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What Is The Cryptocurrency Scam? (Can You Make Money With It?

Have you heard of BitCoin? Etherum? etc? These popular apps and platforms that allow you to invest and double your money in days! But how true and safe is it?

Investment involves risks. No matter how we try to verify and validate offers we cannot get rid of the risks but we can lessen it. Cryptocurrency is one of the known virtual investment platforms.

Cryptocurrency Review Summary

 


Cryptocurrency is digital currency that is used to have peer to peer cash transfer or transaction.

It is decentralized which means it is not regulated by the bank or the government. Since it uses blockchain, it is harder and even impossible to track individuals who use it!

It is susceptible to inflation and extra charges but it is of higher risk of scams, hacks and false investments because of its price volatility.

What is Cryptocurrency?

The convenience that we enjoy right now using electronic cash (or ecash) was initially something difficult to developers at first. Several attempts were made but never fully developed.

Their main problem was something called the double spending issue that allowed for counterfeit transactions. Finally, a group called Satoshi Nakamoto announced a successful peer to peer electronic cash system with the use of blockchain as a ledger.

Cryptocurrency is a form of digital money, or digital currency. It does an electronic cash transfer between two people through a blockchain. Its unique characteristics as a system are the following: decentralized, transparent and irreversible.

Cryptocurrency Basics: Things you need to know

The nature of the cryptocurrency is technical so let us look at these major points to make it understandable:

  1. Digital Money – unlike the use of paper money or copper coins, you buy digital tokens or coins online to make money transfer.
  2. Decentralized – In the traditional way of money transfer, there is a mediator like your bank or the government. Their role is to keep tabs of your checks and balances while you do the transfer to avoid frauds and scams. In cryptocurrency, they use blockchain wherein the check and balance process is considered safer.
  3. Transparency – So what does cryptocurrency use to ensure the transfer? They have a public ledger of your accounts which are seen by everyone in the community (transparency). They will see your wallet address (public key) and the amount of coins being transferred. You send and confirm it using your private key.
  4. Irreversible –They use a mining process wherein “miners” confirm the transfer by solving critical puzzles given by the system. Once confirmed, it is already irreversible and cannot be forged.

So far so good right?

But what are the implications of this? Let us check the good things first.

How to Make Money with Cryptocurrency?

  1. Mining – Miners are the single most important part of any cryptocurrency network, and much like trading, mining is an investment. Miners basically do a bookkeeping service for the communities they belong to. They compute and solve complicated cryptographic puzzles, which is necessary to confirm a transaction and record it in a distributed public ledger called the Blockchain. The higher the computing power they accumulate the higher the chances of solving the cryptographic puzzles. Once they solve the puzzle, they receive a reward and a transaction fee.
  2. Wallet – Cryptocurrency serves as your digital wallet, just like any other banks, the more you buy and use the tokens and coins, the more you also earn. Since it is decentralized and not moderated by the government, its currency is not affected by inflation rate or changes in the value of your money.
  3. Fee – Another advantage of being decentralized is that you can get off the hook of the additional fee and charges in a normal transaction.

Cryptocurrency: High Risk Investment!

However, there is always a bad side to everything. This is equally important to consider when making an investment!

  1. Equipment as Miner – You might be thinking, I have a laptop! Is it enough? Yes, if you were working at the start of when cryptocurrency came out. But now, most of the mining jobs requires an industrial-grade mining hardware. On top of that is the amount of electricity you’ll need to power it up.
  2. Competition as Miner – The higher the number of users, the lesser rewards you will get. For most of the cryptocurrencies they are only designed to hold a maximum number of tokens and coins for circulation. For example, when Bitcoin was first created, the reward for successful mining was 50 BTC. Now, the reward stands at 12.5 Bitcoins. This happened because the Bitcoin network is designed so that there can only be a total of 21 MLN coins in circulation.
  3. Stability of Currency – Despite the high possibility of gaining value in the future, there is no cash flow that is a factor in good investment. In cryptocurrency, there is too much price instability – it rises and drops in a matter of time.

And the worst of all …

SCAM and HACKERS!

Cryptocurrency SCAMS and HACKERS

For the past years, there have been a lot of illegal activities using this platform. Millions and Billions of coins and tokens were stolen by Hackers and Scammers.

Because of its lack of protection, it has been abused by scammers as a way to steal money from people through its tokens and coins. Since it is highly private and individualized, it is impossible for the law enforcement to trace frauds and theft.

Another scenario are hackers, According to a report by CipherTrace, since January $4.26 billion in total has been stolen from cryptocurrency exchanges, investors and users. Examples are BITpoint hacked for $28M, Binance hacked for $40M and many more. It also has bad effects on the people who actually lost their ‘investments’.

Have You Thought About Making Money Online?

Many people look into cryptocurrencies because they want to see if it’s a good way to make some extra money. However, as we noted above, it doesn’t always work out for most people.

If you are thinking of a good source of passive income or how to make money while you sleep, then continue reading!

Affiliate Marketing is one of the safest platforms to invest your time, skill and money on! What you do is to simply promote a product or service of your choice. You can also choose you own style and technique to reach your audience! If the product you promoted got sales through your output then you get a commission from the sales.

Simple yet important advantages:

  1. It is a low-cost business opportunity and billion-dollar industry! If you have a laptop, an internet and a creative mind, you are good to go!
  2. No investment, no risk – you do not need to pay for the product or take part in any operation that they have. Since you will not spend a dime on it, there is nothing to lose.

So how do you actually start? How do you find the product to promote and start publishing? To start-up to any kind of work or investment, it is always good to have mentors and be part of community. In the field of affiliate marketing, Wealthy Affiliates is known for this.

Wealthy Affiliates helps you not only how to start but also how to grow in your career! You can sign up for free and explore trainings and courses offered. They also have a community from whom you can learn from. It also provides the tools and platforms that you need.

Wealthy affiliates connects you to the right merchant or products. You will not have to drag yourself in doing things you do not want! It also ensures their legitimacy and secures your website from hijackers that can steal your commission.

If you wanna know more about what I am talking about visit Wealthy Affiliates website and see for yourself how good it is!

Miel

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