There has been a long list of people who have lost tens of millions of dollars and small amounts of money in this crypto game in the last 5 to 10 years.
Many critics of crypto say that it allows for more hidden criminal activity which apparently is not true based on statistics.
Every year and organization called “ChainAnalysis” publishes a study with the crime statistics and in 2021 found that allow criminal activity with crypto went up it did not go up much compared to the HUGE amount of increased amount of crypto started and used in 2021.
It has a number that approximately states that of the $8 billion in fraud scams that only about $3 billion came from “fake crypto projects”. So everyone is advised to be careful when investing in any new thing on the Internet or in the crypto space.
Here is a link to this article. https://www.publish0x.com/in-bitcoin-we-trust/absolute-vs-relative-numbers-why-bitcoin-and-cryptos-are-bei-xznjenn
Lets talk about the main ways that you could lose your money and what you could do to keep your losses as little as possible.
Make sure you realize that not only is buying crypto risky as an investment it is extremely risky to put all your faith in your computer with your bank account and crypto account attached!
You will probably start sweating as soon as you begin setting up an account with a new crypto exchange.
As you start emailing photos of your driver license and then possibly your last bank statement and then you are clicking here and clicking there…and then the power goes out in your house 🙂
The best advice I would have for people who are not “super geeks” and know computers inside and out is this.
- assume you will be hacked at some point and prepare for worst case scenario. Your bank account gets wiped out by a hacker or you get addicted to the adrenaline rush of buying/selling
- go to an entirely new bank and set up an account just for your crypto. Use it for a month for regular bill payments to build up a track record until you then apply for your crypto account
- have a physical crypto wallet (like a usb stick) where your crypto will be. Don”t keep it online
- get a separate cellphone if you can
- assume that every email or text that you get is a scam and don’t click on anything or agree to anything
- don’t fall for the “hot tip” or the “hot project” that your neighbor heard about. do your own research
(under construction Dec 16 ,2021)