As we all understand, crypto currencies are digital currencies that only exist in digital form, not in physical form. These transactions are being verified, and records are maintained throughout by a decentralized system. Is basic information about cryptocurrency, let us discuss the ordinary risks of cryptocurrency, which are given below.
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Money laundering
Because as we know, cryptocurrencies are digital currencies, it does not exist physically. So it makes it easier for the criminals or inappropriate word cybercriminals to move their funds quickly across the borders because cryptocurrencies are conducted, transferred, and stored online, which make it easier for cybercriminals to move their funds all over the world without being Â
Romance scams
It is one of the problematic scams to detect. This type of romance scam occurs when a criminal makes a different fake profile that looks perfect for online identity to gain victims trust, emotions, and love, then the scammer or criminal uses its tricks of romance illusions of a romantic or close relationship that they love them truly and can’t live without them to manipulate and steal from the lover online.
Smurfing
Smurfing is an illegal technique and activity that can have dire consequences. It is a technique a money launderer or criminal uses to transfer large amounts of money and divides them into smaller sections through which government and different agencies can’t detect the cash because all the transactions are below the reporting threshold, which can’t be reported. Other agencies and governments can’t track them because the amount of transactions is meager, and they can’t track where the money is coming from.
Fake crypto exchanges
In today’s world, everything is progressing very rapidly and vastly. On the other hand, scams, fraud, illegal trading, and money laundering also increased massively. So it is tough to judge whether it is verified or fraud. Here are some extremities to acknowledge you know that you are in the right way. In fake crypto exchanges, scammers scam exchanges often lure users with a celebrity endorsement, phony phone calls, or different types of emails and promise you extraordinary returns on your investment. Fake and unregulated exchanges are said to be counterfeit cryptocurrencies.
Blackmailing scams
Blackmailing is one of the most common scams in all fields of life, and if we talk about blackmailing scams in cryptocurrency, so these blackmailing scams are similar to other blackmailing scams. In blackmailing, scammers blackmail the user or client into paying money, or else they will release evidence they have and when a scammer requests payment in cryptocurrency because cryptocurrency cannot be reversed.
Fake investment scams
As we know, scams are increasing very fast and rapidly all over the globe. In fake investment, scammers offer you and lure you in about giving you more money, give you fake investment roadmaps through which you can quickly draw in, and you think that it’s legit to invest in it. The more money you put in it, the more money you will achieve from it they promise you about it. And most of the cryptocurrency holders send their bitcoins directly to the scammer’s wallet. But these all are false statements and promises, and you will get lost from it, not profit.Â
Crypto is used to buy the black market
Different types of cryptocurrency, especially bitcoins, are perfect for black market dealing because users are anonymous and an item can be sold or purchased easily without any party knowing where it comes from or where it can go. You can’t track it if the digital currency is not a part of block chained or verified. A seller or a buyer can quickly sell or buy without revealing their true identity, so it’s easy for a scammer to do illegal work with the help of digital currencies.
Crypto pump and dump
This technique involves an inside group of people who can manipulate others, quickly taking positions in an altcoin or digital token to generate signals to buy the asset in an organized manner on social media. The dump includes a pre-planned crash which is also known as rug pull.
Conclusion
We should invest by proper guidelines and a little bit of knowledge, so no one can fraud with us or scam us easily. Hopefully, this publication has helped you gain knowledge about the common risk factors one can face.
