In the Wild West of cryptocurrency there have been many that has lost their hard earned money. It’s harsh to tell anyone that’s lost anything that the blame is solely theirs. I feel bad for anybody who ignored the golden rule and invested more than they should of, and/or invested in something they should of researched more about. In this post I’m going to share some stories that hopefully will somewhat educate new investors looking to jump on the cryptocurrency bandwagon.
Exchanges
It’s no rules no regulations at the moment in the art of trading can be compared to a buried alive match. Fishing sites looking near identical are responsible for stealing thousands of traders logins and passwords, be wary always check the URL some of these fake sites look identical at first glance. Some unfortunate people have seen deposit disappear never arriving. Hackers have come up with creative ways using malware that are being infected through pop ups and emails that actually change the btc addresses so subtle its almost can go unnoticed as you send it out. To top it off exchanges hold the power in there own market some possessing the largest bitcoin wallets there is. Exchanges themselves have been hacked and to be honest I haven’t heard of one that hasn’t been hacked already.
Some scammers imitate online support convincing investors there’s issues with there current wallet and offers a new address where they’ll hold the coins safely. I’ve also heard them acting as brokers giving unbelievable exchange rates which to good to pass up and often use gimmicks like “promotional or limited time offer” to further entice the victim.
Hard wallets
Now owning your own hard wallet is a great idea it gives you the security of holding all you coins offline, off the exchanges and off your computer. I read a story regarding the ledger Nano someone who purchased a used but relatively new condition for a bargain price from eBay. Now with any wallet there are a phrase sequence that act as the back up for the wallet and for the first few days was fine everything they put on the Nano was there. A few more days goes by and the proud owner decides to check his or hers wallet and was horrified to see everything gone. What probably happen was the seller of the Nano after about a week backed up the wallet to their computer and proceeded withdrawing everything without notice or warning. Make sure if you buy a hard wallet it’s brand new from a reputable site like ledger itself or if you do buy from amazon or eBay make sure it’s new from a reputable seller.
These are some examples of just how easy anyone can get scammed or ripped off in the cut throat world of cryptocurrency. Be careful do your homework and best of luck to everyone involved
