The cryptocurrency market experienced significant movement following Donald Trump’s inauguration, which traders had closely anticipated. 

The cryptocurrency market experienced significant movement following Donald Trump’s inauguration, which traders had closely anticipated. His promise to establish the United States as the "crypto capital of the planet" and create a strategic Bitcoin reserve resonated positively with market participants. Bitcoin’s market capitalization surged, reaching an all-time high of $109,300 just before the inauguration on Jan 20, 2025. This surge illustrated the optimistic crypto market sentiment surrounding Trump's administration and its potential influence on cryptocurrency regulations.

However, this rally was tempered by a common market phenomenon known as "buy the rumor, sell the news." Following the inauguration, many traders who had invested in anticipation of the event sold their holdings, leading to a price decline. This reaction highlights the volatile nature of cryptocurrency markets, as excitement can quickly turn into profit-taking.

World Liberty Financial and Ethereum Accumulation

In related news, World Liberty Financial (WLF), a cryptocurrency venture associated with Trump and his family, made headlines by significantly increasing its Ethereum (ETH) holdings. From Jan 17–19, 2025, WLF acquired 55,247 ETH, bringing its total to 56,332 ETH, valued at approximately $181.6 million at the time of the report. This acquisition drew attention due to its substantial scale and timing, occurring just days before the inauguration.

WLF's wallet also held a diverse array of assets, including Wrapped Bitcoin (WBTC) and USD Coin (USDC), indicating a strategic investment approach. The rise in attention to WLF's holdings reflects a growing interest in institutional investment in cryptocurrencies, especially in the context of a pro-crypto administration. While Ethereum's price action has been somewhat disappointing compared to that of other altcoins, the accumulation strategy by WLF suggests confidence in Ethereum's long-term potential.

The report also highlights Solana’s remarkable performance, as SOL reached an all-time high of $295 on January 18, 2025. This surge was largely driven by the launch of an official TRUMP meme coin on the Solana network, which generated significant investor interest. The TRUMP meme coin achieved a market cap of $14.92 billion within two days of launching, illustrating the power of meme culture in driving market activity.

The correlation between the TRUMP meme coin's popularity and Solana's price rise indicates how new products can influence established cryptocurrencies. Despite the initial hype surrounding the meme coin, Solana has shown resilience, bouncing back above $258 after the inauguration, suggesting a robust underlying demand.

Looking toward future developments, the report discusses the recent filings for cryptocurrency exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). These filings include proposals for Bitcoin (BTC), Ethereum (ETH) and various meme coins, signaling a potential shift toward mainstream adoption of cryptocurrency-based financial products. The anticipated pro-crypto policies under Trump’s administration could play a crucial role in shaping the regulatory framework for these ETFs.

The SEC’s response to these applications will be a significant indicator of how institutional investment in cryptocurrencies may evolve. Should these ETFs gain approval, it could lead to increased demand and price volatility, particularly as traders react to the outcomes of these regulatory decisions.

Advanced

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Bybit x Santiment: ETH Faces Pressures as SOL, XRP, Meme Shine

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

Trump's inauguration on Jan 20, 2025 was preceded by the launch of two meme coins from the Trump family, TRUMP and MELANIA, which quickly garnered billions in market capitalization. Speculation about a strategic Bitcoin reserve being included in the executive orders signed on the first day of his administration led to a significant bullish shift in derivatives market positioning. This shift resulted in an inversion of the term structure of volatility, increased funding rates on long positions and a tilt in short-tenor volatility smiles toward calls. However, when the anticipated bullish announcements didn’t materialize, implied volatility levels decreased, even as realized volatility increased. Despite this, the bullish skew toward out-of-the-money (OTM) calls persisted.

In the perpetual markets, funding rates remained consistently high across almost all assets, continuing beyond the inauguration event. In the options market, realized volatility surged to post-election highs, even as implied volatility levels fell due to an overestimation of the significance of inauguration day for crypto. Overall, positioning across all tenors remained bullishly tilted.

