Avoiding Bitcoin Scams

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You have probably come across scams when you’re searching for information on Cryptocurrency. There are a number of different ways to avoid being taken advantage of and making a fool of yourself. One way is to read through threads about scams in the Bitcoin Forum. These threads are usually fairly short and explain the scam’s purpose and tactics.


The first step in avoiding cryptocurrency scams is to be aware of the warning signs. Some bogus websites pose as recruiters or job seekers and lure victims into investing in cryptocurrencies. Often they offer multiple investment tiers but don’t give you the opportunity to withdraw your money. Others may seem to be sponsored by big name cryptocurrency investors or celebrities. These scammers often promise exponential returns on small investments and ask for personal information.

If you feel that you have been targeted by a scammer, you should immediately report the email to your email provider and run a malware scan. Scammers may also pose as human resources employees or recruiters. They may even request a payment in cryptocurrency to begin job training or fund management.


Despite the popularity of Bitcoin, it is important to be wary of the many Bitcoin scams. These fraudulent investments are not uncommon and can cost you thousands of dollars. Unfortunately, many people are not aware of the risks involved. A typical scam involves a scammer luring you to an unregistered bitcoin platform. They will initially ask you for small investments that will escalate to larger sums. After you deposit your bitcoin, they will demand more funds to facilitate withdrawals. When you try to withdraw your money, they’ll usually come up with some excuse for not allowing you to withdraw your money.

Another popular scam is a fake email claiming to be a hacker who has gained access to your PC. They will claim to have uncovered incriminating evidence or taken over your webcam. They will often threaten to send this information to your friends and contacts on social media. If you receive an email like this, the scammer may be trying to lure you into sending them Bitcoin. You may want to check the Bitcoin Abuse database to verify the validity of the wallet address in question.

Imitation schemes

One of the most common types of Bitcoin scams involves impersonation schemes. This occurs when scammers pose as established businesses offering fraudulent crypto coins. They use social media ads, news articles, and slick websites to trick people into buying their coins. Then they steal the money from them. The best way to protect yourself from this type of scam is to be cautious and check out other communication channels before you provide your personal details.

Another common type of cryptocurrency scam involves fake prize giveaways that lure people into giving away their personal details. These sites will often ask for their contact information so that they can contact the winner. This can give a hacker access to your personal information, which they can use for further impersonation. Also, you should never trust anyone who claims to know the price of bitcoin. This is often a pump and dump scam, in which imposters artificially drive the price of bitcoin so that they can quickly sell it for a profit.

Gambling sites

It’s important to know the difference between legitimate Bitcoin gambling sites and Bitcoin phishing scams. A good way to identify legitimate Bitcoin gambling sites is by reading reviews. Then, look for the “two factor authentication” option, which adds extra security to your account by sending you a code via text message or email.

This option can save online casinos money by reducing the need to implement KYC mandates. It can also protect you from fraudsters by safely weeding out obvious fraudsters during the onboarding process. Ultimately, this protects you from falling prey to fraudulent websites and robbing yourself of your hard earned money.

Cold wallets

The use of cold wallets to store cryptocurrencies is a great way to protect your funds from hackers. A cold wallet is a hardware device that is not connected to the internet, making it extremely difficult to steal or compromise your private keys. Compared to a provider-hosted wallet, cold wallets are far more secure.

Scammers often target unsuspecting users by sending phishing emails pretending to be from a bank, cryptocurrency exchange, or wallet provider. The scammer then uses a link to lure victims into entering their account details, which they can use to steal the funds. This is why it is critical to double-check the URL of any email you receive. If you suspect that an email is spam, you should report it to your email provider and run a malware scan.

Promises of huge returns

One of the most common Bitcoin scams is a company that promises to make you a millionaire overnight. In the case of Sebastian from Cologne, Germany, he invested more than $600,000 into the company and later realised he’d been scammed. According to the Federal Trade Commission, more than $80 million has been lost by Americans in this scam.

The scammers usually use social media and group chats to entice victims. For example, one such scam operates on the Telegram chat. In the scheme, scammers set up a small group of people and share a referral code. These people then send out encouraging messages to attract newcomers. Once the newcomers sign up for the program, they are assigned an individual bitcoin wallet. Then they are told they must wait 99 or 120 days to see a significant return.