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Latest Bitcoin Scams and How to Stay Safe

/, SELLING BITCOINS IN NIGERIA/Latest Bitcoin Scams and How to Stay Safe

BITCOIN SCAMS: SAFETY MEASURES

Bitcoin Trading has gained worldwide recognition. It attracts more investors day-by-day. However, it should be noted that while Bitcoin Trading has is a very profitable investment, there are some vices of trading it. One of these vices is Bitcoin scam. As we have scams in virtually all types of transaction and investment, Bitcoin trading is not exempted. Although Bitcoin trading can be profitable, it may also lead to a great loss for its traders. Hereunder, different techniques fraudsters use in Bitcoin trading are discussed as well as various measures to be taken by Bitcoin traders to avoid being scammed.

BITCOIN SCAMS AND HOW TO STAY SAFE

There are several ways of scamming Bitcoin traders. The following provides an exhaustive list of current Bitcoin Scams and protective measures to be taken by the buyers and sellers of Bitcoin.

1. Bitcoin Wallet Scams

In this case, Bitcoin users are defrauded through their Bitcoin wallets. Bitcoin wallets are used to secure Bitcoins rather than buying and selling. Bitcoin wallet can be locally hosted on a computer system which must be secured with passwords only known to the user. Bitcoin wallet can also be a digital one in which the Bitcoin owner have a wallet with a Bitcoin wallet provider online securing his/her Bitcoins.  A Bitcoin wallet provider is an online based platform which helps to secure Bitcoins. It is a third party in Bitcoin transaction. Scammers have ventured into this section of the Bitcoin as they create fake Bitcoin wallet provider sites in which ignorant Bitcoin owners have fallen victim.

One interesting thing about Bitcoin is its anonymity which enables transactions being done anonymously. Fake Bitcoin wallet providers promise safe and easy Bitcoin transaction enticing unsuspecting Bitcoin owners. After some months of the Bitcoins being secured, the fake Bitcoin wallet provider wipes off the Bitcoin owner’s wallet. Bitcoin owners are advised to find a reliable and reputable Bitcoin wallet provider for effective safeguarding of their Bitcoins.

2. Fake Bitcoin Exchange

Bitcoin users should also take cognizance of Bitcoin exchange sites to use. Use an exchange site with the hyperlink HTTPS which means that the web page is encrypted and secured while that with an HTTP is a scam. Scammers can also create an exchange site persuading Bitcoin users with high favourable transaction. For example, they can promise low credit card processing in which Bitcoin users buys Bitcoins with gift cards, through their credit card, this results to them losing their money without the requested Bitcoins. Scam sites have also been created for selling Bitcoins for PayPal. With this, no money exchange is feasible after sending the Bitcoins to the sent destination.

3. Bitcoin Cloud Mining

Cloud mining involves people pooling their resources together, investing in Bitcoin mining equipments with the aim of making profit as more Bitcoin is mined. It is engaged by people who do not want to buy Bitcoins but rather mine and they invest a lot in the mining process. Not all cloud mining pool are risky but majority are scams. There are many cloud mining investment scams in which people will get little return or no Bitcoins at all. Investors should look out for a legitimate cloud mining pool they can invest in, to avoid being duped.

4. Bitcoin Ponzi Scam

Bitcoins can also be lost through ponzi schemes. This involves fake ponzi schemes asking Bitcoin users to save their Bitcoins in their scheme for a particular period of time and receive double of it. This may work for early users, it is very disastrous for later users as it will get to some point when there will be no entry into the ponzi scheme and existing members won’t get paid as there is no payment into it again. In Ponzi schemes, the higher the referrals that registered through your referral link, the higher the profit on your Bitcoins. Ponzi schemes are unreliable as in the long run, it will collapse leaving its users bankrupt. This is similar to the MMM collapse in Nigeria.

5. Bitcoin Phishing Scams

Regarding phishing scam, fake Bitcoin exchange and wallet sites portray themselves as trusted and reliable to the Bitcoin users. The fake sites send emails to users and through social media advertisements which are scams. Bitcoin users having logged into the fake sites through their emails are vulnerable to being defrauded as the site has copied necessary information to wipe off their Bitcoin wallets. Bitcoin users must make sure that the site’s hyperlink is secured i.e. an HTTPS before opening it. Also, any Bitcoin transaction should be direct. Bitcoin users s

hould go to the sites directly, not through emails or social media advertisement.


In sum, as Bitcoin trading is wide spreading, it is important for its users to be more careful in their transactions as scam Bitcoin exchange and wallet sites are becoming rampant so as not to fall victim. Bitcoin scams are threatening but they can outright be avoided by its users.

2017-10-25T08:36:32+00:00 October 25th, 2017|Categories: BUYING BITCOINS IN NIGERIA, SELLING BITCOINS IN NIGERIA|Tags: , |

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