Everything You Need To Know About Cryptocurrency and Scams

Cryptocurrency is one of the most well-known words in today’s world but do you actually know what it exactly is? Well, don’t worry if you do not as EZChargeback is here to tell you everything you need to know about it. Cryptocurrency is a form of digital currency which generally only exists electronically. How do you get this cryptocurrency? You usually have to use your phone, computer or a cryptocurrency ATM in order to buy cryptocurrency. Cryptocurrencies are available in many forms such as Bitcoin and Ether however there are many new cryptocurrencies that keep on coming into existence with time. 

How Can Cryptocurrency Be Used?

Even though cryptocurrency is a form of digital currency, it can be used for numerous of purposes such as quick payments and also to avoid paying any transaction fee which banks would usually charge while cryptocurrency is not used just for transactions but also as investments as the demand is growing day by day.

How Are Cryptocurrencies Created?

One of the most common ways in which cryptocurrencies are created is through a process known as mining. Mining can prove to be an energy-intensive process in which computers are required to solve complex puzzles in order to verify the authenticity of transactions on the network. As a reward for this, the owner of that computer is entitled to the newly created cryptocurrency. Other cryptocurrencies use different methods to create and distribute tokens, and many have a significantly lighter environmental impact.

Where and How Do You Store Cryptocurrency?

Cryptocurrency is kept in a digital wallet, which can be virtual kept on your computer, or on an external hard drive. A digital wallet would always have a wallet address, which is generally a long string of digits and letters. However, if you happen to send your cryptocurrency to the wrong person or in case you lose the password to your digital wallet also in situations in which your digital wallet is stolen or compromised there is unfortunately very little chance that anyone can step in and actually successfully be able to recover your funds.

How to Make Payments With Cryptocurrency?

EZChargeback helps us understand that payments made with crypto currency are very much different from the payments made by a credit card or other traditional payment methods.  Why is that the case? One of the most important reasons would be that cryptocurrency payments do not come with legal protections so in case something does go wrong, crypto currency does not come with protection policies which a traditional bank comes with. Especially since crypto currency is typically not a reversible form of payment and you can basically only get back your money if the person you paid the money to would send it back. Unfortunately, though, that is a very unrealistic situation. This is why it is important to do your research before making payments.

How To Avoid Cryptocurrency Scams 

As we already know that with every good there always comes a bad, which is the case here. Unfortunately, when Crypto currency grew in popularity it did not only grab the attention of investors and buyers but also the interest of scammers and other such criminals who discovered a new way to scam money out of individuals. Especially since scammers are continuously looking for new ways to scam people and cryptocurrency is a great way to do so. Now the question is how to know if it is a scam and how to protect yourself? Its quite simple as only scammers would demand for you to pay them in cryptocurrency especially due to the lack of protective policies. Like any other scam, the offer they make would be too good to be true and promise you quick money that too at a much higher profit that you can imagine.

How To Report Cryptocurrency Scams

Now that we have familiarized ourselves with the help of EZChargeback on what Cryptocurrency is and how it can be used to make payments. We also shed light upon the risks and benefits of crypto currency and how there are also risks involved if you fall into a trap set by a scammer and ways in which you can protect yourself. The final and one of the most important components to fully provide you with every important information regarding Crypto currency would be  on the process of reporting a cryptocurrency scam. Some of the things that you need to do is report the scam to the Federal Trade Commision also known as FTC on their official website at ReportFraud.ftc.gov , the Commodity Futures Trading Commission which is also known as CFTC on their official  website CFTC.gov/complaint and the cryptocurrency exchange company that you used for the transfer of funds.

Excerpt: Even though cryptocurrency is a form of digital currency, it can be used for numerous of purposes such as quick payments and also to avoid paying any transaction fee which banks would usually charge while cryptocurrency is not used just for transactions but also as investments as the demand is growing day by day.