What Is Bitcoin?
Bitcoin is an entirely digital currency. It’s not backed by any bank or government. Rather, the total value of all bitcoins in circulation is what differentiates it from traditional currencies, and what it can be used for. This cryptocurrency is earned through “mining” by solving mathematical problems. These can be very difficult, so there are computers dedicated to doing them.
This type of mining is what makes bitcoin valuable and also what gives it its online nickname: “mining.” That said, bitcoins are used as payment, in some cases.
Section 2: What Is Ethereum?
Ethereum is a decentralized platform, similar to bitcoin, with many of the same characteristics.
How Bitcoin Fraud Works
The most popular form of cryptocurrency scams involve convincing victims that the cryptocurrency investment they’ve been promised won’t be released unless they provide a “digital wallet address” and a private key. The information is then used to transfer Bitcoin or other currencies to an account controlled by the scammer. When they take their fees, or sell your investment for an amount that doesn’t make them any profit, they can vanish without a trace.
The site Blue Moon, for example, claims that it will release 6,000 coins for $1.4 billion.
Avoiding Bitcoin Scams
First things first, you must take care of your identity. Know your personal online footprint, including your online accounts, billing and payment information, and any records of financial transactions, like any debit or credit card purchases or withdrawals. Confirm that the business you’re looking into is legitimate before you link to any payment or personal information. You can do this by signing up for sites that keep track of internet service provider addresses. If you notice any issues, be sure to report them to the site or change your online services.
Once you’re sure that your source is legitimate, find out how to actually acquire the cryptocurrency in question.
Conclusion
No matter your age or investment experience, when you have your guard up, you’re much less likely to be victimized by online scams. That’s why it’s important to know how to stay safe. By following the tips shared above, you’ll ensure that you’re protected against hacks and keep your wallet up-to-date.
Dexter Buys and Sells Cryptocurrency
Weiss Ratings recently analyzed the buying and selling habits of professional traders in the cryptocurrency space. As part of their research, they reviewed trading data from 54 cryptocurrency hedge funds and cryptocurrency brokerages in North America and Europe.
According to their analysis, cryptocurrency traders are using a combination of strategies.