Currently make increasingly rumors about Scams in the crypto-Space, the round. Exit Scams, lost Bitcoin exchanges and pyramid schemes are the most common Traps for gullible investors. These are the things you should note.
By Phillip Horch
12. July 2019BTC$11.671,00 0.08%part Facebook Twitter LinkedIn xing mail
If the easy money beckons, should already ring the alarm bells. Bitcoin Investments with daily dream yields are a maximum for clever Trading is possible, once a company is involved, you have to watch is already on. Three of the most common Scams in the Kryptoversum and how you can protect yourself from them.
Of the pyramids, snow balls and a MLMs – traditional Fraud schemes
pyramid or snowball systems, there is not only for Bitcoin. The mesh is always the same. Is promised the big money, the others nothing stays the same most of the time. The business model is constructed in the form of a pyramid. When you recruit some friends, get money as soon as they invest in the System. Which the same is promised. This is a fraud avalanche, which is like a snow ball rolling down the slopes, becoming larger arises. What you get often concealed: The original operators from the needles-usually the largest part of the return. The gullible investors, expand the System then constantly and pull out of greed and gullibility mostly friends and family in the thing. And all for some narrow gains. The losses, be they social or economic in nature, are usually much higher than the gains. How can you protect yourself? Finger way. Anyone who promises super-simple investment options and the big money, usually leads to no Good.
Furthermore, it is also always helpful to check the imprint: Where is the company that I now discuss a Deal? Can I reach you in case of doubt, where it is registered legally? What is in the terms and conditions, what rights I have to confess to the company, as soon as I sign up?
you Can’t answer even one of these questions insufficiently, or, in the worst case even, should you lay your money under the mattress.
expert tip to crypto-Scams
attorney Benjamin cherry of the law firm of Winheller also recommends, subject to its relevant Supervisory authority to be smart:
investors, the move in the cryptocurrency area, should make sure that transactions only with regulated providers. Just exchange operators and providers, the promise, the money of investors to invest profitably, need to be in Germany, a permission of the Federal Agency for financial services supervision. This also applies to foreign providers apply, for example, on a German website to German citizens. If a company has a permit, on the website of the BaFin to take a look. Also, the permission of a foreign Supervisory authority, such as the Swiss FINMA is a sign that it is a reputable supplier.
by the Way: The so-called MLM, so Multi-Level Marketing, is based on a similar principle, however, is legal. It sets out that customers are learning to Sales. They differ from pyramid schemes, but in the sense that they must not give the impression solely on this principle to build up. But the ridge is narrow.
Exit Scam: And all of a sudden the money is gone
hurt was doing. While in snow ball systems still have a low prospect of profit, is encountered at the Exit Scam first hard in front of the head, especially in the crypto area. In particular, in the case of the Bitcoin trading places, one has to do it again and again with these Scams to: Crypto currency exchanges are at once accessible, customers can’t withdraw their money. A look into the imprint often leads to a letter-box in a South sea island, where the operators are sitting in fact, no one knows. And all of a sudden the money is gone.
South Park – „…and it’s gone“
watch This Video on YouTube.
This is done for example in the case of the canadian crypto exchange Quadriga, the Plus Token Team is currently under the (unconfirmed) suspicion of the customer funds out of the dust.
to protect against is, in principle, relatively simple: Let your crypto-currencies for more on a trading venue, as it is necessary. You have Bitcoin, Ether & co. purchased, and sends you the best on your Hardware Wallet. Here, the Maxim is one: he Who does not give his Private Keys eight, has no right to his Bitcoins. A further possibility is to use a DEX (decentralized commercial space). There, one enters directly into contact with other users, without the need for a middle man his Coins to confide in.
Pump-and-Dump schemes, or the art of Shitcoins inflate
Pump-and-Dump systems are like the little, spoiled step-brother to the pyramid schemes. Here, too, it is one to entice the other to outdo and ignorant in the case. In Online Chat groups of like-Minded people meet and agree to buy at a certain time, a certain crypto-currency. As a result, the price will be driven artificially high. It is hoped, in turn, to catch the attention of outsiders. This is enough to invest, because they smell strongly rising prices, get out the Pump-and-Dump people. Some of the few authors to win most of the time, the Rest looks in the crypto-tube. (More in detail here).
How to prevent Bitcoin fraud, and crypto-gangsters
You can emphasize this enough: Finger. Who wants to invest currencies in Bitcoin and other Crypto, you should inform yourself thoroughly. It is, as always: the basics of Bitcoin trading, heed, and never invest more than you are willing to lose. You should also be capital only in projects, which are to be trustworthy. Some of the tips we reveal here and here.
by the Way: In our crypto compass, we regularly deliver in-depth market analysis, there are currently free of charge – how to get it, and in addition, a competition (a promise, no Scam!) you can participate? Here along.
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