Cryptocurrency is also referred to as a token or virtual coin different from regular currency like the dollar or Euro. Despite having so many regulations from the central banks and authorized government, the cryptocurrency has secured the digital asset and is used as a medium of exchange. Therefore, there are many valid reasons for having an open-source blockchain with a distributed public ledger to record the transactions. However, due to several cryptocurrencies all around the globe, the need of having robust security is recommended.
The cultural phenomenon of purchasing cryptocurrency boosted in 2017 when the price of Bitcoin was published near $20000. While the price of Bitcoin was skyrocketing, the annual gain increased by 2000 %. The same scenario remains in 2018, where the popularity of cryptocurrency accomplishes to a significant position. However, it is closely followed by ethereum. This is because many cryptocurrencies are following the same routes and becoming a global dominating cryptocurrency.
Also read: Bitcoin Price Prediction: The bitcoin exchange will surpass $100,000
In addition, to have an excellent electronic exchange, the dependency of having customer support with strong security is required. The platform of CFD Trader allows every trader to exchange digital assets conveniently. The financial market keeps on moving, but cryptocurrency remains volatile with incredible Public Interest. Of course, there are enormous opportunities a person can gain, but the bad actor of fraudulent activity needs to condemn. As a Crypto owner, everyone wants to avoid scams and hacking, which has become a widespread and effortless problem.
Cryptocurrency fraud can come forward in different ways that include:
- Financial Crime
The first-ever crime that Crypto faces is the financial crime where the instant transactions and profit did in international boundaries are traced by the hackers. It is challenging for a Crypto owner to maintain privacy from the people who have a good education in this hacking software. However, the good news for Bitcoin owners is that tracing blockchain is impossible. It is one of the efficient reasons why the numbers of investors in Bitcoins are more than the other.
Bitcoin has a set of records in security, and from 2008 to the present, this security has effectively controlled and maintained all the transactions.
- Market Manipulation
Another famous fraudulent activity performed at a larger scale by fraudulence is market manipulation. The fraudsters try to manipulate the entire market and the product by trading. They are so good in their respective sector that they improperly manipulate and run away with the money. Therefore, the investor must focus more on identifying such market manipulation. Therefore, it is always advisable to become a good investor with significant knowledge.
Suppose you have acquired all the knowledge related to fraudulent activities and manipulation in the market. Then all such activities will not influence your trading, and you can quickly go ahead with more purchases and sales of shares.
- Traditional Hacking
It is the most common hacking that happens with crypto investors. Such hacking involves scamming the digital wallet or disturbing the exchange network. Regular hacking is done either by the professional who can privately scam the people or by extremely new hackers who don’t have enough risk tolerance. Therefore, the investors must keep the digital wallet under a security password. The other alternative approach is to buy the cryptocurrency which works on blockchain technology.
The blockchain can process the verification of the units and put security. As a result, all the investors purchasing Bitcoin feel better and highly safe under the blockchain.
- Mediator Or Online Broker
The newcomer’s committee this type of mistake when entering a virtual market. It is a common myth that appointing an online broker to access cryptocurrency can more wealth. Sometimes, their idea of hiring a mediator results in a lot of loss. It is appreciated if the person is self-responsible for taking care of the investments and wallet. Cryptocurrency has precise specifications for not using an online broker to maintain your funds.
The working of investments in cryptocurrency is quite simple, and any person who is new or old can use it. However, some top online fraudulent activities make the experience dull and full of hassle. However, a Bitcoin Prime user doesn’t have to worry at all.