Cryptocurrency
There are a lot of cryptocurrency scams, so if you find yourself stuck, contact us.
What is cryptocurrency?
Cryptocurrencies have become one of the market’s most attractive and volatile financial classes. Bitcoin as an investment has had one of the best results in history. Bitcoin was created when the severe effects of the Great Recession were first apparent. Bitcoin was created as a place of value and centre of commerce, a virtual currency with tangible hard assets to counteract money printed by central banks. Bitcoin is conceivable thanks to blockchain technology and decentralized information.
Three Important Cryptocurrencies
Bitcoin
Bitcoin is by far the most important type of digital currency, not only in terms of name recognition but also in terms of finding a home for itself in the financial world. Bitcoin frequently fluctuates between 55% and 65% of the cryptocurrency’s total market cap. Bitcoin received its first futures contract from the CBOE (Chicago Board Options Exchange) and CME (Chicago Mercantile Exchange) as an investment instrument in December 2017. Perhaps the most significant event of Bitcoin as an investment tool was in July 2020, when the US OCC (Office of the Comptroller of the Currency) allowed all contracted banks in the US to offer disruptive monitoring services of the cryptocurrency.
Ethereum
Ethereum is a second-generation blockchain and cryptocurrency. It is also the second most important cryptocurrency in the world. Ethereum is the most important “altcoin.” Altcoins are other cryptocurrencies than Bitcoin. While Bitcoin is the source of value, Ethereum is more of a decentralized network where thousands of cryptocurrencies are created using smart contracts. Ethereum’s market cap is approximately 1/3 of Bitcoin. Ethereum is the second US cryptocurrency to receive a CME futures contract in February 2022.
Ripple
Ripple is one of the most popular cryptocurrencies of 2018 and 2020. Ripple was created as an alternative to SWIFT payment transfers. However, Ripple is an excellent example of a cryptocurrency scam. Although Ripple once had the third-highest market cap of all cryptocurrencies globally, it came under strict scrutiny by the US SEC at the end of 2020. and they defraud investors. Ripple’s CEO regularly says publicly that they think Ripple will take off as they pour billions of dollars into the open market. Ripple executives also sell large numbers of Ripple “blocks” at deep discounts to cryptocurrency investors, who sell the blocks on the open market for guaranteed quick cash. Ripple is helping to raise public awareness about the dangers of virtual currency fraud.
FAQs
Scammers and scammers are everywhere, and this is especially true when it comes to Bitcoin. As a new entity, be very careful when looking at opportunities in this investment area.
Bitcoin scammers are just like other scammers. They will use sophisticated tactics to make you feel like you are missing out on a once-in-a-lifetime opportunity and offer false promises of wealth and benefits. They will make it seem too good to be true.
Of course! As with investing in any speculative business, there is always the risk of loss of value and capital. But this is not the same as losing money because someone cheated on you. Depreciation and market volatility are one thing; fraud is another.