When it comes to Bitcoin or any other cryptocurrency, the first thing that comes to mind is a lot of money and a lot of scams. You can call it a thumb rule: “Where there is money involved, you can be dead sure of scams.”
Today, we have a lot of investment opportunities, but unfortunately, most of them are frauds. You might have heard from several social media influencers that although we study in depth the subject of our choice in higher educational societies, we should also have a dedicated subject related to wealth management in our curriculum. We lack the necessary awareness regarding wealth management.
During the pandemic, many saw the growth potential of Bitcoin, and the adoption rate for it drastically increased. To date, Bitcoin is the most preferred cryptocurrency compared to the rest, and the rate of adoption is still increasing.
It is quite surprising that, post-pandemic, the adoption rate of Bitcoin drastically increased, not because of big players (whales), but due to small players (shrimps and crabs).
Amassing wealth is not a crime as long as it’s your own money invested; however, regardless of the popularity of the cryptocurrency, there are roughly 420 million crypto users around the world and roughly 45 million alone in the United States, as per a report in 2022.
It is depressing for a newbie to lose their hard-earned money in a crypto scam. In this article, we will try to educate you on securing your crypto and point out the red flags that are obvious to a seasoned crypto user but not to a crypto newbie.
Choosing the right trading platform
Several online crypto brokers and brokerage firms offer their services and trading platforms. Although there are several genuine crypto brokers and brokerage firms available, several scammers also host their fraudulent crypto brokers and brokerage firms.
It is important to choose a genuine one, as you can be sure that you are investing in Bitcoins and other cryptos instead of becoming a victim of an elaborate scam. It is better to choose a reputed crypto broker or brokerage firm, as they have their brand name at stake.
It is always wise to check the level of grammar used on their website. Stay clear of any crypto brokers or brokerage firms, if there are several grammatical errors or punctuation marks; the chances of them being made by scammers are significantly high.
Understanding the strategy to multiply Bitcoin
After choosing the right crypto broker or brokerage firm, it is also important to exercise trades to increase your profits. It is important to understand your style of trading, as it will determine your profit percentage.
Besides understanding your trading style, which is unique to every crypto trader, you also need to practice all the knowledge that you have amassed regarding crypto trading. And this is where the trading platform comes into play. A good crypto trading platform is user-friendly, fast, and has all the charts and graphs that a crypto trader might require.
Several reputed crypto brokers or brokerage firms allow a demo account that is identical to the “live” trading account. The only difference between the two is that the “live” version involves real money compared to the demo, which uses virtual money. So any profit or loss incurred by you during the trade will not affect your wallet. Only experience can be gained along with polishing off your trading skills.
Get-rich-quick schemes
Money is one of those important commodities that fuel your daily activities. You need money to buy a cup of coffee from a coffee shop or a bus ticket to go to your workplace; you might even own a car and need fuel for your transportation. Without money, our daily activities would come to a grinding halt. Everybody dreams of making a good amount of money to ease their financial goals and aspirations.
Bitcoin scammers understand this and have manipulated age-old Ponzi schemes, pyramid schemes, and other fraudulent schemes, adapted them, and entered the crypto markets.
They lure their victims into maximizing their returns by investing their Bitcoins. In reality, these scammers, with their fraudulent methods, will prompt Bitcoin users to download their apps on their victims’ devices. They will show false projections and convince their victims that they are multiplying their holdings. These scammers will then prompt their users to invest more of their Bitcoin. These victims will only realize that they have been scammed when they try to cash in their Bitcoins.
Investing in a good crypto wallet
With ever-mounting threats from the SEC trying to close down crypto exchanges, many crypto exchanges are going bust due to mismanagement of funds. The threat of frequent cyberattacks on these exchanges cannot also be denied.
You can always open up a new account with any crypto broker or brokerage firm, but why should you lose your hard-earned money to someone else’s mistake or greed? Thus, it is important to safeguard your crypto holdings by storing them in a hard crypto wallet.
You can find several hard wallets online. It is better to research and settle for one that will help keep your crypto holdings secure. As a newbie, you might find it complicated to use these wallets, but in the long run, it will help you a lot.
Several crypto brokers, brokerage firms, and exchanges offer their clients incentives for parking their crypto holdings. You might be tempted, but we advise you not to take this step, as we have already mentioned the apparent threats that relying on a crypto broker, brokerage firms, and exchanges face.
Conclusion
Besides having a good knowledge of the crypto market and gaining experience and skills while trading, securing your crypto holdings is also a good strategy.
While we take a good look at the current economic situation and the steps that are being taken by the government to ban cryptocurrency, migrating to a crypto-friendly country is also a good option.
Several countries openly promote cryptocurrencies and their usage for buying daily necessities. You can buy a cup of coffee using crypto. It is also wise to explore such options, as most of the traditional financial institutions are also going bust.
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Source: Vietnam Insider