What to know about Cryptocurrency and Scams
What To Know About Cryptocurrency
Paying With Cryptocurrency
Cryptocurrency is a type of digital currency that exists only electronically. It is decentralized and uses cryptographic techniques to secure transactions. Popular cryptocurrencies include Bitcoin, Ethereum, and Dogecoin. People use cryptocurrency for quick payments, to avoid transaction fees, or as an investment.
You can use cryptocurrency to pay for goods and services at merchants that accept it. For example, PayPal allows users to pay with cryptocurrencies like Bitcoin, XRP, Ethereum, Bitcoin Cash, and Litecoin. When you use cryptocurrency to pay, it is converted to fiat currency during the checkout process. Other platforms like BitPay also offer services to pay bills and make purchases with cryptocurrency3.
How To Avoid Cryptocurrency Scams
Cryptocurrency scams are becoming increasingly common. Here are some tips to avoid them:
- Be Skeptical of Unsolicited Offers: Scammers often pose as trusted sources to lure you into fraudulent investments.
- Verify Websites and Emails: Double-check URLs and email addresses to ensure they are legitimate.
- Secure Your Wallet: Use multi-factor authentication and never share your private key or seed phrase.
- Avoid Up-Front Fees: Be wary of any offer that requires an up-front fee, especially if it must be paid in cryptocurrency.
How To Report Cryptocurrency Scams
If you fall victim to a cryptocurrency scam, you can report it to the Internet Crime Complaint Center (IC3), which is run by the FBI. They collect complaints about cyber-enabled crimes and use the information to investigate and track trends7. You can file a complaint on their website.