Did you know that Bitcoin is on a decline?
After all, its value last December was $3,700-it’s a gradual decline from its $4,200 value the month before. Despite this, cryptocurrencies are still great means of earning real money.
If you want Bitcoin wealth, you need to ensure that you avoid Bitcoin scams. After all, it isn’t as secure as real estate investments and some other investment ideas. But despite this, you can still invest in Bitcoins in a safe environment.
You need to avoid these Bitcoin scams to ensure that you stay profitable in the long run.
#1. Fake Bitcoin Exchanges
There are a lot of people out there who want to get your hard-earned Bitcoins. Last year, the South Korean financial authorities exposed one of the worst Bitcoin scams around. With the help of the local Bitcoin community, they exposed a fake exchange called the BitKRX.
This scammer presented itself as a component of the largest trading platform within South Korea. A lot of people fell for this scam and lost a lot of money as a result. That’s why it’s important to ensure that you stick with the more popular ones out there.
If you want to avoid these, search for the well-known Bitcoin exchanges online. You can ask the Bitcoin forums if you want to get news about fake exchanges. That way, you won’t have to suffer from losing precious money.
#2. Ponzi Schemes
One of the most infamous Ponzi scammers is Bernie Madoff. His infamy was due to the fact that he used mainstream investments. But the pyramid scheme principle can hold true for other Bitcoin scams uncovered back in 2018.
One such scheme is MiningMax, another South Korean website. It took money from new investors so they can pay their previous investors. This scheme is big since it brought more than $200 million before 14 people got arrested.
This site wasn’t registered with the United States Securities and Exchange Commission. Despite this, they promised to give their investors with daily ROI’s for their original investment. They also get commissions from getting other people to invest in their business.
The site asked for people to invest an initial $3,200 to get ROI on a daily basis for two years. They also gave $200 referral commissions for all recruits. But as it went into flames, no one received anything at all.
#3. Fake Crypto-Currencies
A lot of scammers use this tactic to get a lot of people to invest in them. In its most basic form, they present a new crypto-currency, saying that it’s a good alternative to Bitcoin. A lot of them tell you that it’s already too late to invest in Bitcoin due to its established nature.
These people will say that it’s better to invest in these emerging crypto-currencies. One of the most recent scams is My Big Coin, and it got shut down. The scammers behind this fake cryptocurrency took more than $6 million from customers.
Among these, the My Big Coin website made fraudulent claims. They said that the currency is part of active trades on several platforms and they misled the investors by saying that they’re partners with MasterCard. Learn more about other stockbroker fraud schemes here.
The investors never got their money back from investing on this fake Bitcoin. After all, these frauds redirected the funds into their own bank accounts. They used the funds for their own expenses while buying luxury goods.
#4. Old Scam Methods
A lot of people still fall for the old methods of scams. Some frauds claim they work for the IRS and say you owe taxes to the government due to your cryptocurrency trades. Most people who fall for it fear that they’ll get into lawsuits, that’s why they pay fast.
This method takes on a newer, more modern turn. Instead of letting their victims wire over cash using Western Union or bank account transfer, they use Bitcoin wallet transfers. Otherwise, the premise is the same.
When it comes to avoiding this scam, don’t trust these calls or emails. Real people working with the authorities will never contact you using these channels. Also, they won’t ask Bitcoins for payment, so it’s not that hard to know whether you’re getting scammed.
#5. Malware Scams
When it comes to online scams, the most common one is through the use of malware. The threat increases if you apply it to cryptocurrencies. After all, it’s due to the nature of the currency itself.
One of the biggest scams last year was a cryptocurrency-targeting malware. Experts call this malware type CryptoCurrency Clipboard Hijackers. It works by tracking their victims’ Windows clipboard for addresses concerning cryptocurrencies.
As soon as the malware detects one, it swaps it out using an address the fraudsters control. This malware has around 2.3 million Bitcoin addresses online. That means they won’t have problems staying anonymous even when one address gets compromised.
That’s why it’s important to ensure that your personal devices are free from malware. It doesn’t matter if you’re a MacOS user since there’s also one for this operating system. These can even get investor information using trustworthy websites like Slack or Discord.
How to Avoid Crypto Scams
There is no one catch-all formula to avoid getting scammed out of your Bitcoins. But it’s important to keep yourself informed of the latest Bitcoin scams around. You need to ensure that your information is private and always watch out when clicking links.
Research on sources before you invest in anything. This is a solid way to save you from losing your hard-earned cryptocurrencies.
Get Bitcoin Wealth Today!
Bitcoin is still a lucrative investment despite its decreased value. If you’re willing to take the time and effort to invest in trusted sources, you can get Bitcoin wealth faster. Don’t let the scams discourage you-identify them and avoid them at all costs.
Do you need other sources of income? Why not check out our guide here to discover online side hustles. It can help you clear debt with the use of your talents and internet connection.