Cryptocurrency is a new thing in the digital world. However, it can be very complicated for beginners. That’s the reason why many people face several scams while investing in Bitcoin.
Well, internet scams are quite common. No matter how secure a system is, hackers find a way to scam people. In this case, you have to be more careful while using the Bitcoin Prime website.
Before you start investing, it would be better if you know the basics of Bitcoin scams. In this guide, we will share the common bitcoin scams a user can face. Moreover, we will also share how to avoid them. So, let’s get started.
What is Bitcoin?
In simple words, Bitcoin is the pioneer of the cryptocurrency system. Even though it was launched in 2009 by an unknown internet user, Bitcoin got popular in 2017. Right now, it’s the most popular cryptocurrency in the crypto world as it has a market cap of $1 trillion.
Because of its popularity, more and more people are investing in Bitcoin. That’s the reason why you can find several websites and apps that are dedicated to this digital currency.
However, there are some people who are scamming new users daily. In the next section, we will share the common Bitcoin scams you have to avoid.
Top Common Bitcoin Scams
From phishing emails to malware, there are many common scams you can face while investing in Bitcoin. The good thing is you can avoid them by knowing the basics. In the following list, let’s find out about the common Bitcoin scams:
- Fake Exchanges
As the name says, a fake exchange is a copy of real exchange. These exchanges are available in the form of mobile apps. However, you can also find these exchanges as websites and desktop apps.
Most people make mistakes as these fake exchanges are quite similar to the real ones. These apps will offer several things to attract traders. In this case, you have to be very careful.
Blackmail is one of the most common methods used by scammers. In most blackmail cases, the scammer demands reimbursement to secure sensitive content. Well, the reimbursement can come in the form of Bitcoin.
The best way to avoid blackmail is by choosing a reliable platform. On the other hand, don’t share personal information randomly. You can also use a two-factor authentication system to give your account an extra layer of protection.
- Scam Giveaways
Giveaways are a common thing in today’s world. Many websites and influencers are providing giveaways to attract the audience. However, many Bitcoin hackers are arranging fake giveaways to scam people.
For example, these websites will offer something for free. However, they will ask you to make a deposit. You see, genuine giveaways don’t include any deposit. So, you have to be careful about this issue.
Malware is a strong weapon of online scammers. That’s the reason why many beginners face issues while investing in Bitcoin. The good thing is hackers can’t use malware when it comes to the cryptocurrency world.
Because of the complicated technical nature, it’s hard to use copy-paste malware to scam users. However, some people design malware to get access to your crypto wallet.
- Social Media and Website Phishing
Social media phishing is one of the most common Bitcoin scams. Well, you will find phishing on social media platforms. In this case, a scammer will create an account to provide fake giveaways.
If you suspect something, make sure you are double-checking the account. Plus, make sure the account has an indicator. Otherwise, it would be better to avoid the account on social media platforms.
- Phishing Emails
Just like social media phishing, people get scammed by emails as well. You see, there are various types of phishing. In this case, scammers will ask you to download an infected file.
On the other hand, you can get some links that will take you to a malicious website. To avoid this type of phishing email, you have to check the source first. Plus, you can check the link if it has misspellings without clicking on it.
- Pyramid Schemes
You might know that the Pyramid scheme is a very common financial scam. In simple words, a pyramid scheme is a business model that pays the members when they enroll new members. Many crypto sites use this model. However, you should not fall for this trap if you are investing. In this case, you have to do your research regarding Bitcoin.
- Exit Scams
In the crypto world, rug pulls are getting common. In simple words, a user can get scammed by the system’s developer. It happens when someone deposits a certain amount. Well, scanning an exit scam or rug pull is very difficult. However, you can avoid this scam by choosing a well-known crypto website.
- Mining Scams
If you want to invest in Bitcoin, you might know about mining. Well, you can mine Bitcoin without purchasing. There are some reliable mining companies. However, this doesn’t look like a scam, but you have to be careful. As a beginner, you should not invest in Bitcoin mining companies. Cause, you have to buy the equivalent amount instead of investing.
- Pumps and Dumps
Pumps and dumps schemes are very common scams in the crypto world. In simple words, a large group of traders can target an altcoin. They take advantage of it when the price rises.
There are so many groups of pumps and dumps in the crypto world. Well, this is an illegal activity and many people became victims of this scam. To avoid this scam, you have to stay away from fake news.
If you are a victim of such crypto scams, you have a rare chance of getting your money back. It would be hard for international scams. However, you can report to other people. You can also report any scam by using social media. Although it would be best if you are being careful from the beginning.