The value of bitcoins goes up, and then it comes back down. The press is all over the story. Pundits and market watchers all have their opinion and voice it loudly across the airwaves and the Internet. Unfortunately, like most commentary their views and analysis are worthless.
One thing is certain: Bitcoin has attracted a lot of attention AND A LOT OF SCAMS TO GO ALONG WITH IT. In fact, bitcoin has not even remotely risen like the value of gold has over a similar period of time and this is particularly true when you take into account the amount of leverage that is afforded to each product. Bitcoin currently only offer approximately 3 to 1 leverage. Which is the lowest in the leveraged market industry. There is a reason for that. There simply is no intrinsic value and it could very well wind up worthless at virtually any time.
DO NOT be victims of opportunistic con artists and hackers who perpetrate Bitcoin scams. One of the benefits of cryptocurrency is that it’s unregulated by the government and very private. But that also makes it ripe for FRAUD. Remember, Bitcoin goes up and down just like every other traded product and this disingenuous allusion that you WILL MAKE A CERTAIN PERCENTAGE IS A LIE! PERIOD. Our lawyers are better than theirs are so we have no problem exposing the truth and welcome any challenges. GOOD LUCK!
Bitcoin Scam 1: Fake Bitcoin Exchanges
In 2017, South Korean financial authorities and the local Bitcoin community exposed one of the most insidious Bitcoin scams: a fake exchange called BitKRX. It presented itself as part of the largest trading platform in the country and took people’s money. To avoid this, you should stick with popular, well-known exchanges and Bitcoin forums so you get news of fakes quickly.
Bitcoin Scam 2: Ponzi Schemes
Bernie Madoff is perhaps the most well-known Ponzi schemer. He did it with mainstream investments. But the principle of a pryamid scheme, in which you take money from new investors to pay previous investors, can be applied to Bitcoin scams. MiningMax, one such scheme, brought in $200 million before 14 fraudsters were arrested. As you can imagine, the investors never got any returns on their Bitcoin investments.
Bitcoin Scam 3: Fake Cryptocurrencies
A common scam is to present a new cryptocurrency as alternatives. The idea is that it’s too late to cash in on Bitcoin and that you need to invest in one of these up-and-coming cryptocurrencies. My Big Coin was shut down for this reason. The fraudsters behind My Big Coin took $6 million from customers to invest in the fake cryptocurrency and then redirected the funds into their personal bank accounts.
Bitcoin Scam 4: Old School Scams
If somebody emailed or called and said they were from the IRS and that you owed back taxes that had to be paid immediately, would you send them money? Many people do. Instead of having the victim wire money via Western Union or transfer funds to a bank account, con artists are contacting victims and demanding that victims transfer bitcoins. The best way to avoid this scam is to be skeptical of phone calls or emails that say they’re from a government agency. Legitimate authorities wouldn’t contact you that way, and they won’t ask for bitcoins.
Bitcoin Scam 5: Malware
Malware has long been a way for hackers to get passwords needed to access computer networks or steal credit card and bank account numbers. Now they’re using it to conduct another one of the most common Bitcoin scams. If your Bitcoin wallet is connected to the Internet, they can use malware to get access and drain your capital.
If you’re not sure of a website or email’s legitimacy, contact the company involved directly. If you can’t find the company’s contact information easily on social media or on its website, that’s a red flag.
Don’t Fall Victim to Bitcoin Scams
Bitcoin is a volatile enough investment as it is. Don’t increase your chances of losing money by falling prey to these Bitcoin scams. Stay alert for potential fraudsters and trust your instincts. If something seems too good to be true, unless you can observe it BEFORE IT HAPPENS!.. it probably is.