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Does the high price of Bitcoin attract the attention of fraudsters?

Online scams are as old as the internet itself. The large educational and generational…

The post Does the high price of Bitcoin attract the attention of fraudsters? appeared first on Coin Journal.

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Online scams are as old as the internet itself. The large educational and generational gap between the young and old has given rise to fraud in the world of finance. First, we saw it happen with cheques and credit card payments; these eventually became too hard to outsmart. Nowadays, cryptocurrency fraud is booming and exists in all different forms. The more people choose to buy Bitcoin, the more creative these frauds become.

In this article, we look at the progress of Bitcoin, how it fuels scammers’ creativity, and what you can do to avoid falling victim to such practices. Let’s delve in.

Different types of frauds in the crypto space

There are many different types of cryptocurrency scams. You may or may not have heard about them during your crypto journey. Let’s offer a short summary before we proceed:

  • Dating and romance scams – Individuals get “catfished” into sending cryptocurrency to imaginary personas which are portrayed by scammers through online dating platforms.
  • Investment scams – Fake ICOs, fake exchanges, and scammy altcoins whose only purpose is a large pump and dump scheme.
  • Ponzi and pyramid schemes – These are projects that operate on the basis of a continuous influx of new user signups. Once these “dry out”, the platform goes bankrupt.
  • Email scams – The most popular type of scams in the industry, becoming more sophisticated each passing year. Fraudsters will pretend to be the support team behind your wallet and request information linked to your address. They are also known as phishing scams.
  • Crypto giveaways – Influential crypto personalities will never promote giveaways. Yet, somehow, scammers always find a way to impersonate authoritative figures in the crypto space and pretend to host crypto giveaways. There is a catch though – you will first need to send your funds to an address before (supposedly) receiving the reward. Of course, the reward never comes.
  • Phone scams – Finally, one more popular type of fraud is that which occurs through phone communication. Fraudsters will call you pretending to be the support team of the cryptocurrency exchange you are using and ask for your password and 2FA details. As soon as you offer this information, they access your account and steal all the funds contained in it.

Hacking is also on the rise

Aside from small-time scams like the ones discussed above, many groups organise heists from exchange platforms, getting hundreds of millions of dollars through stolen value.

The examples are too many to count. MTGox being the first. The massive NEM hack. Even the recent 2010 Binance hack, where bad actors claimed more than a hundred million dollars in Bitcoin value.

The good thing is that there are now systems in place to “taint” stolen funds, making them impossible to sell on exchange platforms of all sorts. There is also an active effort to whitelist as many addresses as humanly possible, to track stolen funds easier. Overall, the industry seems to be more regulated than before, and the hacks are decreasing as a result. However, there is still a lot of fraud-related activity on decentralised exchanges since there is no way or reason to control the platform’s safety. For some, this is good; for others, it can cost them their life savings.

How to protect your funds from scams and fraud

Each type of scam will naturally require a different approach when it comes to protection. The first thing you can do is effortless: Never click on anything you don’t understand and NEVER EVER give out your personal information to anyone you do not know. This includes your wallet address, private keys, pin code, 2FA, or exchange passwords. In most cases, scams work due to the user’s voluntary participation who does not have a clear understanding of the process.

The second thing you can do is research – Tons of it! When you come across an email that asks for your personal information, Google the sender’s email address and see if anything comes up. Exchanges and crypto wallet companies will never ask for your personal information.

When it comes to the coins you want to invest in; whether that is an ICO or a small-cap altcoin, research is equally important. Read up on the project’s fundamentals, the whitepaper, and watch any videos or podcasts where the team participates. No information on the team? Then it’s best to stay away.

Finally, the best way to protect yourself from scams is to keep a level-headed approach. Use your logic when trying to understand a situation you come across. Is a password essential? Is this update mandatory? What about the risks associated with investing in a cryptocurrency that is obviously a pyramid scheme? Emotional intelligence helps you make better investment decisions and leads to more profit over time.

Source: https://coinjournal.net/news/does-the-high-price-of-bitcoin-attract-the-attention-of-fraudsters/

Blockchain

Cardano Multi-Asset ‘Mary’ Update Launches to Mainnet

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Late on Monday, March 1, Cardano announced the successful upgrade of the network stating that it is a key milestone in its ongoing rollout.

It added that the update introduces core Goguen features of native token functionality and multi-asset support. Goguen is a major upgrade stage on the Cardano roadmap which introduces smart contracts and the ability to build dApps.

Multi-Asset Mary For Native Tokens

According to an IOHK blog post, native tokens will bring multi-asset support to Cardano, allowing users to create uniquely defined custom tokens and carry out transactions with them directly on the blockchain.

The ‘Mary’ upgrade enables the ledger’s accounting infrastructure to process not only ADA transactions but those that simultaneously carry several asset types. It added that native support grants distinct advantages for developers as there is no need to create smart contracts to handle custom token creation or transactions.

Developers and now create tokens on Cardano for everything from NFTs to tokenized stocks or commodities, and according to Token Tool, there are already over 1,400 of them. It appears that they are just being created for experimental purposes at the moment as most of them do not have a purpose.

The blog post explained that, unlike Ethereum’s ERC-20 standard, tracking and accounting of custom tokens on Cardano is supported by the ledger natively:

“Because native tokens do not require smart contracts to transfer their value, users will be able to send, receive, and burn their tokens without paying the transaction fees required for a smart contract or adding event-handling logic to track transactions.”

