They are also known as virtual money. It is a type of digital money that only exists electronically. Usually, to acquire a cryptocurrency you only use your mobile phone, a computer or a cryptocurrency ATM. Among the most common cryptocurrencies are Bitcoin and Ether. Although there are several different brands, and new cryptocurrencies are created every day.
Utility of Cryptocurrencies and People
Humans use cryptocurrencies for various reasons: Make quick payments. Transaction fees charged by traditional banking institutions
• Provide some anonymity.
• There are people who can buy and store cryptocurrencies as an investment, hoping that their price will increase.
Cryptocurrencies can be purchased through an exchange manager, a website or a cryptocurrency ATM. But there are individuals who can buy them through a complex process called mining, and this requires an advanced computer to solve very complicated mathematical problems.
Digital money accumulates in a virtual wallet, which can be online, a computer or on another external physical support. Digital wallets have an address, which is usually a long list of numbers and letters. If something happens with your wallet or your cryptocurrency funds, for example, if the online exchange platform you use stops working, if you transfer cryptocurrencies to the wrong person, you lose your wallet password, it is stolen or there is a problem with the wallet digital, you may find that no one is available to help you recover your funds.
Payment With Cryptocurrencies
There are many differences between paying with a cryptocurrency and with a credit card or other common payment methods. Payments with cryptocurrencies have no legal protection. Credit and debit cards have legal protections, if a problem occurs. For example, if you need to decline a purchase, your credit card company has a procedure that allows you to get your money back. Generally, cryptocurrencies do not have these protections.
Ordinarily, cancellations with virtual money are unalterable. When you cancel someone’s cryptocurrency, you can usually only get your money back if the individual you canceled returns it to. Before buying something with cryptocurrencies, you should know the reputation of the seller by doing a little research before canceling.
How to Avoid Cryptocurrency Scams?
Cheaters are always looking for ways to steal money from you using cryptocurrency. Learn some ways to avoid cryptocurrency scams.
• Only scammers demand that you pay with cryptocurrencies. That is always a scam.
• Only scammers will guarantee profits or high returns. Therefore, individuals who give you the word that you can make quick and easy money in the cryptocurrency market should not be trusted.
• Don’t mix online dating with investment advice. If you meet a human being in a place or app, and then you want to teach them how to invest in cryptocurrency, or ask them to send you cryptocurrency, it’s a scam.
Some Cryptocurrency Scams
Investment scams are one of the key ways scammers use to trick you into buying cryptocurrency and sending it to scammers. Although there are cheats, who pose as business representatives, government agencies, love affairs, among other tactics.
They occur when scammers promise to make a lot of money without any risk. And these scams usually start on social media or dating apps or sites. They also start with MSM, email or call. And in investment scams, online currency plays a central role in two ways: it can be for an investment or to pay.
Scammers look for a way to send mail or correspondence through the US Postal Service. In the mail they claim to have embarrassing or compromising photos, videos, or personal information about the person. Later, they threaten to make them public and in order not to proceed, they demand that they be paid in cryptocurrency.