How to avoid Bitcoin scams like a Professional

How to avoid Bitcoin scams like a Professional

January 24, 2023 Off By Berry Mathew

Scams involving bitcoin have been expanding recently. With its outstanding success over a short period, Bitcoin has been the market’s beloved youngster. However, investors, fraudsters, and cheaters are lured to cryptocurrency because of its attractive pricing. Furthermore, they play a false role in a well-known cryptocurrency exchange. For instance, the bitcoin market entices a plethora of wealthy investors.  

How is Bitcoin Operated?

Every bitcoin dealing is documented in a public ledger, and copies of this ledger are stored on servers worldwide. You can set up one of these servers if you have an extra computer, commonly referred to as a node. Cryptographically, across the nodes, instead of relying on a single entity, like a bank, it determines who owns what currencies.

Every transaction is shared between nodes and broadcasts openly on the network. Miners collect these transactions every ten minutes into a group called a block, which is then added to the blockchain. This constitutes the official bitcoin account book.

Virtual coins are kept in digital pockets; you can access them from your program or various online hardware instruments. While conducting a transaction, a private key demonstrates your ownership of funds on the network. You can just memorize your private key, and then you are prepared to access or use your virtual money.

Different types of Bitcoin scams that one needs to avoid:

Cryptocurrency is ripe for scammers because it is both alluring and confusing. Celebrity investors like Kanye West and Paris Hilton are driving up interest in fresh “altcoins” as the price of bitcoin soars. However, most Americans are unaware of what bitcoin is or how it functions.

The FTC claims that this combination is perfect for scammers. There is a lot of interest in cryptocurrencies but little understanding of how they work. Investors don’t know what is reliable and what isn’t; therefore, con artists make statements that seem genuine.

Bitcoin scams come in a variety of forms that could surprise would-be investors. However, the FTC reports that these are some of the most widespread Bitcoin scams.

Giving Scams:

The giveaway hoax is a common Bitcoin fraud. Using the guise of famous people or well-known bitcoin investors, fraudsters pretend to be able to help tiny investors. After that, they boldly claim that if you send them your bitcoin, they will add some of their own to it to help you multiply it.

Any money you give the con artists goes straight to their accounts. Investors like Elon Musk, according to the FTC, misled investors to lose more than $2.5 million in cryptocurrencies.

Blackmail scam:

Be on the lookout for blackmail schemes when strangers threaten you in exchange for bitcoin. This method is often used when the sender sends an email message pretending to have hacked into your computer and gained control through the remote desktop protocol (RDP). For instance, the sender claims that a keylogger was installed on your computer and that your webcam was used to record actions you wouldn’t want other people to view. The sender then gives you two options: send bitcoin to have the item removed from your inbox or send nothing to have it sent to your contacts and posted on social media. Scammers implement this method by using user data such as stolen email lists.

Fake Exchanges: 

As bitcoin has gained popularity, more people have tried to buy it. Unfortunately, deceptive people have taken advantage of this and have set up fake bitcoin exchanges. By advertising low pricing, these dishonest exchanges may trick customers into thinking they are receiving a great bargain and have easy access to inexpensive bitcoin. When buying or selling bitcoin, make sure the exchange is reputable.

Promotional Giveaways and Prominent Marketing scams:

Scammers that use bitcoin frequently invest a lot of money in publicity. Full-page newspaper ads, substantial banner ads on websites, and hundreds of new sponsored bloggers are being developed to reach a larger audience rapidly and making more money. On the other hand, a genuine digital coin product will grow and flourish naturally without the need for marketing or advertising to expand quickly.

Pyramid fraud: 

The foundation of the Bitcoin Pyramid Scheme is multi-level marketing and sizable investment schemes. Investors are informed that a modest initial payment can be increased by signing new members via referral links. Unfortunately, numerous people are affected by fraud quickly. The initial con artist leaves when new members stop joining or when the more seasoned ones demand payments.

How to protect yourself from Bitcoin scams:

Here are some quick steps you may take to protect both yourself and your bitcoin.

Strict passwords:

The possibility of Bitcoin fraudsters targeting you online is elevated. These fraudsters often access your email list via hacked websites and may even email you asking you to send bitcoins. The attackers will then have access to the bitcoin wallets, which they can transfer to another account. Twitter users have reported wallet theft. Utilizing protected passwords is the most excellent security.

Do your Study: 

One way to prevent being taken advantage of by a Bitcoin scam artist is to do your research. You need a trustworthy digital wallet or crypto exchange for your coin. Examine the standing and testimonials of the product team. Scammers will exercise pressure on their targets to make snap decisions. This is the wrong course of action. Before investing, you should always conduct a thorough investigation of the product.

Avoid advance fees: 

The con artists obtain the victim’s credentials through fictitious private Bitcoin investing sites via clever social engineering techniques and low-volume email campaigns. After making a purchase, users are invited to change their passwords and asked to provide personal data. After that, the scammers will want further secret details, like a phone number for recovery, to finish the MFA

Summary:

Trading bitcoins is a specialized activity that supports financial growth and has gained popularity. Regrettably, con artists have plagued the bitcoin trade. Be wary of threats made in exchange for bitcoin or other forms of extortion. Furthermore, sponsored results on mobile play stores and search engines could include phishing emails and websites.

You must take all necessary protection to safeguard yourself if you fall target to a Bitcoin scam. It’s ideal if you start using secure passwords and encrypting backups. In addition, investigate potential scammers before getting your money involved. However, the most critical security measure is to spot and avoid advance fee fraud.