The Bitcoin has inspired the release of other cryptocurrencies and digital currencies including the BnB, Eth, LTC, AE, among others.
Cryptocurrencies are complicated, especially for new users. They are lightly regulated, highly volatile and there is not enough information out there to enlighten people wishing to venture into them, hence attracting scammers who take advantage of unknowing users.
Like everywhere else, scammers will always be quick to take advantage of naivety to steal from unsuspecting newbies.
Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.
Below are different ways of identifying scammers
There are more cunning ways of being scammed on p2p exchange platforms which include a buyer purporting to have settled a payment and pressuring you to release the Bitcoins from the escrow lest they give you an untrustworthy review.
Others include someone convincing a naïve but interested guy to send them for example $6000 in exchange for one bitcoin and then ghosting with your money.
Doing your own research and knowing why you are venturing into cryptocurrencies goes a long way in helping you avoid being scammed. For newbies, I would advise you do your own research before venturing into crypto. Treat them as an alternative currency at the beginning and build from there.
Do you own any Bitcoin yourself? Don’t be too late to the party.
The writer is the COO at Point50capital. Twitter @Theo_mwangi