Bitcoin is a currency most popular in the cryptocurrency and decentralised world. And it has gained immense popularity due to its peer-to-peer network and bank less modes of payments between its users. However, this gained the attention of many Bitcoin scammers. Here is a complete guide and list of scams that are common in P2P.
- Phishing Scams
Phishing frauds are most common in cryptocurrency world. Such scammers try to replicate and create websites that are like the original sites and especially trading platforms. This tricks the users to provide their login details. As they obtain the information, such scammers access the information and steal cryptocurrencies and take custody on the victim’s account. To avoid such phishing attempts and scams, verification of URLs and their websites is important. Before you enter your details on any such site, make sure it is the original site and not the fake one.
- Ponzi Scheme
Ponzi schemes always lure new investors and therefore many fraudsters promise for higher returns. Returns are given when the investors give them money, and the scheme collapses when there are no more new investors. Bitcoin or crypto based Ponzi schemes are common, and many victims fall in this trap. To stay protected, do not fall under such schemes make sure you are not investing with such individuals. Unrealistic returns promise and hopes to indicate such Ponzi schemes.
- Fake Wallets
Fake crypto wallets are created to steal cryptocurrencies from the users. Such wallets are downloaded from third parties and not from app stores. As the individual installs them on their devices, the fake wallets and its creators steal the crypto from it. To avoid such attacks and frauds, download wallets that are available on the legitimate app stores and carry good ratings. Also go through reviews and social profiles of such applications before downloading and piping in your information.
- Fake Exchanges
Fake crypto exchanges are created to steal and rip off money and crypto from people. These kinds of sites lure people to use their platform in return of less fees and higher returns. As the victim falls prey to the schemes, the scammers disappear with the funds. To stay away and not falling in such scams only rely on reliable and reputable exchanges. Reputable exchanges are created with the good track record and solid social proof. Do go through the reviews and trading volume on such platforms and exchanges.
- Fake Bitcoin Mining Scams
As social media scams are more rampant in crypto world, many social media imposters come to rip off people by making them invest in Bitcoin mining. They ask their followers to send them Bitcoin or other cryptocurrencies and in return they would double the amount. As the victim sends them BTC they disappear with their funds. To avoid these imposters, do a thorough research before investing in social media opinions and get into any BTC mining scheme.
Conclusion
In short, Bitcoin and crypto scams are real and results in people losing funds. To protect yourself, conduct deep research and do background research. Use reputable crypto exchanges, wallets, and mining businesses. Also keep your private wallet keys and login details safe when dealing with cryptocurrencies sites and wallets. By following these steps and tips, you can stay safe and keep yourself protected from Bitcoin and other cryptocurrencies scams while doing P2P.
About Bitflex
Bitflex is a cryptocurrency exchange platform that offers traders a secure, easy-to-use, and convenient way to buy, sell and trade cryptocurrencies. Our platform has been designed with investors of all levels in mind, whether they are just starting out or experienced traders. We offer various features and tools to help users make the best trading decisions possible, including advanced charting and analytics, real-time market data, and various customisable trading interfaces. At Bitflex, we are dedicated to empowering our users and helping them reach their financial goals.
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