Is Crypto a Scam or Legit?
There are so many crypto scams, that we don’t wonder why so many people ask us, “Is crypto a scam?” There can be a huge confusion about who’s responsible. This is further complicated by financial exerts expressing skepticism about cryptocurrency. They claim that cryptocurrency doesn’t have any real-world value outside of the hype it creates.
However, this is a circular argument–meaning it assumes what it’s trying to prove. Statements like that assume that the whole purpose of crypto coin is to generate hype, attract buyers and ultimately dump the asset to cash in. This is the behavior of crypto scammers. However, not all cryptocurrencies are created equal.
For instance, stablecoins are levered to real-world assets, such as fiat currencies and commodities. Even though some stablecoins are fake, it isn’t true that no cryptocurrencies are connected to anything of value in the real world.
Why Many People Think Crypto Is a Scam
Aside from actual schemes that are designed to rob people of money, many–ordinary people and experts alike, feel that cryptocurrencies are inherently fraudulent. In other words, they don’t think it takes a bitcoin scam to steal funds—they believe crypto is a scam because they assume that digital money has no value.
There are many ways in which cryptocurrencies differ from traditional money. They aren’t issued by a central bank or regulated by a central authority. However, since they have to be mined through a complex process, cryptocurrency is scarce and can’t be counterfeited–two properties that determine that something can be considered a currency.
So cryptocurrency has to be mined through computer operations and can’t be counterfeited That makes it seem as if crypto is not a scam. What about the fact that it’s unregulated?
The answer is this is about to change. Many governments are passing regulations to govern cryptocurrencies and the blockchain. Also, Central Banks are releasing digital versions of fiat currencies. This flies in the face of the conventional idea that cryptocurrencies are inherently in violation of financial policy.
Increasingly, governments and individuals are realizing that cryptocurrencies are here to stay, and the notion that crypto is a scam is increasingly being challenged.
Crypto Doesn’t Rob People, Crypto Scams Rob People
Ironically (or appropriately), at the same time that governments are considering regulating and adopting cryptocurrencies, the number of crypto scams is flying out of control. It’s easy, then for people to conflate crypto with scams.
However, it’s important to emphasize that it’s not cryptocurrencies that rob money from people. It’s the actual crypto scams that rob people.
If crypto is a scam, why would major credit card companies accept bitcoin as a payment option? Why would central banks release their own form of fiat-currency backed cryptocurrencies? Why would regulated brokers allow cryptocurrency trading? There is no reason why legitimate brokers, companies and governments would be involved in crytpocurrencies if crypto is a scam.
What Is the Difference Between a Real Crypto Deal and a Crypto Scam?
Now that we’ve established that crypto isn’t inherently fraudulent, how do we tell the difference between whether a crypto company is a scam or legit?
It’s important to familiarize yourself with different types of crypto services and to distinguish legitimate from fraudulent companies.
There is a variety of crypto services including:
- Crypto Trading
- Bitcoin wallets
- Crypto mining
- ICOs (Independent Coin Offerings)
The following is a guide that will help you determine real from fake crypto opportunities.
Crypto Trading
Crypto brokers and trading are among the most common cryptocurrency services. A real cryptocurrency trading opportunity will involve a regulated broker with a solid reputation. A legitimate crypto broker won’t use aggressive marketing tactics or spam you by email, phone, or Whatsapp. They will be transparent about who they are, where they are located, and what licenses they have. In addition, the terms and conditions will be clear and make sense.
However, the following are signs of a fake crypto broker:
- No license
- No transparency about identities or location
- Aggressive tactics
- Evasive about granting withdrawals
- Poor communication
- Many verified bad reviews
- Flagged by regulators
Bitcoin Wallets
Virtual wallets are places to store cryptocurrency. They should be secure and hack-proof. It’s important to be careful before purchasing a bitcoin wallet. Avoid the following:
- Aggressive tactics to encourage you to download a certain crypto wallet
- Not available on a traditional app store
- Lacks high-level security features
- Someone else holds the data and keys to this crypto wallet
Crypto Mining
The way cryptocurrency is made is through complex mathematical problems solved by computers. Most people can’t solve these math problems, and so they invest in bitcoin mining rather than trying to do it themselves. You can stay safe investing in crypto mining by doing the following:
- Check the credentials of the company
- Look for a license
- Find independent media reviews of the company
- Insist on transparency including names and locations
What If You’ve Already Lost Money to a Crypto Scam?
It’s important to be prepared before committing your funds to cryptocurrency services. However, what do you do if you’ve already lost money to a bitcoin scam? Fortunately, a bitcoin chargeback is possible if you have experts on your side.
Don’t go it alone. Contact Broker Complaint Registry as soon as you suspect that you are dealing with a crypto scam.
Lost Your Money to a Crypto Scam? Speak to Broker Complaint Registry Today!
If you think you’ve lost money to a crypto scam, request a withdrawal or refund. If you are not given your money back, contact the Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports, and will assist with fund recovery efforts.
