Online Bitcoin scams have been a part of the cryptocurrency community since the start. These Bitcoin scammers are getting smarter and smarter everyday and are able to lure lots of people into their (Online) traps. Now that Bitcoin gets more and more public attention because of the worldwide adoption and their continuously rising price, scams around the currency seem to be everywhere. We made this blog to raise awareness for all these “Get rich quick” promoters/scammers.
Bitcoin scams are mostly promoted on online forums, videos on youtube, blogs and chat rooms, with doing everything they can to convince investors they are legitimate.
Type of Bitcoin scams
#1 Bitcoin Mining Scams
Bitcoin Mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. This is a mechanism that is used used to introduce Bitcoins into the system. Miners are paid with transaction fees as well as with newly created coins. For mining to be profitable you need very powerful and expensive hardware for your computer.
This is why a lot of cloud mining pools are being used. You invest a certain amount of money and a company will use this to buy hardware which they install and use for you. As a result many people invest in the mining hardware/equipment to participate in these mines and earn BTC on the long term. However, a lot of these cloud mines turn out to be scams that steal your well earned money. The worst part…. in most of the cases there was no actual mining going on or only a fraction of what was promised.
#2: Bitcoin Ponzi Schemes
Bitcoin ponzi schemes are probably the most common scams out there.
These ponzi schemes are luring people with big promises about high interest rates. These ponzi schemes only function on new investor funds that are used to pay of the early investors.
Some of these programs last for quite a while. Money can be made by using these programs but as soon as new members stop coming in, a lot of people are going to lose their investment.
Some Bitcoin Ponzi Scheme Scam examples:
#3: Bitcoin Exchange Scams
There are a lot of different bitcoin exchanges out there.These exchanges are platforms where you can buy and sell your bitcoins. Not all of these are very trustworthy, make sure you do your research. Some of these will lure you in with extreme low fees on payments with your credit card. As soon as your credit card payment is processed, you won’t be able to recover your lost money. If you are looking for a good exchange make sure to check out our Coinbase review.
#4: Bitcoin Wallet Scams
A bitcoin wallet is a online wallet that is used to store your bitcoins. Wallet scammers will atract you with promisies of better anonymity. Once you have deposited a certain amount, there is a very high chance that these scammers will just move your bitcoins to their own wallet.
#5: Bitcoin Phishing Scams
When we talk about phishing scams, we mostly talk about scammy emails. You will receive a email where you are told that you have won a certain amount of bitcoins. Most of the time, the email will have a link where you have to login to your wallet to claim your prize. However, when the you log in, your credentials are stolen, giving the scammer full access to the your wallet.
Bitcoin Scam- Final Word
Our basic rule is: If it looks too good to be true, it is most likely is. Treat your bitcoins as a Fiat currency, always be careful and do your research whenever you make a Bitcoin transaction. If you lose them, it is very unlikely that you will ever see them back!
If you are looking for trustable ways to make money online, please check out these blogs:
I believe this should give you a nice overview about Bitcoin Scams
Feel free to share your thoughts, questions or testimonial below!