How to avoid scams with bitcoin?
Since the emergence of bitcoin in 2009, this cryptocurrency has grown exponentially so it is a widely popular digital currency used worldwide. Unfortunately, due to the popularity of bitcoin and its growth rate of market capitalization that scammers are realizing the monetary benefits they could get from it.
In this sense, according to Bitstamp the bitcoin Exchange that owns all licenses, market capitalization in US dollars is more than $ 11.3 billion, with the cost of a bitcoin yesterday of by $708 therefore, scammers want the digital currency in their possession and use devious methods in achieving its objectives. Therefore, no matter if you are a person who is starting or already have time in the asset swap as bitcoin is, in this article we are going to warn you about potential scams.
Swindles with the bitcoin Exchange, these scams do not necessarily have to be easy to decipher simply because organizations can have a very high level in the bitcoin space. There is an Exchange story that lost large amounts of cryptocoins as already missing; Cryptsy and Mt Gox, at the time of these misappropriations occur, the company had a reputation as Cryptocoins exchangers, questions arise here, What to do to be protected?
In this sense, the best solution is not to lay all your assets in a single Exchange, the ideal is to divide them into different wallets. In this way, you can be sure that not all funds recipients can be hacked, another great possibility is that you lose the keys, they must be kept on paper, not leaving them exposed to third parties.
Another form of scam is phishing. Known as phishing it is not advisable to answer questions when you are connected to the network, there have been cases that occurred in the past with Coinbase for allowing mass phishing by filtration of users information, in that landmark case users received email messages asking for payments to other users.
It was mentioned at that time in July, after the demise of the bitcoin mining company, HashOcean, with millions of dollars in digital currency users, phishers tried to bring victims to part with their money claiming they could recover their stolen bitcoins. This is an attempt to lure innocent victims and for this, use fake websites, facebook pages and phishing emails, therefore, should not click on any source you have not verified, proceed with caution before losing your money.
Another attempted scams is through fake websites, you need to watch the website, in it the information should be in the right place, if there is doubt about it, is best to check each of the letters that make up the address the actual page, in many cases, false web is missing a letter, there is a spoofing address. The most recent case occurred with the Exchange Bitfinex, which had to alert users because phishing emails were distributed from an address that appeared to be from the company, which was a possibility to defraud users. What to do? avoid clicking on sources that have not been verified, even if it is perceived legitimate on the website, you should always verify the correct spelling of the URL before starting any activity with their assets.
Also, be careful with Ponzi schemes, there is a question that the user needs to do, “If it sounds too good to be true, it probably is a scam.” That is certainly the case on Ponzi schemes. In most cases, it’s easy to know how to detect a Ponzi scheme, however, people are still victims of them.
In this sense, it is because Ponzi schemes operators, know what to say to get people involved, one of them is the promise of good return on investment (ROI) without having to do much to achieve.
There is another, called pyramid scheme in 2014 Trendon Shavers, was arrested and later sentenced to 18 months in prison after participating in a pyramid related to bitcoin, this group had approximately 146,000 BTC, with a value of $ 807,380 for this scam.
Another Ponzi scheme was one called CryptoDouble, this case happened in 2015, they promised they would duplicate users deposits after 100 hours of placing deposits. In this case, they lost 2,233 BTC, its value was amounted to $ 500,000, leaving thousands of customers without their assets.
The question that arises is how to avoid them? what is promised and it sounds too good to be true, avoid promises something that is as it is, a return on investment. The recommendation is to be careful about is first necessary to investigate offering such returns.
In summary, the world bitcoin continues growing, therefore, it captures attention of people who are willing to invest in a new technology that promises great changes, therefore, scams are a breeding ground and try profiteers of easy profits try different schemes scams. The prevention study, education, about this new technology, you can be protected with.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.