Bitcoin has been in the news again, as its value reaches new heights and then suffers great setbacks. This renewed flurry of interest in crypto markets is sure to inspire cryptocurrency scams to seek new victims who want to try their hand at trading bitcoin and other digital assets. We’ve prepared some tips to help you spot these scammers.
There’s No Such Thing as a Sure Thing
Crypto scammers will try to convince you that they’ve got a foolproof way for you to make money. Whether they’re trying to sell you on a bitcoin trading scheme, or get you to invest in their coin offering, they will promise that big profits are coming your way.
The cryptocurrency market is still very young, and very volatile. Bitcoin has made huge gains since its inception, but it has also suffered catastrophic losses along the way. And trading platforms are littered with coins which promised to be “the next bitcoin” or even “better than bitcoin”, only to end up being worth a fraction of a penny, with no trading activity to speak of.
Anyone who tells you that they can guarantee you big returns on a crypto investment is lying to you.
The Cryptocurrency Market is Risky
Because of its volatility, the crypto market is incredibly risky. The people who have made big money in the market have done so because they were willing to take a risk. Smart investors and traders never invest more than they can afford to lose, because they know there are no guarantees.
Beware anyone who tells you that the opportunity they are offering you is risk-free. Cryptocurrency scams will lie to you about the risk, and pressure you to invest more and more money into their scheme. Some victims have lost it all by mortgaging their homes, clearing out their retirement accounts, and convincing their family members to invest as well.
Scammers Will Try to Confuse You
In order to conceal the fact that they are offering you a fraudulent investment opportunity, scammers will couch the details of the offering in opaque language. It is not necessary to have a complete understanding of blockchain technology in order to invest in the crypto market. However, you should be wary of investing in anything where you don’t understand the mechanics of how the money is generated (or where the mechanics bear a strange resemblance to a pyramid!).
Help is Available for Victims of Cryptocurrency Scams
If you have already fallen victim to a crypto scam, do not give up hope. Help is available! At Claim Justice, we have experience with a variety of scams, including those involving digital assets.
How likely you are to get your money back depends on what form the scam took. If you paid with your credit card or a bank transfer, the process will be similar to any other bank transfer or credit fraud case. However, if you paid with bitcoin, it may be difficult. We do know how to recover scammed bitcoin, but sometimes it is not possible to get this money back, as just like cash, it is difficult to trace and return.
Contact us today for your free consultation.