FAQ Category: Cryptocurrency Lawyer Houston

What are some common bitcoin frauds?

Fraud is very common when processing cryptocurrency transactions but here are some of the more common types of fraud you may see:

  • Blackmail
  • Pyramid schemes
  • Investment opportunities
  • Viruses on your electronic devices
  • Bit-phishing

With a cryptocurrency lawyer Houston investors have access to an advocate to protect them against these forms of fraud and other, similar situations.

How can I be cautious and safe when using bitcoin?

The best way to be safe and protect yourself from Bitcoin fraud is to educate yourself on the common forms of fraud and understanding what exactly cryptocurrencies are. Research the proper way to use bitcoin and make yourself aware of the process.

Fraud is very common in exchanging cryptocurrencies so seeking legal advice from an experienced Houston cryptocurrency lawyer in the field of bitcoin will assist you in avoiding scams or fraud.

What should I do if I suspect a Crypto scam?

We advise you to stop the transaction process if it has already not been completed. At any time you suspect scams or fraud, we suggest you contact an experienced attorney that can assist you in identifying scams.

What is an Initial Coin Offering (ICO)?

An ICO is very similar to an initial public offering but it uses cryptocurrency. If a business is looking to raise money for a new product or service, then they can launch an ICO which allows investors to buy into the offering and receive a cryptocurrency token from the company. This can also be used to turns the company’s current assets into cryptocurrency coins.

Why Do I Need an Attorney When Dealing With Cryptocurrency?

Having an attorney who specializes in bitcoin will benefit you when handling disputes involving cryptocurrencies, such as a party who receives the bitcoin and refuses to perform the action that was made in exchange for the transfer.

Our attorneys understand crypto-currencies and can explain the concept of crypto-currencies in a manner that is easy for a jury to comprehend. It is highly advised that businesses working with cryptocurrencies seek legal advice so they can conduct transactions and procedures the correct and legal way.

Hiring an attorney that specializes in cryptocurrency protects you from a potential lawsuit, assists with any security breaches, and keeps you safe from fraudulent companies.

What risks come with Bitcoin?

  • Payments cannot be reversed.
  • Payments can only be refunded depending on the issuer’s willingness to process a refund. Such a refusal can lead to legal issues such as breach of contract or fraud.
  • Volatility: Because Bitcoin is a relatively new asset class, it is subject to heightened volatility and individuals can make or lose money quickly.

Why is cryptocurrency important?

Cryptocurrencies are important for numerous reasons, but as it pertains to bitcoin because it meets and exceeds other forms of monies to assist the individuals holding the asset. Bitcoin excels in the following areas:

Durability:

Whether the money can be exchanged repeatedly; hence it must survive wear and tear for long periods. Bitcoin is a digital asset. It is information. As such, it cannot be dropped, torn, or otherwise destroyed in a manner that a physical currently can be affected.

Portability:

The ease at which money may be transported. Bitcoin is information. It can be transported over the internet or carried on a hard drive. In this respect, the transmission of information is much easier than the transmission of a physical asset.

Divisibility:

Whether the money can be easily divided to enable the purchase of different products. Each bitcoin can be subdivided into one-hundred-million subunits, with the smallest subunit called a “satoshi.” Upon the widespread adoption of Bitcoin, further subdivision is possible. As such, Bitcoin excels at the property of divisibility.

Uniformity:

A standardization of money so that it looks the same and is recognizable. Bitcoin can be quickly and independently verified by the owner to confirm its authenticity. As more transactions occur virtually, involving only the transfer of information, such independent authentication will be important and is an asset that Bitcoin possesses.

Scarcity:

Money is only valuable if it is in limited supply. This component of scarcity is perhaps the most important trait of Bitcoin and is driving much of the fervor surrounding the possession of Bitcoin, particularly as governments print more and more of their local currencies to address economic challenges.

General Acceptance:

The currency must be acceptable for trade in the stream of commerce. Bitcoin and other cryptocurrencies are making headway involving this aspect of money, as more and more retailers accept cryptocurrencies as payment for goods and services.

The Cobos Law Firm accepts Bitcoin and some other forms of crypto-currencies in exchange for legal representation. When in need of a cryptocurrency lawyer Houston businesses trust our firm’s experience and expertise.

What is cryptocurrency?

Cryptocurrency is a virtual/digital currency designed to function as a worldwide payment system. Bitcoin was the first digital currency and functions without a centralized bank or administrator.

Cryptocurrencies are used to trade online currencies and verify the transfer of funds or purchases of goods. Some other famous cryptocurrencies are Ethereum, Litecoin, Ripple, Blockchain, etc.