There is a lot of buzz about cryptocurrency, and naturally, it attracts many investors. One major drawback for traders is the high risk of crypto investments scam. Although investment recovery is possible with cryptocurrency, it’s more challenging than with other payment methods.
This is because peer-run systems generate it. This isn’t like a bank that is accountable to government financial regulators. Encryption ensures varying degrees of anonymity and security. This anonymity makes the process of crypto investment scam recovery challenging. However, it is far from impossible if you have experts to help unmask investments fraud.
Cryptocurrency is without a debt a volatile market intended for speculative investors. Many types of crypto coins are designed as demand magnets. Those who release these coins often set limits on how much of the cryptocurrency they are going to generate over a pre-set time period. Once that time period is up, generation will cease.
These built-in deadlines create a sense of urgency among investors and drive up the value of these coins, despite their actual value. This is the perfect environment for investments fraud to flourish.
As predicted, cryptocurrencies have seen a meteoric rise in price. The entire virtual currency market reached a capitalization of nearly $2 trillion dollars in just 12 years. Within five years from mid-2013, the complete market cap for all cryptocurrencies grew by a whopping 10,000%.
Since bitcoin was introduced in 2009, for example, its value increased at one point by over 25,000%. In 2000 it quadrupled in value. By 2021 the cost of a single bitcoin reached $50,000. Investments scams take advantage of these price rises to convince would-be traders to invest in the next hot crypto coin.
The Cambridge Centre for Alternative Finance issued the world’s first global cryptocurrency benchmark study in May 2017. It found that more than three million people worldwide were then actively using digital currencies. They used it as an alternative to acquire everything from goods and services, and to participate in gambling platforms known as “cryptocurrency lottos.”
That figure was three-times higher than previous estimates. It proved that there was a critical mass that turned cryptocurrency investments into an integral part of the global financial system virtually overnight. And that only increased cryptocurrency investment fraud and investment scams.
However, if you fall victim to bitcoin investment fraud or a bitcoin investment scam, you cannot get money back as easily as a chargeback from a credit card. Crypto investment scam recovery is a complex process. There is no central bitcoin organization that administers it. Cryptocurrency is virtual. There is no way to cancel a blockchain transaction once you click.
Can you chargeback bitcoin? No, there is no such thing as a bitcoin chargeback, no such thing as a cryptocurrency chargeback. So what hope is there for people who seek investment scam recovery? Is it even possible? Yes, it is. But it requires determination, patience, and most importantly, intensive research. That’s where MyChargeBack can help.
A number of other virtual currencies came onto the market following the advent of bitcoin. In the terminology of the trade, they underwent a cryptocurrency ICO (initial coin offering). These include Litecoin, introduced in 2011, and Ethereum, introduced in 2015.
Bitcoin alternatives like these, among many others, now attract attention from people interested in cryptocurrency investments. However, the cold truth is that the majority of ICOS are crypto investment scams.
Cryptocurrency consultants are usually the first stop for someone looking to make his or her first crypto investment. The challenge, however, is that cryptocurrencies are, by definition, free from government regulation. That doesn’t mean that all cryptocurrencies are necessarily crypto investments fraud, but that is why they often attract fraudsters.
To weed out the scammers, check to see if they have professional histories. Look for a background in finance, such as investment consultant, stockbroker, commodity trader, or some other related field that actually does require government registration. Then confirm that their licenses are still valid before you sit down with them. If not, you might be setting yourself up for investment fraud or an investment scam.
As is the case with a traditional investment scam, fraudulent cryptocurrency consultants and fake cryptocurrency trading sites generally disguise their addresses by renting out a mail drop in an unusual location for international commerce. That address usually turns out to be on some remote and underpopulated island or a country behind what was once the Iron Curtain.
Due to demographic factors, such countries usually lack the governmental infrastructure to effectively monitor brokerages and other financial services. Investment recovery may not be available or limited in these areas. There is often lax enforcement of whatever legislation does exist. Legal systems in these countries may have no experience with investment recovery or prosecuting bitcoin scams.
The first step to buying cryptocurrency is to find an exchange. However, selecting an exchange for investing in cryptocurrency poses unique risks. This is because even if a cryptocurrency exchange claims it is incorporated in a large Western country, it will not be registered with the national financial oversight agency. Again, that is because cryptocurrency is, by definition, free from government control and supervision, and this allows crypto investment fraud to flourish.
Financial regulation is the most important aspect of a brokerage’s credibility. Without it, there is no government oversight and limited investment recovery. However, most crypto exchanges aren’t properly licensed.
One way to stay safer is to check if the cryptocurrency exchange also trades other commodities. Confirm with the appropriate national financial oversight agency that has a valid license to do so. In the event that it does, it has everything to lose if it is engaging in a cryptocurrency Investments scam. They may be a safe bet. If it doesn’t, that’s a red flag. Stay away.
Investors can trade cryptocurrency like any other asset. Today’s bitcoin rate should appear on an exchange’s website. You shouldn’t have to ask an exchange “What’s the price of bitcoin?” The exchange’s professional charges should also be listed. If they aren’t, that’s a red flag and a sign of crypto investment fraud.
If the site intentionally hides its crypto trading costs from the public, that probably means they are either unnaturally high, linked to the size of the investment or even arbitrary − which, of course, enables the cryptocurrency investment scam to maximize the rip-off. Keep in mind, there is no such thing as a cryptocurrency chargeback. With patience, documents, and the experts on your side, you can succeed at crypto investment scam recovery. However, it’s always easier to avoid financial danger in the first place. Don’t rush into crypto investments until you do your research.