Familiarize yourself with existing Bitcoin abuses

Bitcoin, the most popular cryptocurrency in existence, is now considered one of the most popular investments. But did you know that this has led to many new Bitcoin scams? Yes, this is the truth and unfortunately you can be a part of it if you don’t know anything about these scams. This article gives you information about all the types of Bitcoin scams that exist.

These are the types of Bitcoin scams that exist –

Phishing scams

Always be on the lookout for phishing scams. Phishing attacks are certainly a favorite among hackers and fraudsters. In a phishing attack, the victim usually impersonates a service, business, or individual simply by email or other text communication, or by hosting a fake and manipulative website that looks like the real thing. The goal is always to trick the victim into revealing their personal tips or sending bitcoin to an address that the particular scammer owns.

These types of emails often look legitimate, but are fake in nature.

Fake exchanges

Certainly one of the least difficult ways to scam investors is to pretend to be an internet marketing branch of a good and legitimate business. Well, that’s exactly what scammers do in the Bitcoin discipline.

There are many such exchanges and they pretended to be a place to exchange and trade bitcoins, but they ended up being scams. Thus, many exchanges have cheated people out of their money by simply pretending to be a new reputable and legitimate cryptocurrency exchange.

Fake ICOs

Along with the increase in businesses supporting blockchain, fake ICOs have shot up in popularity as a way to support these types of new companies. However, given the unregulated nature of Bitcoin itself, the door is wide open for all kinds of fraudulent activity.

The majority of ICO scams have occurred by luring investors to commit to either fake ICO websites using fake Bitcoin or other crypto wallets, or posing as genuine cryptocurrency-based companies.

Many have already been accused of such abuses, so it is better to check such wallets before you actually decide to put your money in them.

Huge returns

If you are in the trading industry, you must have known by now that huge returns are simply not possible when it comes to Bitcoin trading or crypto trading in general. Hence, when a broker tries to give you a promise that your money will be doubled within a certain period of time, then the best option in such cases would be to stay away from such brokers as much as you can. They’ll just take your money and run away, leaving you with nothing but grief and remorse.