Tips for Avoiding Bitcoin Scams

The price of Bitcoin has been increasing over the years to reach billions of US dollars in terms of market capitalization. This has made different people see the appeal and value of this cryptocurrency. Unfortunately, even scammers are looking for ways to profit from Bitcoin.

And, they do this using nefarious means. Essentially, scammers target unprepared and unsuspicious individuals that become their victims.

That’s why you need to be cautious be when starting to trade Bitcoin or decide to invest in this cryptocurrency. Luckily, you can find platforms like this trading software, where you can easily start trading and investing in Bitcoin safely. Nevertheless, you need tips to identify and avoid Bitcoin scams. This article shares useful tips to help you avoid Bitcoin scams.

Trust Instincts

Be wary of any investment that seems like a get-rich-quick scheme. That’s because if you can easily become a millionaire within months of investing $1,000, everybody else could be doing the same. Although such a statement may be intended to boost your ego, think twice about it. You can only avoid being ruined by a pyramid scheme by being on the first level.

Avoid Fake Crypto Exchanges

You’ve probably seen somebody say something like ‘Get Bitcoin for 10% under the market value.’ This is a mere marketing trick for getting your attention. And if you get hooked, you can end up being a victim of a fake exchange.

If you visit an exchange website, check whether it is HTTPS secured. Avoid HTTP websites. This is very important because the web traffic of an HTTPS website is secured and encrypted. Therefore, the absence of an “S” should be a red flag.

Also, be wary of any site that uses PayPal when selling BTC. Such websites provide a form where you’re supposed to provide your PayPal email address. Once you’ve filled the form and submitted it, you will be given a QR code where you should send BTC. Unfortunately, the money won’t arrive. To avoid such scams, use reliable Bitcoin trading platforms like Bitcoin Era.

Be Cautious about Aggressive Advertising

You’ve probably come across multi-level marketing. This is a form of marketing that is meant to make a person feel that they belong to something revolutionary. Advertisers exaggerate potential gains while minimizing risks.

Unfortunately, this can’t be realistic. Every investment comes with some risk. Therefore, learn to identify aggressive advertisers that are focused on getting your money. Don’t allow them to sell you something that they claim is risk-free.

Avoid Projects that Sell Referral Bonuses Only

The purpose of referral bonuses is to ensure that money keeps coming in. At the same time, they ensure that the scam itself doesn’t make money and if it does, the amount is too little. A referral bonus will encourage you to bring in family, friends, and anybody else. Unfortunately, only the perpetrators enjoy the money brought by the scam. In the end, you will be left alone to explain why your dearest and nearest lost their money.

Avoid Fake Wallets

It’s not easy to spot a fake crypto wallet. That’s because Bitcoin wallets, for instance, are for storing the cryptocurrency. You don’t use a Bitcoin wallet to buy or sell it. It’s more about the used software than money.

Therefore, a fake Bitcoin wallet is a malware that is used to infect a machine and steal private keys or passwords. To avoid this scam, use the official wallet for mobile or desktop devices. Also, trust instincts and check out a wallet for any red flag before you use it.

Final Thought

You will most likely not get your Bitcoins or money back after you lose it in a scam. Investors get their money back and scammers are punished in some cases. However, this happens occasionally and it takes a lot of time. So, to ensure your safety when trading or investing in Bitcoin, follow these tips.