Bitcoin Scams: How to Protect Yourself

Bitcoin scams are becoming more and more common.

With the rise in popularity of Bitcoin and other cryptocurrencies, scammers are finding new ways to target unsuspecting victims.

If you’re interested in buying or investing in Bitcoin, it’s important to be aware of the risks.

Here are some tips on how to protect yourself from Bitcoin scams.

What are Bitcoins?

Bitcoin is a type of cryptocurrency or digital currency that relies on encryption techniques to generate units. It’s a type of peer-to-peer transfer known as mining. Unlike traditional currencies, bitcoin isn’t backed by any government or regulatory body.

Since there’s no real regulation around bitcoin, it’s ripe for scams. If you’re thinking about getting involved with the cryptocurrency trend, be aware of these common bitcoin scams.

Eight Common Bitcoin Scams

1. Fake Bitcoin – If someone offers to pay you in bitcoins for something, be wary. They may be attempting to scam you by teaching you how to use bitcoin, but in reality they just want your merchandise. Fake bitcoins are worthless, so don’t be fooled!
2. Don’t be scammed by a Ponzi scheme! In this type of scam, someone offers you a fake investment deal. They promise to give you back a lot of money or bitcoins, but they never do. Sometimes these scams are very elaborate, and you may even see your ‘account’ growing. But if you try to cash out, you’ll realize it’s all a lie. So beware of any offer that seems too good to be true.
3. Beware of IRS scams! These fraudsters typically call people and claim that they owe a large sum of money to the government. They then instruct their victims to purchase bitcoins and use them to pay the supposed debt. However, in reality, the victim is not actually buying any bitcoins and the scammer is simply pocketing the money. Don’t fall for this trick – hang up and report any suspicious calls to the authorities immediately.
4. Switch Scam – Don’t get scammed by fake cryptocurrency schemes! If someone is trying to get you to buy their new virtual currency with your hard-earned bitcoins, beware. These types of scams are becoming more common, so it’s important to be aware of them. The fraudsters will often claim that their new currency is the next best thing and will outperform bitcoin overnight. They may even have fake records that appear to be proof, but it’s all fabricated. Don’t fall for it – protect your bitcoins and only invest in reputable currencies.
5. Malware – Be careful when you’re shopping for bitcoins online. There are a lot of fake sites out there that will infect your computer with malware if you’re not careful. This malware will “mine” your computer for bitcoin units, and it can really mess up your computer. Plus, you’ll end up giving them actual money. So be careful and only buy bitcoins from trusted sources.
6. Beware of celebrity-endorsed bitcoin scams! If you see a famous person offering “free” bitcoins or a great deal on bitcoins, it’s likely a scam. No one is going to give away extra bitcoins for nothing – so if you see an offer that sounds too good to be true, it probably is.
7. If your computer gets hijacked by someone demanding payment in bitcoins to release it, this is a common type of ransomware attack. Obviously, it’s a scam, but it can be tempting to pay the ransom if your computer is locked up. Don’t fall for it – there’s no guarantee they will actually release your computer even if you do pay.
8. When it comes to spotting fake wallets, it pays to do your research on social media. This way, you can be sure that the wallet is the real deal. To protect your computer from malware, be sure to install reliable anti-virus software. For extra security, use a good wallet application that lets you have multiple wallets. This way, if one is ever compromised, you’ve got backups.

Final Thoughts on Protecting Yourself from Bitcoin Scams

When it comes to avoiding scams, it pays to find someone you can really trust who understands bitcoin inside and out. They can mentor you and help you steer clear of problems. Because if you make a mistake, there’s no one who can help you or give you a refund. You’re out of luck – and money.