How not to fall for the tricks of scammers when buying cryptocurrency in Kazakhstan

The cryptocurrency market over the past few years has gained wide popularity around the world. However, this area has many risks, due to which Kazakhstanis can lose their money. Read about how you can protect yourself and what an investor needs to remember in the material of NUR.KZ.

The main reason for the popularity of cryptocurrency is its high volatility. That is, the prices for one Bitcoin, Etherium, Dogecoin and other types of cryptocurrencies can rise sharply and increase the amount of an investor's investment. However, along with the possibility of rapid and sharp growth, volatility means the risks of the same unexpected fall in the market rate. There is also a significant risk of becoming a victim of fraud when trying to acquire such assets. The Kazakhstan Association of Blockchain Technologies spoke about what risks there are and how to reduce the likelihood of their occurrence.

Cryptocurrency exchanges and risks

Usually, the purchase of cryptocurrency assets is made on special exchanges. Unlike currency, commodity and other official types of exchange, there are many separate organizations in the field of digital money.

"We do not undertake to say unequivocally that a certain exchange is safe or not. But we consider it important to note that the most popular exchanges with high liquidity of funds must provide security at the required level. We recommend paying attention to the popularity of the exchange and checking the trading volumes on the websites - aggregators. For example, on the site coinmarketcap.com/exchange. Users need to trust only trusted exchanges with a high trading volume. It is also important to check the authenticity of the site and its spelling (domain name in the browser line),” the experts say.

Meme types of cryptocurrencies

Also, Kazakhstanis should be wary of the so-called "meme" tokens - cryptocurrencies created on the basis of jokes, events, and so on. These include the popular Dogecoin, SafeMoon. "Meme" tokens can come out almost every day. They usually do not have their own value, but can rise in price due to the growth in popularity and active processes of buying and selling an asset. “All kinds of “meme” tokens, in turn, are the most dangerous for investors, since most often there is no technology, team, funds or ecosystem behind them, which can lead to a sharp drop in price,” experts say. Therefore, each person, before buying these tokens, must independently study the project and assess all the risks.

How investors can be fooled

In the field of selling cryptocurrency assets, there are also various ways to deceive the buyer. For example, Chainalysis, a service for tracking transactions on the blockchain, identified a list of the most common fraudulent schemes: fake websites and mobile applications for buying cryptocurrency; fake giveaways of free digital coins allegedly from famous personalities; stealing the seed-phrase of the wallet - a list of words that store information to restore access to the bitcoin wallet. "Scammers often pretend to be the administrators or tech support of the service that you actually use. At the same time, the attackers themselves write first to get the necessary data. Or they can use fictitious temporary offers. For example: "Send 100 coins to our address and get 300 back" ", - reported in the Blockchain Technology Association. In other words, the field of cryptocurrency is very risky. The most popular platforms with large trading volumes provide the greatest chance for protection against fraudsters. However, even in this case, each investor should be careful and invest money only if there is a sufficient degree confidence in your safety.

Original article at the link: https://www.nur.kz/nurfin/stock/1952794-kak-ne-popastsya-na-ulovki-moshennikov-pri-pokupke-kriptovalyuty-v-kazahstane/