Wherever there is a financial transaction, whether its involving fiat money or digital currencies, scammers are always out there fleecing the people. In a few years, Bitcoin’ meteoric rise has attracted all sorts of scammers or fraudsters and there have been many instances where the investors lose coins to their shady ventures. The regular users can fall prey to this easily, hence we are here to talk about the most common Bitcoin scams which you need to avoid. You must be cautious where the money is involved. By doing so, you can prevent from being prey to any of these traps or scams. There have been scams all across the world wherein Bitcoin scam in India also is noteworthy. You should be aware of the Bitcoin fraud news, which will give you a broad idea of the various scams happening worldwide.
The internet has been a blessing for all of us, but it has its small downside, too. You must not download or click on any unwanted Bitcoin spam emails or links, as it can expose you to malware, risk of thefts, Bitcoin blackmail emails or Bitcoin spam emails. For instances, people use Bitcoin as bait. They can entice the users by saying that you can download a program and start mining Bitcoin easily. You must always be suspicious of scams in this kind of cases, wherein unnatural simplicity is involved.
There are many unsafe illegitimate exchanges, which you must avoid and do a lot of research before trading or in any of the exchanges. You can ensure security in these ways:
A hardware wallet is a viable option for the users who are concerned with privacy and security features as it stores the private keys. You can stay offline, which can help you protect your funds from hackers. But there have been reports of some vulnerabilities which led to stealing of funds. Some of the crypto enthusiasts have reported that one of the scams can be selling pre-configured seed phase to the users, hidden under the scratch card. This will lead to draining of the funds by the hackers once a wallet is activated with funds. Hence you only must accept wallets from trusted sources, where you can go to their website, research and then take a step.
Most cryptocurrencies are traded, bought and sold at exchanges, which makes it easier for the investors but there ain’t any regulatory body overseeing the transactions in some of the countries. Most of the investors turn into penniless because of the scams run by some of the exchanges. Last December, as per Bitcoin news, several South Korean exchanges were exposed as they were running scams and the country has signed up for stiffer regulations post that.
One of the suspicion flags should be high when they are offering unrealistically schemes and price as these are the cheapest traps to lure the users or the investors. You must avoid visiting unsecured websites, which can prevent the investors from losing money.
Some companies use ICOs to raise capital and there has been a massive explosion of ICO opportunities which has raised the fraudulent activities even on a higher scale. The scammers can open fake websites which resemble like ICOs, asking to deposit funds into compromising wallets. For instance, Centra Tech was sued for providing with fake information about team members, investors, and products. Research deeply that involves taking a deep look at the reviews apart from the white paper. Report a Bitcoin scammer when you come across, so others are not prey of the same scam.
Mining is the only process left to acquire Bitcoin without exchanging or buying them and it has become a resource-intensive activity. But it takes massive energy and cost to mine Bitcoins. Nowadays the companies enable regular users to rent some server for some time. As the difficulty level increases, the returns tend to become smaller. Some of the companies take bold claims about their returns and not being clear about the diminishing returns and true cost. Ponzi schemes which promise incredible return are scams, too wherein Bitcoin complaints are unanswered.
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