We have seen a gold rush in cryptocurrency investment, especially during this technologically advanced era which we currently live in. People can now easily purchase products and services anonymously and at any time without paying fees to a central authority with technological-based currencies like Bitcoin and Ethereum. But that’s not all. The novelty of these digital assets attracts investors—aand scammers—wwho want in on the action. The rewards can be significant, but there are risks involved as well. If your cryptocurrency investment has gone downhill/lost, here are some tips on how to recover it. ![sd.jpg](https://cdn.steemitimages.com/DQmXWkq5pKTJt9KWawihieYiTnxZJzm9MPkUoM2iA5qWujR/sd.jpg) The bottom line The best course of action is to proceed with caution before investing in cryptocurrency to avoid losing your funds. This guide contains the following information: ● Cryptocurrency Explained: What is Crypto and how does it work? ● Risks and Pitfalls of Cryptocurrency Investments ● Crypto Scams: How to Spot and Avoid Them ● Is it possible to recover funds from a cryptocurrency investment scam? ● Best solution for crypto recovery - Report Scammed Bitcoin (RSB) In order to better understand the context of legal attempts to recover cryptocurrency, it is worth highlighting some of the technological and practical features of crypto. Cryptocurrency Explained: What is Crypto and How Does It Work? Unlike traditional currencies such as the dollar, yen, or peso, which are controlled by central banks and governments, cryptocurrency is a virtual currency. The ‘crypto’ in its name refers to the fact that its transactions are highly encrypted. In addition to buying and trading cryptocurrency, you can use it to purchase goods and services, or invest in it. All cryptocurrency transactions are tracked and stored on a blockchain. How Does a Blockchain Work? Blockchain can confirm crypto transactions without a central authority stepping in to delay, regulate, or charge a fee. Blockchain is a chain of powerful peer-to-peer networks that act as a permanent, public ledger of all cryptocurrency transactions. It's virtual, but it's spendable. Unlike traditional coins, crypto coins exist only in digital form. They cannot be minted. You can accumulate them, spend them, save them up, even lose them, but you will never hold them physically. A coded 'key' allows you to access cryptocurrency and move units between people without involving a third party. Take a look here for more: Report Scammed Bitcoin (RSB) As a peer-to-peer electronic cash system, Bitcoin was introduced in 2009. In terms of market capitalization, it remains the most mainstream cryptocurrency, but thousands of altcoins have since emerged. These altcoins include: Ripple, Ethereum, and Litecoin, which have seen their values skyrocket since then. A total of 12,000 cryptocurrencies were listed as of mid-2022, but most of them exist solely to make their developers more money. So investors, beware. Cryptocurrency Buying and Saving Buying, storing, and accumulating encrypted digital altcoins requires real money. You can purchase and sell these assets through a centralized cryptocurrency exchange like Kraken, Binance, or Coinbase, or a decentralized finance service like Uniswap or Sushi and store them in cold or hot wallets. A hot wallet stores your crypto coins online so you can access them anytime through your computer or smartphone - wherever you have an internet connection. However, storing your crypto coins on the internet puts you at risk of hacking. A cold wallet stores your cryptocurrency on a physical device similar to a hard drive. Unlike traditional wallets, cold wallets can store larger amounts and varieties of coins, and for longer periods of time. They are more secure since the altcoins are not connected to the internet, but they also need to be protected from the elements. Risks and Pitfalls of Cryptocurrency Investments The volatile nature of cryptocurrency presents both risks and opportunities for bold investors. Despite being over a decade since the emergence of Bitcoin, the original and most well-known cryptocurrency has experienced significant fluctuations in value. It reached a peak of $64,000 in the first half of 2021, followed by a drop to below $30,000 in the summer of that year. However, it then saw another all-time high of $68,000 in November 2021. Unfortunately, by January 2022, Bitcoin had fallen below $35,000 and continued on a downward trend. As of November 2022, it was hovering around $20,000. Investing in altcoins can be quite a rollercoaster ride, but that's not the biggest risk. Why Are Crypto Scams on the Rise? It was in late 2017 that the Securities and Exchange Commission (SEC) began issuing investor alerts about cryptocurrency fraud. Digital assets offer much less investor protection than