Are Cryptocurrencies A Shady Scheme?

By Rushali Shome

Cryptocurrencies constitute an absolutely uncharted territory for a vast majority of people in this world, as few beyond ardent crypto enthusiasts and tech-savvy, inquisitive millennials know much about the field. Given it is quite volatile in nature and the profits and losses can both be rather extreme in trading with cryptocurrencies, many people wonder: are cryptocurrencies a shady scheme?

You MaCan Cryptocurrency Scams Be Stopped?

After all, it is quite natural to be intrigued and concerned about something one does not know too much about. Unfortunately, because of a low level of awareness, a very large number of people fall in this category of not knowing much about crypto.

Here, we will help you understand exactly what cryptocurrencies are and how their prices work and to what extent they can be akin to scams, if at all.

Cryptocurrencies: Are They Legit?

Cryptocurrencies, at least most of them, are absolutely legitimate digital assets available to the public for trading and other purposes.

As long as they are born out of well-planned projects and are listed on some of the top cryptocurrency exchanges, you can be certain that nothing is really wrong with them.

The perception that cryptocurrencies may be quite shady in nature stems from the fact that their prices can rise and fall quite rapidly and lead users to make fast gains or immense losses within a short time frame.

However, this simply happens to be nature of the cryptocurrency market and cannot be said to point to any inherent shadiness. Now, let us assess the causes of concern.

Cryptocurrencies: Is There Any Cause For Concern?

Now, a frequent allegation that is levelled against cryptocurrencies is that they are anonymous and hence can be misused by criminals and terrorist activities.

This fact is only partially true. It is only a myth that all cryptocurrencies are anonymous in nature. Some privacy coins like Monero, Dash etc. may be so but most cryptocurrencies are not completely anonymous.

You May Also Read: 15 Myths About Blockchain That Need To Be Busted ASAP

Although it is only a myth, there can indeed be some causes for concern. These cryptocurrencies, even when they are not inherently anonymous, can be transacted with quite anonymously and privately.

Often, because of loose regulatory control in this sector, there can be many ways to conduct shady schemes using these cryptocurrencies.

There have been multiple cases where crypto coins have been used for illegal transactions carried out over the dark web.

Therefore, although cryptocurrencies are not shady by themselves, they can be used by shady people to run shady schemes.

To avoid these shady schemes, one should veer away from all deals that do not seem to be on the right side of the law and run a mile away from projects that offer to double or triple your money via crypto investments. If they talk to increasing your money manifold, beware, you have caught in a scam!

Otherwise, you should be quite safe and secure using cryptocurrencies.

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Rushali Shome

Rushali Shome is a history undergraduate with a keen interest in puns, politics and beyond. When not typing away furiously in the “Notes” section of her phone, she can be found trying to catch the eye of servers at restaurants or weddings for a second helping.

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