5 quick tips to detect scams and fraudulent investment schemes in Bitcoin on the Internet

Be aware of some tips to easily detect and discard these HYIP in Bitcoin and avoid losing your money. Scams and strategies like “get rich quick” are nothing new in the world of cryptocurrencies. In fact, we already have history with the past bitcoin boom en route to USD $ 20,000. Now, with the gradual increase in prices in recent months, it is expected that this type of scams, the famous “high-yield investment programs” (HYIP) in Bitcoin, continue to increase.

A clear example of this increase is that reflected in the tenth annual report “Targeting Scams” issued by the Australian Commission of Competition and Consumers (ACCC) and reviewed by DiarioBitcoin at the time.

In said report, it was revealed that only in 2018, losses amounted to $ 6.1 million Australian dollars (USD $ 4.3 million) stolen from 674 victims; 190 percent higher than the $ 2.1 million Australian dollars (USD $ 1.48 million) lost in 2017 for the same concept.

Then, from the writing of DiarioBitcoin we present some tips to detect and easily discard these HYIP in Bitcoin, and avoid losing your money:

1 – There are no high returns: The main reason for the popularity of HYIP in Bitcoin is the “high performance” they offer. Cryptocurrencies allow you to make good money at any time, yes, but you must keep in mind that nobody guarantees that benefit. If a company alleges otherwise, it is very likely that it will execute a HYIP. A high return on investment can not be guaranteed, let alone a guaranteed daily return when dealing with volatile cryptocurrency markets.

2 – Unlicensed companies: The number of potential investment companies in Bitcoin has been increasing to a large extent. Rest assured that more than 90% of them are not licensed or registered, so they are not even allowed to offer such products or services at this time.

Potential investors should not be fooled by companies that hold a company registration number. It is common for HYIPs in Bitcoin to display on their website a registration number of the company based in the United Kingdom; mainly because its obtaining is cheap, easy, fast and online. However, that does not mean that it is a genuine investment company. Getting away from these companies is usually the most advisable action.

3 – Unwanted offers via email or social networks: Many of the HYIPs in Bitcoin today tend to reach new customers through aggressive marketing tactics; either through unsolicited emails (spam) or via social networks. These companies are persistent. After all, a HYIP in Bitcoin is only sustainable, as long as you inject fresh capital. If not, the project will be exhausted very quickly. Ignoring unsolicited offers is always the advisable course of action, since strangers on the Internet should never be trusted.

4 – “Buy NOW”: Through the use of highly aggressive and invasive advertising, these companies will try to deceive as many people as possible to invest “NOW” and make them see that they could lose the “golden opportunity”. It’s a fact: FOMO (fear of missing out) or “fear of losing” is something very real in the cryptocurrency industry and the HYIP scammers know this very well. As such, they will try to play with people’s hearts and force them to invest at rates that seem simply too good to be true.

Cryptocurrency investments will always be accessible and there is no real pressure to buy something right now. Tomorrow or next week they will continue to present their own opportunity in any way.

5 – Very sophisticated vocabulary: One of the most interesting developments in the HYIP world in Bitcoin is how more and more projects start to use fancy or sophisticated jargon or vocabulary. This is done in an effort to encourage many investors to contribute their money over time. It is not necessarily a bad thing; The problem is that many people have no idea about cryptocurrencies or Blockchain and these are the main victims.

By just knowing a handful of words associated with any of these new industries, it is easy to fall for these cheap tactics as a result. Doing some due diligence about the project in question can help you differentiate between false and genuine investment offers.

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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