How To Avoid Bitcoin Scams in 2019

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How To Avoid Bitcoin Scams in 2019
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Bitcoin has been introduced and used globally since 2008. However, most of the time, it has faced so many issues and controversies as well. Especially, scammers have found a gold field in Bitcoin for various reasons. One of the major reasons is that very few people understand the bitcoin or cryptocurrency system actually. Which makes scammers easier to hack, false promise etc. Another reason is anonymity – the cryptocurrency gives scammers ease of use to cover transactions relatively.

Another major reason is that its authority or regulations. Bitcoin or cryptocurrency system is way different than the financial or economic system. It’s also unregulated, no institution or government body take responsibility to maintain it. However, there is no simplistic or proper way to keep tracks of bitcoin transactions as well. Therefore, the scammers can easily hack, fraud or can be linked to money laundering, tax evasion, terrorist funding.

Read Also: Bitcoin and Cryptocurrency Litigation – Everything You Need to Know

It’s quite secure and faster than traditional web transactions based on payments, buys, sell, investment etc. But quite hard as well for most of the people in order to understand and operate. You can’t simply keep track records of your bitcoin transactions or can’t report it to anyone as it’s not regulated by any government.

Types of Common Bitcoin Scams and How to Spot Them

Here are the most common bitcoin scams which you can relate to and can spot/avoid them.

  1. Fake Bitcoin Exchanges
  2. Ponzi Scams
  3. Pyramid Schemes

1. Fake Bitcoin Exchanges

One of the most recent and popular fake bitcoin exchanges is South Korea’s BitKRX. If you don’t know about this, it’s a bitcoin trade and exchange scam happened in South Korea back in 2017. A branch of Korean Exchange (KRX) was claimed to perform exchanges and trades in bitcoin, but it turned out to be a scam or fraud case. These companies pretend to be well-known exchanging brand by launching fake apps or websites. When people logged into the platform with account details, it’s easy to be scammed.

Make sure to check the website URL which you’re redirected. Be sure to have the encrypted connection with “HTTPS” instead of the only “HTTP”. The HTTPS symbol indicates a secure and encrypted connection to the web traffic. So, check that first.

2. Ponzi Scams

If anyone assures you to give a huge return in bitcoin investment, you should think and check everything twice. While a lot of unaware people buying it or investing on it to get an incredible return. Due to the lack of awareness and knowledge in bitcoin, the scammers can grab all of your invested money, before you come to know. This is called ‘Ponzi Scams’. The innocent users or victims were forced to believe that it’s actually working or the investment is going good enough. In this way, some amount of people will invest more to get more benefit and some will refer to others to join in.

Whenever the scammers get a good amount of money, they will start unavailable to give a response to the customers, their websites will be unavailable and so on… These types of excuses will disappear all of your invested money. Don’t get trapped by any type of unbelievable offers or tantalized advertisements at all.

3. Pyramid Scams

The scammers usually prefer bitcoin as a product in ‘Pyramid Scams’. In these type of schemes, your initial invested money could be low depends on your capacity. But can be multiplied if you invite and join other people to invest money in the same exchange. That is how a lot of people invest and the actual scammer will vanish with all the money.

Hackers also use Malware to get all of your account details over the login credentials. Now, it’s widely used by the scammers as well to grab your bitcoin wallet when it’s connected to the internet. If the details leaked, the scammers can use your wallet anytime without informing you.

How To Avoid Bitcoin Scams in 2019

  1. if you get an unbelievable offer which seems quite true and offers a quick return, stay away from it.
  2. Be alert and sensible at first to get into the bitcoin or any other cryptocurrency system. Follow and read thoroughly the bitcoin or blockchain news and active on social media as well.
  3. Do not reveal your sensitive information or any direct transactions via messages on social media.
  4. Check the most preferred and legitimate forex trading platforms at first. Survey on the trading processes, terms & conditions.
  5. Check the company details and whether it’s a registered corporation or not.

    This article was originally published at Hoganinjury.com.

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