As Crypto Scams Become More High Profile, Should People Stop Investing in Them?

By  //  April 25, 2022

Share on Facebook Share on Twitter Share on LinkedIn Share on Delicious Digg This Stumble This

Ever since the launch of Bitcoin, controversy has followed cryptocurrency. It’s fueled a multitude of success stories, but it has also enabled fraudsters to earn by victimizing unsuspecting investors and buyers. In fact, in 2021, reports found that scammers were able to steal $14 billion through crypto, almost twice what was stolen the year before.

Yet, despite all of the fraudulent activity surrounding it, interest in cryptocurrency remains as strong as ever. Furthermore, many experts believe that its high-tech nature will continue to attract scammers looking to exploit the system.  

With that said, is cryptocurrency still worth investing in with all of the fraudulent activity surrounding it? This article will cover some of the pros and cons of jumping on the bandwagon. Continue reading to learn more.

Risks of investing in cryptocurrency

One of the concerns regarding cryptocurrency investments is their vulnerability to hacking and being targets for criminal activities. Breaches in security have resulted in considerable financial losses to those whose virtual currencies have been stolen, spurring third-party insurance providers and exchanges to begin offering hacking protection.

Apart from unauthorized access, storing cryptocurrencies is more challenging than bonds or stock ownership. As easy as it is to purchase crypto assets, few want them on the exchanges because of the risks of others gaining control over them.

Using a centralized exchange for cryptocurrency storage means that you won’t have complete control over them. If an exchange goes bankrupt or the assets are frozen, you’ll have little recourse to recover your money. Fortunately, victims aren’t completely helpless in these cases. By hiring capable chargeback experts, you’ll have the opportunity to get your money back potentially. Still, make sure you read up on fund recovery reviews before making your selection. It will guide you to the company you need.

Is cryptocurrency a good investment?

Most cryptocurrencies like Ethereum and Bitcoin are typically launched with high goals and can be achieved over a long period. While no project is assured, investing early in crypto that reaches the desired goals can potentially be rewarded in the long term. The ownership of crypto-assets can also improve one’s portfolio through diversification because some have shown little correlation in price with the stock market. And those who believe in its widespread usage in the future should probably invest in it. 

If the prospect of purchasing cryptocurrency seems a little too risky for you, it’s possible to benefit from it still. You can buy stocks from companies like Block and Coinbase or invest in exchanges that facilitate crypto trading. It’s worth noting that even if it can be profitable, it’s still more lucrative to invest in cryptocurrencies.

Conclusion 

Cryptocurrencies, like many investment opportunities, come with its fair share of risks. However, even with all the scams and fraud from crypto, it’s still an investment worth taking when you consider the financial rewards that it can potentially bring. The important thing is to be vigilant and research the crypto you plan on investing in first.