Technology is always changing, including the way we spend money. More people are buying cryptocurrencies and thieves are busy trying to figure out how to get paid too. Our team at KPRC 2 Investigates has a family's history of crypto fraud and what anyone considering crypto needs to know.
What is cryptocurrency?
Cryptocurrencies are digital currencies that allow people to make payments to each other online. It is also a way to invest your money. A Houston father says he worries his teenage son is losing thousands of dollars on crypto.
โHe's been investing since he was a sophomore in high school,โ said Elรญas Garcรญa, a senior.
โI always had a bit of fame just because of the numbers. I was always good at math. So it's like, numbers, money, a kind of correlation, โsaid Elias Junior.
Elias Garcรญa Senior knows that his son is good with money, but his latest purchase on a cryptocurrency website has him worried.
"When I saw the website, that's what I like, 'Oh wait, wait, wait ... maybe that's too much," he said.
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The idea of โโthe Crypto Exchange Base website is simple.
โThe more you put in, it multiplies,โ explains Elias Senior.
The problem is that Elias Junior cannot get his money. Your "broker" keeps asking you to add more money to your account before you can make a withdrawal.
"To be honest, I knew it was kind of a sketch from the beginning," said Elias Junior.
Cryptocurrency fraud is incredibly high right now
The Federal Trade Commission said last year: consumers reported losing $ 80 million to cryptocurrency investment fraud. That is ten times more than the previous year.
the FTC Says Red Flags to Avoid Include a guarantee that you will make money, the promise of big payouts, or free money.
โI put in $ 300. I made like $ 700 in profit. So I had like $ 1,000, โhe explains.
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Then Elias added $ 2,300 more in hopes of making that promised quick profit. Weeks later, Elias Junior now says that he cannot access his account fully.
Our KPRC 2 Investigates team tried for weeks and couldn't reach anyone from the Crypto Exchange website.
We also found that these so-called real people praising the website in "testimonials" are not real at all. The images are stock photographs and we found them used on the Internet.
"You have to be careful," said attorney and author Clay Rawlings.
Cryptocurrency is more popular with younger generations
Clay Rawlings is the author of "Bitcoin for beginners. "He says the Garcia family debate is a generational divide that he sees often.
"Gen X is somewhat suspicious, millennials are very accepting of it, and Gen Z agrees," he explains.
Clay believes that cryptocurrencies are here to stay.
โIt's no different than when the Internet came out in '95 and people made fun of it. Nobody understood it and by the year 2000 everyone understood it, โClay said.
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Elias Senior is still concerned but agrees now, while his son is young, it is the best time to try something like this.
โIt is time to support it. I mean, this may be a crazy idea, but let's support it, โElias Senior said.
โHonestly, if I lose the money, oh well, if I don't lose the money, oh well. It is what it is, โsaid Elias Junior.
Experimenting is fine, but you need to make sure the exchange you are investing in is licensed to operate in the United States.
How to buy cryptocurrencies
If you are interested in getting into cryptocurrency, Clay Rawlings is the expert on how to get started. Of course, he details all the details in his book, "Bitcoin for beginners, โBut he shared some tips with us, including where to look to get started.
First, you need to find a cryptocurrency trading platform where you can buy and trade.
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Coinbase - the most popular and very easy to use site, it only takes $ 5 to open an account
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Gemini - this commercial website is known for its security. Commercial fees are a bit higher than others
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Robin Hood - a mobile application with commission-free stock trading
Market equity has other exchange suggestions. Clay says that with all the new things, there is a definite learning curve to master to gain confidence in this area.
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