Please check out the report’s highlights.

During the inauguration weekend, perpetual swap trade volumes hit their highest levels in over a month as traders positioned for expected crypto-friendly executive orders. Notably, SOLUSDT perpetuals experienced a significant surge in activity, reaching new all-time highs and a spike in realized volatility. Trump's launch of the TRUMP meme coin on Solana DEXs allowed Solana’s network to surpass competitors in fee generation, highlighting the symbolic choice of a sitting U.S. president to launch on Solana instead of Ethereum.

Perpetual swap funding rates saw minimal repricing despite the lack of significant announcements on inauguration day, remaining at neutral-to-bullish levels across all coins. Open interest data indicated no major changes in positions, even amidst spot price volatility. Consequently, while options markets adjusted short-term expectations, sentiment in the derivatives market viewed the lackluster inauguration day as just one of many opportunities for future positive news in the industry.

Speculation that the incoming president would announce a strategic Bitcoin reserve in his inaugural speech led to a buildup of short-tenor options positions just before the event. This resulted in a significant increase in call buying and the strongest inversion of at-the-money term structure since the Nov 5, 2024 election. While the extreme pricing of front-end volatility has diminished, the strong skew toward OTM calls remains, reflecting a continued preference for upside exposure as Trump prepares to sign executive orders.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 22, 2025): Sentiment Cools While Remaining Bullish Following Trump’s First Day

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Learn more here.

If you keep up with financial news, it can often feel like you’re hearing a story about a self-made crypto millionaire every other day. However, smart investors know that the reality is a little more nuanced. The crypto market comes with high rewards, but it also has high risks. To be successful, you need to be willing to 

 and make wise choices. This guide will explore one of the most basic things you’ll need to decide on before choosing to jump into the world of crypto — how much you should invest in crypto.

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Not only does the amount you invest in crypto impact your other finances, but it also determines which strategies you can afford to use.

The simple answer to how much you should invest in cryptocurrency is based on your net worth. Someone with millions of dollars can easily risk a lot more than, for instance, a college student without any savings. Traditional investment advice from financial expert Douglas Feldman 

 people shouldn't invest more than 1% to 5% of their total net worth in cryptocurrency. However, some crypto enthusiasts, such as

 be wise to invest up to 10% of your income in cryptocurrency.

Factors to Consider When Deciding How Much to Invest in Crypto

There's a lot of variation in guidelines for how much to invest in crypto. To find the right amount to invest for your specific situation, you'll need to stop and consider these essential factors.

One of the most important factors in determining how much to invest in crypto is the level of risk you’re willing to consider, or your risk appetite. If you have a high risk tolerance, you can invest more. Risk tolerance is partially a matter of personal preference. Some people are naturally cautious, while others are more comfortable making risky moves. However, it’s also wise to factor in your age. A high risk tolerance can work well when you're young because gradual market growth over the years will help balance losses. However, if you're older and closer to retirement age, a lower risk tolerance is advisable.

When planning to invest in crypto, it's a good idea to consider the best-case scenario as well as the worst. Ask yourself: What will happen if my crypto assets suddenly skyrocket in price and I make thousands of dollars overnight? If you're the type of person who would throw in more money or keep holding onto your crypto until the bubble bursts, it might be smart to reduce the portion of your money that you invest in crypto. The flashy profits associated with crypto can lead to overly emotional decisions that can cause problems for certain types of crypto investors.

, the types of coins you're holding make a big difference. Not all types of crypto have the same level of risk. If you intend to go for a risky investment portfolio with nothing but 

, you probably shouldn't take all your assets and invest them in crypto. However, if you intend to invest in a broad range of reliable coins, especially 

, allocating more of your assets toward crypto is a reasonable choice.

