Bitcoin, the most popular cryptocurrency that exists, is now considered one of the most popular investments. But did you know that this has led to many new bitcoin scams? Yes, that is the truth, and unfortunately you can be a part of it if you know nothing about these scams. This article lets you know all the types of bitcoin scams that exist.
These are the types of bitcoin scams that exist:
Credential fishing scams
Always be on the lookout for fishing scams. Fishing attacks are a favorite among hackers and scammers. Within a fishing attack (impersonation), an interested person usually impersonates a service, business, or individual simply by email or other text-based communication, or by hosting a fake, manipulative website that appears real. The goal is always to trick a victim into discovering their private advice or sending bitcoins to an address that the scammer himself has.
These types of emails usually appear as if they are legitimate, but of a false nature.
Surely one of the least difficult ways to fool investors is to pretend to be an internet marketer of a good and legitimate business. Well, this is specifically what bitcoin scammers do.
There are many such exchanges and they were presented as a place to exchange and trade bitcoins, but in the end they were fraudulent. Many exchanges have scammed people of their money simply by posing as a new respectable and legitimate cryptocurrency exchange.
Along with the rise of blockchain-backed companies, fake ICOs gained popularity as a way to support such new businesses. However, given the unregulated nature of bitcoin, the door has been opened to all sorts of fraudulent activities.
Most ICO frauds occurred by obtaining investors to commit or by counterfeiting ICO websites through counterfeit bitcoins or other cryptocurrencies, or by appearing as real cryptocurrency-based companies.
Many of them have already been accused of these bad practices; therefore, it is best to check these wallets before deciding to place the money in them.
If you are engaged in the trading industry, you will have already known that immense returns are not possible when it comes to bitcoin trading or cryptocurrency trading in general. Therefore, when a broker tries to offer you the promise that your money will double in a specific period of time, the best option in these cases would be to stay away from these brokers as much as you can. They will simply take your money and run away and you will be left with nothing but pain and remorse.