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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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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

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New DoJ Ruling May Cripple Gambling dApps

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A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

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7 Steps to Recovery from a Crypto Trading Loss

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Whether you are a newcomer to the crypto market who mistakenly invested a large amount into the wrong coin, or a professional that made a well-researched decision and something still went wrong, the result it the same — you lost your money to the crypto market. This is a big problem, but also a problem that every crypto trader faces at some point.

The reason may be anything, from simple bad luck to the lack of research. Add to that the fact that the crypto market continues to be extremely volatile, and it is clear that not all of your trades are going to end up successfully.

Whatever the reason is, the fact remains that you experienced a loss and that this is a problem which can affect more than your funds. It can also affect your mind and feelings. Since every successful trade that you have the potential to make in the future depends on you, you have to recover first, and only then should you worry about the funds.

The road to recovery is different for everyone, and it will take a different amount of time and effort. However, there are a few general steps that you can take to recover from a crypto trading loss.

Step 1: Stop and calm down

You have just suffered a major loss. It may have been your mistake, or…

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