Thoughts of the American Frontier, also known as the Wild West, often conjure up visions of lawlessness and expansion into new unknown territory. This period is often characterized by volatility, risk, reward, and loss. Feelings of what it was like in the Wild West often hit close to home for those who find themselves within a period of history where new markets, manufacturing processes, or technological innovation upturn traditional ways of living or doing business.
Today, the fast-changing state of the cryptocurrency market and the type of impact it will have on the future of commerce trigger many similarities to those sentiments mentioned above. As the attention of retail investors, speculators, and various types of institutional investors continuesto turn toward the lucrative cryptocurrency markets, so too is the attention of scammers and cheats.
According to the Federal Trade Commission’s Consumer Sentinel, Since October 2020 through March 31, 2021, reports of crypto-related scams skyrocketed to nearly 7,000 people reporting losses of more than $80 million. These figures reflect a 12-times increase in the number of reports compared to the same period on a year ago and a nearly 1,000% rise in reported losses.
Given the exponential rise in crypto scams being reported, it is important to be aware of the common types of scams and what kinds of things you can do to protect yourself from being cheated.
- The mad rush into cryptocurrency over the…