Cryptocurrency Trading: Minimize the risk
Whether you are an experienced Bitcoin user or just now getting involved in the cryptocurrency world, scams should be something you watch out for; constantly.
The anonymity that Bitcoin provides to its users is also the essential element needed for con-men and scammers who would like nothing more than to get their hands on your Bitcoin with very little risk of ever getting caught.
Bitcoin Trading is for everybody
Bitcoin offers a wonderful opportunity for people to make small initial investments. The ability to buy Bitcoin at such low thresholds allows those with little to no experience in currency trading to dive right into a very volatile and sometimes hostile world of market trading.
The experience can be overwhelming at first and even after you have been trading Bitcoin for a while, the excitement, profitability potential and overall atmosphere of the Bitcoin world can cause you to miss some of the obvious signs that a scammer has you in their sights.
The excitability caused by the rapid fluctuation of Bitcoin’s value can make some people get excited and anxious, causing them to be a bit too impulsive and trusting, leading them to getting scammed more often than not.
To be safe from getting scammed, here are some very important things to remember.
Bitcoin is anonymous. Once you send it, it is gone. There is no bank to issue a stop-payment; no credit card company to simply reverse your charges. When Bitcoin is sent, it is sent by you to another individual directly, with no middle man whatsoever.
You will have a wallet address, which is nothing more than randomly generated numbers and letters that the receiver of bitcoin must give to the sender. Once the bitcoin is received, that wallet number may be used again, or discarded and another one created instantly, all without the receiver risking any of their Bitcoin and more importantly, their identity.
This makes tracking Bitcoin transactions near impossible. There are no identification requirements and you do not even have to use your real name. This being said, here are the best ways to make sure that you do not get scammed:
- Know the person you are dealing with and trust them. Whenever possible, do business with trusted parties only. Remember, if it sounds too good to be true, you can bet that it is.
- Utilize the services of a licensed or very well respected escrow until the transaction is completed in both directions.
- Avoid using payment services such as PayPal, Venmo, Google Wallet or other online wallet services. Scammers love online wallets since it is very easy for the sender to pay for bitcoin, receive it and then dispute the charges. These online wallet services almost always side with the sender and will reverse the charge without even asking you or giving you any warning.
- Stop and Think! Take a minute to review the offer, transaction terms and the overall situation. If something does not seem right or there are questionable elements to the deal, ask questions or get clarification. If the other party is acting in a truly legitimate sense, then they will have no issues with you doing this. If you are dealing with a scammer, you can be sure that they will be in a hurry, avoid answering you directly or in very vague terms.
Conclusion about the safety of Bitcoin Trading
The key to being safe while trading Bitcoins starts with you. Make sure you have as much information as you can. Never go into any transaction with questions or doubts. There is a ton of information online that can help you to learn bitcoin and how to stay safe while trading Bitcoin. Staying safer from scams is the best way to realize the most profits possible.