The present-day reality is impossible without cryptocurrencies. People find the crypto market very attractive for investments and netting profit. Nevertheless, it is worth noting that the cryptocurrency world is ever-changing and risky for today’s investors. Besides high volatility and overchoice of crypto coins on the market, traders can face fraudsters and digital scams.

It is difficult to start investing in cryptocurrencies without a deep understanding of the main risks and key factors that force the global crypto market. Let’s take a closer look at the basic aspects that are essential for any investor – for both newbies and experienced ones. Having known about critical pitfalls, you will be able to select a proper investment strategy and avoid asset losses caused by frauds, crypto volatility, and other milestones.

Despite the fact that Bitcoin hit the crypto market in late 2009, the most astonishing fraud schemes took place in 2017-2019. It happened because BTC indices became flagship, so Bitcoin caught public attention during those periods of time. According to statistics of crypto frauds for these years, investors lose millions of US dollars. Here is a short-list of showings that prove the fact of giant material losses:

1. $266 million of invested money were stolen in 2017. The criminal activities on the digital markets led to frequent frauds, scams, and other illegal operations against investors in the world. (Reuters) [1]
2. $1.7 billion were stolen in 2018 according to the Reuters report. [1] This is 400% more than in 2017. The number of crypto hackers continued to grow.
3. $4 billion of invested assets were stolen by digital fraudsters in 2019. (Wall Street Journal). [2] It means that the number of total losses became three times higher than in 2018.
4. $6 billion were stolen in 2020 during the COVID-19 pandemic. According to the ZDNet report, the hugest thefts were about $1 billion at once. (ZDNet 2020 report). [3]

It is difficult to predict what number of stolen money and investors’ losses will be in 2021. That is why crypto fraudsters stay one of the main risks for your investments.

The crypto market is notable for its ever-changing volatility rates. Today the price for BTC or other cryptocurrencies can be about $50,000 like on 15^th February 2021 (CNBC) [4]. And tomorrow it might hit the lowest price ever – for example, $1,000 for Bitcoin, it was traded in 2013 at (Statista). [5]

Liquidity is one more aspect to take into account. Today, there are more than 15 thousand cryptocurrencies. But only about 50 of them obtain high liquidity. It means that investors have a risk to select unreliable crypto for their investments and trading activities, having stayed with useless coins and lost assets at the end. It is necessary to pay attention to liquidity on the market to raise good funds and prevent material losses.

Here is a list of the most powerful coins today. It is available on the CoinMarketCap website. [6] There are other digital platforms with statistics and cryptocurrency rates to take into consideration.

Cryptocurrencies with the highest liquidity (Source https://coinmarketcap.com/)

One more way to steal investors’ money is to promote crypto deals on social media networks. Scammers use Instagram, Twitter, Facebook, and other social media platforms to lure people into crypto investing. They create fake groups and provide hoax information on the new coins, binary options, other trading opportunities.

You should be careful of these announcements and check all the data details that are given on social media networks. The scammers’ channels are around us, so be attentive and keep your assets safe.

Not all investors have an idea of digital security. This is an essential aspect of your asset management. S can be seen before, frauds and scams take place very often when it comes to the cryptocurrency market and investment activities. One of the kinds of digital fraud is the theft of money people save in their e-wallets. Scammers also hack exchange platforms, trading websites, and other resources on the Internet.

Today, almost any password or other key information can be stolen and shared in the Darknet for high price tags. Digital security is critical to avoid any unpleasant situation with your crypto assets and trading funds.

It is a rather complicated task to understand when it is better to sell or buy crypto. Modern investors face the dilemma related to trading entries and exits. Even if you are an experienced trader and crypto investor, it is difficult to find an ideal strategy for the ever-changing market. Sometimes investments seam loss-making, and the investor exits the deal too early.

These and those factors bring profitability of investments. If you are searching for the best strategy and advisories on your trading routines, there is an optimal solution for you – the FOBS asset management fund. [7]

This is a dedicated team of professionals that makes a specialty out of crypto investments. The FOBS fund aims to assist modern investors to gain profit from their investing activities and avoid any risks possible on the crypto market. The new-generation technology that is used in the FOBS company is about the risk-free placement of investment capitals.

Users can count on the comprehensive strategies and analytical approach when it comes to crypto investments. The AI-based automated tools are implemented to make the trading and investment operations. Besides analysis tools, there are innovative data processing algorithms and scripts. The unique FOBS data mining technology reduces risks for crypto investors and makes their assets well-managed and secure.

Source List

1. Reuters, link https://www.reuters.com/article/us-crypto-currency-crime-idINKCN1PN1SQ
2. Wall Street Journal, link https://www.wsj.com/articles/cryptocurrency-scams-took-in-more-than-4-billion-in-2019-11581184800
3. ZDNet, link https://www.zdnet.com/article/2020s-worst-cryptocurrency-breaches-thefts-and-exit-scams/
4. CNBC, link https://www.cnbc.com/2021/02/15/bitcoin-btc-price-hits-a-record-high-of-nearly-50000.html#:~:text=Bitcoin%20(BTC)%20price%20hits%20a%20record%20high%20of%20nearly%20%2450%2C000
5. Statista, link https://www.statista.com/statistics/326707/bitcoin-price-index/
6. CoinMarketCap, link https://coinmarketcap.com/
7. FOBS, link https://fobs.fund/