Crypto Academy Season 3 Week 6 Homework Post for (@yohan2on) Crypto Scams and how to avoid them

in SteemitCryptoAcademy2 years ago

We know that fraud in the cryptocurrency space is quite common. The professor talked about scams in the cryptocurrency space and how to avoid them.


What are Crypto scams?

Cryptocurrencies have many advantages for people. The traditional financial system was freedom-restricting and had many disadvantages. Cryptocurrencies will soon replace traditional finance. However, cryptocurrencies are not very common yet. There are many issues that need to be dealt with. For example, cryptocurrency scams are quite common from the very beginning. There is no solution for this yet. Fraud will decrease as investors and interested parties become more aware. However, the scam in this industry is impossible to end.

In the cryptocurrency ecosystem, we can call the deception of investors by various methods, cryptocurrency fraud. Fraudsters make this attempt by taking advantage of some features of cryptocurrencies. Its decentralized structure makes it easier for malicious people. They're also getting harder to catch. It is very difficult to present enough evidence in case of any complaint.

There are many methods that malicious people use when cheating. Now I will talk about the most common ones.

Fake Websites: Scammers create fake websites that are very similar to the original website. When you log in to the fake site, fraudsters learn your login information. They gain access to your assets on the real website and can steal your assets. Therefore, it is necessary to check many times before logging into the website. In addition, you should not log in through search engines. Scammers advertise on search engines so that fake sites appear at the top.

Fake mobile apps: Scammers install fake apps on Google play, App store to deceive cryptocurrency investors. According to researches, thousands of users have been victimized by downloading fake applications. Before downloading mobile applications, it is necessary to thoroughly research whether they are real or fake. There is no need to rush while doing something in this industry.

Fake social media updates: Everyone will remember that Twitter was hacked last year. The scammers defrauded people by taking over twitter accounts such as Bill Gates, Joe Biden, Justin Sun, CZ, Binance and sending fake tweets.

Scam emails: Scammers use email to defraud investors by mentioning a new opportunity. Also, scammers send emails by impersonating cryptocurrency exchanges. They leave a link in the email and ask you to click the link. In this way, they get a lot of your information.

Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)

Fake mobile apps:

Fraudsters who create fake apps try different methods to defraud investors. I talked a little bit about fake app scams. I will now refer to the news as we talk about this scam.


Over 10,000 People Have Downloaded Fake Cryptocurrency Apps

According to a 2017 study by the website, more than 10,000 people downloaded fake cryptocurrency apps. Indeed, many people have suffered from this situation. Not only unconscious users, but also conscious users fall into this trap of this fraud method.

Fake cryptocurrency apps uploaded to Google Play and App Store are shown as real by some methods. It is downloaded thousands of times by scammers and the app is given high ratings. The fact that it is downloaded many times and has a high rating misleads investors in this regard. Investors download the app. They lose their login information to scammers or try to make cryptocurrency transfers using the app. He cannot transfer because he is trapped now.

Fake cryptocurrency mining Android apps steal $350,000 from users: How to know if the app you using is scam


As you can see in the news above, fraudsters have developed fake mobile applications. They stated that users will be mining through this mobile application. According to the research, more than 170 Android applications were detected. 25 of these applications were uploaded to Google Play, and the application was removed from Google after complaints. About $350,000 of users were stolen before the apps were removed.

Fake mobile applications are the easiest, most popular and professional method by fraudsters to deceive investors. You should be very careful before downloading the fake mobile app about cryptocurrencies. After researching it thoroughly, you should download it and then use it.


To what extent have Crypto scams affected the Crypto space?

Cryptocurrency scams have hit the cryptocurrency market pretty badly. We know that new investors are nervous about this risk before they enter the sector.

Investors who are confident in being defrauded enter the cryptocurrency sector, while insecure investors prefer to stay away from the cryptocurrency sector due to the risk of being defrauded. Therefore, it prevented the increase in market value. In order for the sector to develop more, grow more and reach more people, its market value must increase. This is achieved by integrating new investors into the sector.

Scammed users are starting to move away from the industry. No one wants to stay in an industry where they have been scammed. Some users have lost all their assets by being deceived. The scammers manage not to get caught because they hide it well.

Cryptocurrency opponents use this as leverage. As it is known, there are many people who are interested in cryptocurrencies. There is also a certain group that is anti-cryptocurrency. This group denigrates cryptocurrencies by specifically mentioning the risk of fraud. However, there is something they should know. Fraud exists in every industry. Fraudsters in the cryptocurrency industry are a little harder to catch.

The cryptocurrency industry has a bad image due to cryptocurrency scams. We must all work to correct this bad image.

Foundations can be established by trusted people to prevent cryptocurrency scams. If enough funds are provided to the foundation, the fight against fraudsters can be achieved. If an effective fight is provided, more investors will contribute to the cryptocurrency sector.

Users who will enter the sector should be informed as much as possible. Users should be educated about this issue. For example, I learned more about cryptocurrency scams by participating in this course assignment.


Will regulations in Crypto add value to the Crypto space?

We can say that regulations in the crypto space will determine the future of cryptocurrencies. It is important for what purpose the states and organizations will make the regulations. Will they make arrangements by considering the benefits of the users? Or will it be aimed at preventing the growth of cryptocurrencies?

Regulations to be made by considering the interests of investors and users would be very beneficial. However, no one would like to accept the regulations that will be made to control the cryptocurrencies or to prevent the sector. Such regulations add no value to the crypto space.

Everyone has different ideas about regulations in the Crypto space. Cryptocurrency opponents say that drastic measures should be taken in the face of regulations. In the face of very drastic measures to be taken, the sector will experience a period of confusion for a long time. The value of the market gradually decreases. High taxes prevent investors from investing. Nobody wants to work in this sector by paying high taxes. Cryptocurrencies will take a long time to develop. However, he will be able to overcome this obstacle.

In fact, regulations in the crypto space go against the spirit of cryptocurrencies. Because cryptocurrencies are in favor of one hundred percent freedom. It's hard to talk about one hundred percent freedom in a restricted, blocked, regulated industry. In my personal view, the goal of governments is to take full control of the cryptocurrency industry.

How beneficial would it be to take full control of the cryptocurrency industry?

By placing a limit on leveraged transactions, users can be avoided from risky transactions. This can be quite useful for the user. Because highly leveraged transactions are not much different from gambling. The restriction on this issue is beneficial for the investor.

It is not possible for us to monitor some transfers in cryptocurrencies. Scammers or malicious people use such cryptocurrency projects. Therefore, it is very difficult to catch them. Such projects can be blocked.

The high tax in the crypto space drives investors away from the industry. It reduces the market value. There is talk of very high taxes in some countries. High tax is a big risk for the investor.

It can impose heavy penalties on fraud in the crypto space. Such penalties will minimize fraud in the crypto space.

As a final word, I want to say this. Regulations that respect user benefit will add great value to the cryptocurrency industry. It allows more users to enter the sector. The market value of the sector increases. However, regulations aimed at restricting cryptocurrencies hinder the growth of the sector. It causes investors to withdraw from the market. Cryptocurrency sector regains its former power after regressing for a while. I think it is very difficult to prevent and destroy cryptocurrencies in today's technology.




Hi @tht

Thanks for participating in the Steemit Crypto Academy

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This is good work. Well done with your research study on Crypto Scams.

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