How to Spot a Cryptocurrency Scam

By March 31, 2017Bridge Advisors

Spotting a Cryptocurrency Scam

 

03C18527Sad but true, ignorance and greed have a tendency to fuel scams and financial malpractices. Cryptocurrency is on the rise, and today’s investors are exploring opportunities with the flood of digital currencies that are coming to the market. The challenge is that some forms of cryptocurrency are too complex for the most sophisticated of investors to fully understand. Some of the more popular digital currencies require mining and extensive knowledge about cryptocurrency for investors to benefit. When investors don’t have a good grasp of what they’re putting their money into, they risk falling for a scam.

The NexxusCoin, the digital currency of the Nexxus Global Rewards Community, eliminates the complexities of digital currencies by taking cryptocurrency mainstream. There’s no need to have any prior knowledge about cryptocurrency or to go through the complicated task of mining to benefit from the NexxusCoin. Instead, members of the Nexxus Rewards Community benefit from earning cash back rewards by making purchases from participating Nexxus merchants. Each purchase made through the Nexxus Global Rewards Community increases the value of the NexxusCoin.

Bob Wood, founder, and CEO of the Nexxus Global Rewards Community, recently outlined how to identify a cryptocurrency scam:

1. Are the fundamental principles of cryptocurrency present?

 

Here are the defining characteristics of cryptocurrency:

*Decentralization
*Privacy
*Unlimited use
*Controlled supply
*Transparency with a public ledger
*Verifiable source code

 

 

If any of these fundamental principles are missing, walk away from the opportunity. A non-genuine cryptocurrency offers unrealistic returns that usually only come from other investors’ money.

2. How does the cryptocurrency benefit users?

Once you determine whether or not the cryptocurrency includes all of the defining characteristics referenced above, the second question you must ask is if the cryptocurrency offers a user benefit to driving demand. When building a market for a digital currency, it’s necessary to have an ecosystem in place to be able to use the coin for real value exchange. If no real value is offered by the cryptocurrency to drive demand, it’s not a worthwhile investment.

In a world that’s becoming more economically unsafe, cryptocurrency provides you with an opportunity to diversify your investments. It can also help you realize tremendous financial gains. Just make sure you do your homework to prevent yourself from falling prey to a cryptocurrency scam.

The NexxusCoin includes all of the fundamental characteristics of cryptocurrency and offers real value to users through the Nexxus Global Rewards Community.

Please contact us at Bridge Advisors to learn more about how the NexxusCoin will allow you to take back control of your financial future.

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