The rave about cryptocurrency is far from over! The numerous opportunities discovered since its inception in 2009 have got people worldwide hurrying to get a piece of the cryptocurrency action. This is further confirmed by findings from Stash, which found that there are over 420 million crypto investors worldwide. However, in addition to giving many the financial freedom and increase in wealth they seek, there is also the dark side. Several crypto investors have reported being scammed of their earnings, therefore, it is vital to stay alert.

Here are a few common cryptocurrency scams you should know and how to avoid them.

1. Pump and dump schemes

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One of the quickest yet most damaging crypto scams is the pump and dump schemes. This is usually how the story goes: Fraudsters create a lot of hype about a particular coin to get investors interested. They understand the concept of FOMO (Fear Of Missing Out) in the crypto world and take full advantage of it! Once they have acquired a significant number of investors, the price is then inflated. The scammers would then sell their holdings at an inflated price, usually a significant amount. This leads to a crash in the price and a sudden decline, rendering the client’s investments worthless! To avoid this scam, you must battle your fear of missing out. Don’t be led astray by hype; read more into the advertised coin to learn more about and make more informed decisions about investing.

2. Investment scams

A notable scam worth mentioning is the investment scam. These scams usually consist of a promise to provide “zero risk” investment to make an incredible amount of money. The scam works in several ways. Sometimes it is a so-called “investment manager” unexpectedly calling or texting you with promises of a rewarding investment opportunity. But there’s a catch— you must buy crypto and send it to their account. The website they present to you looks legit, but it’s not! And when you take out your earnings, you can’t! Another popular form of investment scam included the romance scam, where an online “love interest” needs some crypto, making big claims without evidence or explanations and promises of guaranteed increases in returns.

Fortunately, you can employ several safety tactics to safeguard yourself against such scams. For instance, when there are promises of great return, conduct your research to determine how true it is. For instance, if you’re interested in purchasing Polkadot (DOT), it is advisable to look up the price of a Polkadot coin on reliable platforms such as Binance. This would ensure you’re not being misled, and prevent you from being directed to a fraudulent site.

3. Rug pull scams

The rug pull scams are simpler than the pump and dump scheme as it also involves malicious actors attempting to influence the project’s value. In a rug pull scheme, the fraudsters announce a new project, such as a Non-Fungible Token (NFT) or coins investors should take advantage of. However, this is far from the truth. When the fraudulent project begins to gain the attention of buyers, the project will suddenly disappear. This is because the scammers have absconded with your money, leaving you high and dry!

4. Phishing scam

Phishing uses scam emails, texts, and voice calls to trick their targets. In crypto, this happens quite often. It has come to be the most effective method of scamming the perpetrators. The phishing scam aims to gain credentials to access your account, manipulate your sales, and steal from your account. The scammer sends a seemingly harmless website link via text and email. However, the link has been embedded with several harmful malware, viruses, remote access, and other techniques to steal your information. Over the phone, scammers play on your human instincts, such as compassion, FOMO, and other tactics that would get you to expose your credentials. The best way to avoid phishing scams is to be cautious of opening links that don’t look dodgy or from unfamiliar sources.

There are several wonderful advantages to investing in cryptocurrencies, such as fast settlement times, potential high returns, round-the-clock liquidity, and diversification, to name a few. Security is another reason why crypto is a better investment choice. However, the efforts of scammers can prevent you from enjoying this perk. The scams mentioned are not at all the only scams cryptocurrency investors are exposed to. There are several more out there and even more sophisticated crimes being carried out. Therefore be sure to employ effective security measures.

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New financial technology, or “Fintech,” can help your business achieve more as you redefine current systems and processes to meet expected consumer demands and future proofing. You don’t need to use Fintech systems, but you can offer better services and security if you do. Among these features are more accurate records that customers can access at any time.

Easier Banking Options
Fintech has many benefits. But of course, the main one is within banking. Yes, all banks offer some kind of online banking. Yet Fintech advancements mean you can provide your customers with all the services they expect. And this is valuable if you run an online eCommerce platform. Evolve Bank & Trust is just one of the financial institutions embracing all that Fintech has to offer. Meaning you get solid 24/7 banking infrastructure with no additional costs or unfair fees.

Improved Payments for Customers
As an eCommerce platform, your customers come first. And business never sleeps. So you must be able to offer your customers what they want when they want it. And this also means transactions and processing of digital payments. Digital payments are quick and convenient. And don’t in the same way as traditional banking transactions that work to a schedule. As a result, your cash flow is constant, as you don’t need to wait for any payments to come through.

Fintech Can Help with Transparency
Compliance, and trust are major factors. One of the key areas where Fintech solutions can help your business is with greater transparency. From moving homes to buying stock, there is a substantial distrust when it comes to online transactions, Fintech used between eCommerce and banking offers a greater look inside all processes. For example, your customers can see who they are doing business with, all payments received, and upcoming payments scheduled.

Efficiency and Automation
Automation, especially with AI, is a major issue right now. Automation makes things easier, and most systems can carry out functions much more efficiently than a human. This is why over 90% of major corporations use automation in at least one core service. For instance, half of these use Chatbots to improve customer service. Chatbots can help individualize communications among a customer, their bank, and eCommerce platform based on historical interaction data.

Access to a Wider Market
eCommerce as a whole relies on access to customers. And when you think about the global reach of the financial industry, there are only benefits for you. Fintech isn’t limited by the borders and boundaries of the land. And when it comes to online systems, there are no issues like supply chains that plague other industries such as logistics. Additionally, third-party apps and user software allow your customers to access powerful Fintech services easily from anywhere.

Summary
There are many ways in which emerging Fintech can help your online business. It makes banking and payments easier, offers a degree of transparency, and opens you up to a wider market. Combined, these help you give customers what they expect from a modern business.