What is Cryptocurrency?

The 5 Most Common Bitcoin Scams & How to Bypass Them

The Bitcoin price has been surrounded by increased hype and controversy since the early days of the cryptocurrency. The fact that a digital peer-2-peer and open-source payment system hit the markets in early 2009 was so unexpected and surprising that a lot of people treated it with mistrust. Almost a decade later, the crypto-coin has become a serious factor in present-day finance and economics.

Different countries around the world have not only endorsed it but are releasing their very own official crypto tokens, like in the case of Venezuela’s Petro. A single Bitcoin unit is valued higher than an ounce of gold. These two examples show how important Altcoins are and how they can have an expressed effect not only in the cryptocurrency market but on the stock exchange and Forex ones, as well.

But the fact that more and more people are interested in crypto coin investments also means that they will be willing to trade with more risk. This exposes them to the direct threat of falling onto an Altcoin or Bitcoin scam. Those who have more experience operating on the digital markets know how to protect themselves, when, and where to be cautious.

Newcomers might find the task a little bit harder. Scammers will stop at nothing to achieve their goal which is to take as many earnings from unsuspecting users as possible and then disappear into thin air but only to think of the next clever scheme with which to drag people down to financial misery.

Fun Cryptocurrency Fact:

The greater part of the people that are willing to invest in Bitcoin and other Altcoins are young traders in their late 20’s and early 30’s. Cryptocurrencies attract their attention mainly with the fact that they grant complete anonymity. Transactions are almost impossible to track and so is the location of people who engage in crypto mining. Nobody knew in the beginning that the release of the first digital coin will lead to the subsequent establishment of its very own micro-monetary model and pattern.

Is Bitcoin Legal? – The Best Cryptocurrency to Invest 2018!

Ongoing speculation as to whether or not Altcoins will get the official recognition and approval of authorities has led a lot of people to ask themselves ‘Is Bitcoin Legal?’. The answer to the question is not simple as the matter cannot be examined one-sidedly.

This is why so many people talk about a Bitcoin scam. But the reality is that the first cryptocurrency is still pending the endorsement of most of the world’s countries. This is one of the many reasons why many do not consider crypto tokens to be a legit and legal payment method.

On the other hand, we have the fact that one can purchase almost anything with the top 5 crypto coins from the list of cryptocurrencies by market cap proves that it is more than authentic and genuine. Otherwise, all of the online stores would not accept it as a proper payment tool.

Our general conclusion on the matter would be that while Altcoins are not officially approved and possess different properties than fiat currencies, they can be applied like the former and even have a higher value than them. Which opens up a great deal of financially lucrative opportunities.

Which Are The Mistakes That People Make In Bitcoin Trading?

Even experienced investors are prone to making mistakes. After all, they are just human. All financial endeavors involve some level of risk. Some might even say that the asset price volatility rates are higher in the Forex market.

Let’s take a look at what online traders should be most careful about:

  • They Don’t Truly Understand What Cryptocurrencies Are & How They Work;
  • The Greater Part Of Altcoin Transactions Are Anonymous So It’s Harder to Track Down Scammers;
  • The Crypto Sphere Is Unregulated;
  • There Are Some Fake ICOs (Initial Coin Offerings);
  • Not Every User Takes The Necessary Security Precautions (2FA, Usage Of Secure Crypto Wallets, Checking The Legit Status Of An Exchange, etc.);

IMPORTANT NOTICE: FOR A SAFER ALTERNATIVE  - See Our TOP RATED TRADING SOFTWARE!

Common Bitcoin Scam #1: Dubious Bitcoin Exchange Platforms

It is always crucial for users to check the scam or legit status of the cryptocurrency exchange app before proceeding to register with one. The said can easily be verified by reading a couple of crypto trading reviews on reliable information sources.

