With great success of Bitcoin in international market, the investors have increased significantly. This increase of investors has been motivating tech giants to provide trading platforms in order to maintain the rhythm of investments. Although, this surge in BTC value and investors has also attracted a lot of scammers to deceive the less tech savvy portion of investors. There are various tactics that scammers have been using to wipe your Bitcoin wallet. However, below are some ways to avoid Bitcoin scams:
- Identify fake Bitcoin wallets: Identifying a fake BTC wallet is one of the toughest task to perform as you can’t judge it by looking at it. The scammers are smart enough to make the fake wallet appear like a legit one. However, it is good to know the basics of a BTC wallet like it should work only like a wallet and not trader. There should not be any control over the money or BTC. A wallet must work like a safe place to keep your Bitcoins and be able to perform tasks of buy/sell only after a successful verification.
When you’re dealing for the first time, make sure to gather as much information as possible about the wallet you’ve shortlisted. To check the validity and reliability, check if the official website has ‘https’ in the URL. You may also seek some guidance from your peers who are already into the business.
- Beware of Phishing: Phishing is the most used malpractice to embezzle people online. It is also the most overseen threat by elderly people. Phishing is performed by creating a fake page or a website that resembles a genuine and legit one. However, once you’re on the page and click on any hidden or visible link, the looting starts. You may be prompted to buy/sell your Bitcoins at a incredibly high price or may be asked to sign up for a fake BTC wallet that would have some worth of BTC already in it.
To avoid Phishing, it is important that you pay extra heed to the emails in your inbox. If you’re receiving extra lucrative offers with hyperlinks, verify them before clicking on any hyperlink embedded. Your one click may wipe off your BTC wallet irreversibly.
- Ponzi: Be extra careful when you see something like ‘double your Bitcoins overnight’. It is highly unlikely to multiply your Bitcoins automatically. These are the scams where the scammer wants you to invest your Bitcoins into his so called multiplying scheme. Once you fall for it, your Bitcoins are going to be multiplied by zero. It is important that you block or report spam of such emails instead of believing to try your luck.
- Cloud Mining: Cloud Mining is a way where you get a platform to mine Bitcoins with a pool of people sharing the hashpower. Although, not every cloud mining is fake but most of them are. You must use your instinct and sense the danger before falling for the fake promises and unachievable profits. See for the https certificate for the mining website and learn to mine before joining the pool.
Overall, there is no bible to follow in order to avoid Bitcoin scams. Your precaution is the only way to sideline the risks and fraud. If you’re investing for the first time, be informed that Bitcoins are highly volatile and may become zero at any point of time. It is also recommended to keep your Bitcoins in offline wallets for which you possess a private key. This enables you to have full control over your crypto currency.
Next Read: 5 Best International Bitcoin Exchanges