Scams have been part of human history. Ever since the beginning of currency, people have been trying to defraud each other. And with the advancement of technology, the scamming tricks have also become more raveled.
When it comes to currency related scams, Bitcoin tops the list. The currency is relatively new but holds incredibly high value in the market. Moreover, generating personal bitcoins is extraordinarily hard. So, the scammers use different techniques to steal hard-earned coins of other users. (Want to earn some bitcoins, here is everything you need to know about how to earn Bitcoin fast and easy).
Here are the most common scams that the bitcoin users should be aware of.
Scenario #1 – Wallet Scams:
If you are a bitcoin user, you would know that a Bitcoin wallet address serves the same purpose as a traditional bank account. The difference is that it is used to store bitcoins – and not the fiat money.
Since Bitcoin is all about anonymous transactions and the anonymity is gained through bitcoin wallets, the scammers hit this feature particularly by developing fake wallets.
Then they try to sell these wallets to users with a promise of 100% anonymity. The program initially seems to be working fine. But to your surprise, the trickster behind the scenes has been transferring coins from your wallet to his own without giving away a single hint.
So, being a Bitcoin user, it essential to acquire a wallet from trustworthy sources.
Scenario #2 – Scam Through Ponzi Scheme:
One of the most common Bitcoin scams. In Ponzi scheme, the con artist promises high-interest rates on deposits you make.
People who join the scheme early are paid out using the money of those coming in later. This goes on until the point where there are no more new entries.
Once the entries stop, the payments also stop and users start realizing the losses.
Scenario #3 – Bitcoin Exchange Scams:
Bitcoin scam exchanges sell the cryptocurrency at current market rates. Most of the exchanges working out there are genuine and possess now security threats to users. However, a small portion of exchanges does not work that way. Their sole purpose is to steal the digital currency and fill their own pockets.
Such exchanges charge extremely low fees when a customer is looking for credit card processing. However, after the card is processed, all the money is gone and the user is left with no bitcoins.
So, don’t always go with the cheaper options.
Read our guide on what are the biggest Bitcoin exchanges in the world to trade safely.
Scenario #4 – Phishing Scams:
The scam involves users receiving fake emails – stating that they have been awarded or have won bitcoins. But to receive the reward, they are asked to reach their wallets through the link given in the email.
DO NOT CLICK THAT LINK – or you will end up losing all your coins.
These are some common scams that go around in Bitcoin world. All it takes is a bit of common sense to realize true intentions of someone you are dealing with. And if you are just starting your bitcoin venture, it’s necessary that you are aware of these bitcoin scams and know how to tackle with the tricky situations that may arise during a transaction.
Tags: Bitcoin wallet scam