Bitcoin has been a revolution since the day one of its launch in the digital world and a new source of the digital system has opened up! However, not everyone is okay with the digital coin as there is a huge probability that it may end up as a scam business! One must be aware of such facts and here we’ll explain about 7 Bitcoin scams you must know about.
The main motto or aim of the scam is to steal money from people around the world by means of fake promises and programs. This article will help you to ring a bell and the so-called “false alarm” must lid up! Scammers usually take advantage of the people’s unawareness, and make them fall into the trap. Let’s have a look on the scam list,
1 - UNVERIFIED BITCOIN EXCHANGE PLATFORM SCAM
Exchange platform is a multi-currency cross-linked stage where one cryptocurrency is exchanged for another or fiat-cryptocurrency and vice versa. A Bitcoin holder can exchange his/her holding BTC and exchange it. Here you can buy Bitcoins also and add in the wallet. Due to this reason, a scam may result you in losing a large amount of money.
Some exchange may offer you more profit or discounts and you will easily fall for such mesmerizing acts. The security threat is an issue that may collapse the entire system single-handedly. Let us give you the instance where such scam occurred in the past period of time – "Mt. Gox disaster!"
Back in 2010, when Jed McCaleb started an exchange platform in Japan, it became an interesting source of income in the digital world. Here you can buy, and sell Bitcoin and by 2013-'14, about 70% of Bitcoin is in circulation. A security breach changed the fortune of the exchange platform and by February 2014, Mt. Gox has suspended the trading and become a victim of bankrupt. The platform was shut down, and liquidation wiped out it completely. Liquidation is the final step of an organization, and its dead meat after this process. The team has redistributed all the assets and properties, and about 85000 Bitcoins got stoled in this allegation.
Another theory suggests that BTC where lost due to the transaction to the invalid addresses. Also after the breaching issues, BTC value dropped down to the bottom. This failure is considered one of the biggest scams of the era. Lots and lots have lost their money due to this epic scam. A solution is made from the court by appointing an official to look after the debt.
HOW TO AVOID BTC EXCHANGE SCAMS?
Check the authority of the exchange and their exchange procedures closely.
The promotions to make you rich - kind of promises are to be noted.
Regulations - this part carried a huge role and if not avoid it.
The exchange rates must be double checked and make a comparative study.
How to deposit the money and the withdrawal norms need to work in parallel without any complexities.
Before making the trading in never-heard-before exchange platforms, make sure they are genuine but not fake/scam.
So beware of such situations and make sure you have made a throughout analysis before making the payment or trade in such platform.
2 - PONZI BUSINESS – BTC SCAMS
A business that deals through online methods is always a great concern, and this sort of business needs to follow several things. Usually, a business that runs with a digital currency tends to fall under the scam category. Bitcoin after its rise in the value has offered immense business attraction, and several initiatives have been put forward after it.
When such valuable asset combines with a well-recommended business platform then, it’s a huge opportunity. And on the other side of the coin, a dark scenario opens up! A BTC related MLM schemes are already working in progress, and people really enjoy the opportunity. If such platforms offer or promise you with a high return scheme, just don’t fall for it directly. Investors fall for such Ponzi business scams and lose a fortune, without a recovering point. There is no return from that point, recently in a BTC scam; investors have lost about $300 million.
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