These days anyone who uses a mobile phone and has an internet connection is aware of the cryptocurrency market and Bitcoin. Many legit platforms allow investors to get access to these altcoins. However, with the rise of the crypto market, a huge money flow has started to stream into the place. Therefore, many people are targeted by scammers and fake crypto projects.
Scammers are using different methods to trap the victims even when they are careful. The altcoin that a person is buying doesn’t need to be useless or a shitcoin. Sometimes, people ignore the exchange itself and end up losing their investment on the whole. At present, there are more than 390 exchange platforms registered on CoinMarketCap.
Do your Research Before Joining Crypto Exchange
One of the most common indications for a scam exchange is that it is not registered with any federal or state regulatory authority in the world. The relatively new and unknown crypto exchange platforms that have been around for less than six months are not a great place to invest a lot of money. Many investors want to take advantage of the low transaction fees on these new trading platforms, and they end up allocating a lot of money to their new accounts.
In this manner, they are putting too much risk into a forum that is not very reliable, and it has not been around for a long time. If an exchange platform announces ridiculous perks for the investors that are not available on any other forum, it means that it belongs to scammers who want to lure their victims into investing as much money as possible in a short amount of time.
The owners of fake crypto exchanges can take away not only the original money that is invested by the clients, but they are also able to bilk profits, time, and effort that go into the process of making a profit from the complex trading market. It takes a lot of time for investors to learn about the ups and downs of the cryptocurrency market.
BitKRX was a South Korean crypto exchange market that was launched in 2017. Using their goodwill and power of advertisement, the scammers were able to pose as a branch of a real cryptocurrency exchange called KRX. Many investors who did not do their research started to accept the notion, and they ended up losing their investment. It is still considered one of the biggest crypto scams in the region and also a regulatory failure for letting scammers fool investors openly.