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cryptocurrency news: How To Detect If A Cryptocurrency Is Fake Or Real
cryptocurrency news: How To Detect If A Cryptocurrency Is Fake Or Real
Ever since cryptocurrencies started to gain any semblance of popularity, people have been screaming fraud by the dozens. The problem with identifying cryptocurrency scams is that most of the world’s population still thinks cryptocurrencies are a scam.
The big problem with cryptocurrencies is the people who adopted it earliest are the ones most likely to rip you off. You either have the extremely smart people who saw the value of Bitcoin have studied it closely enough to be able to pull a fast one on you or you have the criminals who were already doing bad things and see this as a chance to take advantage of stupid people.
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There is a growing trend within the cryptocurrency industry. Almost everywhere you turn, there is a certain coin to mine, a product to invest in, or a cryptocurrency based MLM that promises extraordinary payouts. The number of individuals who subscribe to these programs, on a daily basis, rises exponentially.
Scams are often propagated within social circles based on trusted relationships, often in churches, work associates and other social groups. In such cases, people often look to the reputation of the presenter, trusting that they would never try to cheat them, instead of asking what has been done to fully prove or disprove the opportunity claims.
There are two categories of cryptocurrency scam
1. Oppotunities pretending to be cryptocurrency
The fundamental principles of cryptocurrency includes decentralization, privacy, unlimited use, controlled supply, and transparency with a public ledger, called a Blockchain, and publicly disclosed source code for anyone to verify. Any entity that does not satisfy these requirements cannot pass for a genuine cryptocurrency.
2. Cryptocurrencies with no real value
These are cryptocurrencies that may have passed the fundamentally required principles but have failed to deliver value to the marketplace to drive buyer demand with a user benefit.
cryptocurrency news
How to detect cryptocurrency with no real value;
The deal sounds too good to be true. Very few investment returns beat the averages of well-known stock and bond indexes, such as the Dow Jones Industrial Average or Standard & Poors Index. If double-digit monthly returns are promised, or even implied, it’s a scam.
You cannot find any independent verification of the claims made. “We’re in stealth mode” makes no sense; why is the stranger telling you about it?
Basic pieces of information are unavailable, such as the street address of the company’s HQ and the names of its owners. Of course, the company is not registered on any known stock exchange.
The company’s operations are located in a foreign country, making it seem exotic. Or it may be a country that has little regard for the rule of law.
cryptocurrency news
The company professes to be dedicated to a noble cause, with fabulous profits being a mere side effect.
The emphasis is on recruiting more investors. If the compensation plan heavily rewards recruiting, it’s a scam.
There is no tangible product. In most cases, the only real education you’ll get is on how to recruit more people.
There are only vague allusions to the technology behind the cryptocurrency; the location of the servers that mine or create cryptocurrency; or who controls the cryptocurrency’s creation and record-keeping.
There is no open exchange for the cryptocurrency. If you cannot convert a cryptocurrency into traditional currency, there is no reliable proof that it exists.
In conclusion, if you intend investing in any cryptocurrency, do your dew diligence well, by using the points in this article to make a very sound decision. Do not rely on I was told or he is my friend.
Applygist.com wishes you the best in your journey of success in the crypto world.
cryptocurrency news
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