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Avoiding Bitcoin Scams – A Quick Study

Avoiding Bitcoin Scams

Bitcoin Scam: An overview

Bitcoin is the world’s most popular cryptocurrency. It is also the dominant digital coin by the yardstick of total market capitalization. While buyers and investors’ interest continues to rise in Bitcoin, there is also a steady rise in the scams related to this digital currency. Bitcoin scams keep on happening irregularly and more often than investors who are not well equipped with the information become a victim of such scams. We list below the most common forms of Bitcoin scams and tell you how to avoid them to keep your hard-earned money safe and secure.

Types of Bitcoin Scams

Fake Cryptocurrency Exchanges: You might have come through a promotional offer link claiming to offer you Bitcoin at 5-10% below the market price. This is nothing but a marketing gimmick that induces investors to visit the fake cryptocurrency exchange website. One of the easiest ways to differentiate between a genuine website from a fake website is the presence of a security certificate. Any genuine website starts with HTTPS, and if you don’t find S with the site address showing the only HTTP, then it’s best to stay away. Some cryptocurrency exchanges promise the customers to sell BTC in exchange for the information related to their PayPal account. Don’t furnish any such information; otherwise, you’ll be duped of your money.

Fake Bitcoin Wallet: Unlike a fake cryptocurrency exchange, spotting a fake Bitcoin wallet is a tad difficult. This is because Bitcoin wallets are primarily used for storing the cryptocurrency, and hence, they do not usually come under the high scrutiny of users. Using this loophole, scammers infect your system to access important information such as username, password, or private keys associated with the Bitcoin storage. In order to steer clear of any such scam, it is recommended that you download the wallet only from the trusted site. Alternatively, you can also ask your peers or friends whether they have used the particular wallet before to get knowledge of its authenticity.

Phishing Scam: Most of us are aware of the phishing scam as we are regularly reminded not to open an email from an unknown source. In the Bitcoin space, phishing scam uses the same methodology of infecting the person’s system with the malware or tricking a user into selling or purchasing Bitcoin through a fake website. A little research and sticking to the basic rules of internet surfing can easily help you to avoid these kinds of phishing scams. Do not click on the hyperlink that you have received from an unknown source. Also, avoid clicking on the sponsored search results, and writing the website address directly in your browser can also help you stay safe.

How to Avoid Bitcoin Scams

In addition to the measure mentioned above, the following tips will help you to avoid Bitcoin scams:

  1. Never give access to your confidential information such as bank accounts, usernames, or passwords to anyone, including your support staff, as any leak in the information could lead to the Bitcoin scam.
  2. Never disclose your two-factor authentication passwords or security codes related to your cryptocurrency account. 
  3. Always check the authenticity of the crypto websites, and one of the easiest ways to do that is to look for a padlock icon depicting the safety credential of the site.
  4. Don’t send Bitcoin or, for that matter, any other cryptocurrency using external agents as these third-party intermediaries could possibly lead you to a Bitcoin scam.
  5.  Check the authenticity of your trading platform, whether it is legit or not? There are thousands of fake websites and ponzi exchanges are present in the market. So, you need to  choose one of the best exchanges for the better experiences. One such automated trading platform named Bitcoin Code that is mainly focused to maximize your profit. Check Bitcoin Code Review to know more further about it in details.

Conclusion

Undoubtedly, the emergence of Bitcoin and other cryptocurrencies has opened up many opportunities for users and investors. The growth of Bitcoin (in terms of its market value and total market capitalization) is quite impressive, and it is quite natural for investors to get interested in buying/selling the digital coin. However, it is equally true that this space has also witnessed many scams, which means users and investors have to be careful while using instruments and tools in the cryptocurrency space. The best thing is that it is not difficult to avoid Bitcoin scams – follow the basic rules of using the websites, emails, and how you conduct searches on the internet. Avoiding links from unknown resources, looking for the security certificate, and being extra careful while clicking on the sponsored search results are some basic yet easy steps that you can take to avoid becoming a victim of the Bitcoin scam. In sum, it can be safely assumed that by adopting the practices mentioned above in the article, you can easily stay clear of any Bitcoin scam while making most of your investment in the digital currency space.

Christopher Walter

Christopher Walter is a senior journalist at currentbitcoin.news. He expertises in bitcoin mining. He has keen interest in reading cryptocurrency trading. He is also a cryptocurrency blogger.