Bitcoin and other Cryptocurrencies are getting used to the people every day. Though the use of cryptocurrency is wide and easy to use in transactions, there are so many scams happening around the world. It is the safest way of the transaction due to its anonymity between buyer and seller. Currently, people are so much convinced about that it can be a good investment. You can use Bitcoins to buy gifts, book flights, and hotels, buy furniture, buy real estate properties, apart from Blockchain trading.
Bitcoin transactions are not tax-inclusive right now for the anonymity. While transaction fees are also quite low as compared to other transactions like Paypal, Payza etc. Though there are so many advantages of using Bitcoin or other cryptocurrencies, you have to be careful with your transactions and investments always. If you lose your transacted money (cryptocurrency), you won’t find a way to recover it.
Since the cryptocurrencies aren’t regulated by Government or any other institution, there are so many dishonest people takes the advantages of it. So, the so many fraudulent cases and scams happened related to cryptocurrency. A cryptocurrency startup called Prodeum started the business and vanished within a week, scammed its investors. Now the law firms helping the victims due to these scams. Bitcoin and Cryptocurrency Litigation has now become bigger so some of the lawyers are specializing in it.
There are a lot of reasons behind the cryptocurrency dispute. If the cryptocurrency was used to launder money or hide assets besides the Initial Coin Offering (ICO), the lawyers could get involved. If there is any issue regarding company, commercial, or intellectual property laws violation, the lawyers could get involved.
Bitcoin and Cryptocurrency Litigation
Here are the three ways to avoid scams as a cryptocurrency user.
1. Research – Research is an essential thing when you want to go for investment. No matter what it will be, you should research first about your investment. Make sure to read and dissect the white papers when investing in an ICO. That will be proof that you’re working with reliable people. Take your own time to research about the ICO people (team, members, investors) who’re working for it.
2. Be Vigilant – Cryptocurrencies basically bought and sold at exchanges. As because this is quite new and people are getting overwhelmed about its value. That’s why so many people getting scammed in a hurry of investment or false promises. If an exchange promises discounts or offers that seem to be good, just check properly. You should check the exchange’s URL also. If the website address contains HTTPS instead of HTTP, that means the traffic is encrypted and has a certain level of protection.
3. Only Use Trusted Sources – Use hardware wallets for Bitcoins or other cryptocurrencies. The hardware wallet is a physical wallet that offers more protection from hacking than other wallets. The hackers can’t hack your wallet when you’re offline. However, there are so many ways that hackers try to get access from hardware wallets. Some professional hackers sell hardware wallets that are unlocked or bypassed. So they can easily get access all of your cryptocurrency details. That’s why only use hardware wallets from trusted sources.
Please Note: These are the basic options to do with your cryptocurrency transactions and investments. However, you can always consult a legal professional for further information and litigation.