How can fraudulent activities penetrate the crypto trading market during the lock-up period?

You can download this article in PDF format via the link below to support us.Download the guide in PDF formatClose

Bitcoin has become the most valuable and most popular investment asset for many people in 2021. Many factors are supporting the surge in demand for Bitcoin. Some of these factors are as follows:

  • The popularity of Bitcoin has risen due to the COVID-19 pandemic. Since everyone was at home during the lock-in period, the stocks were not performing well, so investors turned their attention to Bitcoin.
  • Bitcoin broke the psychological resistance of $19,783 on December 17, 2020, and is currently trading at approximately $34,400 at the time of writing.
  • Several billionaire investors predict that by 2021, Bitcoin will easily exceed the $50,000 mark.

Well, many other factors have influenced small cryptocurrency investors to invest in digital currencies. However, you must be aware of fraudulent activities that penetrated the cryptocurrency exchange market during the lock-in period.

Fraudulent activities in the crypto market

If you plan to invest in Bitcoin, you must stay away from the fraudulent activities that are taking place in the crypto market.In addition, you can also check out Bitcoin revolution Understand trading and investment strategies.

The rise of fake digital currency exchanges

Since everyone is at home during the lockdown, fraudsters and money launderers are setting up fake cryptocurrency exchanges. Their target group is people who are not familiar with the cryptocurrency field, and they know little about the security threats and risks involved in the cryptocurrency market.

If you plan to invest money in virtual currencies, you must be vigilant about the authenticity of crypto exchanges. Before choosing a cryptocurrency exchange, you should check its reviews, ratings, and recommendations. In addition, you can conduct background research on the team that created the trading platform.

Stay away from less trusted altcoins

Due to the increased demand for certain Altcoins during the lock-up period, many retail investors are looking for the next Bitcoin. This means that many retail investors are looking for cheap Altcoins and predict that it can perform like Bitcoin. However, there is a huge risk that it can take your funds from your encrypted wallet.

With the freedom to create their own digital currency, many people are offering cryptocurrencies that are not supported by any practical use. Therefore, you can read through its white paper and website to avoid such altcoins.

Mining scam

Crypto mining also allows you to earn cryptocurrency by solving computing problems. These problems are usually Bitcoin transactions, and you need to solve some problems to get rewards. However, the main problem with crypto mining is that you need high processing equipment.

Therefore, small crypto miners want to be part of a mining pool or cloud mining. It allows you to use computing power with others and get a partial return in proportion. One way to identify such fake cloud mining is to look at its lofty promise. Therefore, please be careful when registering a mining pool.

Pumping scheme

One of the trickiest ways scammers can make you stupid is to buy a new Altcoin and increase its price. When you think this is an excellent altcoin that can be invested and let your money be scammed for fear of losing it, the scammers of the group will sell their shares. This is the so-called pumping plan.

Although this is illegal in the stock market, there are no clear guidelines for the crypto market. Therefore, you should stay away from such unreliable and less reliable altcoins, which may show a false upward trend in the crypto market.

in conclusion

Hope that the above information gives you some insights into the fraudulent activities that penetrated the crypto market during the lock-up period. Therefore, use this guide to stay away from these scams, false promises and plans to protect your funds. One last thing; taking more risks does not guarantee you a high return. Please share your thoughts on this article in the comments section.

You can download this article in PDF format via the link below to support us.Download the guide in PDF formatClose

Sidebar