Cryptocurrencies may turn into a very complicated and confusing thing to you if you are a newbie or you regulate very lightly. Chances are you might fall victim to scammers if you are completely new to the Bitcoin world. They tend to target those who have very little idea about the nuts and bolts of bitcoin. In order to protect yourself from those scams and scammers, you will have to know a few nuts and bolts and some old-fashioned common sense. Today we are here to demonstrate the top five bitcoin scams that you should avoid in today’s cryptocurrency world. Let’s know what are they.
You may have already heard about this scam in many places. Customers all around the globe, especially from major banks are the biggest victims of this scam known as phishing. In this scam, you are likely to get an unsolicited email that almost looks like from your bank but in reality, it’s not. It may also look like an email from your crypto wallet provider or exchange. In this email, there will be a link that redirects you to a fake site that appears like the original exchange or wallet you utilize. Keep in mind that it’s not a real link or landing page. Don’t ever dare to give your information to this kind of page because the scammer who is monitor this page will have all your information within no time and can access your funds easily.
- Fake wallets and exchanges
According to USI Tech, fake exchanges and wallets are somewhat similar to phishing scams. They might come across as a reputable exchange but in reality, they are just some third-class people who separate consumers from their own cash. Some of them might approach you and showcase you highly profitable offers that might lure you to accept them. Some others will pressurize you to open an account on their platform and deposit funds. They may say that there are bonuses for you as well if you wish to deposit a larger amount. Once you deposit money to them, they will ridiculously charge you high dees and they might even deny to give back your money at times.
- Old-school scams
Crypto is a new technology but there might be some scammers roaming around who tend to apply old tricks to people who are unaware of fraudulent activities. This kind of scams might take place as in an email or a phone call from an unknown person who claims to be with the Internal Revenue Service (IRS). He or she will claim that you owe the IRS money in form of tax and if you don’t pay the bitcoin within the given period, you are going to face legal action from the government. There is also a scam called “Nigerian price” that has already left its footprint in the crypto world recently. If you ever happen to come across such scams, use your brain to think about this and recognize that it is a scam.
Online scammers have been utilizing Malware as a form of scam for long. Though most of the people don’t understand the malware due to the highly technical and complicated nature of cryptocurrencies, it tends to pose a bigger threat. Crypto-related malware doesn’t steal your bank account details and credit card, but they collect the access to your web wallet and hack your account. They will also get the hang of your cryptocurrency address and replace it with the scammer’s address. This way they hack the account and seize all your bitcoin.
- Ponzi or pyramid schemes
Ponzi schemes are very simple but they will allure you in an effective way offering you unusual high returns. In this scam, the promoter will persuade you to put resources into their scheme. Then you are likely to receive their so-called returns which are actually the payouts of your own money. This way they will convince you that the scheme is legit and people who don’t understand this trick, will happen to invest more and more into the scheme. They will likewise convince others to do the same. After a few days, when the promoter gets vanished with all your money, the scheme will collapse and you are likely to have nothing in return. These schemes are old-fashioned and commonplace and you should be very aware of such scams.
Bitcoin is one of the most valuable currencies in the world. None can earn this cryptocurrency overnight. It’s your hard-earned cash and you have to be very careful about it. If you ever come-across such scams in the crypto world, don’t even stay there for another second. Avoid them and try to stay away from such scams as much as you can. After all, you are the caretaker of your own hard-earned cash.