How can we avoid bitcoin scams

How can we avoid bitcoin scams?

With all financial instability and desire to invest in something that can create profitability in short time, many people are interested in bitcoin investment, but they are not aware of dangerous scams that can possibly steal their hard earned money.
In this digital world, unscrupulous people have developed many strategies to steal people's money, including cryptocurrency like Bitcoin. 
What makes these scams successful, is, the anonymity behind Bitcoin and the unregulated system, which often has the potential to be linked to money laundering, tax evasion, fraud, and terrorist funding.

How can we avoid bitcoin scams

image source: pixabay

What are the most common bitcoin scams and how do you spot them?

What are the most common bitcoin scams and how do you spot them?

 Fake Bitcoin Exchanges
One popular example for these would be South Korea’s BitKRX, which posed to be a branch of the country’s Korean Exchange (KRX) and claimed to be a platform to exchange and trade bitcoin. Ultimately, it turned out to be fraudulent. There are also those that pretend to be connected with well-known exchanges using apps or fake websites; users are scammed when they log in and their account details are given away. When you are directed to a website, make sure that the URL has “HTTPS” rather than just “HTTP.” Without the letter S, it means that web traffic has no security and encryption.

 

Ponzi Scams
Someone promises an incredible return of investment using bitcoin and many people are lured into this scams. Before you know it, someone runs off with all of your money. That’s basically how Ponzi schemes work. At first, victims will be made to believe that it actually works – say, the digits in their bank account are increasing. This will also make them talk about its “success” and convince others to join in. Eventually, calls to the customer service are unanswered, there are technical problems with the website, or the money will be remitted late – among several excuses while your money disappears for good. If you see ads that sound like, “double your bitcoin overnight,” they’re probably scams. How it usually works is you have to send them your money first before they can double it.

Pyramid Schemes 
Scammers use bitcoin as a product in pyramid scams. In these schemes, your low initial investment will be multiplied if you invite more people to sign up. After a lot of people have invested their money, the original scammer walks away with all the money.

How can we avoid bitcoin scams

Malware
Hackers have long been using malware in order to get a hold of other people’s login credentials and account details. Now, it’s being used to drain Bitcoin wallets that are connected to the Internet.

Mining Bitcoin scams
Many people are promised large profits if they enroll in some kind of Bitcoin mining, either from mobile phones, or computers. Once people download the software, will either try to steal people sensitive information, like bank accounts, personal data, or will use your device to mine cryptocurrency for themselves( the creator of bitcoin scam), leaving you exposed to many other cyber hacks, and a slow and drained battery for your computer.

Cryptocurrency ledger scams
As you probably know, the best way to storage your cryptocurrency is offline, in a cryptocurrency ledger. Many people make the mistake to buy cheap crypto ledger from Amazon or other individuals who sell these devices online or on social media. The scam works this way, a cheap ledger wallet is already hacked and when the owner transfer crypto coins into that wallet, the money will instantly vanish. Of course, all cryptocurrency will be stolen, that's why you need to buy a cryptocurrency ledger from a trusted source like ledgerwallet.com

What are the most common bitcoin scams and how do you spot them

image source: pixabay

How do you avoid falling into Bitcoin scams?

How do you avoid falling into Bitcoin scams? Follow the next advice and you have fewer chances to get scammed. 

 - If the offer is too good to be true, stay away from it.

 - Be vigilant on social media – legitimate bitcoin traders and brokers can be victims of poser accounts or impersonators.

 - Never conduct financial transactions via direct messages on social media platforms.

 - Do your homework and research on services and platforms you encounter; verify their claims and check their legitimacy or whether they are a registered corporation or not.  Write down all the name and contact details of the brokers you choose to buy cryptocurrency and even get some advice from a solicitor, to sign a contract with the broker. If you choose this method and your broker do not want to sign any contract, is probably a scammer. 

 - Search for reviews and buy only from trusted sources, even if the price is a bit higher.

 - Keep your cryptocurrency in a ledger wallet.

 - Never show your personal details with anyone, even if you receive emails or texts claiming that you have received Bitcoin and you have to click some kind of link. Stay away from clicking links from emails and popup ads.

 - Use strong and unique passwords for your cryptocurrency accounts and write it down somewhere and keep it safe.

 - You need to treat cryptocurrency with maximum caution, same like your bank account, or your debit/credit card.

 - Last advice is, if you do not know anything about Bitcoin, either stay away and save your money, or do proper research, buy a book, watch youtube videos and learn as much as possible about cryptocurrency, so you can understand what you doing.

 

Source of article: https://www.hoganinjury.com/bitcoin-scams-and-how-to-avoid-them/

how can we avoid bitcoin scams tips to protect from bitcoin scams types of bitcoin scams ponzi scheme pyramid scheme cams cryptocurrency scams how to avoid cryptocurrency scams how to keep cryptocurrency safe

1 vote. Average rating: 5.00 / 5.

Add a comment