One primary reason why many people avoid entering the World of Cryptocurrency is that they keep hearing about scams now and then. This scares them to the core!
They find the whole digital currency investment and trading system to be a fraud! Here we talk about the cryptocurrency Bitcoin technology and how it is revolutionizing people. Due to this, they are afraid to invest their hard-earned money in something that is full of risks.
Bitcoin scam is a term that is increasingly getting popular, especially on social media platforms. It is an umbrella term that talks about all kinds of scams within the World of Bitcoin.
All the stages of the investment lifecycle are at risk, where the scammers can steal the investment of any investor. However, it doesn’t mean that you should not even consider the bitcoin investment simply because you fear the scam!
The right way to go is to learn how these scams happen and what you can do to avoid them. Understanding the whole concept of the Bitcoin scam and what entails it is what you need to do.
Is Bitcoin A Scam?
If you are entirely new to the concept of bitcoin investment, you must be dealing with the confusion of whether bitcoin is a reality or a scam. It is not a scam, and you can trust it as an investment process.
This is a digital currency that cannot be stolen from your physical wallet since it stays on the digital platform. It holds a specific value, considering its market standing now, compared with the fiat currency.
However, compared to the latter, a pick pocketer won’t be able to steal it from you. As this currency doesn’t have any tangibility and is rather only virtual, you can keep it safe!
So, by using digital currencies you eliminate the fear that your fiat currency or reserved money will be stolen in any form. The digital currency is not physical, and it always stays on online forums.
A regular thief can’t really get his hands on your digital currency. This way, you would stay safe from all kinds of anomalies.
Types Of Bitcoin Scams
Those of you who have short time can watch this short tutorial to know about the bitcoin scams:
Even though bitcoin is real and possesses lesser chances of theft than the real currency, there are still chances of bitcoin scam. Some of the major scams associated with bitcoin are as follows:
- Scams related to production
- Mining scams
- Wallet scams
- Coinbase scams
- Binance scams
Some of the most common scams that you might encounter while trading, which you need to avoid, are as follows:
Cloud Mining Scamming
With bitcoin becoming profitable, more people are entering the World of mining, which has crowded the environment greatly. With this crowd, the scamming chances have enhanced greatly.
The Graphics Processing Unit (GPU) has made the mining process easier, and miners tend to choose it for quicker results. Though it consumes a lot of energy, it’s still a profitable way to mine.
People have adopted cloud mining as a method of conserving energy by sharing resources and reducing power consumption. As a result, they get involved in Ponzi schemes, and it leads to bitcoin scamming of the investors.
This is increasingly getting popular in which traders and investors get bombarded with varied kinds of emails. These emails usually require quite a bit of personal information from the prey.
If you receive such an email, you should not give in to what they request. Rather, understand that the sender is bluffing and block him instantly.
Email scammers tend to make tall claims about profits and play number games. Whenever you sense something like that happening, just avoid answering the email.
You, obviously, must buy bitcoin from somewhere! Mostly, it is an exchange where you get them from.
It is mandatory to do enough research on the exchange you buy the crypto from, or else you may get scammed.
There are loads of fake exchanges out there, and you may end up losing all your money if you don’t put some extra effort into knowing the exchange.
To be on the safer side, opt for some of the most used exchanges like Coinbase and Binance.
These are some of the most common bitcoin scams. Make sure you are informed about the latest fraudulent attacks and take precautions to avoid falling victim to those scams.
Beware of websites that seem legitimate but actually steal your bitcoins, so be cautious about websites like these. It’s a matter of your hard-earned money.
The guide is likely to have taught you something new. If so, let your loved ones know about it.