The ever-increasing value of bitcoin has always been luring investors. No doubt, it is one of the most popular cryptocurrencies but it is also susceptible to a number of risks and scams. Considering its rising popularity, it is becoming a breeding ground for fraudsters.
So, if you are a beginner acquiring information about bitcoin, you ought to read this post. In this article, we’ll acquaint you with common bitcoin scams and how to stay protected against them.
Common Bitcoin Scams You Need to Watch For
Bitcoin Ponzi scheme
In this scam, scammers try to con investors by promising them to offer exceptionally high returns. In Ponzi schemes, a promoter tries to convince people to invest in their scheme. The initial investors are paid their so-called return from the money deposited by new investors. This continues for some time and when there are not enough people to payout old investors the scam falls apart.
Bitcoin wallet scams
Scammers are also attempting to lure people by offering fake wallet apps. These apps may look official and may even be available on a popular platform like the Google play store. They may even state that they are the safest and easiest to transfer your bitcoins. But once downloaded and used the fraudsters may gain access to your information and may steal away your all deposits.
Bitcoin Phishing scam
In phishing attacks, the scammers send fake emails to investors containing information like they have been rewarded bitcoins. In order to receive these rewards, they are asked to log in to their wallets using the link given in the mail. When investors access this link and enter their details they are fleeced of their funds.
Bitcoin exchange scam
Unregulated and fake exchanges may try to convince you with their fake promotional offers. Also, they may pose as a legitimate exchange website offering the highest BTC to INR exchange rate. So, be sure not to fall prey to such scams.
Other common bitcoin scams
- Bitcoin mining investment scam.
- Bitcoin imposter scam.
- Social media scams.
- Link hacks etc.
Precautions to keep in mind
- Do not blindly follow the ideas and information shared on social media platforms.
- Never trust an unknown platform to buy and sell bitcoin.
- Never get attracted to websites assuring abnormal high returns.
- Examine a URL before clicking on it.
- Websites that do not feature a lock icon in the search bar are fake.
- Never disclose your private information.
- Thoroughly review and research the wallet or exchange before signing up with it.
- Never get caught in a frenzy to deposit funds or share personal information.
- Never trust unsolicited emails, calls, or text messages.
- Be cautious of fraudulent ICOs. Understand the technology behind them and the specifics of coin sales.
- Try using VPNs for a secured browsing experience.
- Do not believe in celebrity impersonation bitcoin giveaways as they are scams.
- Anything that sounds too good to be true is definitely a scam. So, make sure to do your research first before making any investment.