Bitcoin, the most popular cryptocurrency out there, is now considered one of the most popular investments. But do you know that this has given rise to many new bitcoin scams? Yes, that is the truth and unfortunately you can be a part of it if you don’t know anything about these scams. This article lets you know about all the types of bitcoin scams out there.
These are the types of bitcoin scams that exist:
phishing scams
Always be on the lookout for phishing scams. Phishing attacks are certainly a favorite among hackers and scammers. Within a phishing attack, a person in question typically impersonates a service, company, or individual simply through email or other text-based communication, or by hosting a fake and manipulative website that appears real. The goal is always to trick the victim into discovering their private clues or sending bitcoins to an address owned by the particular scammer.
These types of emails often appear legitimate but are false in nature.
fake exchanges
Without a doubt, one of the easiest ways to scam investors is to pose as an internet marketing arm of a good, legitimate business. Well, that is specifically what scammers within the bitcoin discipline are doing.
There are many such exchanges and they were presented as a place to exchange and exchange bitcoins, but ultimately they were fraudulent. Therefore, many exchanges have scammed people out of their money by simply posing as a reputable and legitimate new cryptocurrency exchange.
fake ICOs
Along with the rise of blockchain-backed businesses, fake ICOs became popular as a way to support these kinds of startups. However, given the unregulated nature of bitcoin itself, the door has been wide open for all kinds of fraudulent activity.
Most of the ICO frauds took place through getting investors to commit on or through fake ICO websites using fake bitcoin wallets or other crypto wallets, or by appearing as real cryptocurrency-based companies.
Many have already been accused of such bad practices, so it is better to check such wallets before deciding to place your money with them.
gigantic returns
If you are in the trading industry, you must have already known that outsized returns are simply not possible when it comes to bitcoin trading or crypto trading in general. Therefore, when a broker tries to provide you with the promise that his money will be doubled within a specific period of time, then the best option in such cases would be to stay away from such brokers as much as he can. They will just take your money and run and you will be left with nothing but grievance and remorse.