There are also scammers that directly steal the user’s personal and financial transactions data. One should do his best to never give one’s data without knowing what it is going to be used for. They should also try to avoid signing up for a cryptocurrency exchange website whose legitimacy status remains undetermined. Proceeding to anything without properly informing yourself is always risky!

Common Bitcoin Scam #2: Crowd-Funded Initiatives

We are not talking about the legit ICOs and cryptocurrency exchange projects that are trying to gather enough financing to release their very own crypto coin here. The matter revolves more or less around Bitcoin scam initiatives in which users (the crowd) sends their savings to the creator or owners of the platform without any proof that they are going to be re-invested properly.

Users should not make any kind of deposits unless they are sure where their earnings are going. There is no other way to stay safe and secure from this type of crypto trading scams. They usually disappear a couple of months after getting launched. Their average digital lifespan is pretty short but the same software may appear after a while under a different name.

Common Bitcoin Scam #3: Non-Existent & Fake Cryptocurrencies

Today, it is harder to acquire a single Bitcoin unit than ever. Even professional traders and long-time crypto miners do not have it easy when the matter comes to getting a hold of one. The former must engage in highly-volatile investment operations while the latter have to wait for the computer hardware and software to solve a ton of complex mathematical equations if they wish to get one.

It is a commonly-met scam for supposedly new cryptocurrencies that will take the place of Bitcoin. They are always advertised as being the next big thing but turn out to be nothing more than hyped-up balloons. Users should know that it is better to invest in cryptocurrencies that have already made a name for themselves.

Common Bitcoin Scam #4: The So-Called ‘Old School’ Scam

Every person has probably been contacted at least once in their life by an unknown individual who claims to be from some government agency and wants to be transferred a given sum immediately in order for unpaid taxes to be taken care of.

This is probably the oldest scam in the book but this does not mean that a lot of people don’t fall for it. It is even surprising that the devious act is so popular and users still do believe in it. Traders should know better than this!

Common Bitcoin Scam #5: Cryptocurrency-Extracting Malware

Malware has helped a lot of scammers get a hold of the personal information of users, including the public address and private keys to their crypto wallets. This is why it is best to store Bitcoins and Altcoins in separate digital wallets.

Even if one of them is attacked and goes down, the others will still be active. Applying 2-Factor Authentication (2FA) should also increase the safety and security levels. Another useful tip is to avoid accessing the said crypto wallet on public wi-fi and other risky networks.

Malware can be found in spam emails, social media, and websites that do not apply the SSL standards. Another way to get is by clicking on an ad. Don’t do so on banners that supposedly present you with the opportunity to mine Bitcoins without additional charges.

Stay Safe From Bitcoin Scams By Trading Wisely!

The key to getting started with a legit Bitcoin exchange is the research that the user does prior to signing up. It does not have to be a scientific study of the whole cryptocurrency market. A quick overview of a couple of cryptocurrency exchange reviews is more than enough.

There are also several other security precautions whose appliance can only work for the greater benefit of the end user. The most important ones of them are already mentioned in the article above. Make sure to implement them into your daily crypto trading regularly!

Find the BEST Crypto Tool

Investment solutions get released every day. But that does not mean each is good for your trading ambitions. You need secure and proven to work platforms if you want good returns on your investments. We have found the best among the best and we strongly recommend them. Visit the industry leader if you are eager to start trading.

 

To start making investments, do the following:

1. Go to the Official Website of the Platform

2. Complete the Sign-up Process

3. Start Trading


Jamie Portiss

My name is Jamie Portiss. Let me tell a little bit more about myself. I am a Financial Analyst by profession. Having worked my entire life in the financial services sector, I have managed to build a solid investment portfolio. It all began with a Bachelor’s Degree in Finance and right after graduating from university, I began working as a Junior Financial Analyst at a startup company, dealing with financial solutions. I want to bestow our know-how and understanding of the virtual markets (the cryptocurrency exchange, Bitcoin trading, and Altcoin investment spheres, in particular) with users. All that it takes is to do it the right way!

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