Introduction to Cryptocurrency Traps
The rise of cryptocurrencies has brought about a new era of digital investments, attracting both seasoned investors and newcomers alike. However, this burgeoning market is fraught with various traps and pitfalls that can lead to significant financial losses. In this article, we will explore some of the most common cryptocurrency traps and provide guidance on how to avoid them.
Understanding the Basics of Cryptocurrency
Before diving into the traps, it's essential to have a basic understanding of cryptocurrencies. Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate independently of a central authority, such as a government or financial institution, and are typically based on blockchain technology.
1. The Pump and Dump Scam
One of the most notorious cryptocurrency scams is the