Helpful tips for the newbie Bitcoin traders

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Written By Godfrey

 

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Bitcoin is a virtual form of money that is transferred from one person to another without any intervention. Unlike the earlier times, today, Bitcoin is finding wider use cases. Many retail stores and online platforms are accepting cryptocurrencies.

You can even exchange it with the normal currency of those countries that accept Cryptocurrency. But this can be done only online because this money has no physical presence.

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But again, it is to be noticed here that Bitcoin does have its share of ups and downs, with frauds and scams riddling it. It is said that, like every new technology, Bitcoin too has the prospects of being faced with fraud and is considered to be a highly risky investment.

Since it is relatively new, there are great chances that many new investors can get tricked into believing in its potentiality and getting tricked. So you should be careful and crosscheck before investing in it. Click on the image below if you want to start investing in Bitcoin.

Warning Signs To Look Out For

Before you even invest even a very small sum of money, you should look for certain signs that will warn you against the coin and the frauds that are part of it. Now here are the warning signs that you should look out for:

1. The promise of high returns on your investment:

By now, as a mature adult, you should know that any investment has its shares of risks and frauds. So if anyone or any organization promises you high returns on your investments along with no risks involved, then you should instantly get the message and buck up.

2. Intricate and unintelligible language tough to make out 

In Bitcoin frauds, you will see scammers using complicated technology. That is the language that they will communicate in. So be careful of technology that you cannot understand. In this way, they can trick you into investing in Bitcoin.

3. Examine the license

Check out the license of the person or organization dealing with you while making you believe in the potentialities of Bitcoins and their returns. If they possess no license, then immediately refrain from investing.

4. When it sounds unrealistic

When you hear of any Bitcoin investment that looks too good to be true, then the alarm bells should ring in your mind. Everything that shines bright may not be all that good, so be at alert.

5. Unwanted offers 

When you get offers that you were not expecting is another time that you should be warned that they may be fake.

6. Deadlines to buy 

When someone is trying to force you to buy Bitcoins with immediacy in their tone, it should also be another warning sign.

7. The advance fee fraud scam 

If you are not careful when investing in Bitcoins, you may lose both investments and money taken as tax. They may ask you for tax and additional costs that also may be siphoned off from you, just like your money that might immediately be transferred overseas in the blink of an eye. So be careful when asked for taxes or additional costs.

What Should You Do Before Investing? 

You may run through the reading material related to your investment. Read it very carefully and if you think you cannot understand it, then make sure to talk and discuss it with someone who is an expert in it or maybe you could talk to your lawyer or charted accountant. They might be able to guide and direct you in the right direction. 

And even if you do not get any reading material, be sure to talk it out with persons who are better equipped than you or seasoned investors. You would benefit immensely from it.

Closing Point

The right planning is a must, and hence knowing about the warning signs will always help you make the right call. Remember that this market does not have regulations and set rules to govern it.

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CONTINUE READING BELOW

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And very importantly, it is wise to remember that the market largely depends on the emotions of the buyers and sellers, who are ordinary human beings. So they are prone to thousands of mistakes and, therefore, losses. So be double sure before investing in it.


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