Bitcoins and Cryptomoney: How to avoid scams? #decryption 4/6

Bitcoins and Cryptomoney: How to avoid scams? #decryption 4/6

Investing your money in Bitcoin requires a certain amount of caution and it is not always easy to distinguish between fraudulent and fraudulent platforms. There are, however, certain signs that should alert you. Do your due diligence. You can’t joke about your financial investment. Take the time to check the information and evaluate the seriousness of the sites you consult. Here are some basic rules of prudence.

Scammers use well-known techniques. They contact you by e-mail or telephone, either spontaneously or after you have left your contact information on a site offering to invest in cryptomoney. Their discourse is well grounded. First of all, they are very friendly and try to put you at ease. Then they insist on the recent boom in cryptocurrencies, especially Bitcoin. Finally, they offer the prospect of a 2.0 currency with very attractive yields, provided that « you seize your chance quickly ». To appear even more serious, some of them even offer online training courses. But the scam is confirmed when you are unable to recover your funds. By then it’s already too late. Your contacts have vanished into thin air with your initial bet. Refine your analysis.

Find out more about the online broker

First reflex: check that the financial intermediary with whom you wish to operate is not on the list of companies that are irregularly active on Belgian territory, a black list maintained by the Financial Services and Markets Authority (https://www.fsma.be/fr/warnings/companies-operating-unlawfully-in-belgium). Second reflex: some brokers boast that they are not on the list in order to legitimise their credibility. However, this list evolves over time. So beware of brokers who use the argument. Third reflex: make sure the company exists and dig deeper: even if there are legal notices, beware of identity theft by approved companies. Many platforms also claim to have their head office abroad or indicate addresses which, when they exist, are only P.O. boxes. Fourth reflex: In general, avoid dealing with « exotic » companies. In the event of a dispute, your invested sums will be difficult to recover. The costs of starting legal proceedings internationally are often a deterrent and the cross-border nature of the operations complicates the task. Many players operate precisely for these reasons via front companies or companies domiciled in opaque countries. And this is a real headache in terms of the rules of territorial jurisdiction.

bit4you is currently the first and only platform for the exchange of cryptoactives operating at European level from Belgium. « We are continuously working to comply with all existing regulations, as we strive to be in line with all processes in the fight against money laundering and terrorist financing. We are convinced that the creation of a secure environment of trust for our clients is the keystone for the future of our company, » says one of the founders, Marc Toledo. « Other reassuring elements for internet users: bit4you operates transparently from Brussels, our articles of association are published and our contact details are clearly identifiable. In addition, we work together with the Brussels-based law firm Eubelius, which keeps us regularly informed about the latest developments in legislation on virtual currencies.

Get a free demo account

Would you like to learn more about bitcoin? bit4you offers you the opportunity to learn, free of charge, about online trading, a simple and secure way to buy, sell, store, exchange, send and receive bitcoins, as well as about 20 other cryptocurrencies. Open a free demo account and receive 100,000 dummy USD to virtually buy your first cryptoactives. Test different strategies and choose the one that suits you best to apply it in the real part of the site.

Bitcoin has a global storytelling. Marc Toledo, co-founder of bit4you, explains why this virtual currency is so popular.

#Every Saturday, bit4you decrypts Bitcoin for you. Don’t miss our next meeting and keep our series of six releases.

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Cryptography is subject to extremely high volatility. It is unregulated, which makes it a risky investment. Investing money also costs money. Any gains made in cryptomoney are reportable.

Bitcoins and Cryptomoney: How to avoid scams? #decryption 4/6
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