Traps to avoid when buying or selling Bitcoins
As everyone that belongs in these modern times knows, dealing with businesses and making any form of transaction online can be quite a risk.
Let’s quickly take you through the things to look out for when buying or selling cryptocurrency. The security traps are there. Let’s help you navigate without falling into any. So, what and what are the things you need to watch out for when trading cryptocurrency?
1. Crypto-Ponzi schemes
Remember MMM and other Ponzi schemes that swept across Nigeria a few years ago, right? There are cryptocurrency offers like that, particularly when it comes to Bitcoins.
A Ponzi scheme works by paying old investors the capital invested by new investors and needs an ever-growing pool of investors to remain spinning.
So, to be safe when trying to sell or buy Bitcoins, keep your eyes out for offers that promise ridiculous returns that are way higher than the industry standard - This is one way to spot these Crypto-Ponzi schemes. Abscond as soon as you observe anything like this; one should not be involved with such offers.
What you need is a reliable and trusted company, like Patricia, where you can buy, sell or store Bitcoins at the best rates and guarantees security and convenience.
2. What do you know about the company you want to deal with?
If the cryptocurrency company or dealer you are trying to transact with is shrouded in mystery or has a vague identity, that is another red flag. Do not ignore this sign.
If you are looking to transact in any type of cryptocurrencies and digital assets, stay on the lookout for a kind of company that is well known - for their transparency and for having a track record of delivering what’s promised at all times.
3. An identifiable and well-known owner is also a positive sign
It is a big plus to know who one is dealing with - who, as in a person. Before making any transactions, it’s vital to learn as much about the company as possible to avoid any unpleasant surprises.
Companies that are open about the people running them are usually safe to deal with and show that transparency is a sign of good faith. That’s the kind of company you want to go into business with.
4. Beware of fake ICOs
ICO means Initial Coin Offer. And it's just as clear as it sounds. Some companies try to lure you into signing up with them with juicy ICOs that end up being fake.
Always be on the lookout for this. Don’t be caught off-guard.
5. Are there other people who are investing in it?
If you are looking for a company to sell and buy Bitcoins, gift cards and digital assets from, it’s wise to look for a company that is reputable in the industry and also has the track record of delivering. It speaks to the genuineness and quality of their service if many people are investing and transacting with them.
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