Scams in Bitcoin Trading
Digital currency including bitcoin is highly volatile, no one can accurately predict its future market trends, only time will tell how these prices turned to be i.e. whether they shoot up or this bubble bursts and force people to take out money by selling BTC. Bitcoin’s dazzling speed has attracted people attention. People wants to earn million dollars without knowing the complexity involve in this sector of industry. Cryptocurrency is unregulated and there is no trackback to decrypt one’s personal information. All the mentioned loopholes provide an edge to scammers to play with people.
- False exchange and wallets
Some fake exchanges have been reported, they portray themselves attractive by offering exclusive offers. People start investing their money in such exchanges to take advantages of such offers providing a chance of scamming. For example, a fake exchange called BitKRX. Some hackers develop appealing fake wallet apps that, once downloaded to a user’s smartphone, steal their account details.
- Ponzi or pyramid schemes
It is a quite simple technique in which the scammer attracts novice investors to invest more money in order to get great rewards but unfortunately money is never received. However, it is not very productive as the scammer runs off with the money or it becomes too difficult to lure new investors.
- Old school scams
An old tactic of scamming or we can say an easy way to scam. If somebody contact you via email or phone call and said they were from tax authorities and that you owed back taxes that had to be paid immediately, would you send them money? Many people do. Don’t trust such fake calls and email. You should confirm from the government agency about the calls and emails.
Malware is a traditional method of hackers in order to get access of a person’s passwords or bank account details. Presently they’re utilizing it to conduct another one of the foremost common Bitcoin scam. If a person’s bitcoin wallet is connected to the Internet, they can use malware to get access and deplete your reserves if you’re not protecting yourself from malware. You can avoid this bribery by continuously updating your antivirus software.
- Fake ICOs
Fake ICOs which has some market and a little demand, can persuade people to buy a cryptocurrency that doesn’t has any existence in reality .if someone wants to be on peak of bitcoin trading in a small time period, be aware of this type of fraud. A person should research about ICOs before purchasing it. Remember. Bitcoin trading is not a piece of cake, you have to protect from scammers and plus great patience, experience is required to earn bigger returns.