cryptocurrency Scammers
Hello Blogs,
How’s the lock down going?? Hope you are all well.
A quick blog this time.
I’m getting quite concerned with the never ending scams and scammers on Facebook regarding Cryptocurrency. I’m again hearing horror stories of people losing huge amounts of money through these scams.
Again, lets goes back to the basics of how this all works:
What is the public key?
The public key is where anyone can send you any sort of cryptocurrency.
Example 1: Much like if “Bob” wanted to receive an email from “Sarah”. In order for that to happen “Sarah” would have to know what is “Bob’s” email address first before she can send any sort of email to “Bob”. Once “Bob” tells “Sarah” his email address its means that “Sarah” can then go on to send “Bob” the email. Makes perfect sentence?
So now applying that basic knowledge to Cryptocurrency If I wanted to send any person any sort of Cryptocurrency I’m going to have to know what that persons Public Key is first so that I know where to send the Cryptocurrency to. Think of the Public Key as the email address, I cant send a person an email if I don’t have that persons email address can i.
Once you send the Cryptocurrency to another person’s wallet using their public key the transaction can not be undone or be reversed. Once the Cryptocurrency has moved out of a person’s Crypto wallet and on to the Blockchain then it’s gone in transit and on its way to the other designated wallet. The transaction cannot be reversed, only if the receiving person decided to send it back to you which means that they would then also have to know what is your public key in order to send it back.
Is it safe to share your public key with anyone?
Yes, it’s completely safe to share your public key with anyone. Thats why its called "public", the worst thing that will happen will be that a person anywhere in the world would be able to send you Cryptocurrency into your wallet. It’s impossible for a hacker or scammer to steal any Cryptocurrency out of your wallet if the hacker or scammer only has your public key, the blockchain platform simply will not let that happen.
For example, below is my public key for my Ethereum wallet and i have no problems giving it out. Please feel free to send me some ETH for this amazing blog for you all! Lol
Ethereum wallet address: (Public Key) 0xb2a7abd9fa5de3fc728cb69bd6bb5d3d3f51b438
What is the private key?
The Private key works in conjunction with the Public key and basically decodes the transaction and is used as the proof of purchase that the coins that you have purchased do really belong to you.
Is it safe to share your private key with anyone?
NO! Absolutely not!! Do not give out your private key to anyone, that’s why its called a “private key” it has to be kept “private”! If a person knows what your private key is then that person has the capability to be able to move and steal all of your Cryptocurrency out of your wallet to theirs, never share your private key with anyone you have got to keep it safe!
What is a hardware wallet?
A hardware wallet is a USB looking device which stores your “private keys” off of the internet in a digital form so that no hacker can ever get to your private keys and steal your Cryptocurrency.
What happens if a person loses their hardware wallet with the private keys stored on it, or the hardware wallet gets stolen, has that person lost all of their Cryptocurrency?
Not really, unfortunately that person would have to buy another hardware wallet. And obviously when they get their new hardware wallet it will have no coins loaded on to it. So how does a person restored the hardware wallet back to its original state with all of the orginal coins back on to it?
A person restores their hardware wallet back to its original state by inputting the 24 phrase words.
What are these 24 phrase words?
They are random selected words such as “CAT”, “BOAT”, “RIVER”, “TREE”, “SKY”. These words are the backup words for your private key, in other words they “backup” and restore the ledger back to its original state with the original coins loaded back on to it again. Remember I said that your “private key” is basically proof of receipt that the coins belong to you.
Is it safe to share your 24 phrase words with anyone?
NO! Absolutely not!! The 24 phrase words are the back up to your private key. So, they are your private key. You don’t give out your private key and you don’t give out your 24 phrase words to anyone! It is your responsibility to make sure that these “phrase words” are written down on paper and stored in a safe place and kept off of the internet or any digital storage device.
What is the safest thing to do with your Cryptocurrency?
Depending on what coins you hold I know that the Ledger Nano S (hardware wallet) hold the major coins such as Bitcoin and Ethereum. Just simply store them on the Ledger Nano S and leave them there. Its all about time and patience, without being biased I firmly believe that Bitcoin and Ethereum will give you a huge return on your investment in maybe 10 years from now or less.
Scams:
Rule number 1: If it sounds too good to be true then it probably is. In other words, if a person contacts you claiming to be able to mine you 10 bitcoin per day which will equal to $10,000 every day for the rest of your life then its rubbish and stay well away, simply block them on.
If a person contacts you claiming that their trading website can make you 10 bitcoin per day then ask them to provide evidence by them sending you their transaction ID.
Rule number 2: NEVER EVER give out your 12 phrase words to anyone! I will say that again, NEVER EVER GIVE OUT YOUR 12 PHRASE WORDS TO ANYONE! Your 12 phrase words are the same as your BSB and Account number for your bank account, they are the only back up for your private key. They are for your eyes only, no one should be asking for them, even if the asking person claims to be from a bank, the police, the government or from your own private wallet. NEVER EVER give out your 12 phrase words to anyone. Write them down on a bit of paper and store the paper in a safe place off line. Never store your 12 phrase words online or on any other electronic device.
Rule number 3: Trust no one online who you have never met in person before. So many scammers use fake Facebook profiles and identities. They will contact you with the typical rubbish of wanting to help you make millions of dollars. Ask yourself the question, why would they be wanting to help you become a millionaire, It's all a scam.
Rules number 4: Stay away from Binary Options. In some countries Binary Options are illegal. The most likely case is that you will be taken to a fake website called a “Phishing” and asked to input all of your personal details which will then be stolen. Then credit cards and bank loans can be taken out in your name and you will pick up the bill for them at the end.
Rule number 5: Always do your own research on a cryptocurrency before you invest into it, read through its white paper, what is the project trying to achieve. But remember that no one really knows what the market is going to do. If a person claims that a certain coin is going to be worth a small fortune in the future approach it with caution. Always remember that nobody knows what the market is going to do and you only ever invest what you can afford to lose. At the end of the day this is just gambling. You would never go to the casino and bet your entire house on "Black". Be responsible with your finances.
Good luck trading.
Rob