What is black and white cryptocurrency. How to protect yourself from “dirty” cryptocurrency?

Black (“dirty”) and white cryptocurrency are not standard terms in the cryptocurrency industry and are unlikely to be widely used.

Usually, cryptocurrencies cannot be black or white, as all transactions on the blockchain are public and traceable. However, sometimes these terms can be used to describe different types of cryptocurrency transactions. For example, “black cryptocurrency” may refer to those types of cryptocurrency transactions that are associated with illegal activities such as money laundering, drug trafficking, etc. “White cryptocurrency”, on the contrary, can refer to legal and legitimate transactions with cryptocurrencies. For example, buying or selling cryptocurrencies on an exchange, using cryptocurrencies to buy goods and services, etc.

In general, it is important to understand that cryptocurrencies are not about color or legality, but are a tool for storing and transferring digital assets.

Why are "dirty" cryptocurrencies dangerous?

Dirty cryptocurrencies can be dangerous for several reasons:

• Illegal operations. Dirty cryptocurrencies can be used to conduct illegal transactions such as buying drugs, weapons, stolen goods and services, as well as financing terrorist groups and other illegal activities. Participation in such operations can lead to criminal liability and other serious legal consequences.
• Reputational risks. Using black cryptocurrencies can damage your reputation and credibility, especially if you accidentally received such cryptocurrencies. This can lead to problems at work, obtaining loans and other financial services.
• Financial risks. The use of “dirty” cryptocurrencies can also pose financial risks, as such cryptocurrencies can end up being blocked or confiscated by law enforcement.
• Cybersecurity. Some "dirty" cryptocurrencies may contain malicious software that  may lead to hacking of your system or identity theft.

In general, the use of black cryptocurrencies can be very dangerous and lead to serious consequences. Therefore, it is important to always be careful and not engage in illegal operations with cryptocurrency.

How do exchanges and exchangers keep track of "dirty" coins?

Cryptocurrency exchanges and exchanges are actively working to identify and prevent the use of "dirty" cryptocurrencies. Some of the methods they use include:

• Transaction analysis. Cryptocurrency exchanges and exchangers analyze transactions to determine which cryptocurrencies were associated with illegal activities or "dirty" sources.
• Compliance with the law. Crypto exchange services comply with anti-money laundering and terrorist financing prevention legislation, which requires them to more carefully monitor potentially “black” transactions.
• Using blockchain analytics. Many resources use blockchain analytics to track and analyze transactions based on blockchain data.
• Cooperation with law enforcement agencies. Cryptocurrency exchanges and exchangers are also cooperating with law enforcement to share information about suspicious transactions and black crypto.
• User identification control. A large number of services require users to provide documents confirming their identity, and may block accounts if the user cannot provide enough evidence of their legality.
• Monitor new technologies: Cryptocurrency exchanges and exchanges also monitor new technologies such as mixers and dark site marketplaces that can be used to hide transactions and obtain "dirty" cryptocurrencies.

How can I get a "black" crypto?

"Black" crypto can be obtained in a variety of ways, for example:

• Mining. Some cryptocurrencies, such as Monero, can be mined. These cryptocurrencies can be used for illegal purposes such as buying drugs or weapons.
• Work as a cryptocurrency trader. Some traders can use "black" cryptocurrencies to exchange goods and services on illegal markets on the Web.
• Buying on illegal markets. "Black" coins can be purchased from illegal online markets. On such markets, you can buy drugs, weapons, stolen personal data and other illegal goods and services.
• Hacker attacks. Hackers can use "dirty" cryptocurrencies to collect ransom after a ransomware attack, or to buy stolen goods or services.

What risks arise when interacting with the "black" cryptocurrency?

  A “dirty” cryptocurrency that has been used for illegal purposes can present a number of risks for those who interact with it:

1. Legal consequences. The use of non-white crypto may violate legislation regarding money laundering, terrorism, drug trafficking and other crimes. This can lead to possible legal consequences, including fines, confiscation of funds and even criminal prosecution.
2. Safety problems. "Dirty" crypto can be associated with hacker attacks, viruses and other types of cybercrime. This can lead to personal data leakage, security risks and loss of funds.
3. Possibility of losing all funds. Due to the fact that digital currencies do not have guaranteed security and are not regulated by governments, users can lose their funds due to fraud, theft, transaction errors and other reasons.
4. Loss of reputation. The use of a bad cryptocurrency can damage the reputation of a company or an individual user, especially if this cryptocurrency is associated with illegal activities.

What to do if you have already received a "dirty" cryptocurrency?

If you have already received a "dirty" cryptocurrency, then we strongly recommend that you do not use it, as this may damage your reputation and lead to legal problems. Therefore, it is better not to use it, and even more so not to send it to other users.

If you receive such a crypto, you need to notify your wallet or exchange by contacting their online support. They should help you deal with this issue and suggest what measures can be taken for the subsequent processing of  crypto.

In addition to the above, you need to contact law enforcement agencies, because the crypto could have been obtained as a result of fraud. This appeal may help in the investigation and bringing the perpetrators to justice.

In any case, you need to seek help from professionals, because one-on-one you will not cope with this problem.

How to protect yourself from "dirty" cryptocurrency?

There are several ways to protect yourself from a "dirty" cryptocurrency:

1. Buy cryptocurrency only on reliable and trusted exchanges and exchangers. Study reviews and ratings before buying or selling cryptocurrencies on a particular platform.
2. Avoid deals in dark marketplaces and unverified sites. Instead, use trusted platforms to buy or sell cryptocurrencies.
3. Carefully study transactions related to your cryptocurrency. If you notice suspicious transactions, please contact the platform support for more information and assistance.
4. Keep your cryptocurrency highly secure with secure wallets and two-factor authentication.
5. Follow the news and updates in the field of cryptocurrencies to be aware of new threats and methods of attacks.
6. Check the cryptocurrency you receive from others for illegal activities or dirty sources before accepting it.
7. Never participate in scams that offer to get cryptocurrency quickly and effortlessly. Be careful when dealing with strangers and do not trust them with your money.

Conclusion

Well, the market is divided into legal regulated "white" and illegal unregulated "black". But we think that the vast majority of the crypto community will prefer to stay in a legally regulated space, and only dishonest players will leave the market. A crypto holder who cares about guarantees and security is unlikely to look for workarounds and black crypto. The more difficult it is to commit illegal actions on the crypto market, the greater the level of trust in the industry and the degree of its acceptance. So the choice is yours, but we have already described above how to act when receiving a “dirty” crypto.