With Bitcoin value increasing every day, more and more people are investing in it with the hope of making a windfall when Bitcoin price goes through the roof. It’s natural that when something good is boiling somewhere, it tends to attract both good and bad people. When bad characters infiltrate that ecosystem, fraud is the obvious thing that could happen. And the good unsuspecting people bear the biggest brand. Today, we are going to illuminate you on how to dodge the most common Bitcoin frauds:
· The proliferation of fake Bitcoin wallets
Any experienced Bitcoin investor can tell you that it’s difficult to differentiate a genuine Bitcoin wallet from a fake one. This is because Bitcoin wallets are developed to store Bitcoins and not for commerce. In other words, it has totally nothing to do with making profits. So these fraudsters develop fake wallets with malware so that when you plug them into your computer, they harness your private keys, which they use to steal your Bitcoins. To prevent such a scenario from occurring, buy wallets from reputable Bitcoins vendors.
· The upsurge of fake Bitcoin exchanges
With demand for Bitcoin growing at a frantic pace, more and more people want to invest in Bitcoins. And the convenient way to acquire Bitcoins is to buy them. This has led to the proliferation of Bitcoin exchanges, with fake ones also jumping on the bandwagon. These fake exchanges often advertise cheap ways to buy Bitcoins. They may even offer 5% of the market Bitcoin value. To spot fake Bitcoin exchanges, check their URL. If the https lacks the ‘’S,” which stands for security, then that is a scam Bitcoin exchange. Also, beware of those exchanges selling Bitcoin for PayPal and ask you to enter your PayPay address. It could be a ploy to enter your PayPal email address, and they could harness your password and steal your money.
· Beware of phishing scams when trading Bitcoins
This is the most common Bitcoin fraud. Phishing is whereby a hacker tries to disguise themselves as a genuine company or website by enticing you to visit the website. When you visit that site, your computer gets infected by malware, and they can harness your private keys and steal your coins. The solution to phishing scams is to avoid clicking on any hyperlinks in an open attachment or an email. Always type out the web address directly in your browser to visit the site.
Know these frauds off by heart so that you don’t forget when you see one. It can be a painful experience to spend years mining or buying Bitcoins and lose them in a single day. Always be vigilant online. As they say, ‘’it’s a jungle out there.” You never know who is the good guy or the bad guy.