Top bitcoin scams that you need to know as a bitcoin Investor

Bitcoin has been successful in attracting the attention of millions of people. According to recent research by the University of Cambridge that around more than 5 million cryptocurrency wallets were used in 2017, and most of them belonged to bitcoin. The emergence of bitcoin did not only attract investors around the world but also attracted scammers and criminals. This article would help you to know bitcoin-related scams.

The bitcoin price has reached its peak levels several times, which resulted in fruitful returns for bitcoin investors, but on the other hand, scammers and criminals also benefited from it by using bitcoin for transactions.

As the bitcoin network is backed by blockchain technology, which was criticized in its earlier stages of being primitive as it broke down due to an increase in the number of transactions. The use of cryptocurrency to make a purchase of an illegal substance on the dark web has been an uncontrollable Issue, which raised a big question regarding the misuse of the bitcoin network to exploit the legal boundaries.

The popularity of bitcoin has attracted institutional investors all around the world and at the same time, hackers also shifted their attention towards cryptocurrency wallets. As theft scams regarding crypto wallets have been recorded over time. The most common way used by hackers to steal key information from the crypto wallet is a type of social engineering attack called “phishing”.

Overview of potential bitcoin scams

There is no financial market that is immune to scams and hackers, to counter the threat of these scams and frauds, institutes and authoritative bodies are working to set up a threat-free trading environment, but till then it is important to go through potential scams that you might get caught with while investing in cryptocurrencies like bitcoin.

Fake exchange of bitcoin

In South Korea, a bitcoin-related scam was exposed by the financial authorities called BitKRX. BitKRX was a fake exchange for bitcoin, which emerged as a part of one of the largest trading platforms in South Korea.

Ponzi scheme scam

In 2019, the scam amounted to $ 722 million was exposed, it was operated by the BitClub network, the purpose was to convince investors to get shares of cryptocurrency mining. It also manipulated investors to bring more investors and they all ended up having no returns at all.

Fake cryptocurrencies

There was a common scam used by fraudsters to come up with a cryptocurrency as a substitute to bitcoin. The idea was to create doubt among investors regarding bitcoin cash-related issues and offer them alternate cryptocurrencies. The “My big coin” was part of such a scam in which fraudsters took money from customers to invest in other fake cryptocurrencies and redirected the amount to their personal accounts.

Conclusion

It is very important for fresh crypto investors to make sure that they invest in the right cryptocurrency platform in order to avoid fraud. There are certain platforms like https://tradingplatforms.com/uk/cfd/ that could help crypto investors to get all relevant information regarding cryptocurrencies in order to make investment secure and profitable.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes