Beware of These Top Scams in Bitcoin

scams do happen in the cryptocurrency world. As you consider entering digital monetary, think about the chances of losing your earnings.

17:15 26 August 2021

As you engage yourself in digital currency, it is necessary to acknowledge the risks and impediments that might happen along the way. Of course, we keep in mind that the market is unpredictable; brace yourself for the volatilities, fluctuations, and many more. But, when it rains, it pours; misfortunes don't stop there; well, scams do happen in the cryptocurrency world. As you consider entering digital monetary and investing in it, think about the chances of losing your earnings. 

Use trustworthy crypto trading platforms.

When you search for digital currency platforms, experts suggest that you verify if they are blockchain-powered. They should state their digital liquidity and ICO regulations. Double-check it, too, if they have a business plan of action that solves real complications.

 While you are chasing profits in Bitcoin, you might also unawarely be a scam victim. One of the advantages of digital currency is that it is unregulated by authorities; however, this also makes it an asset in fraud. Don't fall for scams. Never be a victim of it. Be aware of these top potential scams.

Counterfeit Bitcoin Exchanges

An incident happened in South Korea in 2017 when Korean financial authorities exposed a fake exchange called BitKRX. It introduced itself as part of the huge trading platform of the country and swindled as much money as it could. To prevent this type of scam, familiarise yourself with how bitcoins operate and the well-known platforms so that you will be aware and get news of fakes briskly. 

Pyramid Schemes

This scam is also similar to the "Ponzi scheme," which produces returns for initial investors with money taken from recent investors. Both schemes use the latest investor's fund to pay for the prior backers. One of the Ponzi scheme incidents happened through BitClub Network. Three men worked in the network for years and got arrested because of a $722 million cryptocurrency fraud scheme. 

Sham Cryptocurrencies

Fake cryptocurrencies happen when an inspiring bitcoin investor is presented with a new cryptocurrency as an alternative to Bitcoin. One of the reasons they will state is that it will be too late to cash in Bitcoin and that you need to select one of the current and future cryptocurrencies. 

Stereotype Scam

Old school scam is when someone called or emailed you from an authorized cryptocurrency network. Another scammer's technique is stating fake ICOs as a strategy to steal funds. Most of the stereotype tricks happen in fake email and website offers. They can also exist in the transferring of funds to a bank account and sharing a link in a message to get to a site. 

Social Media Deception

It is not surprising that scammers also invaded the cryptocurrency world. Social media plays a vital role as it will serve as a way to reach the target Bitcoin holders. The scammers will forge social media accounts to solicit Bitcoin specifically from renowned persons. A social media scam happened to several prominent US figures in July 2020. 

Malware Disrupts

Malware is essential for hackers as this will be their key to access computer networks or get a hold of credit card and bank account specs. If your digital wallet is connected to the internet, they can utilize malware to obtain your funds if you are unprotected from it. You may download malware completely involuntarily by clicking unnoticed links in your email account or from various websites and social media platforms. Impulsively click any link, download it, and you may get malware. 

Pump-and-Dump Technique

A pump and dump scheme occurs when individuals or groups join together and purchase stocks or cryptocurrencies and falsely increase the price by spreading erroneous information. Once the price is elevated, which is also referred to as "pumping," the group will begin selling it off, also known as "dumping." The individuals will encourage outsiders to invest in the stock and promise them easy profit.

Finishing

You can protect yourself by eluding one tip at a time. Be aware that Bitcoin is volatile enough. Don't add more fuel to the fire and increase your chances of losing money. Get updated on the latest news that covers Bitcoin fraudsters. Combat bitcoin scams; do not be a victim!