Currently, we have to take care of the fraud and scams that hackers run against us. When we talk about immersing ourselves in the digital world, there are many areas we need to care about and ensure we stay away from hackers who can rob us of our investments and leave no penny in our accounts.
Today, the topic of cryptocurrency is quite sensitive because it has a lot of areas that still need to be discovered and read such as opportunities for bitcoin. People need to familiarize themselves with cryptos now and then to learn how to indulge in buying, selling, and trading them using bitcoin trading software and other exchange platforms.
Is Liquidity Mining A Scam?
While people continue to grasp all the innovative techniques, one must pay attention to the real issue of cryptos mining, and that is liquidity mining. While there’s conflict regarding its legitimacy, the FBI has alerted crypto investors that this is a scam used by people. They mainly portray liquidity mining as an investment strategy that benefits the masses.
However, as per the stats of law enforcement agencies, it is a scam that has looted hundreds of victims and is responsible for about 70 million dollars.
What Is Coinbase?
Coinbase is a secured digital currency exchange in the United States. It was founded in the year 2012 and had above 56+ million users in 100+ countries across the world. If you are also scared of using this exchange platform because of all the news about scams, know that you can rely on Coinbase for legit exchanges.
Does Coinbase Use Any Security Measures?
Yes! Like other crypto platforms and accounts encrypted with security codes and systems to protect the currencies, Coinbase also takes security measures, making this platform a trustable resource. These measures protect user funds from hacking, theft, and other criminal activities.
Although Coinbase is more costly than other platforms, it’s a cryptocurrency exchange that people prefer over others because it provides enhanced security for funds. Most governmental institutions also resort to Coinbase for the various professional and practical solutions it has to offer.
How Does Coinbase Secure Funds?
Coinbase secures accounts and funds using a 2-factor authentication mechanism employing email, phone, fingerprint, and biometric logins. It also uses a password that secures accounts. You may also be thinking passwords are not the only thing important when monitoring funds in your accounts. That’s right!
There are many other factors you need to take care and hardware storage is one of the most important ones. Users now have the freedom to connect to their storage using Coinbase and control their funds in a better way.
With the advanced inventions of today and thanks to technology in general, we have multiple ways to step into the digital ecosystem and make the most out of it. Coinbase also stores most of its funds (around 98%) on cold storage.
Scams To Avoid While Using Coinbase
You need to beware of plenty of scams while using Coinbase. Hackers and criminals can get you stuck in the:
- Impersonation scams
- Investment scams
- Load-up scams
- Extortion schemes
- Phishing
- Telegram scams and more
You need to educate yourself by listening to the experiences of other people who have gone through similar phases and reading up on the internet as much as possible. It’s better to do the homework yourself than trust a source that can most likely backfire.
Conclusion
Liquidity mining is not safe because it encourages crypto holders to generate profit by using their current digital assets instead of leaving them in cold storage. Moreover, liquidity mining has been in the digital world ever since the rise of Decentralized Finance (DeFi). When the crypto market evolved, everyone shifted to a different yet similar investment method and left liquidity mining behind. Now, hackers use this method to scam other people who are either not experts in the field or take the wrong step.
In a nutshell, you must know the rights and wrongs before committing to any kind of investment strategy because you never know what’s coming your way. Make sure you devise your strategy wisely and smartly; if need be, you can always take the opinion of experts in the industry.
Jorden Smith is a passionate writer and researcher with a knack for exploring news and website reviews. With a keen eye for detail and a love for uncovering hidden gems, Jorden’s work is always thorough and informative. When not busy writing, Jorden enjoys traveling and discovering new places. Stay tuned for more insightful articles from this up-and-coming writer.