Things change fast in the crypto world, so the same advice doesn't always work in different situations. Any time you’re going to invest in crypto, you need to take a look at crypto market conditions. In a 

, prices are consistently high, so you may want to invest less. Meanwhile, in a 

, prices are low, and you can often get big returns by putting extra into crypto investing.

Your liquidity refers to the amount of easily accessible cash you have at hand. Crypto markets are fairly liquid, since you can remove your funds at any time. However, since crypto is a volatile asset class, trying to remove your funds during a bear market can lead to considerable losses. Before putting large sums into crypto investing, think about when you'll need liquid cash. For instance, if you're going to need a large lump sum for a house deposit or another big purchase soon, you need to invest less money in crypto.

Keep in mind that a lot of the recommendations to invest between 1% to 10% of your money in crypto are based on income. However, the reality is that different people have different budgets. Some may need almost all of their income for things like food and housing, so it's not smart to take all your money and invest in crypto. However, others who have more disposable income left over after managing other budgetary needs can invest in crypto more often.

The cryptocurrency market as a whole does follow certain trends, but crypto investments always fare better if you actually understand projects before you invest. It's a poor decision to put a large portion of your assets into obscure crypto you know nothing about. Informed investors only put significant investment into specific cryptocurrencies if they take the time to 

, understand its real-world utility, explore its pricing history and see how well it performs on crypto exchanges.

What Is a Good Allocation for a Well-Balanced Crypto Portfolio?

Once you figure out how much money you want to invest in crypto altogether, you need to consider how much money to put into each specific crypto. It's important to have a diversified portfolio, so a single coin running into issues won't tank your entire crypto investment portfolio. There are a lot of different ways to invest in crypto.

The simplest investment advice, as suggested by

, is simply to put 60% of your money into Bitcoin and 40% into Ethereum. That's a decent choice if you know nothing about crypto assets but still want to invest in crypto. However, if you're willing to research individual coins and pick your favorites, try this asset spread:

If you are open to some speculative exposure, consider allocating a small percentage (2 - 3%) to emerging sectors like 

Compared to some other investments, such as bonds, cryptocurrency is considered risky. The 2020 - 2024 chart below, detailing Bitcoin and S&P's weekly returns, reveals the relatively drastic peaks and troughs of Bitcoin in comparison to S&P 500. Notably, Bitcoin recorded a weekly drop of over 40% and nearly 30% rise in 2020, thugh its volatility has declined over the years. In contrast, S&P 500's gains and losses rarely exceeded 10% throughout the entire period.

Despite Bitcoin's drop in volatility, it is still considered relatively risky to invest in crypto because of the market’s significant price fluctuations and the proliferation of 

s. Additionally, there are countless examples of people who invest in crypto, jumping onto trends and losing their money when prices on the crypto exchange drop. One

 illustrates these dangers: he became interested in crypto during the pandemic and quickly got hooked upon seeing his portfolio values rise. He invested $50,000 into crypto, and eventually built an impressive portfolio worth $300,000. Following a 

, he had only $5,000 left in his account.

Furthermore, crypto markets are still not fully understood by the public, and are less regulated than traditional investments, so it's easier for malicious actors to take advantage of naive investors. For example, crypto-lending company 

 promised to store customers' assets, but when the company went 

, many users found that the company refused to return their invested funds. A similar issue arose when 

, and investors could no longer withdraw funds from their accounts.

Despite its risk, cryptocurrency fills an excellent niche in the financial world. When you invest in crypto, it can ensure your portfolio is diversified and insulate you from stock market crashes and other issues with traditional investments. Deciding to invest in crypto is also a valid option when you want to work with some higher-risk investments. Even beginning traders can find it useful to place a small portion of their investment funds into some reliable cryptos.

Furthermore, cryptocurrency allows people with tech expertise to make highly informed decisions. Finding your niche is always a useful investment strategy. Those who don't keep up with manufacturers and foreign currency exchange rates might find that they can specialize by choosing to invest in crypto. If you enjoy learning about the latest tech news and following online memes, crypto investments can be a great way to turn your knowledge into profits.

