Scams are everywhere and the cryptocurrency world is not an exception. Ever since the introduction of bitcoin into the cryptocurrency world, it has attracted the attention of fraudsters as well as investors. As the price of bitcoin has increased, so also the rampancy of so many scams. It got so bad that at a point, investing in Bitcoin wasn’t even recommendable. Different types of scams such as Ponzi schemes, fake ICOs even social media scams, became the new trend.
Before you invest in any startup or exchange platform, you should be aware of the “risks” (scams) that could come your way. When you familiarize yourself with some of the most common scams, you will be able to protect yourself and your finances. This is why in this blog post; we have decided to educate you on 5 Bitcoin scams to avoid in 2021.
- Fake exchanges
To do this, they trick users by offering them prices that they cannot get in the market. So when you see a bitcoin exchange page offering you Bitcoin at suspiciously low rates that sound too good to be true, you should beware. some scammers will even create fake wallet applications that when a user downloads it, crucial information may be stolen. This is why it is very important to do your research before downloading any application. You can use a reputable platform, like Prestmit.
- Prize giveaways
We might have probably encountered this type of scam, one way or another. It tricks people into supplying information such as email address, phone number to claim a prize. With access to this kind of information, the hacker can impersonate you and gain access to your accounts.
Whenever you send bitcoin, always make sure you double-check the address you are sending to. malware programs are capable of changing bitcoin addresses so that when pasted from a user’s clipboard, all the bitcoin gets sent to the scammer instead.
You may be familiar with this type of scam. It happens when you receive an email that seems like it came from your crypto exchange or wallet provider. This email contains a link that looks like that of your crypto exchange but it directs you to a scam site.
- Fraudulent ICOs
Also known as fake ICOs, scammers will use websites that have fake ICO details to trick innocent users. The websites, after promising what they cannot do to entice users, will then instruct them to deposit funds into a wallet. Once sent, you’ve been scammed.
One of the benefits of cryptocurrency is that it is very private and difficult to trace as it is not regulated by the government. The chances of getting your money back are slim to none after being scammed so it’s up to you to be vigilant. Do not share your private keys with anyone. If something is too good to be true, it probably is.