The Bitcoin scam: how to avoid being scammed with Bitcoin?
Perhaps when you first hear about bitcoin or cryptocurrencies, the first thing that comes to mind is the word 'scam,' and it’s really not your fault, as many people have taken advantage of cryptocurrencies to gain illegal benefits.
✨✨✨But are cryptocurrencies really a scam? In this article, we will try to clarify this doubt, so we suggest you read the full article so that you can take precautions before investing.✨✨
💢🔸What you need to know about cryptocurrencies
Cryptocurrencies are a type of currency that function similarly to fiat money, the difference being that they operate only in a virtual environment.
To exchange cryptocurrencies, an intermediary like a bank is not needed, as they are backed by blockchain technology. There is also no physical currency or bill to receive or cash out cryptocurrencies. Cryptocurrency exchanges are usually conducted online, using a centralized intermediary platform or a P2P marketplace.
💢🔸How is a cryptocurrency used?
The most well-known cryptocurrency is Bitcoin, but there are more than 10,000 cryptocurrencies in the market, each with its utility. Some are used as a payment method like XRP, as their fees are low and transactions are fast, but we can also use them as an investment asset or store of value, as is the case with BTC.
💢🔸How to obtain cryptocurrencies?
Obtaining cryptocurrencies is really easy; it is true that at first it may seem complicated, but as you understand exchanges, wallets, and such, the process is very similar across all platforms. It is important to note that anyone can buy cryptocurrencies; there is no need for special permission or very technical knowledge about crypto, as some scammers may make you believe.
💢🔸Are cryptocurrencies a scam?
After we have seen what cryptocurrencies are about, we can now say that cryptocurrencies are not actually a scam; they are used to scam people. Just as with fiat money, scams have always existed; however, because cryptocurrencies are relatively unknown, many people use this asset to deceive those who do not know much about cryptos.
Therefore, it is highly recommended that before investing, you research everything about the project, who the founders are, what its utility is, the project's metrics, roadmap, partnerships, and other relevant information about the project.
With the boom in cryptocurrency adoption, scams have also increased, which is why we recommend that you inform yourself well before making an investment decision.