Cryptocurrencies are pretty complicated and can be very confusing when it comes to new users; plus, it is scantily regulated, making them an ideal target for scammers.
But worry not; a little know-how and some common sense can help you protect yourself against cryptocurrency scams.
Read on to know how to identify the most common Bitcoin scams. Here’s a rundown on some scams.
Bitcoin Revolution and Bitcoin Evolution
Both are common cryptocurrency scams that have been making rounds since 2019 and 2020. They are all the same and are periodically re-used under a new name by promising the same-old results.
Bitcoin scams typically claim to be some kind of investment opportunity and hide behind fake celebrity endorsements on social media.
These scams are now pretending to be cryptocurrency trading bots. They are mostly spread through a mix of paid advertising, bots, and compromised accounts.
Once you follow the link in these social media posts, it will take you to a website that is designed professionally to look like a legitimate news outlet, with a made-up story about the product and fake testimonials.
Victims who end up signing up for scams are made to pay into an account which creates an illusion of profits. Bitcoin Revolution used a random number generator to create this illusion before.
The scam generally goes on until the victim decides to withdraw their “profits,” only to find out that all the promises and profits were fake. It is also possible that they will put you in touch with an apparent agent to make them pay additional payments before they can withdraw their funds.
Cryptocurrency trading bots are real but not risk-free money machines like these scams advertise. There are safe ways to buy and sell Bitcoin, but it does not come risk-free.
Detect crypto scams
- If you are not sure if a particular crypto website is a scam or not, go through this checklist to help sort legitimate providers from the platforms you are better of without.
- Check if the website connects securely over HTTPS and not HTTP. If it is the latter, the site is not secure, and the data you send to the website is not secure either.
- Check for any obvious spelling mistakes or errors in the website’s URL. If there are mistakes, the website is very likely fake.
- Look at the grammar and see if the site has bad grammar, awkward phrasing, or spelling mistakes. If it does, it does not necessarily mean it is a scam but proceed with caution regardless.
- If the website promises abnormally high returns, like claiming you will be able to double your investment. It is a big red flag and a common sign of a scam.
- Look at the “About Us” page and see if it has real people behind the company. Check if the company provides any details about where the company is registered. If there is a lack of information about the company and what it does, it could be a scam.
- A trusted and respected site has a legitimate, reputable website linked to it.
- Look for any negative reviews about the website since the crypto community is quick to spread the word when it comes to scams.
- Check the registered owner of a domain or website. If the owner is hidden behind private registration, it is a problem. Look for as much information as you can about the people or company behind the website to play safe.
- If the domain has been registered for less than six months, it is new, and you need to be cautious.
- Look at the website attentively and see if anything about the website seems off or raises a red flag or if it is all too good to be true. Trust your gut. Do not go ahead with a site you are not okay with.
- Celebrity endorsements are also a problem. If the website is claiming any sort of celebrity endorsement to get people to lower their guard, keep your guard up. Most of these endorsements are fake.
- Also, if social media was your first point of contact with the firm, then understand that social media and unsolicited messages are common methods for scammers to prey on.
The checklist above is not foolproof either since it is possible for a website to pass all these tests and still be a scam. Remember to do our due diligence no matter how attractive a deal sounds or how genuine the website looks. Research thoroughly before providing any personal or financial information to any website or app.
Bitcoin scams are easy to fall for with their exaggerated claims and promises, and hence it is your duty to be vigilant and know the basics of cryptocurrency, so you don’t believe in anything that promises assured returns; there is no such thing as guaranteed in any financial market.
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