traditional securities markets, which leads to more fraud and manipulation, according to the SEC. Visit for more: Report Scammed Bitcoin (RSB) The SEC warning made little difference, however, as the crypto gold rush continued to accelerate. Cryptocurrency crime exploded in the years following. A blockchain data firm, Chainalysis, reported that scammers stole $7.8 billion of crypto assets from investors and buyers in 2020. A staggering $14 billion in crypto money was stolen by scammers in 2021. More than 46,000 consumers lost more than $1 billion in cryptocurrency between January 1, 2021, and March 31, 2022, with duped investors accounting for $575 million of that loss. Why Do Scammers Love Cryptocurrency? There are three aspects of cryptocurrency that invite criminal exploitation. 1. There is no bank or central authority that flags suspicious transactions before they occur 2. Cryptocurrencies are unfamiliar to most investors 3. Transfers of cryptocurrency cannot be reversed Scammers can count on a steady stream of eager but inexperienced investors to swindle when these features are combined with social media, messaging apps, and pro-crypto television ads. Crypto Scams: How to Spot and Avoid Them In many ways, crypto fraud is similar to standard financial fraud, except that scammers target digital assets instead of cash. Nevertheless, if you have significant cash invested in altcoins, those funds disappear as well. Another difference, for now, is that digital currency is still relatively new. Until regulations catch up, criminals have an advantage. Here are some warning signs of cryptocurrency scams to look out for before sinking money into them: The promise of a guaranteed return is an obvious red flag to an experienced investor. No credible offering can promise a return in the future. It's important to have a whitepaper about an initial coin offering (ICO) that details how this cryptocurrency was designed and how it works. If the whitepaper seems vague or doesn't make sense — or worse, if there's no whitepaper — keep your investment funds in your pocket. Incorporating crypto-only payments is less about investing and more about common sense. Bitcoin and altcoins are still in their infancy. Unless they are hoarding cryptocurrency for themselves, credible institutions will not accept only cryptocurrency, which raises the question of whether the investment opportunity is real or not. Check out this link for the best recommendation for you: Report Scammed Bitcoin (RSB) Overzealous Marketing: Every business needs to promote itself. An exaggerated claim and heavy-handed advertising tactics point to shady characters trying to make money fast, which indicates an investment that isn't safe. Crypto scammers attempt to attract investors by hyping their coin to the fullest extent possible. An investment opportunity with unnamed members should have real people backing it up with searchable names and a strong social media presence. Why wouldn't an investment's backers want to be discovered if something went wrong? A good investment offering should look promising on its own merits, not promise free money. Cryptocurrency Investment Scams: Can I Recover My Funds? There is no guarantee that you will be able to recover all your cryptocurrency, but you can increase your chances of recovering it. Here are five ways to get your money back from a scammer 1.) Keeping track of the Transaction ID Cryptocurrency transactions, even fraudulent ones, are recorded by blockchain technology. Without this ID code, a scammer cannot steal your cryptocurrency. The ID code lets you and the authorities see where your money is going. The codes can speed up the investigation and increase your chances of recovery. The transaction ID code can be found by looking for a unique string of numbers and letters that indicates crypto movement from one address to another. Once you have them, you and the investigators can track the sending and receiving addresses, the amount of the transaction, and the fees, which can help you catch the scammer as quickly as possible. 2.) Keep an eye on your credit score The moment you realize you've been scammed, check your credit report. It will alert you if any fraudulent accounts have been opened in your name. Details of those accounts can help you track down the scammer and possibly recover your funds. You should also alert the credit agency to the fraud. This will prevent the fraudsters from opening new credit accounts in your name. 3.) The Scam must be documented Keep all emails, texts, and other correspondence linked to the scammers. Document the following information in priority order: Codes for transaction IDs; An overview of the scam, including the scammers, how the fraud began, the amount lost, the exchanges involved, and when it occurred; Other relevant information. You need to have access to the accounts where the funds originated. Investigators want to know you owned the crypto account that was breached. 