Dangers and Risks for Beginners

[Bitcoin_bullish]

You have slightly reduced the population of China, which today is over 1.4 billion people, and also even though China has officially banned crypto trading, that doesn’t mean the trade doesn’t exist at all.

I will edit post asap, thanks for pointing this. Not a small mistake, that's 200 million people less..

It’s no secret that Chinese citizens remain deeply involved in cryptocurrency mining, trading, and ICOs/IEOs. While official figures say that the percentage of cryptocurrency trading attributable to the yuan has dropped from 90% to 1% in the wake of the 2017 regulation, this does not account for over-the-counter trading which is where most fiat to crypto volume in China has shifted to since the regulation.

OTC options are offered by exchanges like Huobi as well as by locally managed WeChat groups. These OTC desks take the form of a marketplace where buy and sell orders are offered manually and transactions are done in a peer-to-peer manner. The platform here merely acts as a place for buyers and sellers to discover each other, rather than facilitating trades itself as exchanges do.

Thanks for this information. I haven't looked in Huobi much besides some reports I've read. Certainly, there is interest from China and a government can't stop Bitcoin but only make it difficult for its citizens to trade or own. Thank you for the constructive comment.

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[Cryptoababe]

This post will surely prevent a lot of beginners who are willing to learn from being scammed. These are almost every way in which beginners and even non beginners could get scam.

I once fall for this :

Premined coins
This was considered a scam behavior years ago but after some point, no one actually cared. Ethereum was pre-mined by a large percentage as the devs had an unfair headstart. After that perhaps the percentage of premining or the percentage of the tokens minted and held by the devs did not matter much to investors (or miners for coins running on their own blockchain). It still matters as holding a large percentage of the coins be it a dev or a whale makes the coin unattractive and a dump can happen anytime.

And now, whenever I want to invest in any coin or project. I always check if its premined or not. This is by checking the coin exchange tracker total supply and the explorers total supply.

[Lucius]

I will edit post asap, thanks for pointing this. Not a small mistake, that's 200 million people less..
Thanks for this information. I haven't looked in Huobi much besides some reports I've read. Certainly, there is interest from China and a government can't stop Bitcoin but only make it difficult for its citizens to trade or own. Thank you for the constructive comment.

Mistakes happen, and 200 million is maybe a lot - except maybe in China. I remember data from one of their censuses when they themselves admitted that some 10-15 million people were not covered by it - because they live in such remote and inaccessible areas that it is very difficult to reach them. They say there are still areas in China where people live and have never seen a white man

Despite the ban, the Chinese have found new ways to continue trading Bitcoin, and this is perhaps the greatest strength that BTC has, it can resist any regime, and this is definitely evident in the example of China.

You're welcome for comment

[rurikramka]

Thanks! Very good information that will be useful for everyone.
But I still don't know how to detect scams fraud etc

[Twinkledoe]

Very Informative! There's a lot of risks involved in crypto space, so we have to be aware of that. As they said, risk is from not knowing what you are doing, so we have to do massive research before we invest in a project.
But the good thing is the reward that we can get if we are able to manage our risk, or if we can educate ourselves properly.

I hope those newbies in crypto will find this thread or other related threads about this subject. Because this will open their minds that bitcoin or crypto is not a scam. But those behind it are the ones who are screwing naive users. But the concept itself is not a scam. Many noncrypto users have the notion that crypto is a scam, but if they will educate themselves, they will know the truth why scammers are everywhere.

[Bitcoin_bullish]

Thanks! Very good information that will be useful for everyone.
But I still don't know how to detect scams fraud etc

Sometimes it is easy other times not. It is best to avoid sending money to anyone without understanding what is happening and how scammers may trick you. Generally if you want to invest you will have to trust an exchange and pass KYC in some of them. Bitcoin is P2P though, meaning you can buy from someone directly. You may try this forum too as there are some trusted members that can be an escrow for the deal and make it without any problem.

To detect scams in general first of all you need evidence. For example in the case of new projects a plagiarized whitepaper, fake team members, etc. There are other red flags but you will need concrete evidence that they are scam. Sometimes these are hard to find but they are always there the entire time.

A good way to understand scams and how people detect them is looking at this thread: Scam Accusations