Cryptocurrency has garnered a lot of attention in recent times. According to the reports of the crypto head, there has been a 312% rise in crypto criminal cases since 2016. The figures are shocking and also alarming.
Owing to this, many investors are considering the decision to invest in Bitcode Prime. Whether in the stock market or planning to invest in the crypto world, safety is an important parameter that needs a resolution. Let’s keep you reading till the end to help you better understand whether it is safe to invest in cryptocurrency. Read on to know more in detail!
What You Need To Know About The Risk Of Crypto Investment
This will help you prepare the right strategy that will secure your investment in the crypto world. The crypto market is, no doubt, susceptible to hacking; as a result,there has been a rise in crypto criminal cases. As per the date of the federal trade commission, a median loss of $1900 was reported between October 2020 and March 202.
- The form of crypto crimes
- These crimes involve requests for payment in cryptocurrency
- You will also find an unsolicited offer to help you make money or increase your holdings
- And unsolicited invitations of investment or offers
- Initial coin offering for fake cryptocurrencies
These are a few of the ways that crypto criminals are adopting to get into the system and take away the cryptocurrencies. Hence one of the best ways to keep such acts at bay is to do your own research and understand the crypto market 1st.
Such incidents are very common. So, the best way out is to 1st understand how the crypto market operates. Knowledge about the different cryptocurrencies and the latest news about them, along with choosing the right incredible crypto exchange platform, will ensure that you never fall prey to such scams.
ICOs of fake cryptos
This is one of the most common ways that crypto criminals adopt. The same happens in case of IPO. In this case, a new cryptocurrency is launched in the market, and the viable investors put in their money. But, these are fabricated and not So how do you safeguard yourself from falling prey to such scam ICOs?
The way out
Read the white paper- Never an ICO is published, the introducing company also brings forth its white paper. A credible company will always highlight all the details of the same. Before investing in an ICO, you must go through the paper and understand and review the cryptocurrency being offered. While assessing the cryptocurrency, you must also check out the applications and prospects.
The experience of the development team– The next point you need to consider is to check the development team. And, the experienced team of developers behind the ICO is always trustworthy. You must make it a point to run through the white paper and check the website to learn about the development team behind their ICO.
Check multiple sites– In addition to reading the website and white paper of the company offering ICO, you must also run through different websites that review the cryptocurrency completely. You must not simply rely on the information published on the parent website. Rather start researching on different websites that do the complete review of ICO. This will give you a more credible and authentic overview of cryptocurrencies and their future.
Stay away from the crypto pump and dump schemes.
This is yet another problem that you may come across when you have started to invest in cryptocurrency. Sometimes, investors choose to invest most of their financial assets into a specific cryptocurrency. This eventually inflated the price and convinced investors to invest in the money.
When it comes to crypto investment, you should choose the right crypto wallet. A cold wallet is considered a better option than a hot wallet. Since the cold wallet cannot be accessed easily and is not connected to the virtual world, accessing the information becomes difficult.
So, these were some helpful points you needed to know about cryptocurrency investment. Knowing the risk associated with the crypto market will ensure that you adopt the right strategy to help you make a safe investment in cryptocurrency.