Lester Daniels's Avatar
Lester Daniels
published in Blogs
Nov 18, 2021
How to Avoid Bitcoin Scams

How to Avoid Bitcoin Scams

Before 2017, Bitcoin was mostly the province of cryptocurrency enthusiasts, with little mainstream recognition. But everything changed as prices skyrocketed. New investors jumped into the fray, eager to make their fast fortunes. Keeping with time-honored tradition in any booming market, scammers proliferated, equally keen to fleece neophyte, under-informed investors.

Cryptocurrency investment may seem like a free-for-all, but using a little caution can go a long way. Let’s review some of the most common bitcoin scams, as well as the steps you can take to avoid them.  

Stolen Wallets

Physical wallets are a popular, secure option for storing private keys – whether made of paper or a hardware wallet, like a USB stick, keeping keys offline adds an extra layer of security to investors’ holdings. Users should be careful to store their paper and hardware wallets in safe places, to eliminate the threat of theft. Additionally, investors should research hardware wallet providers to ensure safety and trustworthiness. Vendors hawking “pre-configured” wallets should be looked at especially carefully – a recent scam involved selling hardware wallets with a seed phrase on a scratch card that, while theoretically hidden, are actually compromised, allowing hackers access to funds as soon as the wallets are activated.

Fake ICOs

ICOs, or Initial Coin Offerings, have allowed companies to raise capital without taking VC money, which also generally comes with loss of autonomy. This take on crowd-sourcing is becoming increasingly prevalent, but scammers have also taken advantage of this popular system to separate investors from their holdings through fake websites and compromised wallets. It is vital to research the companies you are considering investing in – pick over the whitepaper with a fine tooth comb, and perform due diligence on the board of directors and other investors to determine a company’s validity.

Exchange Fraud

Like stocks, cryptocurrencies are traded at exchanges. Unlike the stock market, however, regulatory oversight is relatively minimal with virtual coins. This landscape is changing, but as authorities play catch-up, it is important for investors to pay attention to some basics. Discounted coins, offered as incentives to join and trade on an exchange, are a major warning sign – deals that seem too good to be true probably are just that. Non-encrypted exchange websites, denoted by ‘http://’ instead of ‘https://’, should also be avoided to maximize asset security.

Mining Scams

Bitcoin mining requires significant effort and resource investment, creating a high barrier to entry for the average person. Enterprising companies are offering users a chance to mine coins for a set rate, essentially renting existing mining infrastructure for personal use. But users should beware companies guaranteeing blanket returns on investment; coins become progressively more difficult to obtain as more are mined, leading to decreasing returns. Do your homework on each mining company – look for detailed information about operations, measure the level of transparency surrounding the company, and beware of ‘grand promises’.

Pyramid Schemes

Pyramid schemes (also called multi-level marketing schemes), which offer not only quick returns but also increasingly-extravagant perks in exchange for proportionally larger investments, are becoming more prominent in cryptocurrency. Assurances of too-good-to-be-true earnings usually are too-good-to-be-true. Stay away from companies promising the moon, even if you might get a new Apple Watch out of the deal. Read the websites thoroughly, but also look for outside sources that independently validate a company’s claims.

Doing the bare minimum as an investor can save you a world of regret. Solid research, coupled with a healthy dose of skepticism and an immersion in details, will help minimize mistakes and avoid fraud as you embark on your journey in cryptocurrency investment. Trust your gut, vet your options, and keep both feet firmly planted in reality – the more you do so, the better your chance of maximizing your earnings.

Related Tickers: BTC.X
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.
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