Cryptocurrency for Beginners

Cryptocurrency is any kind of currency in digital or virtual form. To protect transactions in cryptocurrency, encryption (or cryptography) is used. In other words, crypto is a digital form of cash. It allows a person to digitally transfer the equivalent value. It would be fair to ask here: “Why is this necessary if there are Internet banking and the same PayPal or Apple Pay?”. Indeed, such resources exist. BUT cryptocurrencies have many advantages over them. 

To make money transactions using traditional methods, you will definitely deal with intermediaries. All these systems belong to one or another organization. If you use crypto, then you are your own bank. You can use the free software to send funds directly to other users, without intermediaries. Cryptocurrency units (coins) are created during the mining process. This is a process in which the computing power of a computer is used to solve complex mathematical problems, as a result of which coins are generated. Users can also buy currency from brokers and then store and spend it using crypto wallets.

Over the years, many attempts have been made to create a digital money system. The first cryptocurrency was bitcoin, created in 2009 and the most famous to date. It was invented by a person or group of people using the pseudonym Satoshi Nakamoto. To this day, the true identity of the inventor remains unknown. 

Crypto Security Rules

Crypto security rules require careful control of assets by the user. There are many types of cryptocurrency scams. Many crypto fraud schemes are quite complex and look convincing from the user’s point of view. It is best to use the services of cybersecurity companies. 

To protect against cryptocurrency fraud, it is recommended to take the following measures:

• Protect your wallet. Cryptocurrency investments require a wallet with private keys. The request to provide key data to participate in a profitable investment transaction is most likely a scam. Keep your wallet keys private.
• Keep an eye on the wallet app. On the first transfer, send a small amount of funds to make sure that the application for working with a crypto wallet is legal. If you see suspicious activity while updating an app, stop updating and uninstall the app.
• Invest only in understandable instruments. If you do not understand how a certain cryptocurrency works, before making a decision to invest, it is recommended that you take your time and study it in more detail.
• Do not hurry. Fraudsters often use high pressure tactics, promising bonuses and discounts in case of immediate participation, in order to force users to invest funds faster. Do not rush.
• Do your own research. The most popular cryptocurrencies are not fraudulent. But if you haven’t heard of a particular cryptocurrency, research it: find out if there’s a white paper and read it, find out who hosts it, how it works, and find reputable reviews and testimonials about it. To avoid being scammed, check if it is on an up-to-date, trustworthy list of fake cryptocurrencies.
• Don’t be fooled by an overly tempting offer. Companies that promise guaranteed profits or instant riches are most likely scams. If an offer seems too tempting, proceed with caution.

If you have been a victim of a cryptocurrency scam

Cryptocurrency scams can have disastrous consequences. It is necessary to act quickly. Especially if you disclosed personal information.

Cryptocurrency scammers often sell their data to other cybercriminals. To prevent further damage, it is important to change the usernames and passwords for all accounts. 

If you are the victim of a crypto scam on social media, you can report it on the respective platform. Depending on your country of residence, you may be able to report fraud to the appropriate authority in your jurisdiction. In the USA it is the Federal Trade Commission. There are similar organizations in other countries.

It is also important to contact your bank immediately if you:

• Made a payment using a debit or credit card.
• Made payment by bank transfer.
• Provided your personal information.

Today, dealing with cryptocurrency is a very correct decision. Taking care of the safety of your funds is the first step that should be taken in this direction. Fraudsters are always looking for new ways to steal users’ money. Be careful and approach the issue of security with all responsibility.