Bitcoin and other cryptocurrencies are becoming increasingly popular. Their main advantages are anonymity, ease of international transactions and low fees. Bitcoin is not taxed now, since third parties (public officials) cannot identify transaction parties.
Although cryptocurrencies have many benefits, you should be careful when using them. Since cryptocurrency is almost unsettled, numerous fraudsters can take advantage of this. For example, crypto startup Prodeum deceived its investors for just one weekend.
Due to such incidents law firms deal with cryptocurrency transactions. Some lawyers even specialize in cryptocurrency litigation. They may be involved in cases of fraudulent ICOs, using crypto to launder money, infringing intellectual or commercial property related to digital currency.
Experts at the law firm Hogan Injury advise you to take certain precautions so as not to be deceived.
- Do your own research. As with investing in any other assets, a thorough research is a must-do thing. When you invest in ICO, review the official documents, team members and partner information. You should know as much as possible about the company to avoid unpleasant surprises.
- Be vigilant. Cryptocurrency is sold mainly through exchanges. If the exchange promises too good offers and low prices, it is possible that they are scammers. Also, always check the URLs of websites. Addresses that begin with HTTPS are more secure and usually more reliable than those with HTTP.
- Use only reliable sources. Hardware wallets are considered very reliable cryptocurrency depository. However, skillful hackers have found a loophole. They sell hardware wallets with existing vulnerability, and then get access to your cryptocurrency. Buy such wallets only in reliable places.
We hope this topic was helpful for you!