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It’s not just bitcoin. There are now hundreds of cryptocurrencies, which are a type of digital currency, on the market. They’ve been publicized as a fast and inexpensive way to pay online, but many are now also being marketed as investment opportunities. But before you decide to purchase cryptocurrency as an investment, here are a few things to know:

  • Cryptocurrencies aren’t backed by a government or central bank. Unlike most traditional currencies, such as the dollar or yen, the value of a cryptocurrency is not tied to promises by a government or a central bank.
     
  • If you store your cryptocurrency online, you don’t have the same protections as a bank account. Holdings in online “wallets” are not insured by the government like U.S. bank deposits are.
     
  • A cryptocurrency’s value can change constantly and dramatically. An investment that may be worth thousands of dollars on Tuesday could be worth only hundreds on Wednesday. If the value goes down, there’s no guarantee that it will rise again.
     
  • Nothing about cryptocurrencies makes them a foolproof investment. Just like with any investment opportunity, there are no guarantees.
     
  • No one can guarantee you’ll make money off your investment. Anyone who promises you a guaranteed return or profit is likely scamming you. Just because the cryptocurrency is well-known or has celebrities endorsing it doesn’t mean it’s a good investment.
     
  • Not all cryptocurrencies or the companies behind them are the same. Before you decide to invest in a cryptocurrency, look into the claims the company is making. Do an internet search with the name of the company and the cryptocurrency with words like review, scam, or complaint. Look through several pages of search results.


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9 Comments


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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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dina
February 16, 2018
i play sweeptakes 3 mounth i winn 4 times1 time is 50.000 2 10000 3 times i winn 2 phones samsung and 4 2 ipod, but i nwer recived hi did fake delivery on my name and my adress 4 delivery fake, for 125000 i have proof emails from him thouse money he take for himself i ask you help me if i go police, its will be arest but i need to know, why 3 month he scam me and lye me i have delivery days was 4 time, but nothing i get please help me
FTC Staff
February 16, 2018

In reply to by dina

If he is taking your money but he won't give you the prize, it sounds like a scam. You can report this to the FTC. Call 1-877-382-4357. The FTC will take a report, but the FTC can't arrest him for you. If he is bothering you at home, you can tell the police.

Nitewelder
February 16, 2018
I just avoid cryptocurrencies altogether. Too many twists and turns for a retirement plan. Also while paper money is fiat, these seem to be fictitious currencies.
Sams
February 20, 2018

Hello! I got scammed by a cryptocurrency-exchange (found out that there are many who experienced fraud with that exchange too). Made a deposit to my account (worth ~300$) - I can prove that the transaction was successful! - but they never credited it to my balance & their support is simply ignoring all requests. Is there anything that can be done? Thank you

Julian
February 19, 2018
I was scammed from a coin called Bitconnect(BCC) this was a lending platform coin. I learned my lesson! I still believe in Bitcoin, I hold it. Bitcoin and the blockchain technology is certainly a new concept in general. However, it's technology, just like anything else, within time of using it and it gets exposed, will be accepted in society.
gs
February 21, 2018
I have been scammed in cryptocurrency, DELL COMPUTER TECHNICIAN remotely connected my computer , stole my private key from desktop wallet and pushed to his address
sintax01
May 21, 2018

In reply to by gs

That isn't a scam. You were robbed. There's a difference.
robertbint
December 06, 2018
Thank you for sharing useful information. i appreciate your content. I love your Blog!