Some people indeed enjoy taking risks. For example, trading is one business activity that demands taking risks to earn high returns. But do you ever think it is important to analyze risk before taking it? Bitcoin scams are turning businesses, trading experts, well-known personalities, and the general public upside down. It is a play of seconds.
Today, we are here to provide our readers with some tips on red-flag Bitcoin scam situations. Then, we will share some bitcoin scams that are unbearable. Finally, we are answering some generalized questions so everyone can join us in this exciting blog.
What is Bitcoin?
Bitcoin runs under software that is known as cryptography. It is an individual without government influence and interaction with a third party. Bitcoin is a free and independent digital currency.
How does Bitcoin work?
You may find Bitcoin anthropology a little tricky if you are a newbie. Once you deep dive the complexities will increase. We share some takeaway points on how bitcoin works; that helps in overcoming some of the many hurdles.
- Whenever we hear of transactions, the first thing that we imagine is a bank. But Bitcoin transactions are recorded in a public ledger. Copies of these are shared on various servers globally.
- With the help of a spare computer, also called a ‘node’; you can also set up a server.
- All the transactions and necessary information are transferred from node to node. Miners collect all this information every 10 minutes, which is added to the Blockchain.
Is Bitcoin safe?
Yes, Bitcoin trading is absolutely safe and secure. However, as it runs on software, we must be aware of bugs. Con artists are in search of these bugs or some other kind of cracks so that they can enter the system and make it filthy. We always advise our readers, especially newbies, to never stop learning and constantly be updated about market fluctuations.
The top 5 bitcoin scams
Cryptocurrency is a wide field where bitcoin, ether, and tether are positioned. When people say they are trading in cryptocurrency, this is what they mean. Let’s understand what should not be done while trading bitcoins.
- Investment Scams:
Several scam artists belong to social networking sites. These con artists are handy in changing their masks. Sometimes they are a popular personality, an investment manager, or a lover who can’t live without you.
Traders with no patience mostly have to kiss goodbye to their crypto. Therefore, we request that all our readers, traders, and newbies have patience while trading under Bitcoin or any other cryptocurrency coins.
As you have heard, ‘Good things take time; in the same manner, we should be prompt in our actions. Have second thoughts always and think of various situations and their consequences. Patience is the key to having a sweet fruit, but people are hasty and make mistakes.
The scam con tries to convince you with attractive offers in investment scams. One of the common offers is ‘huge gains. Traders easily get convinced of such impressive deals and pursue the fake knowledge given by the scammer.
Scammers use pump-and-dump schemes in investment scams; in this, fraudsters allure the traders with a vague crypto coin to purchase at a ‘lower rate’ and build a trust that it will eventually increase.
Once it is purchased, as promised, the price rises, and at a very moment, the scammer dumps the holdings, which results in the price collapsing. This type of scam is a small part of a big ocean.
Takeaways:
- Bitcoin runs under software. All the information needed is on the website, and real traders also give some tips. If someone asks you for information out of the blue, make your alerting sense active. It might be a red flag.
- Always gain knowledge more than a scammer to safeguard yourself with their sinister aims.
- Never share your private information with anyone. Technically, no one will ask for it; if someone does, it is a red flag.
2. Phishing Scams:
It is the most traditional approach with the highest results, where people can easily get duped. Here scammers contacted us via email and text and attached a link. This email looks as accurate as it has been sent from a reliable company. Unfortunately, this is a phishing scam.
A proper logo, tagline, well-written content, persuasive, impressive tonality with a convincing passage that fools many. Although, it becomes tough to analyze the message as everything seems right.
These emails include messages like a withdrawal are initiated, and they provide you a cancel link to stop the transaction. But unfortunately, the moment we click on that link, they steal all our personal information, which will ultimately benefit them.
Crypto Wallets are the vital key. One thing that crypto or bitcoin holders know holds the key is the bitcoin.
Takeaway:
- An authentic brand or a company will never attach a link to their emails. If they do, try to report and block them. It might be a red flag.
- Scammers aim to breach confidential information to attain their goals. We put credentials for a reason.
- A phishing scam is usual, where they try to create urgency. If you find it forceful, it can be a red flag.
3. Upgrade Scams:
It is a basic idea but one should note it down. Upgradation in the digital era is a new normal. Every day software upgradation takes place. This new-Genz is accustomed to this digital era so much that it becomes easy for a con artist to step up and try to chase the crypto holder’s (bitcoin scam) credentials. Once they give up their credentials, they make them log out and become the owner of all the holdings. Such pain is unbearable and cannot be entertained.
Takeaway:
- A smart world needs smart citizens. We have entered a digital era where everything is at our fingertips. But we need a brain to make the right use of it. Do not let anyone fool you.
- Some bitcoin experts have stated that; if you think crypto is a long-term investment. The answer is NO. Scammers have their secured data of potential victims. It is crucial to liquidate your crypto wallet from time to time.
4. SIM-Swap Scams:
Recently, scammers have found a new way to swindle people. In this scam, fraudsters take access to your SIM card and make a copy of it to access all your phone inputs. It all takes place under the nose of the victim without him letting them know about it.
From there, the fraudsters try to open the crypto wallet that requires two-factor authentication. However, once they enter the phone, it becomes easy for them to operate it and steal all the holdings in a go.
Takeaway:
- Awareness is everything. Suppose you are saving your credentials on any online platform. Avoid it from now on. Con artists just need a small gap to enter the system and change the game smoothly.
- Watch your surroundings before using online transactions and trading apps to avoid bitcoin scams.
- Never save the password on the phone.
5. Fake Crypto exchanges and wallets:
It is a malware scam. On many social media platforms, you might come in contact with some advertisements providing bitcoins at 5% below market value. But they are vague.
Unknowingly, people tend to purchase it. The scammers take high initial fees, and they ask for more and more for some reason. When they try to take their money back, the fraudsters ghost them and block them. In this way, they become a victim of their attempts.
Takeaway:
- Social media platforms have their pros and cons. One has to be in their complete sense while surfing on the internet. In the thirst for money, they invested in fake calls and suffered a significant loss.
Conclusion
Speaking of pros and cons, if there are scammers, there are well-wishers. Some sites can recover your funds if people try to dupe you. Financial Fund Recovery deals with recovering various scams, and many victims benefit from it. Thank you for investing your time in reading it; we hope this is one helpful blog. Stay tuned.