However, even though it often works well to invest in crypto, you still need to exercise some caution before working with crypto exchanges. If you want to invest in crypto, it's essential to follow the classic rule of, "Only invest the money you can afford to lose." Those who take out loans to buy 

 or throw their entire retirement account into crypto can end up losing it all if the markets take a turn for the worse. Like any other volatile asset class, crypto needs to be approached with some common sense.

Deciding how much money to invest in crypto is an essential part of your investment strategy. By considering things like risk tolerance and liquidity, you can create an investment portfolio that addresses your unique needs. When you have the right amount of money invested in crypto, you have the potential to make impressive profits without risking all your savings.

Beginner

how much to invest in crypto, how much to invest in bitcoin

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How Much Should You Invest in Crypto? 7 Factors to Consider

Explore how to participate in the Bybit Copy Trading Gold&FX Fiesta to win rewards. In addition, learn how you can unlock an additional 5,000 USDT prize pool!

Trading in Gold and Forex has long been favored among seasoned investors seeking stability and long-term wealth preservation. However, these markets are traditionally complex, requiring deep knowledge of macroeconomic trends, currency correlations and geopolitical factors. But what if you could tap into these lucrative markets without the steep learning curve?

 — a game-changing solution that enables traders automatically mirror the strategies of experienced professionals. Bybit has now 

, allowing crypto traders to seamlessly diversify their portfolios without needing prior experience in these traditional asset classes.

To make this transition even more enticing, Bybit has launched the Copy Trading Gold&FX Fiesta, an exclusive event offering a 130,000 USDT prize pool to reward participants who trade in gold and forex using Bybit’s Copy Trading Gold&FX. Furthermore, there’s an additional 5,000 USDT prize pool you can unlock when you participate in the Copy Trading Gold&FX Read-to-Earn campaign. This comprehensive guide will help you understand the event, its mechanics and how you can actively participate to maximize your trading potential.

What Is the Bybit Copy Trading Gold&FX Fiesta?

 is a trading event in which participants can diversify their portfolios into gold and forex markets, copy expert traders and compete for 130,000 USDT in rewards.

With seamless integration of crypto-based trading using USDT, and the ability to follow professional traders, this event opens unique opportunities for beginners and experienced traders alike.

How Does Bybit Copy Trading Gold&FX Fiesta Work?

The event is structured to make trading in gold and forex markets accessible and rewarding. Participants can trade using USDT without needing to convert it into fiat currencies, making the process straightforward for crypto enthusiasts. By leveraging Bybit’s Copy Trading feature, users can replicate the strategies of successful Master Traders, gaining exposure to proven techniques.

There are two ways in which you can earn rewards from this event — as a Copy Trading Gold&FX Master Trader, or as a Copy Trading Gold&FX Follower.

To compete as a Copy Trading Gold&FX Master Trader, simply follow the two steps below:

If you’d like to compete as a Copy Trading Gold&FX Follower, simply follow these steps:

The event runs from Jan 24, 2025, 10AM UTC through Feb 24, 2025, 11:59 PM UTC, with rewards distributed on a first-come, first-served basis.

How to Participate in the Bybit Copy Trading Gold&FX Fiesta

Now that you have a better understanding of the campaign, let’s take a look at how you can participate in the Bybit Copy Trading Gold&FX Fiesta and grab a share of the 130,000 USDT prize pool! 

Before you can register for the event, you’ll first need to create a Bybit account. Follow our detailed 

 if you require assistance. If you’d like to participate as a Copy Trading Gold&FX Master Trader, you’ll first need to apply to become one by following this guide.

Participate as a Copy Trading Gold&FX Master Trader

: You will be prompted to log in to your Bybit account. If you don’t already have one, please register for a Bybit account. Once you’ve successfully registered for the event, you’ll see that the 

button is now gray and you’ll be able to see the required tasks in order to win a share of the rewards.

task and complete your first Master Trade.

