How were cryptocurrencies originated?

Cryptocurrencies are digitally available currencies. You require a cryptocurrency wallet to store them. To access cryptocurrency wallets, you need both private and public keys. Cryptos are non-centralized, and a technology called blockchain manages their transactions. Cryptos make it easy to pay anyone, irrespective of location.

You can use crypto-currency for regular payments like groceries, clothes, etc. Due to Crypto’s increased usage, crypto scams occur, and many people suffer massive losses. Therefore, their prime responsibility is to take care of their crypto accounts and wallets. They should also learn about crypto scams and the strategies used by crypto scammers to steal crypto.

Rise of crypto-currency:

Satoshi Nakamoto invented cryptocurrencies in 2008. The cryptos came into the picture in the year 2009. The first cryptocurrency was eCash. A company named Digicash developed eCash in the year 1990.

eCash:

In 1983, David Chaum, a cryptographer from the United States of America, gave a proposal in the form of electronic cash. He came up with a concept of token currency that could be easily transferable between different individuals. After that, David developed a so-called “blinding formula” that could easily encrypt the information passed between people.

“Blinded Cash” can be easily transferred amongst people, with a signature of authenticity and the capability to be developed without being traced. After many years, Chaum founded Digicash to put his concept into practice by creating the first cryptographic electronic money, eCash.

E-Gold:

E-Gold was another virtual gold currency developed in 1996. The Gold and Silver Reserve Inc. company developed this currency. Dr. Douglas and Barry Downey created it. It permits users to buy or sell ownership of gold between users on their websites.

Bit Gold:

Bit gold is one of the oldest cryptos Nick Szabo proposed in 1998. In the case of bit gold, many elements of cryptography and mining combine to achieve decentralization. The aspects of cryptography include time-stamped blocks stored in a title registry that are generated by using proof-of-work strings.

B-money:

In the year 1998, Wei-Dei proposed B-money. He had given a suggestion where he mentioned two protocols, one requiring a broadcast channel that was both synchronous and non-jammable. In the case of B-money, digital pseudonyms were used for transferring currency via a decentralized network.

Cryptocurrency scams:

Crypto scams constantly occur, and people suffer from severe financial crises. Below are several cryptocurrency scams that can help everyone understand crypto scams in depth.

Fake job offer crypto scams:

Scammers pretend to be counterfeit recruiters and post about amazing job offers on social media or job search websites. When job seekers encounter these “amazing” job offers, they jump with joy and excitement. As a result, they get in touch with these fake recruiters regarding these job offers. Then the counterfeit recruiters mention to the job-seekers that they should pay some money in the form of cryptocurrencies for on-the-job training.

For example, B searches for a job on the job portals and comes across a fantastic job offer according to B’s preferences. B contacts the job recruiter who posted that job on the job portal. Then that recruiter tells B to pay cryptos for on-the-job training purposes. B pays the cryptos excitedly. After some time, B loses the cryptos in B’s crypto wallet, and with that, B realizes that the job recruiter was fake and was all a scam.

Romance crypto frauds:

In this fraud, you may find a person online on a dating site or social media. Slowly, the trustworthy online relationship begins and progresses. After that, the person requests money in the form of cryptocurrency from you. When you ask the reason, the person mentions reasons such as college fee payment, monthly EMI,  etc. Finally, that person convinces you, and you even end up paying them. After you’ve paid the crypto to that person, your money is gone.

For example, B meets a person online on a dating site and starts an online relationship with that person. The scammer slowly enhances the level of trustworthiness in the relationship with B. After that, the person begins requesting money in the form of cryptocurrency from B. When B asks for the reason, that person says it is for a medical emergency. Then B pays the money in crypto. After receiving money from B, the person disappears with all the crypto. After a few days, B realizes that the crypto funds are gone. At that moment, B discovers that the person is a romance scammer and was working towards stealing B’s money.

 Social media crypto scam:

Scammers use social media with the ill intention of stealing money from innocent social media users. They post fake crypto investment offers that guarantee more returns on investment, along with a link to enable users to invest their money. In reality, those links are the fake link that leads social media users to fake crypto-investment sites, and as soon as people invest their money, their details are hacked by scammers.

Blackmail crypto scams:

Let us say that you get an email from someone mentioning that your supposed private videos are in their possession.

They blackmail you regarding those supposed private videos and ask you to pay money in cryptocurrencies. They also threaten to expose your private videos if you don’t pay cryptocurrencies to them. Frightened by their threat, you pay the cryptocurrencies. After some time, you realize that you have lost your crypto money. In addition to that, you also realize that they were scammers and were after your money.

Protecting yourself against crypto scams:

To protect yourself from crypto scams, you should follow the following tips.

  1. Don’t get carried away by fake crypto investment offers that guarantee huge returns on investment.
  2. If someone blackmails you regarding your supposed private photos, just ignore them or give a complaint to the cops.
  3. If someone demands crypto from you for on-the-job training, don’t give it.
  4. Never give money to someone whom you have met online.

Conclusion:

People interested in crypto investment should know about crypto scams and their warning signs. It is necessary to research before making decisions regarding your investment in cryptocurrencies. Also, people should remember that they are responsible for taking care of their own crypto accounts.

Author
Adrian Willson