Cryptocurrency trading is a popular investment option. You can sell your virtual currencies at a profit. Several tools can help ensure that you have a successful trade. A perfect example is BestChange converter that can help you convert satoshi to usd, Bitcoin, and other currencies.
As with any money investment, trading cryptocurrency comes with certain risks. You must take all measures to protect your money. This means that you should be aware of all the risks associated with cryptocurrency trading. Only then will you understand how you can make money and not be fooled by scammers.
Risks to Buyers
If you are a beginner, there is a chance that scammers will try to scam you. Here’s how they can do it:
The seller asks you to cancel the trade after you paid for it
This is a common technique used by scammers. They ask you to cancel the transaction after payment. In gift card transactions, you are at risk when you provide the merchant with the gift card details. He can simply take its face value, and when the transaction is canceled, the cryptocurrency will return to the seller from the custody account. Thus, the fraudster will receive your card for free, and you will be left without cryptocurrency.
If the seller asks you to cancel the transaction after payment, do not do so. In this case, you need to open a dispute with the platform you are using and contact the moderators. Also, make sure the seller is online before submitting any documents or making a payment.
Deal outside the platform
Scammers often try to close a deal outside trading platforms. They may ask you for your contact details to contact you outside of the platform. If you agree to this, your funds will not be protected by a secure holding account.
When trading outside a known platform, there is no guarantee that the merchant will send you the cryptocurrency. Moderators will not be able to help you if you are trading outside of the platform. There are specific measures designed to protect users.
Risks to Sellers
As with buying cryptocurrency, there are some risks you may face when selling, which you should pay attention to. The more you know about them, the easier it will be for you to protect your funds.
Some of the payment methods are reversible (like PayPal or credit cards), meaning the payer can revoke their payment. Fraudsters often use reversible payment methods. After completing the transaction, they cancel their payment.
If payment is canceled, look at previous transactions from your platform’s dashboard and contact support for help or advice.
Used Gift Cards
This is a common technique often used by scammers. Sometimes, customers upload the details of a gift card that has already been used. They may also say that they have already paid or are paying for the deal right now.
Check the balance of the gift card before issuing cryptocurrency. To do this, you can activate the gift card and make sure that its face value is displayed on your balance. This must be done quickly, as the buyer may sell the same card to another user. However, beware of scammers who rush you through the deal.
Fake ID or someone else’s credit card
Credit card companies usually cover fraud risks. If the owner reports credit card theft, they block certain transactions. Therefore, we strongly recommend that you verify the user’s identity and ask him to provide a selfie to confirm his identity.
Be careful if the user submits images that are not clear, and the face and name on the card are difficult to see. Conscientious users usually follow all instructions for the transaction. Some traders may refuse to provide their ID, but it is up to you to determine which document you want to receive from a trading partner. Remember that the more evidence you have, the more chances you have to win a dispute if you suddenly come across scammers.
User is “very busy”
Be careful with those users who rush you. When the user is “very busy” – this is a reason to be wary. Such people can rush you to release bitcoins, and if you follow their lead, the scammer will redirect your cryptocurrency to another wallet without paying you a dime. The buyer and seller should always follow the instructions and complete the transaction when all conditions are met.