: Trade at least two lots of gold or forex daily for the duration of the campaign to gain one Lucky Draw chance per day.

Once you’ve accumulated Lucky Draw chances, you can use them to spin the Lucky Draw wheel on the Copy Trading Gold&FX Fiesta page. Simply click the 

button. You can view your available rewards by clicking 

Participate as a Copy Trading Gold&FX Follower

task and a pop-up window will appear. Click 

On the Bybit Copy Trading Gold&FX page, scroll down to view the 

. You can filter all the Master Traders by 

. Look for a Master Trader whom you resonate with, and click on the corresponding 

: Input the amount you’d like to trade, and select the items to copy. Then, check the box once you’ve read the 

[BONUS] Copy Trading Gold&FX Read-to-Earn Campaign

Looking to boost your rewards? Unlock an additional 5,000 USDT prize pool when you participate in the 

Running from Jan 24, 2025, 10AM UTC through Feb 24, 2025, 11:59PM UTC, the Copy Trading Gold&FX Read-to-Earn campaign features five modules and a quiz at the end of the course. Read all five modules and complete the quiz to win a share of the 5,000 USDT prize pool!

Should You Participate in the Bybit Copy Trading Gold&FX Fiesta?

This event is a golden opportunity (pun intended) for traders who want to explore gold and forex markets with minimal effort while enjoying a range of benefits. Here are some compelling reasons to consider joining:

While crypto trading can be highly rewarding, the crypto market is 

. Gold and forex markets offer a level of stability that crypto lacks, making them a great way to hedge risk and create a more balanced portfolio.

One major challenge in gold and forex trading is the complexity of fiat conversions. Bybit simplifies this by allowing users to trade these assets with USDT, eliminating the need for bank transfers or currency conversions.

3. Copy Expert Traders — Instead of Learning from Scratch

Traditional gold and forex trading requires an in-depth understanding of macroeconomic trends, monetary policies and market fluctuations. However, Copy Trading removes this complexity by allowing users to follow and replicate the strategies of successful Master Traders. This is perfect for beginning traders who want to start without spending years mastering market analysis.

With 130,000 USDT in rewards and an additional 5,000 USDT prize pool up for grabs, you can earn daily rewards simply by executing trades. Completing daily trading tasks not only improves your trading experience, but also gives you the chance to win Lucky Draw bonus rewards.

This campaign is designed to be accessible to everyone, whether you’re an experienced trader or completely new to gold and forex. With Copy Trading, all you need to do is select the best Master Trader for you — and let the system handle the rest.

The Bybit Copy Trading Gold&FX Fiesta is more than just a trading event: it’s an opportunity to broaden your horizons, learn from experts and earn rewards. With simple steps to join and a host of benefits, this event is designed to empower traders at every level.

Don’t miss out on your chance to diversify into gold and forex markets and compete for your share of the 130,000 USDT prize pool. Moreover, you can unlock an additional 5,000 USDT prize pool simply by reading five modules and completing a quiz via the Copy Trading Gold&FX Read-to-Earn campaign! 

 — and take the first step toward unlocking new trading opportunities today!

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How to Participate in Bybit Copy Trading Gold&FX Fiesta

Bybit Learn

All About P2P Platforms

Like any growing industry with lucrative returns, the crypto world has its fair share of crypto criminals and scammers. Here's how you protect yourself against P2P crypto scams and fraud.

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 that powers Bitcoin and other cryptocurrencies is often hailed as safe and secure, since blockchains record the transactions. These records are then viewable by the public. However, like any growing industry with lucrative returns, the crypto world has its fair share of 

One prominent example was a company called 

, which ultimately shut down operations in 2018. The scam resulted in a whopping $3.45 billion being stolen. To this day, it’s the biggest example of an initial coin offering (ICO) scam, having promised investors 40% returns for their investment in what turned out to be a Ponzi scheme.

