Steemit Crypto Academy |Season 3 week 6 - Crypto Scams and how to avoid them For yohan2on

1. What are Crypto scams?

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As you start investing in the digital assets called cryptocurrency, it doesn't take long to know the things that are involved in the industry. Scams are found everywhere both offline and online,and cryptocurrency is no way exempted from been scam. When investing in cryptocurrency, you need to be aware of the possibility of you losing your cryptocurrency to scammers who pretend to be legit. The best things to do when investing in cryptocurrency it's advisable that you make a proper research on whatever offers that come your way,by making sure it is Powered by blockchain,the existence of the business, people behind the business and a lot of thought should come your mind in other not to be scam.

Crypto scams is a fraudulent act that is carried out by a person or group of persons whose business plans are always full of Ponzi scheme, Investments, donation and other form of criminals activities. In a nutshell,Crypto scams is a process whereby an investor is being dupe of his cryptocurrency. Crypto scams can come in different ways which you need to watch out for.

Here are some Crypto scams you need to avoid.

Blackmail emails scams
Scammers frequently send emails telling you about and Investment opportunities that will change your life, or sometime if you're a wealthy person they will that threatening you with your personal information telling you to pay them in cryptocurrency or else they will make it public. Don't do it because if you do you can even trace them. If they are legit they will tell you to pay them through bank where you can possibly see they names.

Social media scams
If you read a post, or possibly you get a message on social media telling you to send cryptocurrency, please don't send it's a big scam. Sometime you will be tells to invest and get 3X of your investment in the next 24 hours I repeat it again please don't do it even if the message was posted by the celebrity you follow or your friend, try and do your research before accepting such offers because is not the celebrity or your friend whom you think is making use of the social media accounts again.

Fake Mobile Apps
The use of fake mobile apps that is currently available on App Store and Google Play for people to download is the common way that scammers use in scamming investors of they cryptocurrency. Fake cryptocurrency apps have been downloaded by thousands of people without knowing until they discovered the apps as scams. As an investor you should should take note of such apps that claim you can mine cryptocurrencies.

Imposter websites/phishing sites
You may be visiting a website thinking that it's the original website not knowing that is a fake website that is created by scammers. The website will looks the same with the original website,there will send you a link that looks like the original website if you click on it you will be directed to a page where you will be ask to make payment. For example, the scammers will replace letter (O) with letter zero (0). If the URL is without "https" don't click on it.

Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project)

According to cryptohead, Bitconnect is one of the biggest scam of an Initial Coin Offering (ICO). Bitconnect claimed to be an open-source cryptocurrency that guaranteed investors 40% returns of they Investments.
Yet, Bitconnect unfortunately was discovered to be a Ponzi scheme that cost its investors an incredible worth of $2.6 billon dollars.

You can read more of this from the Reference

2. To what extent have Crypto scams affected the Crypto space?

As cryptocurrency is gaining more popularity in the world,that is how crypto scams is also increasing and day by day which is affecting the crypto space. By looking at crypto crime from from,fake app, social media websites/phishing being run by scammers we can see that they scam has really affected the crypto space in the following ways.

Crypto scams have affected the crypto space in such a way that governments see cryptocurrency as a means of defrauding someone of his hard end money. The government believe that cryptocurrency is being use to pay for the purchase of weapons and promoting of violence. Like in the case of Nigeria during the time of #Endsars,the government of Nigeria block the account of #Endsars promoters, it was through cryptocurrency that they started raising funds some imposter went and create a phishing sites to scams people which lead to the ban of cryptocurrency in Nigeria in April 2021. From this we can see that should things has really affected the crypto space by making the price of crypto to fall. Majority of the cryptocurrency exchange platforms like Luno, Roqqu and the other crypto exchange in Nigeria stopped they Operation.

Crypto Scams have also affected the Crypto space by making investors to lost they money. For instance you being scams on ICO platform you will never have trust on cryptocurrency, nevertheless you will start seeing other ICO platform as scam, such things make investors to see the crypto space as big scam.

3. Will regulations in Crypto add value to the Crypto space?

Based on my understanding and findings, I came to discovered that over 50 percent of Americans are stocks owner,while only 2 percent are Bitcoin owners. People would like to own cryptocurrency but they won't by it because it's price volatility,no legal status governing it and also for such people buying cryptocurrency is prohibitive. Regulating crypto will add value to the crypto space in the following ways;

• Regulations in Crypto will creates binary digital asset ownership

With the regulations in crypto,it will make digital assets like Bitcoin, stablecoins and other cytpocurrencies to be more valuable. Banks and other financial institutions will be involved in the crypto space to make it work better by increasing the value of crypto as a long term Investment option.

• Regulations In Crypto will change crypto from merely speculative to usable assets

Businesses are willing to accept cryptocurrency as a means of payment for goods and services,but with the lack of regulations that is put in place is making such businesses to be fearful to implement digital assets as a means of payment into their operations. This means that if cryptocurrency is being regulated today the crypto space will be full with many businesses who want to integrate blockchain into their operations.

• Regulations in Crypto will bring mass adoption to the crypto space

Once crypto is being regulated there will be a mass adoption to the crypto space. There will be a clear level playing field for all users and countries to buy,sell and send cypto within and outside the country.

Although,the ugly side of regulations of crypto is that governments and other financial institutions will be in control of your assets.

Thank you for your time here........

Best Regards;

@yohan2on