So, you’ve finally decided to buy into the crypto craze. Great! You know all about blockchain technology and how it’s going to revolutionize everything…
Or maybe you don’t yet, in which case read this article. But before we dive too far into specifics, there are a few very important things you need to understand when it comes to cryptocurrencies.
First of all, blockchain technology is in its infancy. To say that it’s not “mature” would be an understatement. It’s just getting started in the grand scheme of things.
No one can really tell what will come from this massive technological shift we’re witnessing right now, but here’s what we do know:
We know there will be a high demand for blockchain developers over the next few years, and good ones are going to make a LOT of money. We know that this new technology has the potential to change many things about modern society as we know it, including how governments operate and how businesses conduct their business transactions.
We also know that there’s a lot of money being made in this space right now, and it’s being made by people who don’t always have their customers’ best interests at heart. The truth is, there ARE people out there right now who are trying to scam you, hoping that you’re a newbie who doesn’t know the difference between a legitimate service and a scam.
In this article, we’re going to show you some common scams in this space, how they work, and how to avoid them.
We’ve been following the cryptocurrency space closely since its inception. Over those years, bitcoinup.io/ has seen a lot of shady business practices aimed at separating new investors from their money. All too often these days, you hear about some new cryptocurrency project that’s raising A LOT of money, but offers no real information about what it is they’re actually doing.
The reason for this is simple: if the project isn’t actually legitimate, then there’s no point in putting much effort into it. You don’t want to put a lot of time and money into something that’s going to fail before you can even get it off the ground.
So, in order to get around this problem, shady developers do one of two things:
They say that their “project” is still in development and therefore they’ll accept money from investors on a “pre-sale” basis They outright lie about what kind of project it is they’re actually working on
The first option is a very effective way of raising a lot of money for no reason, and it’s also completely legal. So long as you tell people that your project is still in very early stages, you can easily raise the necessary funding to get things moving.
No real work has to be done, as most of the heavy lifting was completed as soon as you created the website.
The problem with both of these actions, however, is that it creates a high likelihood of failure for your project. If you can’t get enough money to get started, then nothing gets done and you’ve wasted everyone’s time. If someone else has already come up with an idea similar to yours or has already successfully funded it, then yours may be in jeopardy.
Not every project out there is a scam, but you should always do your homework before giving anyone money.
Never invest in anything if you don’t have all the information necessary to make an informed decision, and never trust someone who’s asking for money without providing any real proof that their business idea is worth investing in. It may very well be