While there hasn’t been another crypto scam as large as Bitconnect to date, crimes involving cryptocurrencies have experienced a surge around the world. A 

 found that scammers took $14 billion worth of crypto in 2021, nearly twice the $7.8 billion taken in 2020. 

ICO scams like Bitconnect are just one type of tactic employed by crypto criminals. In this guide, we’re going to focus on P2P scams and how you can avoid them. 

A P2P crypto scam occurs on peer-to-peer (P2P) exchanges that connect sellers and buyers. The platform functions as an arbitrator with an escrow service to facilitate transfers. Scamming occurs when the seller tries to bypass the escrow system by asking for payment from an external medium. After the buyer makes the payment, the seller will claim they didn’t receive the funds and refuse to hold up their side of the deal. In P2P there’s usually some level of trust required, and scammers often abuse this for their own purposes.

P2P platforms connect people who are selling cryptocurrencies with others who are looking to buy. Traders interested in selling cryptocurrencies can create an ad on a P2P platform. The platform then advertises a list of traders who have a buyer’s desired tokens, and the buyer can choose the trader they want to buy from. 

Ideally, when using a P2P platform for trading crypto, both parties should provide an appropriate e-wallet or bank account for completing the transaction. The P2P platform holds the crypto being traded in escrow and releases it once the transaction is successfully completed. While the majority of trades are usually completed without issue, there are malicious actors who may attempt to scam you. 

 can be a bit of a Catch-22. On the one hand, the lack of a singular governing body allows for greater freedom. However, without standardized oversight, scammers are free to commit fraud and deceive unsuspecting investors in a variety of ways. The most common types of scams are as follows:

Fortunately, it’s possible to combat P2P scams as long as you perform your due diligence. We’ll go into further detail on how to do this later on in this article.

It’s also important to point out that P2P scams are different from 

, which occur on P2P lending platforms. A flash loan attack is an exploit which abuses the 

 platforms that offer loans without requiring collateral. It’s not the same as a P2P scam. 

 are common, they’re often sensationalized in news headlines and only account for a small fraction of the total cryptocurrency trading volume. Cryptocurrency exchanges reportedly saw over 

 in trading volume in 2021, so the $14 billion taken by scammers in that year is a drop in the bucket. 

P2P scams are neither a new concept nor unique to crypto platforms. They’ve existed in some form or another for as long as P2P platforms have been around. Whether on traditional P2P or crypto P2P platforms, the scams generally involve either some kind of man-in-the-middle (

) mechanism, or an attempt at a third-party transfer.

Since P2P platforms aren’t as heavily regulated as brick-and-mortar banks, the burden of due diligence sits squarely on the shoulders of the user. When choosing a P2P platform or app to use, watch out for these common red flags before you start trading:

There are a variety of scams that occur on P2P crypto platforms. Below is a sampling of the most common ones. 

E-commerce scams involve transactions on dubious e-commerce websites. Scammers entice unwitting victims with low prices for products they want to buy. The scammer then sends the victim a different P2P crypto seller’s payment information, claiming that it’s their account. Once the victim pays for the item, the crypto seller sends crypto to the scammer on the other end, who vanishes. 

Romance scams prey on the emotions of unwitting victims in order to distract them from a scammer’s true motives. It may sound like something you’d never fall for — but romance scams are actually widespread and one of the more common scams out there. According to the U.S. Federal Trade Commission (

), in 2019 there were $201 million in losses attributed to romance scams, with more than 25,000 victims. It was the second-most reported crime to the FBI that year. 

Scammers typically find victims via dating apps — such as Tinder — and forge online relationships with them, gradually building trust by feigning personal interest to “groom” the mark. At some point, the scammer begins to manipulate the victim into “helping the scammer with their financial issues” by sending fiat currency or cryptocurrency.

