Many people don’t know much about Bitcoin. Unfortunately, this makes them vulnerable to misinformation and scams. When you can’t detect and avoid a Bitcoin scam, fraudsters can easily take advantage of you.
Bitcoin is an electronic or digital currency, meaning it exists electronically only. You can’t get a physical bill or coin when using Bitcoin. People exchange virtual tokens with other users online using their computers or phones. Platforms like BitIQ official App make purchasing and selling Bitcoin using fiat money easier. That’s because you can register with them at any time and start trading Bitcoin.
Receiving, storing, and sending Bitcoins require a digital wallet. Once you have a crypto wallet, you can pay for services and products using this virtual currency. But not all merchants take Bitcoin payments. Also, the internet is awash with fraudsters looking for innocent Bitcoin holders to scam them. That’s why you should know the following types of Bitcoin scams.
Business and Investment Opportunity Scams
Scammers know that many individuals are looking for opportunities to invest in Bitcoin. Consequently, they have devised ways to present scams in the form of lucrative investments or business opportunities. Here are some of the business and investment opportunity scams to avoid when using Bitcoin.
Scam jobs from fraudsters: Maybe you’ve noticed a job advert that seems too good to be true. Some scammers promise a job but require you to provide personal information or money to get the job.
Unsolicited job offers: Scammers can make you an offer for recruiting Bitcoin investors, mining this cryptocurrency, or selling it. Some will promise you a commission if you help in converting Bitcoin into cash. A scammer can also pledge to assist you in growing money if you send them your Bitcoins. Unfortunately, you might not withdraw the money you load into your account with them without paying a fee.
Recruitment fees: Maybe you’ve come across scammers that require you to pay for the recruitment right in cryptocurrency. That means you pay a fee to start requiting others into their program. And every person you recruit earns you a reward in cryptocurrency. The scammers can even promise you more money for paying more cryptocurrency and recruiting more people. However, such scammers make false promises with false guarantees.
Quick returns: A company can also promise you a lot of money within a short period. In this case, the scammers promise you fast financial freedom.
Scammers are getting innovative, and they won’t approach you in a way that can enable you to spot and avoid them easily. Therefore, be vigilant when venturing into the crypto trading or investing world.
How to Spot and Avoid Bitcoin Scammers
Most scammers use emails and social media platforms. For instance, a Bitcoin scammer can send you an email saying they have compromising or embarrassing personal information, videos, or photos and threaten to leak them to the public if you don’t send them your Bitcoins.
You can also read a text, message, or tweet on social media telling you to send your cryptocurrency to strangers. Even if it’s a celebrity that posted the information, it’s most likely a scam. Somebody could have hacked their account. Therefore, don’t do what the message directs you to do.
Additionally, avoid anybody promising you huge profits from Bitcoin trading or investing within a short time. Nobody can double your Bitcoins overnight or give you free money for trading or investing in cryptocurrency. Also, anybody making a big claim without explanations or details is likely to be a scammer.
Bitcoin is undoubtedly a relatively new asset. Scammers know that some people don’t know much about Bitcoin but want to invest in it. Therefore, watch out for scammers to avoid losing your money trying to trade or invest in Bitcoin.