Bitcoin, the most popular crypto in existence, is now considered one of the most popular investments. But did you know that this has spawned many new Bitcoin scams? Yes, it’s true, and unfortunately, you can be a part of it if you don’t know anything about these scams. In this article, you will learn about all the Bitcoin scams out there.
Here are the types of Bitcoin scams that exist –
Phishing scam
Always be aware of phishing scams. Hackers and scammers love phishing attacks. In a phishing attack, the person concerned usually impersonates a service, company or individual simply through email or other text communication or by hosting a fake and manipulative website that appears to be genuine. The goal is always to trick the victim into revealing their personal tips or sending bitcoins to an address owned by a particular scammer.
Such emails often look legitimate but are fake in nature.
Fake exchanges
By far, one of the least difficult ways to scam investors is to pretend to be an internet marketer, a branch of a good and legitimate business. Well, that’s exactly what Bitcoin scammers do.
There are many such exchanges and they presented themselves as a place to exchange and trade bitcoins, but they ended up being fraudulent. Many exchanges have scammed people this way by simply pretending to be a new reputable and legitimate cryptocurrency exchange.
Fake ICOs
Along with the increasing number of companies supporting blockchain, fake ICOs have gained popularity as a way to support such new companies. However, given the unregulated nature of Bitcoin itself, the door was wide open for all kinds of fraud.
Most ICO scams have occurred by luring investors to participate in fake ICO websites, either by using fake Bitcoin or other crypto wallets, or by impersonating genuine cryptocurrency-based companies.
Many have already been accused of similar abuses, so it is better to check such wallets before deciding to place your money in them.
Huge returns
If you are in the trading industry, you probably already knew that huge profits are simply not possible when it comes to Bitcoin trading or crypto trading in general. So, if a broker tries to give you a promise that your money will be doubled within a certain period of time, then the best option in such cases is to stay away from such brokers as far as possible. They will just take your money and run away, leaving you with only grief and remorse.