Cryptocurrency Fraud And Ways to Avoid İt

Hello everyone, I present to you my second assignment at Crypto Academy.
When I saw the homework topic, I thought that I should do this homework myself. The subject of the assignment has been determined very well. The information we will gain through this assignment is what everyone interested in crypto money should know.

I would also like to thank dear Professor @yohan2on for this assignment topic.

Entrance

In this assignment post you

1. What are cryptocurrency scams?
2. What precautions can we take against crypto money fraud?
3. What impact does fraud in the cryptocurrency space have on the market?
4. What impact might the regulations to be made in the cryptocurrency field have on the field?

I will provide information about the questions.

1. What are cryptocurrency scams?

Source

• Fake websites
• Fake Mobile Apps
• Fake social Media updates
• Emails from scammers
• Fake stock market companies
• Business investment opportunities using a ponzi scheme

The types of scams you may encounter in your crypto investments and the precautions you can take against them are:

Fake websites:

Fraudsters can carry out fraudulent activities by organizing sites similar to the websites of reliable stock exchange companies.
Before investing, be sure to check whether there is a security sign on the address bar. Also, the address must contain https.

Fake Mobile Apps

Fake apps can also be found from Google play and Apple App Store. Although Google Play and Apple App Store try to take measures in this regard, unfortunately, it is also known that thousands of people have downloaded fake applications.
While downloading the application
Check for errors in the text and name of the application.
You also need to be careful if the Brand logo is in a different color or tone than it should be.

Fake social Media updates

You should not take offers from social media apps seriously. Be especially careful if the offer seems like an impossible outcome.

Emails from scammers

Scammers can also try to lure you in with fake email addresses. You should definitely check the address of every incoming e-mail. In an erroneous or suspicious situation, always contact the company employees.

While finding that letter in the real e-mail address of the company, the number zero can be used instead of this letter in the fake account obtained.

For this reason, when you make an investment, never click on the address link in the e-mail addresses.

Fake stock market companies

Fraud attempts are found in every corner of the online environment, and cryptocurrency exchanges are getting their fair share of it. You should be very careful when considering investing in different startups and exchange platforms.
When researching digital cryptocurrency companies and start-ups, experts suggest investigating whether these companies have blockchain support.
You should also pay attention to whether the founders of the company are natural persons.

Business investment opportunities using a ponzi scheme

It's a supply chain. It is a type of investment scam where investors are promised substantial returns. Companies participating in ponzi schemes focus all their attention on attracting new customers. Funds are raised as investments from new entrants and used to pay “returns” to original investors.
Be sure to research the financial situation of the listed companies and crypto currency you will invest in.

What impact does fraud in the cryptocurrency space have on the market?

Cryptocurrency scams have a very negative impact on cryptocurrency. The presence of scammed people lowers trust in this market.
Of course, people will not want to invest in an environment that is not trustworthy.

An undecided investor moves away from the market because of such events.
It causes the supply-demand balance to deteriorate.

What impact might the regulations to be made in the cryptocurrency field have on the field?

Regulations to be made in the crypto space will have two types of impact on this market.

The first is the positive effect.

Source

With the regulation, fraudulent activities can be prevented and this can increase confidence in the cryptocurrency market.
For many people, investment areas that are regulated and controlled by the government are more reliable.
The demand for a trusted environment will also increase.

The other effect can be negative.

Source
With the regulation made, the introduction of tax may cause a decrease in the earnings of the investors, which may cause the investor to move away from this area.

My solution suggestion

Both individuals take individual precautions before investing. In addition, stock market companies increase security measures.
States to apply deterrent penalties against such fraudsters.

I end my homework here and I would like to thank the crypto academy and Professor @yohan2on for allowing me to do this homework.