Do you have a Crypto complaint?

What is the value of having cryptocurrencies?

Every crypto coin has, or pretend to have, a different use case(s). For example:

• Store of value
• Payments
• Investment
• Asset management
• Decentralized finance (DeFi)

… and more.

It’s important to note that investing in cryptocurrency is not some “get rich quick” scheme. Don’t listen to guru’s, do your own research when you are going to put ‘skin in the game’. When you buy the wrong shady coin, there is a chance that you will lose your money.

What are the risks of investing in cryptocurrencies?

It can be exciting to hear about all of the money that you can make with cryptocurrencies, but the fact remains that they can be extremely volatile. This is important for those that cannot handle large changes in price. It’s understandable that you might obsess over daily price action if you have sunk your entire life savings into a particular coin.

You should only invest with money that you can miss. There is no reason to invest ALL of your money into cryptocurrencies, even if you choose a variety of different coins.

Some of the risks could be:

• A project may fail, the coin will be worth nothing
• Regulation, financial authorities could (try) to ban a coin
• The project is scam or pump and dump scheme
• You could lose your coin due a mistake (there are many ways)

But there are ways to minimize risks. First of all, you should do your own research regarding a project and its potential. Many cryptocurrencies have legitimate whitepapers, but they may take a while to get noticed. Other cryptocurrencies may have all the publicity globally, but there is not enough investor interest for the coin to increase in value. There are many different factors to consider, but you should assume that you could lose your money. Especially when you invest in new projects.

How to recognize crypto scams?

Here is a little list with tips to minimize the risks.

• Read the whitepaper, understand the project before you invest
• Research the team behind the project
• Search for reviews and complaints
• Think rationally, what are the chances for the project to survive and maybe thrive
• Be extra careful when you invest in new projects

Many smart cryptocurrency traders and investors have all sorts of strategies when it comes to investing and trading. They might resort to examining fundamentals to figure out whether they believe a coin is undervalued, while other traders might focus on technical analysis. However, many experienced cryptocurrency investors get caught up in frauds or scams because they were greedy, or they simply didn’t see the potential red flags.

Most crypto scam projects also have the biggest ambitions! If the project seems unrealistic or ambitious – it might just be too good to be true:

One of the easiest ways to spot a cryptocurrency scam is simple: read the whitepaper thoroughly. Many scammers choose to plagiarize the whitepaper’s language to pass it off as legitimate, and this is an obvious red flag that your money may not be safe with this particular investment. There are many volatile cryptocurrencies, but a plagiarized whitepaper usually indicates that the individuals behind that cryptocurrency intend to eventually disappear with your money.

A whitepaper doesn’t have to be plagiarized for it to be a red flag. If a whitepaper has many spelling errors, it might be because there are scammers that hastily organized a scheme quickly. It is also another red flag if the website doesn’t offer much information, or appears unprofessional.

What other resources would be included? Some whitepapers might describe any potential legal or regulatory concerns to ensure that investors have some peace of mind. Other whitepapers may make ridiculous claims that don’t make much sense or claim that they have connections that they really do not. This will take a significant amount of research, and it’s important not to rush through the whitepaper. Other whitepapers may offer financial models, SWOT analysis, or additional further insights.

You will also want to know more about the team. Who are the people involved, and are they anyone of note? Can you find out more information about them on Linkedin or other websites? If the individuals do not have a track record with cryptocurrencies, it might be a red flag.

If a cryptocurrency project doesn’t have a whitepaper of any kind, you should NEVER invest in that particular project. The purpose of a whitepaper is to explain the project and how the team plans to reach their goals, and it is meant to impress potential investors. If the project doesn’t even have a whitepaper, you can pretty much guarantee that it is a fraudulent project.

How do I keep my cryptocurrencies safe?

Similar to stocks, you can trade cryptocurrencies on a cryptocurrency exchange. However, there are many different ways to store cryptocurrency. If you are trading or investing several thousands of dollars in cryptocurrencies, you may want to make sure you are dealing with a secure cryptocurrency exchange. This is critical because some exchanges have been hacked in the past.

However, a nice feature of crypto currencies that you can have them in self-custody. This means you can store it yourself on a:

• Hardware wallet
• Paper wallet
• Brain wallet

Many cryptocurrency hodlers keep their coins in “cold storage”. This is ideal for those that are planning on keeping their cryptocurrency for a long time. If you store your crypto in a cold wallet it won’t be subject to cryptocurrency exchange hacks or breaches.

Wherever you store your crypto assets, there are several things you need to remember:

• Never ever share your seedphrase or private key with anyone
• Don’t keep your crypto on shady exchanges
• Use 2FA
• Don’t brag about your holdings

Where to file a complaint about a crypto coin, exchange or service?

Things can always go wrong in this relatively new space. It can happen to anyone. If possible, you can report your complaint directly to the relevant business. In addition, it may be wise to increase the pressure a bit by sharing your complaint on social media and / or our platform. This also allows you to come into contact with people who have (or had) the same issue.

Finally, it is also important to share what has happened to you, this helps to stop and expose shady companies in the crypto space.