Digital Currency Scams: Retrieve Your Lost Funds

The digital currency world can be exciting but risky. Scammers often take advantage of the complexity of cryptocurrencies to deceive investors with fraudulent schemes disguised as genuine opportunities. If you've fallen victim to a digital currency scam, don’t lose hope. We'll provide you with an honest evaluation of your situation and equip you with the tools and knowledge you need to take action.

What is digital currency?

Digital currency is a form of currency that exists only in digital or electronic form. At its core, it’s meant to be a secure and decentralized medium of exchange, often using blockchain technology to record transactions. And due to its potential for high returns, it’s gained significant attention as an investment tool in recent years. However, it’s important to remember that digital currency is highly volatile and shredded in anonymity, which makes it a breeding ground for scammers.

Three important Digital Currencies

Digital Coins:

The original and most valuable digital currency, often seen as "digital gold" due to its limited supply and potential as a store of value. It's widely accepted and recognized, with growing institutional adoption. It was created in 2009 and operates on a decentralized blockchain network.

Ethereum:

The second-largest digital currency by market capitalization, and the most valuable “Alcoin” (a term used to describe digital currencies other than Digital Coins). While its underlying blockchain technology powers a vast ecosystem of projects, including decentralized finance (DeFi) applications, Ethereum itself functions as a digital currency with its own unique features and use cases.

Ripple:

A digital currency designed for fast and efficient cross-border payments, particularly targeting financial institutions. However, it faced legal challenges from the SEC , highlighting the regulatory risks associated with digital currencies. Ripple's native cryptocurrency is called XRP.

Key points

  • Digital Currencies are a brand new asset class that provides enormous investment opportunities – but substantial risks as well.

  • Beware promises of quick wealth.

  • Do your own due diligence and investigate wallets, websites, and information.

  • Avoid risking money you can’t afford to lose.

Is digital currency a scam?

Digital currencies are not a scam by themselves, but they are something like the Wild West of investing and speculation. That’s why, if you want to invest in digital currencies and trade in them, you need to work with a virtual currency platform that is reputable and – ideally – regulated.

Thankfully, you have a plethora of exchanges to choose from. Perhaps the most well-known, respected and trusted is Coinbase. Other notable and trustworthy crypto exchanges are Bitstamp, Kraken, Binance, and Bittrex. And if you want to use a completely different exchange, make sure to do your due diligence and research before investing any money.

Digital Coins mining scams

Mining is how Digital Currencies like Digital Coins are created, a process known as Proof of Work. Mining requires significant computational power to complete highly sophisticated algorithms to record transactions on the distributed ledger. When ‘blocks’ are mined and added to the ‘chain,’ the miner is rewarded with Digital Coins. Because mining requires time, resources, power, and infrastructure, many scams seek individuals to ‘invest’ in mining projects, a form of passive income. Thankfully, this scam is less common with the advent of 3rd generation blockchains like Cardano that use a staking system versus mining – no massive power or infrastructure requirements and allows individuals the opportunity to make passive income much easier than with the legacy mining processes.