Track your crypto trading losses

FAQs

• What Does A Cryptocurrency Broker Do?

  A cryptocurrency broker enables you to buy and sell cryptocurrency with an extra level of protection. Without a broker, you may not be making safe trades and investments. Using a cryptocurrency broker can also be a way in which you can avoid falling victim to trading scams.

• Cryptocurrency and Revolut

  In a number of Revolut cases, cryptocurrency will be involved. Revolut is a supporter of cryptocurrency transactions and allows for the transfer and movement of funds between accounts, however, it does have high fees involved and may limit some control over your funds.

  On their website, Revolut states that “when you use our crypto services, you will not be protected by the Financial Services Compensation Scheme (FSCS) and if you have a complaint, then it is not likely to fall within the scope of the jurisdiction of the FOS”. This means that, in the event of a scam they are in a position where they can, and likely will, refuse to provide a refund.

  In many cases, victims may be tricked into sending funds into a cryptocurrency wallet. If this has happened, then we may be able to help recover these funds. Transfers which are made to crypto wallets and where this money is then sent to the scammer’s account is a form of investment scam. Like other banking providers, they should be looking to protect customers if transactions to crypto wallets are made, but they’re not doing so. This is where we can help as we have processes and procedures that we can take to trace and recover your lost funds.

• What Is A Cryptocurrency Scam?

  The rise in interest in cryptocurrency has also led to an increase in the number of cryptocurrency scams. Scammers are using old and new scam techniques to steal money from investors and traders. Cryptocurrency scams have the aim of stealing private information, such as personal details or security/wallet codes, or look to trick investors into sending cryptocurrency.

  Cryptocurrency scammers will typically operate from fake trading platforms so that it is easier for them to get traders to make unusual investments. With cryptocurrency scams, it’s important to remember that they involve legitimate cryptocurrencies bought through legitimate exchanges. This means that, unlike other wealth recovery solicitors, we won’t just go to the bank and ask for a chargeback. We will, instead, trace the information using the blockchain to unravel where the money has been sent.

• What Is The Purpose Of Cryptocurrency?

  Cryptocurrencies were designed to originally be used in the same way that any other currency is used – as a means of payment between people in exchange for products or services that have been purchased. It was meant to enable easy, digital transactions with lower costs than those charged by traditional banks and also to make transactions safer.

  With cryptocurrency, money can be sent and received by anyone, anywhere in the world without having to go through different banks or currency exchanges, so can be sent much quicker than traditional bank transfers or payments. Unlike stocks, there aren’t opening or closing market times and it can be done 24 hours a day, 7 days a week. It is also believed to be safer, as cryptocurrencies use a decentralised system which is designed to not fail at any certain point.

• How to avoid a crypto pump and dump scheme?

  Crypto pump and dump schemes can be very tempting for a crypto investor who is a beginner. However, there are a few things you can do to avoid this type of crypto fraud. Some of these things include:

  Before investing in any crypto coin, you must conduct sufficient due diligence before you invest. This includes researching the company’s background, where they see themselves shortly, market capitalization and finally, trade volume. Researching news articles about the company/ crypto is also a great way to ensure it is legitimate.

  Analyse the volume and price movements of the crypto coin on a more technical scale. If there are moments when there is a significant increase in both volume and price, then large drops straight after, you know something isn’t right.

  Don’t invest in a crypto coin because you have a fear of missing out. If you find yourself investing in both stocks and crypto coins because others are doing it, you should not invest your money. Conduct your own research to see whether it is a valuable investment.Monitoring news and market trends is essential when you are investing. Doing this will help you avoid pump and dump scams as well as identify them before they pump.

• What Is Cryptocurrency?

  Cryptocurrency is a form of digital or virtual currency, which is secured with cryptography to make trusted transactions. Cryptocurrency uses blockchain technology which then functions as a ledger for the transactions which have been made. There are hundreds of different cryptocurrencies in circulation, including Bitcoin and Ethereum. Each form of cryptocurrency is designed by an individual and it is usually meant to run on a decentralised system, meaning that no one entity can control it. Cryptocurrency is an unregulated platform and, although this can bring trading rewards for some investors, it does also involve risk. Cryptocurrency scams are very common, so it is important to learn more about the processes involved before investing money.

• My crypto wallet has been hacked from a phishing scam, what can I do?

  Phishing has been a prominent method for stealing cryptocurrency and hacking crypto wallets in recent years. If your crypto accounts have been infiltrated as a result of phishing scams, do not hesitate to get in touch with our team here at Wealth Recovery Solicitors. Whilst we can not guarantee the retrieval of your funds, we can offer bespoke and experienced advice based on our years of experience. Please contact our team today and do not leave your funds in the hands of phishing scammers for much longer.