Binging on Bitcoin? Beware of the risk of decentralized exchange and regional cryptocurrency ”
The cryptocurrency world has exploded in recent years, and thousands of new projects have begun every day. Although some have gained great adhesion and popularity, others unfortunately have proven scammers or Ponzi schemes to bring investors.
One such projects are the decentralized Exchange (DEX), a platform that allows users to trade in cryptocurrencies without intermediaries such as brokers or stock exchanges. But what lies in this seemingly innocent concept?
dexo carpet
2016 Dexs began appearing on cryptocurrency forums and social media platforms. Initially, they looked like a natural extension of traditional trading systems, allowing consumers to buy and sell cryptocurrencies with minimal taxes and lever. However, it soon became apparent that not all Dex projects were designed the same.
regulated cryptocurrency
One of the biggest investors in Red Flags is the rise of uplifting – the efforts of a small group of individuals or groups to manipulate the market and drain out of unsuspecting investors. These scammers often include a group of consumers creating counterfeit assets by milking them with false IDs, and suddenly “melting” them, leaving their holders.
Bingx is one such example. 2018 The Bingx started was considered a decentralized exchange that would allow consumers to trade cryptocurrencies directly on their platform. However, behind the scenes, this was a Ponzi scheme for removing from investors’ funds.
How did it work
Bingx CEO Yu Hui said its platform is supported by “more than 10 million real assets”, including cryptocurrency and other digital assets. However, when investors tried to withdraw their funds, they found that the platform had depleted most of its assets by leaving many holders.
Finally, this scheme was revealed a few months later, revealing a complex network of fake operations and manipulating prices to deceive investors in farewell to their money.
What can you do
So what can you do to avoid the victims of these fraud?
- Do your research : Before investing in any cryptocurrency or Dex project, make sure you understand basic technology, use and risk.
2.
- Increase your portfolio : spread your investment in multiple wealth to reduce risk.
- Be careful about unwanted ads
: Be careful about the messages of unknown or untested persons offering investment options.
Conclusion
The world of cryptocurrency is fundamentally volatile and scammers are only one part of the equation. Being informed and vigilant, you can reduce risk risk and make more reasonable decisions on cryptocurrencies.
When it comes to Bingx, it is a careful tale that emphasizes the importance of a decent inspection when it comes to decentralized exchange. If you are considering investing in a DEX or any other cryptocurrency project, be sure to do your research before moving to move and do extreme caution.