There is no doubt that the concept of cryptos has been gaining massive attention. Many people from across the globe are making their investments in this model. Cryptos gained popularity in 2009. This also initiated a period of different kinds of crypto mining scams. All cryptocurrencies work on blockchain technology and make use of decentralized finance.
Blockchain technology is an online ledger allowing users to store their digital transactions. This block makes use of the online network servers to store user transactions. Over the years, blockchain has become an incredible working model. The concept has made it impossible to hack, or even trace back user transactions. Blockchains provide complete security for transactions despite being on the internet.
Along with blockchain technology, the concept of decentralized finance also became popular. Using crypto transactions, there is the elimination of regulatory agencies to complete transactions.
But with the growth of cryptos, there is also an increase in the number of scams in it. People who are new to cryptos do not completely understand the concept of it. Hence, the number of scams and phishing attacks around it. All crypto transactions are undertaken on the web and managed on the internet.
Crypto in California
Like any other country, California was also slow to accept crypto investments. The country has seen a slow and steady acceptance of crypto investments. However, compared to other countries California soon made its way into the industry. Today, California has major investments along with Bitcoin ATMs established across the country.
Recently, the country has also made another leap in this industry. The government has made it mandatory to obtain government licenses to operate. The country has made it strict that any crypto agency needs a valid license to operate. The decision comes in soon after the market suffered a major crash.
California has been taking steps to educate their citizen about crypto investments. To this effect, the government has come up with an information website. The site is all set to host detailed information about cryptos. It will also contain detailed information about various crypto investments.
Let us look at various offers and features provided by this website.
The primary purpose of this tool is to provide you with detailed information on crypto. The website will cover an explanation of trading, non-fungible tokens, and buying tips. The website will cover various frequently asked questions and answers to them.
California Attorney in his press release clarified that this website will host resources. Since crypto is a risky investment model such types of websites will help to gain better insight. It will become highly beneficial for any investors looking to join crypto investments.
While cryptos seem lucrative, it is also true that it comes with higher risk. The returns and profits are motivating, but the risk associated with it is also high.
The Attorney general office also provided users to look for the following warning signs.
Promising a large return on money
Yes, this is the first warning sign in crypto investment. Cryptocurrencies are a promising investment model. However, do not invest in cryptos if you are not ready to take risks. Any token that promises higher returns in minimal time is a scam.
Upfront payments to manage cryptos
This is another scam in the crypto industry. Anyone calling you to make a huge amount of upfront payments should be avoided. Always look out for warning signs of this nature. Major popular crypto companies do not ask for upfront payments in the industry. Most cryptos are listed on crypto exchanges. As an investor you may invest in cryptos through this exchange. Alternatively, you may also look at individual brokerage firms that can help you with such investments.
Never respond to phishing calls
Yes, this is a popular trend in the investment market today. Make sure that you do not share your bank account details with any unknown person. Even if the caller claims to be a legitimate organization it is better to avoid sharing personal details.
The number of risks and phishing scams in the crypto industry has been increasing. The efforts taken by the California government are a welcome step. It will allow investors to keep a tab on making the right decision on their investment.
You can also learn more about crypto investment in Bitcoin Smart.