Cryptocurrency and Pyramid Schemes? What is the relation?

Cryptocurrency has been derived from the word “Crypto” which is the encrypted algorithm, the mathematical entries solving technique to generate money. It requires the users to have a great amount of understanding through knowledge and experience along with the skills to operate it. 

The most widely used and famous cryptocurrency currently is Bitcoin, invented by Satoshi Nakamoto in 2008 and introduced through paper articles. It was made accessible to the public in 2009, and then it has been widely used. In 2021, Bitcoin the total number of bitcoins in circulation will be around 18.8 million with the highest market cap of $1.2 trillion, making it a huge success.

Other cryptocurrencies are Ethereum, Binance Coin, Solana, and Cardano which are operated on cryptographic and blockchain techniques. Ethereum is the second most used cryptocurrency platform. It has its own cryptocurrency currency named Ether (ETH) or Ethereum. The remaining work is similar to Bitcoin using the blockchain technique.

How can you buy cryptocurrency?

1. Choose the appropriate platform

There are several websites operating on the blockchain and cryptographic techniques with the slightest changes in their way of operating. Therefore, it is essential for the users to do essential research before choosing the appropriate cryptocurrency website. 

The different brokers offer you to buy and sell cryptocurrency, stocks, and bonds online to them for the purpose of investments. The exchange of cryptocurrency and other financial assets costs the users as they are charged for it. 

2. Investments and Savings

The cryptocurrency platform requires users to fund their online financial accounts. For that purpose, they exchange, buy and sell, cryptocurrency, stocks, and other assets.  Some of the credit card transactions are not supported by the banks because of high risk and vulnerability. Therefore, Paypal, Cash App, and Venmo are the applications used in order to exchange money. After funding your finances, the user has to store the funds safely to protect them from scammers and criminals. The online software and hardware devices are used to protect the cryptocurrency and other financial assets of users.

Is Cryptocurrency a Pyramid Scheme?

A pyramid scheme is an online fraudulent system of generating and making money by tricking and trapping people. We have been informing and spreading awareness regarding the immense scams and frauds being practiced online. Thus, the pyramid scheme involves investors getting hold of people’s assets by fraudulently using tricks that make them share their personal information or somehow provide them the required data for hacking. The pyramid keeps getting complicated and unsolvable with the passage of time, likewise, the increasing number of investors and mathematical algorithms make cryptocurrency a pyramid. 

The question of cryptocurrency as a pyramid is intriguing because it does require an immense level of knowledge and skill to operate the cryptocurrency account. The multiple complicated entities and strong decision-making ability do entangle the users. The pyramid scheme of cryptocurrency cost the majority of the users and audience those who lacked the skills and expertise to operate it. Thus, they ended up facing a loss.

Author Bio:

Shachar Agmon experienced Business Consultant. She is currently employed by The Claimers, that have one mission and that is to aid individuals in protecting their money through the power of knowledge about scams, recovery methods, and other innovative techniques and has been working for the company for more than a years now.