The novelty of digital currency made it appealing to its buyers, sellers, and traders, especially those who have lost interest and trust with the established financial institutions. However, along with this comes unpredictability as well.

While cryptocurrency may be the buzzword that everyone wants to get into, being trendy is not enough to determine stability for the years to come. It didn’t help that Bitcoin’s—perhaps the most notable cryptocurrency today—rise coincided with negative publicity in the form of scams that cost millions in assets lost. As it hit its highest value of $19,000 in December last year, buyers of other crypto like Confido or LoopX were scammed into putting their money on fraudulent companies.

There have been more than 20 crypto scams reported for 2018 so far, resulting in $400,000 of loss. But it shouldn’t come as a surprise that scammers are taking advantage of this new technology to fool honest buyers and traders, especially when there’s not a lot of information available about crypto yet.

The degree of anonymity is also a cause for concern. Hiding behind the false claims of instant wealth is a lot easier that way since there’s virtually no way the people fooled can call the cops on someone they don’t even know. Criminals can quickly run away from the law, with all the stolen money in tow because crypto remains unregulated and decentralized.

But being a centralized and regulated form of market doesn’t guarantee security either, as proven by the number of financial crises that have happened. Additionally, the selling and trading of crypto is generally a safe process, with mining requiring complex computation via expensive and powerful machines, and blockchain prohibiting its use for more than one time.

In a nutshell, both traditional and new financial technologies have its pros and cons, and crooks will find a way to outsmart the system for their personal gain. Avoid falling for these cons. Let NoahCoin guide you on how to keep an eye out for these fraudulent practices through this infographic.