Blockchain technology is a new trend that presents many possibilities. At present, enterprise companies such as Amazon are beginning to make websites featuring blockchain technology and cryptocurrencies in order to get ahead of the competition. Although this new advancement may all be confusing to some, there are a lot of benefits that cryptocurrencies brings to businesses. According to Kinney Fernandez & Boire, specialized car accident attorneys in Tampa who also boast a group of diverse criminal and liability attorneys, blockchain technology presents numerous advantages for businesses:
- Lower fees for customers – a lot of our current payment systems rely on middlemen such as banks, unions, and money exchange firms. Through the exchange of cryptocurrencies, we can lower the fees we charge to our customer for our products and services.
- Faster transaction – since the exchange of cryptocurrencies occurs in real time through the blockchain network, there is minimal to no delay of payment.
- Lesser chance of error – with a centralized recording system that payment agencies have at present, fraud is more likely to occur. However, decentralized systems can easily be verifiable since all units have copies of the actual transactions. So it would be easy to detect which transaction is a fraud or has an error.
However, some scheme-minded groups take advantage of this new technology by offering cryptocurrencies supposedly having value which turn out to be a fraud. That is why some new businesses are hesitant to accept cryptocurrencies as a form of payment while the process is relatively new. How can we protect our business from fraud as we embrace the new blockchain technology? Kinney Fernandez & Boire have cut their teeth as some of the finest slip and fall attorneys in Tampa outlined some tips for us.
Five Tips To Avoid Crypto-Fraud In Your Business
- Verify any information about cryptocurrency investments
Some scammers would present you with outrageous information about the cryptocurrency that they are offering. This can come in the form of giving a name of a billionaire or a high-profile investor putting his money on the seemingly obscure cryptocurrency. This is a tactic used to attract potential buyers to get into buying a coin that would eventually have a low value. To avoid this, your business needs to be wary before accepting or investing in any kind of cryptocurrency. Verify information from reputable news sources, and don’t rely on scammy-looking websites that show claims without any evidence. If you feel like it’s a scam, it probably is.
- Do not fall for social media marketing
Another thing to look out for before investing in any kind of cryptocurrency for your business is avoiding tips on social media. Commonly, a lot of people fall for advertisements which are only posted on social media, without its own authority domain to back it up. These investments usually utilize the “pump and dump” scheme, which some investors fall for. Once the stock market value of the coin increases, the main scammers trade the cryptocurrency for something else of more value. This leaves the other investors trying to look for trade opportunities before the price in the stock market crashes.
- Do not believe guaranteed investments or sure returns
There is one law when it comes to investments, whether traditional or digital – nothing is ever certain. While there are some investments which are worthwhile compared to others, we can’t really say if we can see gains from it tomorrow, or even in the next week. So, if an individual or a company offers you a guaranteed investment solution, it is most likely a scam. Do not fall for this type of offer, as they are most likely trying to entice you for your money.
- Serious crypto-investors should have their own cryptocurrency lawyer as well
If your business is serious about having large amounts of crypto-investments, then it would be better for you to have your own cryptocurrency lawyers who have the knowledge, skills, and expertise for the trade. They are also skillful in detecting schemes offered by shady companies. They can be responsible for providing you legal information about topics in cyber investments as well. In the event that fraud occurs during your transactions, a cryptocurrency lawyer can advise you on the appropriate course of action.
Additionally, you can also contact the CFTC if you have been a victim of fraud, or if you need to report suspicious activity. You can reach their hotline at (866) 366-2382 or visit their website at CFTC.gov.
Cryptocurrencies are a great opportunity to help your business grow in the fast-paced digital world. As more and more people invest in digital coins, we can see the trend that businesses will most likely accept these types of currencies as a part of daily transactions. Thus, it is important to protect your business from possible fraudulent acts that may occur.