4.) Inform your crypto exchange All cryptocurrencies are bought, sold, and traded on a crypto exchange. The exchange where the scam occurred should be notified. The exchange managers can beef up your account security if you tell them that a scammer received your money. Decentralized finance eliminates this possibility, of course. Though this step doesn't guarantee recovery, it will encourage exchange managers to look for patterns that will help them identify the scammers and, at the very least, prevent them from striking again. 5.) Law enforcement should be notified of the scam Your local law enforcement authority and financial law enforcement should be notified of the scam. The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) should be notified of any fraudulent activity involving crypto if you are a United States citizen. The government will still make every effort to recover your funds, even if it can't. Even if authorities cannot succeed, they will have become aware of the scam and will be able to prevent it from happening again. Best Solution for Crypto Recovery with RSB Report Scammed Bitcoin (RSB) helps multiple victims of crypto scam and other kinds of scam on a daily basis. Every day, private citizens and corporate organizations and other relevant bodies file cases on Report Scammed Bitcoin (RSB) against crypto exchanges related to cryptocurrency scams, blockchain scams and other forms of scams. Because blockchain litigation can be expensive, many firms will not take a case unless at least $100,000 or $200,000 is involved. As a consequence, a large number of individuals who have been harmed by dishonest crypto exchanges or fraudulent investment opportunities tend to come together and file class action lawsuits. This way, they can help everyone affected. Most reported crypto scam cases however are settled without going to court. Depending on the case, a resolution can sometimes take up to two to three months and cost tens of thousands of dollars. Disputes over crypto currencies Offerings of securities that are illegal In order to get your money back, you can claim securities fraud. To do so, you will have to prove that the ICO (initial coin offering) was illegal because it was an unregistered securities offering masquerading as a utility token sale. Coinbase was found to be offering unregistered securities in July 2022, according to the SEC. The misuse of investment funds When investment proceeds are spent on luxury items and vacation homes rather than legitimate business needs, this occurs. A team-building investors’ party can be thrown from time to time. Salaries for the founders of an investment can also be acceptable. But purchasing high-priced racing cars and tropical island villas with investment funds is another matter. Fraudulent cryptocurrency sales As a result of pump-and-dump, tokens are sold to investors under fraudulent and exaggerated claims, and then the investment 'founders' disappear with the money. It is often difficult to pursue scammers unless they are reliably identified, but these cases often cross the boundary into criminal territory. Note: When pursuing either a crypto recovery case, lawsuit or criminal charges against a group of crypto scammers, it is important to remember that these frauds are typically international in nature and cross multiple jurisdictions. As a result, pursuing justice or recovery can be extremely time-consuming and difficult, depending on the governments involved. Cryptocurrency Investing: Ask the Right Questions Before investing in a cryptocurrency or ICO, the SEC recommends asking yourself the following questions: ● Does the product have a sponsor or issuer? ● What is the purpose of my investment money? ● How will the investment money be used? ● Is it possible to receive financial statements? ● Do you have trading data? ● When, how, and at what cost can I sell my investment? ● Is the investment in compliance with securities laws? ● If something goes wrong, am I protected by law? Before investing in a token, the SEC advises you to get satisfactory answers to these questions. A bad cryptocurrency investment can only be recovered if it is avoided in the first place. If you have been scammed, inform Report Scammed Bitcoin (RSB). It is easy for even careful investors to be lured into fraudulent schemes by the Wild West atmosphere of cryptocurrency markets and initial coin offerings. The Civil Litigation and Recovery Team at Report Scammed Bitcoin (RSB) can help you recover digital coin investment losses. Each year, thousands of investors suffer cryptocurrency fraud. Don't be a statistic. Contact Report Scammed Bitcoin (RSB) right away to begin your free case assessment today.