Common Bitcoin Scams And How To Spot Them

In this bitcoin era, there are many scams you should watch out for. Listed below are some of them.

  1. Counterfeit bitcoin exchanges

A bogus exchange known as BitKRX was just uncovered in South Korea by their financial authorities as well as the Bitcoin users in their community. BitKRX has introduced itself as one of the biggest bitcoin trading platforms in South Korea and stole the public’s wealth. Stick with common and famous Bitcoin exchanges and Bitcoin mediums to avoid bogus platforms and get news updates about bitcoin scams fast.

Also, there are scam websites and mobile apps that were used by scammers who are pretending to be associated with famous bitcoin exchanges. Unconsciously, users provided their account information to scammers when they registered into the bitcoin websites.

2.Ponzi scam

The principles of Bitcoin scams are similar to pyramiding scam wherein they acquire the money from their newly invited members in order to compensate their former members.

14 scammers were arrested on one of the pyramiding scam called as MiningMax, in which they managed to stole $200 million money from their victims. As you might have already guessed, MiningMax members never acquired any profit on their Bitcoin venture.

3.Fraudulent crypto currencies

A new common crypto-currency scam was introduced as a substitute to Bitcoin. One of the common schemes is they require you to deposit money on Bitcoin in these start up crypto currencies investments before it is too late.

Due to this, a website/app called My Big Coin was discovered to be fake and was closed as a result. The scammers operating My Big Coin secretly stole $6 million from their investors to capitalize on the crypto-currency. However, the money was never invested into Bitcoin, but instead went into the scammer’s private bank accounts.