I am not a financial advisor and this is not financial advice.
Is Crypto a Scam?
Not inherently, however there are scams that exist in the crypto realm. Similar to the traditional money ecosystems, the world of crypto contains legitimate services as well as scam services. Crypto does not yet have the same protections as regular money so there is usually no way to recover lost funds upon learning of a scam. Additionally, crypto by nature is largely anonymous so it can be nearly impossible to track down scammers. The technology that makes scamming possible is what also makes crypto attractive and useful. Projects such as Bitcoin, Ethereum, and Solana have proven to have real use cases and longevity that makes them “safer” investments. Crypto is a very volatile landscape and even these established “coins” can slide in value without any real reason or warning.
What is a Crypto Scam?
There are many kinds of crypto scams. Maintaining and securing your crypto for instance is a full time job in itself. Hackers will constantly attempt to gain access to your wallets through emails, brute force attempts, and other methods. It is important to never give out details regarding your crypto wallet and be sure that you are on the correct and intended website whenever you do need to enter your wallet’s details. Additionally, you should always ensure that you are sending things to the correct wallet if you are intending to transfer any crypto to another wallet. Lastly, you should do thorough research on all crypto projects before investing. Ensure you know the creator of the project and understand the utility of the project. Usually, projects with no utility are a pump and dump scam that only serves the purpose of making the creators rich overnight.
Should I Invest in Crypto?
Ultimately this is your decision to make. All investments are risky, however crypto can be attractive because of it’s high-risk/high-reward ratio. If you are interested in the tech and feel that you can manage the level of risk that crypto will expose you to, then maybe you should go down that rabbit hole. If not, it’s perfectly fine, don’t feel pressured to jump aboard something that you are uncomfortable with just because it feels like everyone is doing it.
Most importantly, don’t take my advice at face value, do your own research and come to your own conclusions.