Being aware of threats related to false opportunities for purchasing or selling crypto-assets and risks specific to the crypto-asset market in terms of security, we publish here informational and educational material to let you avoid traps and fraud related to digital assets.

Threats related to crypto-assets

1. High volatility
   Prices of digital assets are much more prone to abrupt changes than prices of traditional financial assets. A high volatility in prices may lead to sudden losses and unpredictability of results.
2. Cybercrime
   The market in digital assets is often targeted by cyber criminals, including through cyber thefts from online wallets and crypto exchanges. Loss of access to a wallet or theft of private keys may result in a total loss of funds.
3. Lack of transparency
   Some projects based on digital assets may be characterised by low transparency in terms of their activity, objectives, and manner in which funds are collected. People investing in crypto-assets may be exposed to risk, in particular when a project proves to be a fraud or turns out a failure.
4. Fake ads 
   Very often, a fake ad or financial offer uses images of well-known organisations, public figures or persons who present themselves in social media as experts on crypto-assets. 
5. Disinformation
   Manipulative tactics may affect the exchange rate of a specific crypto-asset or mislead a person interested in the crypto-asset by convincing them to purchase the crypto-asset for a price which is much higher than the price for which the person who promoted the crypto-asset bought it. Purchase of crypto-assets based on opinions of false experts who have their own information channels may lead to capital loss.

Fraud in the crypto-asset market 

How to protect yourself

Avoiding fraud related to the purchase or sale of crypto-assets requires prudence and common sense. Before making any decision on the purchase of crypto-assets, it is good to follow a few key rules.

Pay attention to frequent red flags: 

• unrealistically high profits
• lack of information about potential losses
• pressure for a quick purchase

Methods to avoid fraud:

• verify information from  various sources
• avoid intermediaries 
• do not share personal data on unverified platforms
• use strong passwords  
• activate two-factor authentication