April 6, 2019
How To Avoid Bitcoin Fraud
Ask any average person to name a cryptocurrency and the chances are high that Bitcoin will be the first name that they come up with, even though there are now numerous other currencies well-established in the marketplace. Bitcoin has been in the news a great deal, especially as its price soared to dizzy heights, before dropping down at an equally dizzy speed. Many people who had invested early made massive fortunes as it rose exponentially, and where there are possibilities of huge returns, you will always find investors looking to get in on it, and fraudsters looking to rip them off. With cryptocurrencies being anonymous, and the way in which coins can be moved, trying to trace your coins if you have been scammed is incredibly difficult.
Know the Scams
While investors are looking to make a profit, scammers are also trying to get in on the action, using a number of nefarious methods, with a view to parting the former from their coins. There are different schemes which scammers use to commit their crimes, and at least being aware of some of them, gives you a chance to avoid the most common.
Phishing is an attempt to obtain sensitive information such as passwords and account user names. Often coming in the form of a legitimate looking email, possibly telling you that you have been awarded currency, it asks you to follow a link and enter your crypto wallet details for the money to be sent to. Instead of which of course, it takes your details and cleans out your account.
Such scams work by offering what appear to be lucrative deals at below market rates, designed to make you think you are getting a great deal. Your credit card and Bitcoin wallet are connected, so you make your payment, and if it is a scam, your Bitcoin just never arrives, but you still lose your money.
Malware is out there everywhere and the value and anonymity of cryptocurrency makes it a prime target. Never click on unknown email attachments, or dubious links. A post offering a free download to mine Bitcoin or a supposed exchange offering freebies should be treated with serious suspicion.
Know About Exchanges
Checking out reputable cryptocurrency exchanges will help you learn a great deal more about how to buy Bitcoin, while understanding more about the different currencies other than Bitcoin now being traded. There are very good ones out there, whose services can save significant fees on traditional financial transactions, and in a fraction of the time too. Rarely are such exchanges found at the other end of a dodgy link or unexpected email.
There is an old adage, which states that if it sounds too good to be true, then it probably isn’t true, and nowhere is this more the case than with cryptocurrency. Ponzi schemes suck the greedy in by offering awesome levels of interest, which are duly paid in the beginning with the funds invested by newcomers. In time, of course, it collapses and everyone apart from the founder loses all of their money.
Always do your due diligence before investing in anything and absolutely never give your information to anyone, regardless of the story being told to justify it, and you can enjoy the benefits, while minimising the risk. How To Avoid Bitcoin Fraud