ADA Price Update

ADA has surged in price in the run-up to the upgrade, so much so that it has usurped Binance Coin and taken the third spot on the market cap charts according to CoinGecko.

At the time of press, ADA was still correcting with a 2.4% decline on the day to $1.22. Its all-time high came on Feb. 27 when the token topped $1.45 briefly. Over the past 30 days, Cardano has made a whopping 240% and since the same time last year when it was priced at a lowly $0.05, it has surged over 2,500%.

There are 32 billion tokens circulating out of a maximum supply of 45 billion giving the asset a market cap of $38.8 billion at current prices.

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Source: https://cryptopotato.com/cardano-multi-asset-mary-update-launches-to-mainnet/

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Blockchain

Miami Mayor dismisses Treasury Secretary Yellen’s criticism of Bitcoin

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Over the past few weeks and months, Miami and Mayor Francis Suarez have been working towards positioning the city as the country’s premier crypto-hub. “We want to be one of the most crypto-forward and technological cities in the country,” Suarez had said in a recent interview, with the comments coming on the back of reports which claimed that Miami was considering putting 1% of its treasury reserves into Bitcoin.

In fact, a few weeks ago, the city official had also claimed that Miami was looking at crypto-regulations in the state of Wyoming and Wisconsin, among others, to take a step towards enabling crypto-payments.

Mayor Suarez is in the news again today after he responded to Treasury Secretary Janet Yellen’s comments on Bitcoin, the world’s largest cryptocurrency. Speaking to the media at the recent NYT DealBook Conference, Yellen claimed that Bitcoin is an “extremely inefficient way of conducting transactions.” Further, the Treasury Secretary also raised serious questions about Bitcoin’s use for illicit finance and its energy consumption.

Yellen’s remarks, however, didn’t come as a surprise to Miami’s Mayor.

“It doesn’t surprise me at all that a Treasury secretary would find a decentralized potential currency to be hostile to a currency that they control.”

According to Suarez,

“For people who invest in Bitcoin, the allure is precisely that: It’s not backed by a central government. So it’s not manipulatable by the central government.”

During the said interview, Suarez also shot down questions about the risk associated with the world’s largest cryptocurrency. When asked about investing in an asset class that has long been known for its volatility, the Mayor remarked that Bitcoin is an asset class that is still being studied, and not something Miami is jumping right into. “Bitcoin is worth studying and worth looking at,” he concluded.

While Mayor Suarez’s bullish comments on Bitcoin aren’t a surprise, it is worth highlighting that his latest comments were a direct response to statements made by the United States’ Treasury Secretary, a development that highlights the gulf that is appearing between local officials and the country’s biggest financial decision-makers.


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Source: https://ambcrypto.com/miami-mayor-dismisses-treasury-secretary-yellens-criticism-of-bitcoin

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Blockchain

Nigeria’s Vice President makes a surprising case for Cryptocurrencies

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Nigerians bounce back with a defiant response to the government’s Bitcoin ban

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A contradictory statement has recently been made by Nigeria’s Vice president Prof. Yemi Osinbajo, concerning the recently imposed Cryptocurrency ban by the country’s Central bank. The Vice President explained at the CBN bankers committee economic summit, that digital currencies are an inevitable part of the country’s economy.

Prof. Osibanjo makes a fair case for digital currencies

He reckoned that as opposed to banning Cryptocurrencies entirely, employing care and prudence could favor the technological developments that are byproducts of the emergence of digital currencies.

“We must act with knowledge and not with fear, we must ensure that we are in a position to benefit and in a position to prevent any of the adverse side effects or any of the criminal acts that may arise as a consequence of adopting or taking any of these options.” He explained.

Taking to Twitter to share the aforementioned keynote speech at the summit, he went on to emphasize the impending innovative shift that the country would make when digital currencies dominate the financial market.

As he puts it :

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“Cryptocurrencies in the coming years will challenge traditional banking, including reserve banking, in ways that we cannot yet imagine, so we need to be prepared for that seismic shift.”

Nigerians respond to the government’s  “theatrics”

The Crypto-community in Nigeria has responded to the Vice President’s speech in sarcastic unison, as they await a turnaround of events to carry out the job of clearing their doubts. Similar theories have sprung up, following the country’s Cryptocurrency ban, in which banks were prohibited from partnering with Cryptocurrency firms to process payments. 

Many have suggested that the government’s decision to ban Cryptocurrency is birthed out of the fear of the decentralized nature of digital currencies, which were efficient for the ‘EndSars’ protesters to bypass bank restrictions and continue with their march against police brutality.

Nigerians cling to P2p trading to help combat government policies

It remains to be seen what the future holds for the country, whose younger citizens have helped to boost and profit from the booming industry of Cryptocurrency investment and trading, among other Crypto-related activities from their end.

In the meantime, for Cryptocurrency trading platforms like Buycoins, the show must go on. Users of the platform have since returned to their roots as the platform employs a third-party app to facilitate peer-to-peer trading.

Even though this could potentially affect the speed at which transaction is processed, Nigerians have reaffirmed that sticking to the available option is still less risky than storing their money in a traditional bank.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/nigerias-vice-president-makes-a-surprising-case-for-cryptocurrencies/

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