Cryptocurrencies such as bitcoin, ethereum, cardano and hundreds more are hot commodities in online trading, and it’s possible for a lucky investor to make a big profit. But the prospect of quick riches can blind some people to the risks and enable crooks to lure them into scams. This virtual money isn’t backed by any government or central bank. Even so, you can use crypto to buy goods and services, exchange it for U.S. dollars and other conventional currencies on digital markets, and even obtain it at specialized ATMs. But unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. That can create wild swings that produce big gains for investors, or big losses. And crypto investments are subject to far less regulatory protection than traditional financial products like stocks, bonds and mutual funds. Cryptocurrency fraud has taken a quantum leap in the past few years. The Federal Trade Commission (FTC), which recently warned consumers that “crypto investing comes with lots of risks, including scams,” says that from the start of 2021 through June 2022, more than 46,000 people reported losing a total of more than $1 billion in crypto to scams. The median individual loss was $2,600.

Full analysis : What You Need to Know About Cryptocurrency Scams.