acquired India based cryptocurrency exchange platform WazirX.

The acquisition of DappReview according to Wei Zhou , “ marks a significant step into the dapps ecosystem, and we will have more exciting developments in the near future.”

The mission of DappReview is to build a vibrant dapps ecosystem and boost mass adoption of blockchain. Apart from dapps analytics services, we also provide full packages of support for dapps developers from fund-raising, product development to marketing and promotion,” said Vincent Niu, Founder and CEO of DappReview.

The acquisition according to DappReview will empower it with more resources to accelerate its business growth while it aims to partner with more blockchain protocols and developers on dapp data integration, and push for the adoption of decentralized applications on a global scale.

Image: Binance

Spread the news
Continue Reading

Exchange

Binance now Allows Customers to Freely Transfer Crypto Between Themselves  

Published

on

Leading global cryptocurrency exchange Binance has launched a new feature that allows its customers to easily transfer funds from account to another within the platform.

The feature which doesn’t charge users transaction fees for transfer works by having a customer initiate withdrawal as normally done and inputting the address of the receiving account however, the address must be from the Binance platform.

The transfers are made without having to require any block confirmation thus it ensures quick and seamless movements of crypto assets between user accounts on the platform.

For transactions which requires the use of MEMO, Binance said users are expected to include the correct memo/tag/payment ID else the transferred funds could be lost and it may not be able to recover it. Internal transfers without inputting the MEMO will be rejected.

Since each transfer internally is between customers and there is no block confirmation, Binance disclosed that there will be no TxID instead, what will be displayed to customers will be “Internal Transfer“.

Binance has continued to make the use of its platform easy for its customers by offering various features, upgrades and products. Few weeks ago, it upgraded its Buy Crypto page allowing its customers to easily purchase and cryptocurrencies with just a few clicks using various fiat currencies.

It also acquired an Indian based cryptocurrency exchange with its unique matching engine WazirX which it has integrated into its platform allowing Indians to purchase cryptocurrency on Binance with the Rupee.

According to Binance, the internal transfer function can now also be enabled and disabled via API.

Spread the news
Continue Reading

         

Find Us

Address: 7 Kafi Street, Beside City Mall, Shoprite, Alausa, Ikeja, Lagos.

Hours: Monday—Friday: 9:00am–5:00pm

Contact: +234 817 866 6900

Trending

Copyright © 2019 Cryptoptvplus. Powered by Ma media