(WKBN) – Cryptocurrency is similar to other currencies except that it is digital and only exists electronically. Bitcoin is just one example of the many cryptocurrencies that are available for consumers to purchase, as well as to use for other purchases.
However, when buying and selling cryptocurrency, it is important that you take security measures to ensure that you are not being scammed or misled in any way. It’s also important to be knowledgeable about how it all works and what you can and can’t use it for.
According to the Federal Trade Commission, it’s not uncommon for crooks to try to find new ways to steal your money, including cryptocurrency. That is why you need to be careful and educated when buying cryptocurrency.
Here are some red flags the Federal Trade Commission says to watch out for to make sure you don’t get ripped off:
- Businesses Promising You Can Make A Lot Of Money In A Short Time
- Some crooks may send unsolicited job offers to help recruit cryptocurrency investors, sell cryptocurrency, mine cryptocurrency, or help convert money into bitcoin.
- Some scammers tell you to pay in cryptocurrency for the right to recruit other people into a program.
There are ways to protect yourself against scams. You can report fraud and other suspicious activity involving cryptocurrencies to the Federal Trade Commission, the Commodity Futures Trading Commission, or the United States Securities and Exchange Commission.
It is also important to keep in mind the amount you are investing when buying crypto. Investor.gov reminds us that there is “a significant risk in investing your money in something that has not been around for a very long time.”
One suggestion he gives is to only invest the money that you are prepared to lose. So if you don’t make the money, it doesn’t devastate you financially.
“It’s not like you only put $ 10 in the bank. You know you are potentially investing $ 10 in something that can help your money grow, ”said Jeremy Oliver, Youngstown native and co-founder of FAAM Coin cryptocurrency.
He says crypto can be a great and beneficial thing when done correctly with education on how it works.
Investor.gov suggests that you do your research and assess your financial goals when choosing to invest in cryptocurrency. Check that the platforms you use to invest are legitimate and secure.