Cryptocurrency Scams

When it comes to trading on the cryptocurrency market, there are risks involved, just as there are with any other type of investment. Understanding bitcoin and other cryptocurrencies can be difficult for first-time investors, making them an attractive target for scammers and identity thieves. Fraud and manipulation are widespread in the cryptocurrency industry, and potential investors must educate themselves about the volatile nature of cryptocurrency and how to recognize when they are receiving false information.

There are three main Bitcoin scams that you should watch out for.

Phishing

Phishing is the most common type of scam involving bitcoin or cryptocurrency, and it is also the most difficult to detect. It is common for investors to be duped into falling for this scam when they receive an unsolicited email claiming to be from their bank, in this case, their cryptocurrency exchange or wallet provider. This email contains a link that will take you to a website that appears identical to the exchange or wallet you are used to working with. By providing your account information on this unofficial website, the hackers have everything they need to log into your real account and withdraw your funds.

Fake Trading Platforms and Wallets

Be cautious when dealing with bitcoin exchanges and other trading platforms. Several companies will entice potential investors with promotional offers that appear unrealistic, while others will pressure investors to open an account and make a deposit. This is prominent in trading software online.  Even going so far as to offer bonuses is a stretch. It is possible to fall prey to scammers who have developed sophisticated fake wallet apps that allow them to download and register with the app. Essentially, these apps steal critical account information from users. An example of a legit platform we recommend is Bitql. You can visit https://bitql.org/ to start. 

Fake ICOs

A large number of prospective traders are interested in making high returns from the cryptocurrency market. In just one year, the initial coin offering (ICO) raised a total of $11.69 billion. Fraudsters have taken extort investors by launching fictitious initial coin offerings (ICOs) and convincing people to invest in a cryptocurrency that does not exist. Therefore, it has become critical to read testimonials and reviews, such as this Bitcoin trader review, to determine the legitimacy and gain additional insight.

How to identify Bitcoin Scams

Ensure there are no spelling mistakes in the site URL.

Ensure the site has SSL, which you can see as a padlock icon in the address bar of your web browser. This shows that the website is safe.

Proceed cautiously you find additional lousy grammar, awkward sentences, or orthographic errors on the website. It is likely a scam.

Be careful if the website promises unusually high profits. This may not necessarily be a scam, but it is a red flag.

Try to find the about page and check if information about those people working for the company is available or if the company is registered. If little or no information is available, proceed with caution.

Check if you have other reputable websites linked to your website. This will indicate that the site is trustworthy and reliable.

Always check for previous users’ reviews or testimonials. Usually, the crypto community spreads the news quickly on scams. 

Conclusion

Once you have invested in a scam, your chances of getting your money back are slim to none. This is true for all global scams, but cryptocurrency scams are tough to recover from because of their high value. We recommend that you conduct as much research as possible into any cryptocurrency you consider investing in or trading in. Cryptocurrencies are highly speculative, complex, and fraught with danger. You should not take them lightly. It can be unpredictable when it comes to performance, and there is no guarantee that you will achieve high returns on every attempt.