Bitcoin, the most popular crypto out there, is now considered one of the most popular investments. But do you know that this has led to many new bitcoin scams? Yes, that’s the truth and sadly, 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 undoubtedly a favorite among hackers and scammers. Within a phishing attack, a data subject 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 finding out your private advice or sending bitcoins to an address owned by the particular scammer.
These types of emails often look legitimate, but they are bogus in nature.
Fake exchanges
Without a doubt, one of the least difficult ways to scam investors is to impersonate an internet marketing branch of a good, legitimate business. Well, that is specifically what scammers are doing within the bitcoin discipline.
Many of these exchanges exist and they were presented as a place to trade and exchange bitcoins, but they were ultimately fraudulent. Hence, many exchanges have scammed people out of using their money simply by posing as a reputable and legitimate new cryptocurrency exchange.
Fake ICOs
Along with the rise of blockchain-backed companies, fake ICOs became popular as a way to support these types of startups. However, given the unregulated nature of bitcoin itself, the door has been wide open for all sorts of fraudulent activities.
Most of the ICO scams were carried out by getting investors to compromise on fake ICO websites or by using fake bitcoin or other crypto wallets, or by appearing as real cryptocurrency-based companies.
Many have already been accused of such bad practices, so it is best to check such wallets before deciding to put your money with them.
Gigantic comebacks
If you are in the trading industry, you must have already known that huge returns are simply not possible when it comes to bitcoin trading or cryptocurrency trading in general. Therefore, when a broker tries to provide you with the promise that your money will double within a specified period of time, then the best option in such cases would be to stay away from such brokers as much as possible. They will just take your money and run away and you will be left with nothing but pain and regret.