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Crypto Traders Beware of Crypto Scams

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Cryptocurrency-related scams and hacks have grown to become one of the largest dangers when it comes to crypto trading in recent years. Scammers were interested in cryptocurrencies from the beginning, but their actions increased in number and sophistication exponentially after the crypto hype of 2017.  As a result, millions upon millions of dollars in crypto were reported stolen in the last few years.

At first, scammers were mostly targeting people through phishing attacks via email. However, their methods quickly evolved, and soon enough, they jumped on the ICO bandwagon. The situation has become so bad that crypto investors had to check, double check, and triple check every single investment, and even then they could not be certain that they are not being tricked.

Luckily, the ICO trend has ended, and not a lot of people willing to invest in random ICOs remain these days. However, numerous scams still remain fresh in investors’ memory. With that in mind, here are a few examples of some of the biggest and most damaging scams reported in recent years.

1. Phishing scams

As mentioned, scammers originally started tricking people through phishing attacks. The methods they used are relatively typical for this type of an attack, which was present on the web long before cryptocurrencies appeared.

The process is simple — hackers would obtain the email address of a crypto investor, and try to trick them into giving away sensitive information. A known scamming attempt is when scammers make a fake online page that looks exactly like a legitimate website, such as one belonging to a crypto exchange.

All that the scammer needs to do at this point is tell their victims that there is something wrong with their accounts and that they need to react as soon as possible. Of course, they would also provide a link to the fake page, on which the victim is expected to click and try to log into their account. At this point, scammers have obtained the victims’ login credentials, which they can use to access their funds. The same danger exists when it comes to hot wallets, which is why it is always advised that traders and investors pay close attention to the links they click.

2) Fake projects

Fake crypto projects have become almost a norm in the crypto world at some point. As soon as the crypto prices started rising, investors started buying more coins and investing more money. The scammers quickly realized that some of them would invest in almost anything without too much research, in fear of missing out on a great opportunity. Because of this, numerous fake coins rumored to be Ponzi schemes started appearing on the market.

One of the biggest ones so far was Bitconnect, which had its own coin, its own platform, and it looked real apart from the fact that it promised astronomical returns to all those who invest in it. The project attempted to attract as many users as possible through a lending program, where users were supposed to send their BCC coins to others in order to get them interested.

3) Scammers using celebrities to trick investors

While searching for better ways to quickly attract net investors, scammers quickly realized how much potential celebrities have when it comes to promoting their projects. Celebrities have millions of followers around the world, most of which are not familiar with cryptocurrencies and dangers that lurk in the industry.

As such, they are easy targets, and scammers soon partnered with many celebrities to attract these new investors to crypto, and their fake project in particular. The best-known cases of celebrities partnering up with fake projects include DJ Khaled and Floyd Mayweather. Of course, this does not mean that all crypto projects partnered with celebrities are fraudulent. Instead, it only means that investors need to remain careful when researching the project, no matter who supports it.

Obviously, caution while investing in crypto projects is of utmost importance in order to secure your funds and avoid being scammed. Each project needs a deep amount of research, as well as the team that is running it, as scammers often post made up credentials, and use stolen names and pictures.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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