Cryptocurrency has made a significant impact in the financial world. However, people’s outlook towards cryptocurrency has changed as more and more people have started adopting it, unfortunately giving rise to Bitcoin scams.
People’s awareness has increased rapidly in recent years, and they have started to appreciate it. Many have started their gold rush or Bitcoin rush to hedge inflation that we have encountered in the post-pandemic era. For many, decentralized finance is appealing as the cryptocurrency holder can amass wealth without the fear of getting taxed.
Although Bitcoin or cryptocurrencies can seem appealing to the masses, many anti-social elements entice innocent cryptocurrency holders into well-woven scams, clearing out their wealth.
Avoiding Bitcoin Scams
Since there are many scammers with the sole intention of scamming poor Bitcoin holders, we have narrowed down a list containing how these scammers entice people. We hope that this article will help you get the Bitcoin Scams money back safely and avoid falling for potential scams.
Unprofessional communication: When scammers wish to bait a potential victim, they will usually try to resort to communication through social media platforms like Twitter, Facebook, and Instagram. If you take a moment to read the text, it will be full of grammatical errors. These texts are loaded with obvious typos and spelling mistakes (most do, but a few might appear sophisticated). The chances of you getting an anonymous email from a scammer too resort to such mistakes. Mistakes are so common that they appear that a 5th grader can do a much better job of drafting an email than these scammers.
Fake contract obligation: An absolute rubbish contract that states you can buy cryptocurrencies like Bitcoin from them, but you are not allowed to sell those.
Imposters: You must have heard through your friends or family or even seen an endorsement from a celebrity or a social media influencer who tries to contact people and act all pally with them. It would help if you avoided such messages as they will entice you into revealing your personal information, which they can use against you. Avoid getting carried away.
Threats: Scammers are known to resort to psychological and coercive methods like blackmail, extortion, or even threatening imprisonment just for you to give in and reveal your private keys. They might ever work on your greed by lying that they are sending you some Bitcoins.
Ambiguous proposal and fake promises: They will present you with a business plan and guarantee good returns by investing in a once-in-a-lifetime opportunity. They won’t explain how your fund will be distributed. Their life-changing opportunity makes you lose your money, while they win your money.
Requesting authentication: Some scammers resort to enticing you to reveal your sensitive information. These scammers appear legitimate and hack into your accounts and will request you to reveal your two-factor authentication password or security code. Avoid sharing such information at all costs. Even better, never entertain such calls.
Securing Bitcoins using a digital wallet
The internet is filled with digital wallets, both legitimate and fake. Therefore, you should make sure that you choose the right Bitcoin digital wallet.
These digital wallets are similar to your physical wallets, which store and keep your money safe and secure. Digital wallets keep your Bitcoins safe and secure and will require a private key authentication each time you wish to access Bitcoin.
A good digital wallet will have strong security, backup capabilities, and user-friendly interaction. Make sure you can also store multiple cryptocurrencies along with Bitcoins.
You should opt for a mainstream exchange platform if your Bitcoin investment is in a few hundreds. However, if the investment is massive, then you should go for an offline digital wallet to store away your Bitcoins.
Digital wallets come in two options: hot and cold. Both have their advantages and disadvantages. A hot digital wallet can be an easy target for cyber threats, while the chances of losing a cold wallet cannot be ruled out.
Thus, before you commit yourself to a digital wallet, do thorough research on digital wallets and configure the amount of Bitcoin or any other cryptocurrency you wish to indulge in.
What happens if you happen to be a victim of a Bitcoin scam?
Unlike traditional currencies that can be traced if they are illegally transferred due to mischief or fraudulent activities, tracing Bitcoin is a challenge. However, few fund recovery agencies are dedicated to recovering any Bitcoins or cryptocurrencies stolen or lost due to a scam. However, it is only possible because they have tremendous resources and expertise available to track your stolen Bitcoins.
Be wary when a fancy advert or text is sent to you. It can help you avoid falling for a scam.
The easiest way to avoid being a scam victim is to do thorough research on the firm or broker who has contacted you. If the person on the other end is not giving you enough time to make a decision, then be sure it is a scam.