Cryptocurrency

5 Common Bitcoin Scams and How to Avoid Them

5 Common Bitcoin Scams and How to Avoid Them

5 Common Bitcoin Scams and How to Avoid Them

  • As the popularity of Bitcoin and other cryptocurrencies keep soaring, so has the rate of fraud involving crypto

  • To keep your coins safe, this article will educate you on the common Bitcoin scams and how to avoid them

At this time, your cryptocurrency wallet is just as valuable as your bank account.

Since transactions are difficult to reverse on the blockchain, scammers see crypto as an easy way to cart away with your money.

Avoid Bitcoin scams

In this article, we’ll be teaching about the common crypto and bitcoin scams and how to avoid falling victim.

Giveaways

Check your social media these days and you’re bound to see multiple posts about crypto giveaways.

Most times the scammers will ask you to send a small amount for it to be multiplied.

This is usually successful because they clone the accounts of reputable people.

Avoid any giveaway that involves you sending coins to the giver first.

Ponzi Schemes

Just like cash Ponzis, another form of common Bitcoin scam is with Ponzis.

You pay in a certain amount and returns are only guaranteed when another person decides to pay.

Fake Apps

Another way to lose your cryptocurrencies is by installing malicious applications.

Often the scammers will direct you to download an app that is a clone of a popular crypto exchange.

When your details are inputted into the app they store them and use them to hack your account.

Phishing

Phishing is a common fraud technique that is not just used for bitcoin scams.

It involves the scammer trying to impersonate a company to get your details.

You might get an unusual mail or telephone call from your crypto exchange but it may just be the scammer impersonating customer support.

Read also: Elon Musk Announces That Tesla Will No Longer Accept Bitcoin as Payment

Vested Interest

Vested Interest scams are not direct scams.

For your example, don’t just take a random person’s advice to buy a coin because they might have been paid to promote it.

This is why it is important to do your own research before any crypto purchase.

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