How to Avoid Crypto Trading Scams by Artur Hochberg

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Do you want to make some money from crypto trading? Artur Hochberg says that you should avoid crypto scams that present themselves as profitable investments.

After the 2017 Bitcoin rise and consequent 2018 drop, most investors were warned to stay away from the 'cryptocurrency bubble.' Bitcoin, after all, did shed over 80% of its values in 2018, leaving many of its supporters in a financial dilemma. Digital currencies have however weathered high odds, and have bounced back in 2019. Artur Hochberg says that traders who purchased digital currencies at their lowest values are now enjoying the fruit of their trading genius.

You, however, have to have been living in mars, to dispute the fact that cryptocurrency trading is indeed awash with scams. The new assets have attracted unscrupulous individuals, who are out to make a quick buck from naïve traders. Artur Hochberg has therefore listed some common cryptocurrencies frauds and outlined ways you can avoid them.

A list of crypto scams by Artur Hochberg

Fraudulent initial coin offerings

The initial crowd offering or ICO, in short, has been the to-go-to method of crypto crowdfunding. The equity raising process generated over $6 billion in 2017. In 2018, ICOs raised over $7.8 billion for various blockchain projects. A study done by Statis Group, however, revealed that over 80% of the blockchain projects that received large amounts of investor funding in 2017 were fraudulent. Most of these scammy projects went dead or failed. These failed projects fraudulently benefitted from over $1.34 billion in investor funding.

This money will most probably never be traced or recovered. Some of the most popular ICOs of the time, such as the Arisebank, which netted a massive $600 million or Pincoin, which garnered $660 million in crypto funding, were identified as scams. The good news, however, is that most of the crypto funding raised that year went to fund worthy projects.

Artur Hochberg Malta advises you not to pour your hard-earned cash into fraudulent projects, ensure that you always do thorough research before investing in them. Fight the FOMO urge that has in the past, characterized crypto investing. FOMO increases greed, which, in the end, makes investors spend their money on worthless projects that have no real technology to back them.

Unregistered exchanges and brokers

 

There is no denying the fact there is a lot of money to be made off trading digital currencies. Fraudulent crypto brokers and exchanges that claim to offer crypto-related trading or investments instruments are on the rise. These businesses will, however, take your crypto deposits and fail to refund them. Regulators from different countries have continually warned investors to avoid such entities.

It is, nevertheless, not very easy for a lay investor to tell the difference between a legitimate crypto broker and a fraudulent one. A legitimate crypto exchange or broker should have the required licenses available before they can access funds from any investor. You have to be careful not to fall prey to well-designed websites that claim that a firm is registered, while in reality, it is not. Ask them for proof of certification of identification. Most legal documents can also be accessed from the regulator's websites.

 Conclusion

The cryptocurrency market is a very volatile market for traders. It is therefore quite easy to make a tidy sum or lose your capital too. You, therefore, have to be vigilant to protect your wealth from the market forces and from untrustworthy fraudulent market players too.

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