Talking about cryptocurrencies, we cannot miss the long route of successes and downfalls faced by your favorite virtual currencies all through their run since the start. This super exciting journey of cryptocurrencies began in 2009 when Satoshi Nakamoto introduced us with Bitcoin, the world’s first-ever blockchain-powered currency. Being the pioneer of the industry, Bitcoin had to be the flag-bearer of all the positives and negatives thrown on it by the financial sphere. In 2017, Bitcoin swayed the investors with an astonishing price rise; it plunged to its lowest in the succeeding years, making it acquire the tag of a ‘doubtful investment.’
The 2017 Bitcoin surge paved the way for the entry of a new class of investors who were willing to explore the cryptocurrencies’ dynamics like a pro. The number of Bitcoin traders, investors, and users increased exponentially within a few years. On the one hand, the market share of Bitcoin reached heights, and at the same time, there was an increase in the number of Bitcoin scams and frauds. This raised a question on Bitcoin’s credibility and security and made people quit dealing in cryptocurrencies, causing huge losses to the crypto arena. The list given below details out the most common Bitcoin scams, so have a look and stay informed.please visit our site 렛저 지갑.
Beware of these Bitcoin Scams
a) Ponzi Scheme
Ponzi schemes or Pyramid schemes are the most common form of trickery used by scammers to snatch away investors’ funds. In this, the fraudsters give returns to old investors from the revenue paid by the new investor slot. There is no income generation from legal business activities or profit generation from trading. According to some reports, Ponzi schemes are responsible for 92% of all the scams in the crypto space. The Bulgaria-based OneCoin firm can be considered the biggest Ponzi scam in crypto, which dwindled $4 Billion from the investors.
b) Fake ICOs & Cryptocurrencies
The Initial Coin Offering is one of the best methods adopted by crypto firms to raise capital for their ventures. There has been a boom in ICOs over the past few years. However, this rise has created a major threat for the investors as scammers run away with their assets by presenting fake ICOs and fake cryptocurrency projects. The fraudsters create fake websites with real-like information to fool the investors. Traders are asked to deposit coins in favor of the firm’s account quickly. After pooling a good amount, these fake firms run away with all the money of the investors. The best way to deal with such scams is to collect all the information about the project before investing.
c) Malware Scams
These scams are quite common in the crypto world. The fraudsters manage to get access to the crypto wallet if connected to the internet by sending malware to the system. One can download a malware program by clicking on a fake email sent by the scammer or downloading some fishy program from any website. It is advised not to open or download any suspicious program from the Internet. Several anti-malware solutions can secure your wallet from intrusions.
d) Fake Bitcoin Exchanges
Exchange platforms help investors to send, receive, and trade their assets securely. However, sometimes Bitcoin owners lose their funds by coming in contact with fake Bitcoin exchanges. These trading portals establish themselves as genuine exchanges to collect funds only to run away with the money in the future. So you should check all the information and reviews about it. If you are new and want to trade-in Bitcoin then you should check the Bitcoin Era platform. You can go through multiple Bitcoin Era Reviews by industry experts to check its genuinity.
e) Old School Scams
Though it sounds pretty childish, old school scams have dwindled hefty amounts of crypto assets from investors. In this scenario, the scammer calls or emails the target person posing himself as a government authority. They question people about their unpaid taxes and order them to send the money in Bitcoins to their wallets. It is advisable to pay no heed to such phone calls, and emails as no government authority shall contact and suspiciously ask for crypto info.
f) Hardware Wallet Theft
Hardware wallets help customers to store their private keys offline to avoid hacking. Though these wallets are very secured, they have some loopholes as well. Intruders try to steal your 24-words recovery phase to drain your crypto. Sometimes, hardware wallet providers give compromised seed phrases to the investors, making them prone to threats. Always use trusted wallet services and never share your recovery phrase with any person.
Cryptocurrencies are in its nascent stage and so there is a limited amount of information about them in the financial space. The lucrative profits and lack of awareness amongst the people has made crypto a juicy option for scammers. However, by acting prudently and patiently when making investments, investors can safeguard their assets as well as reap in good profits in their crypto wallets effortlessly.