The digital currency industry is rife with miracles and pitfalls. Tricks commonly used in this field are introduced herein to protect you from frauds!
1. Reaping profits
The role played by influencers and mass media in the industry is powerful, hyping a digital asset up to make a household name out of an unknown and dramatically increasing its value to bamboozle novices into investing. Manipulators sell their coins to beginners by taking advantage of the value reaching its peak.
2. Coins for multi-level marketing
Some cryptocurrency enterprises launch campaigns for crowd-funding and subscribing. Prices for coins are extremely low and are pledged to surge rapidly. Some traders who succumb to the temptation are harmed by prices whipsawing wildly manipulated by these companies. All their funds invested will end up with nothing when prices hit the trough and collapse.
3. Over-the-counter (OTC) trading
Some novices planning to buy digital currencies may be swindled by advertisements for selling coins with prices much lower than market ones in chat groups. They are enticed into making deposits for coins without suspicion usually by messages from swindlers who use charming portraits as a disguise but are blacklisted soon after the arrival of their funds in scammers‘ accounts. Hence, please don’t be penny-wise and pound-foolish as there is no free lunch in the world!
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
