How to find the solution to make your bitcoin safe? Especially when you purchase and transfer or invest.
The most popular digital coin bitcoin has faced several controversies. For many reasons, it is a gold mine for scammers. One of them is the fact that very few people understand it, which makes it easier to make them believe in false promises. Another reason is anonymity cryptocurrency gives scammers relative ease to cover their tracks. And the major reason is that it is unregulated.
Also, people want some easy money. It is not false that you can not make large money in days, but it also needs you some kind of platform/brand. Which actually is a long time work behind it.
Most common bitcoin scams and how to spot it?
Fake bitcoin exchange
One popular example for these would be South Korea’s BitKRX, which posed to be a branch of the country’s Korean Exchange (KRX) and claimed to be a platform to exchange and trade bitcoin. Ultimately it turned out to fraudulent.
You should not add any payment details to the site which is not secured. Nowadays many sites use SSL certificates to build trust. You should check the site address bar if it has “https” rather than just “http”. “http” simply means the web traffic has no encryption.
Ponzi scam
Someone promises an incredible return of investment using bitcoin and a lot of people engaged on it. After days or months when you reach to withdraw the amount, runs off with your money. This is how the Ponzi scheme works.
Pyramid scam
Scammers use bitcoin as a product in pyramid scams. Your lower initial investment will be multiplied if you invite more people to join the program. After a lot of people have invested their money, the scammer walks away with all the money.
Malware
Hackers have been using malware in order to get a hold of the people’s account details and credentials. Now it is being used to drain bitcoin wallets.
How to avoid falling in this scam?
Whatever you will do to find the information about the company you are joining to, few things are must to do your self. Reading blog posts and review helps a lot in your own research.
- If the offer is too good tobe true, then stay away from it.
- Legitimate traders and brokers can be victims of poser accounts and impersonators.
- Do your homework and research on services you encounter and the best trading platforms. Check their legitimacy and or whether they are a registered corporate or not.
- Never conduct financial transactions via direct message on the social media platform.
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