Today we are going to talk about crypto scams, what are these scams and how can you avoid them. Where money is involved, thieves automatically get involved and how you can identify and avoid those thieves, you will know this in today’s blog.
Identify such scams and avoid them—
The cryptocurrency market is newer and less regulated, resulting in a more variable market and open to scams. So let’s talk about two such methods by which you can avoid crypto and bitcoin scams. By the way, it is best for those who are newbies or beginners they should invest only in big and reputed currencies. Because the security policy of these currencies is established, strong and well-controlled. And those who are doing crypto trading in the market, it is best for them to do thorough research about coins, change platforms, and brokers after reading their reviews and doing background checks. Only then invest in them. If you are interested in bitcoin trading visit www.bitcoin-circuit.live.
By the way, the world’s largest cryptocurrency exchange platform Binance is considered completely safe. It is better to invest for a short period than to invest for a long time, i.e., holding the currency. If you can hold onto the money in your case, chances are good that you will get good results.
Pump And Dumps Scheme —
A pump and dumps scheme is an individual or a collective effort. In which the price of acid is inflated i.e. increased. Like traders can sell their holdings at a profit. So it starts with the pump i.e. by convening people to Buy a Particular Crypto. In this, crypto scammers promote, advertise, and put it in different places on social media, which is the minimum trade coin, so that people can see that coin and people invest more in it.
After that comes the next step —
Whatever is the Dump, investors think that this coin has value, then they hold it and keep it. But the scammers realize that this is a trick played by them, then increase the prices. The scammers dump all their holdings and make all the profits themselves. When the maturity of the money goes out of that acid, then its market value decreases and you have to face the loss.
Understanding Anti Money Laundering (AML) —
Anti-Money Laundering (AML) refers to the laws, regulations, and procedures whereby several criminals have the main purpose of helping criminals to hide illegally obtained money into legitimate income. The Financial Action Task Force was formed by many organizations, groups, and countries around the world. Its only main mission was that it wanted to prevent money laundering and to promote its implementation more so that it was accompanied by the creation of international standards. Like the FATF and IMF, its affiliated member states are increasingly pressurized to adhere to international standards to thwart terrorist financing. Laws and regulations with AML target all kinds of criminal activities, such as trading in illicit goods in the market, manipulation, tax evasion, or corruption of public funds. Money can be obtained in all these ways.
What is Know Your Customer (KYC)?
KYC means Know Your Customer, and the second one is AML which has a whole lot of processes including the initial customer due to diligence phase. If a new customer is incorporated with the financial institution. There are many new KYC procedures that you will need to know before you can identify and verify them. This enables financial institutions to fully provide risk value to the clients associated with it on a trend-based basis for financial crimes. Wallets have become like financial institutions and crypto exchanges, requiring KYC linking with these entities along with crypto AML programs. It is a process that incorporates Personally Identifiable Information (PII) of the customer: such as full name, address, and date of birth. Official government-issued documents, such as driver’s licenses, passports, utility bills, and address proofs, have been verified. Financial institutions require all clients associated with financial crimes and virtual currency money laundering to understand the risks involved.
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