Unbeknownst to the victim, the scammer has in fact provided the identification details of an unwitting crypto seller — who will send crypto to the scammer, thinking that it’s a typical crypto-to-cash transaction. The scammer runs away with the cryptocurrency. Once the victim realizes the scheme, they’ll try to cancel the transaction. But the consequences won’t negatively affect the scammer — only the crypto seller.

“Romance” scammers simply will not stop once they’ve found a willing victim. Oftentimes, the marks the scammer has targeted are isolated, perhaps elderly and even with mental clarity issues. The mark may at some point become aware that they’re entangled in a web of deceit, but they often simply can’t bring themselves to sever the emotional attachment they’ve formed with the criminal because of the ersatz attention they’re receiving. 

These are similar to love scams, except that instead of preying on the victim’s personal emotions, the scammer takes advantage of an individual’s financial desires — whether it’s a bout of FOMO or a desire to quickly profit from an investment. In this scenario, the scammer finds victims and entices them with “guaranteed” gains. It can involve a fake website or app to build some façade of legitimacy, and then the scammer will ask the victim to send money to an account in exchange for Bitcoin they’ve supposedly earned.

In reality, the account — which the fraudulent scammer has set up — is actually owned by a crypto seller. According to the FTC, there were 7,000 reports of investment scams between October 2020 and March 2021, resulting in $80 million in losses. 

Erroneous Transfers, Chargeback, and Fake Receipts

Once a P2P transaction has been completed, a scammer may try to void the transaction by taking advantage of legitimate bank processes. For example, the scammer may call their bank to cancel the transaction and claim that the transfer or their account was stolen. The bank will typically acquiesce by voiding the initial transfer request. 

Another common exploit is to abuse of the chargeback feature on payment platforms such as PayPal. This particular variant usually targets crypto sellers on P2P platforms. Once the deal goes through, the scammer triggers a chargeback within 72 hours to reverse or cancel the payment. The scam is completed when the victim rushes to approve a transaction without first confirming that the money is firmly in their bank account or e-wallet. 

The end result is that the victim is left with neither the crypto nor the proceeds from the sale — and instead, an awfully sour taste in their mouth. To compound the problem, once a victim loses their money in this way, the scammer sometimes tries to scare them into not reporting the theft to the police — by claiming that the cryptocurrency is “illegal,” or beyond the purview of state authorities.

When conducting P2P transactions, it’s important to closely check the information being sent to your counterparty. Scammers sometimes manipulate screenshots and other photos to claim that they’ve fulfilled their end of the deal — and then pressure the victim into sending payment. 

P2P scams are easy to avoid if you take a few simple precautions.

 Sellers should take precautions against suspicious payment requests not suggested by the platform. For example, steer clear from a "Cheque" payment as it's more susceptible to a scam. 

To illustrate how a typical P2P transaction happens, here’s how transactions on 

 work. Once a buy order is submitted, the amount of coin specified will be reserved by Bybit. The buyer can complete the payment using over 80 different methods, including credit cards, debit cards, in-person cash payments, and more. If the seller doesn’t release the coin within 10 minutes of receiving the payment, Bybit’s customer support has the right to release the coin from the reserved funds to the buyer after verification.

Bybit also has a daily transaction limit for unverified users. Depending on the fiat currency being used, the platform requires identity verification for transactions over 1,000 USDT. If a buyer or seller has an issue with an order, they can log in to their Bybit account and click on the support icon in the bottom-right corner to contact Bybit’s customer support via chat or email. Parties can send their order number and any applicable screenshot(s) as evidence and then wait for dispute resolution.

P2P cryptocurrency scams may be on the rise, but there are multiple steps you can take to make sure you don’t become a victim. Always be on the lookout for third-party transfers, and make use of the platform’s escrow service. It’s important to reiterate that P2P crypto scams aren’t always the same as other crypto scams out there, which you can 

To get started with P2P trading, check out Bybit’s 

How to Avoid P2P Crypto Scams and Fraud

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards