If you are new to cryptocurrencies, the most important change to understand in comparison with the traditional banking system is that transactions occur directly between two parties without any central authority to facilitate the transaction. This also means that you are responsible for your own security - there is no bank or credit card company to reverse a transaction if your funds are stolen or lost. If you forget or lose your wallet file, recovery phrase or PIN, you will permanently and irrevocably lose access to your funds.
Liberty is designed from the ground up to be fast, secure, fungible and private. In this sense, it is similar to cash or gold, but cryptocurrency can be spent locally and internationally with equal ease, if you are confident you are sending funds to the right destination. For these reasons, the Liberty documentation has a strong focus on safety and understanding the concepts and features that drive the Liberty ecosystem.
A few general safety guidelines:
- Do not trust any online service or person because they sound or look reputable. Always use an escrow service if you are buying peer-to- peer.
- Do not use exchanges as wallets. Exchanges are for trading, not for savings.
- Mobile wallets should be used for day-to-day purchases, but do not keep large amounts of funds in them. Transfer funds as necessary.
A list of known scams, fake wallets and Ponzi or pyramid schemes can be seen below. Do NOT trust them.
There are many “fake” Liberty pages on the internet attempting to trick users into sending Liberty or other cryptocurrencies or “open a wallet”. Other scams include selling fake mining hardware, fake Liberty or altcoins with a similar name, and Ponzi schemes (see below). Please be careful and do NOT trust any third parties listed here!!
Beware of fake Twitter accounts impersonating Liberty! The official Twitter account is: https://twitter.com/coin_liberty
Please report these and any others scams you encounter as follows:
- Report phishing and scams to Google: https://www.google.com/safebrowsing/report_phish
- Look up the registrar of the domain and send a complaint: https://www.whois.com/whois
- Report phishing to Netcraft: https://www.netcraft.com
- Report scams to the BadBitcoin Project: http://www.badbitcoin.org
- If in doubt, use Crypto Scam Checker to see if already report and report there as well: https://fried.com/crypto-scam-checker
A Ponzi scheme, Pyramid scheme or Multi-level marketing are a fraudulent investment operations where the operator provides fabricated reports and generates returns for older investors through revenue paid by new investors. More and more users must constantly join the scheme in order for it to continue operation, with ever greater numbers of people losing money to the originators of the scheme.
If you encounter a Ponzi scheme, follow the same reporting steps as above for scam websites!
List of known Ponzi schemes (there are many more - stay vigilant!):
- The Billion Coin