We could say that it is very easy to convert cryptocurrency. Just try fast exchange of BTC to XMR online.
BTC is a decentralized digital or cryptocurrency used in a payment system that operates on the Internet.
The project was launched in 2009. The creator of Bitcoin is considered to be Nakamoto Satoshi – probably a programmer or a group of people. In the Bitcoin system, the amount of currency is limited to 21 million coins – virtual points. The “coins” used in the system are a unique computer code that cannot be generated randomly. So they are protected from forgery or other malicious actions. The price of coins depends on supply and demand, not on the number of participants in the system.
XMR was created on the basis of the ByteCoin token blockchain, developed in 2014.
So far, most of the Monero developers have not revealed their names. Among the famous developers are Ricardo “Fluffypony” Spagni and Francisco Cabanas.
CryptoNote provides complete anonymity to users thanks to technology:
- A ring signature that allows you to find out the number of coins sent and received, but hides the addresses;
- A ring transactions in which the time of the transaction, the participants involved, as well as the amount of the payment, are hidden and known only to the participants of this transaction.
Monero owners can create a special “one-time” wallet for making a payment in order to further protect themselves.
Bitcoin works on the basis of a public blockchain, transactions that can be tracked in real-time. This means that the movement of funds in Bitcoin does not go unnoticed. In addition to the addresses used in the transaction, the payment amount remains public. With Monero, everything is different – it works on an anonymous blockchain.
Fast exchange of BTC to XMR
But how many nuances are behind these simple actions?
It would seem that you just need:
- Choose a pair of coins for exchange
- Choose the appropriate course
- Enter the wallet address
- And complete the payment
But the main question is how not to get on scammers? We will tell you in secret the common types of crypto fraud.
This is a fraudster posing as a person or company in order to gain access to the victim’s personal data. This can happen in different ways: via phone, email, fake websites, or messengers.
A list of some safety recommendations:
- Check the URL of the sites you visit. Fraudsters often register a domain that is very similar to the domain of a real company,
- If you have any doubts about the message you received, ignore it,
- No one else but you should have access to your private keys or the LED phrase.
Financial pyramids or Ponzi scheme
In both cases, the fraud is based on the participation of people attracting new participants with the promise of incredible profits.
In the Ponzi scheme, you will be told about an investment opportunity with a guaranteed profit (this is the first red flag!). In most cases, this fraud is disguised as a financial asset portfolio management service. In fact, the “income” received by such an organization is simply money from other investors.
The organizer accepts the investor’s money and adds it to the pool, where the only inflow of funds comes only from new participants. Old investors pay off with new investments, and this cycle can continue as long as more newcomers join. The scheme is destroyed at the moment when the funds stop flowing into the pool. At this stage, it is simply unable to provide payments to old investors.
Financial pyramid scheme
At the top of the pyramid is the organizer, and the participants below him will have to recruit a certain number of people to work at a level below them, and each of these people will recruit their own number of people, etc. As a result, you will get a massive structure that grows exponentially and branches out by creating new levels.
As the pyramid develops, the old participants receive an increasing influx of money, as distribution costs move from the lower level to the upper, but due to exponential growth, such a model is short-lived.
Fake mobile apps for convert Bitcoin to monero
In mobile applications, the user is provided with an address to replenish his wallet. But in the case of a fake application, you actually send funds to an address belonging to a fraudster. Of course, after making a withdrawal transaction, there is no cancel button.
Despite the fact that they are malicious, some of them may have a fairly high rating in the Apple Store or Google Play. You need to download apps only from the official website!
Social media Fraud
Nowadays, it is surprising how individuals show generosity for likes on Twitter and Facebook. Check the responses to the tweet and you will see that one of your favorite crypto companies or influencers is satisfied with the giveaway. If you send them just 1 BTB/BTC/ETH, they promise to refund you 10 times more! This is one of the most common types of fraud.
In social networks, you should be wary of such messages, because they can come from accounts whose appearance is completely identical to those that you know and love, but this is also part of the trick. As for the dozens of responses thanking the specified account for their generosity – these are just fake accounts or bots used as part of this giveaway.
Even if Quickex or any other organization decides to hold this event, real representatives of the company will never ask you to be the first to make a transfer of funds.
This is all just a small part of the abundance of schemes used by scammers. To protect yourself from this kind of fraud, you need to be constantly vigilant and aware of the schemes used most often. Always check if you are using official websites/apps.
Remember: if an investment offer sounds too good, it’s probably a hoax.