Top 5 Bitcoin Scams You Need to Protect Yourself From

Introduction

When Bitcoin first emerged back in 2008, very few people were optimistic about its success. One decade down the line and the Bitcoin has not only maintained itself in valuation, but also enabled the birth of several other cryptocurrencies. 

The early investors who had invested a couple of thousand dollars are now millionaires. They saw the trend early, jumped with investments at the right time and made a huge fortune. However, the flip side of such success is that it also attracts the wrong people. 

You do not have to own hundred Bitcoins for hackers and con artists to scam you. You might as well have just a couple of them to draw enough attention. One of the primary reasons why Bitcoin and other crypto see many scams is because of their undetectable nature. 

List of the Top 5 Bitcoin Scams you need protection from

1. The Government wants you to pay taxes on your Bitcoins

Many people in the crypto ecosystem have reported how they have received calls from the IRS and other government departments. They say that the caller informs them about pending taxes on their Bitcoin investments and earnings. 

This is followed by a threat that they would be arrested or their Bitcoins be taken away if they do not pay up. These blackmail payments range from physical currency deposits to clearing taxes in Bitcoins themselves. This is a common Bitcoin scam you need to be aware of. 

2. New Exciting Cryptocurrency is Launched

If you are someone who has his emailing lists in different crypto websites, you will be inundated with emails about new cryptocurrencies. The people are going to say that Bitcoin is now gone, it is expensive and it is impossible to make profits. 

This new currency is lightning hot on the market and is expected to grow ten or twenty times in one month. They will take fictitious names of credible people backing this and ask you to buy the first hundred. Please do not fall for such scams. 

3. Hackers and Malware

If you are using your laptop or computer for doing trades, storing your encryption key and other details, be sure to use a very secure antivirus suite software. Hackers have found it easy to plant malware through emails and phishing websites. 

If you come across something that looks weird, be sure to run a complete scan with your antivirus suite. Try to avoid browsing websites that seem a bit too odd. If you get pop-ups or emails with notifications like- ‘Mine Bitcoins for Free’, it is best to keep a safe distance. 

4. Be aware of Fake Crypto Exchanges

Every time you start browsing the crypto ecosystem, you hear of some new exchange, which has come up. They promise unbelievable deals, offers, discount and credit. Please stay away from supposed ‘New’ crypto exchanges. 

In 2017, a fake exchange operating out of South Korea was busted. It was called ‘BitKRX. It had collected millions of dollars of money from people claiming to be a part of the biggest crypto exchange in the world. Do not sign up, or transfer money in the hope of buying cheap crypto. 

5. Avoid One-On-One Meetings for Trading Bitcoins

There have been various reports of people asking Bitcoin owners for Bitcoins in exchange of hard cash. While some reports state that these scammers use counterfeit money, others point out that their encryption codes are taken away from them at gunpoint. 

Whatever the case, it is absolutely not advisable to meet people face-to-face to exchange Bitcoins. Do not start directly dealing with individuals at any point. It is best to only work on established trading platforms in order to trade Bitcoins. 

Conclusion

In this article, we have compiled a list of the common bitcoin scams that are operating in different parts of the world. As Bitcoin continues to become more powerful and important, the number of these scams is only going to rise. Please remember to be safe and protected at all times. 

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