Bitcoin is the leading cryptocurrency in the world. Bitcoin’s creation was the way out of the global economic meltdown that plagued the world around the time of its creation. This cryptocurrency asset has raised the ladders of the financial asset’s world since its inception.
The global economic meltdown was a terrible time for the economic currencies in existence at that time; because of the global downturn of the economy, many nations resorted to printing more notes of their currencies, and this led to excessive money being in circulation. It wasn’t long before inflation set in the world, andmoney became practically worthless at that time. These are the events that led up to the creation of the Bitcoin.
The makers of Bitcoin created it to be extremely resilient. The factors that dwindle the value of many other currency forms do not affect Bitcoins.
Many other cryptocurrency assets have followed after the creation of Bitcoin, but the Bitcoin remains the strongest of all crypto assets.The development of the Bitcoin from an asset that’s almost entirely worthless to one that the whole financial world looks upon has been a very long journey. Scammers and con artists have invented methods with which they engage in crypto scams to deprive people of their Bitcoins and crypto investments. The unfortunate thing about bitcoin is that it is not a regulated currency. There’s no central government policy that guides the operation of this cryptocurrency asset.
The unregulated nature of Bitcoin allows it to be a haven for crypto scams and their perpetrators. Bitcoin has another feature which fosters a little trade insecurity, the Pseudonymous factor. The pseudonymous factor lets traders trade without having to confirm the identity of a fellow trader. This feature of the Bitcoin has been taken advantage of by scammers. When a trader falls into the trap of crypto scams, there is practically no place to report the issue because there is no government guiding its operation, and there is no way to trace the source or the endpoint of a crypto scam. It then falls on the trader to seek ways to guard against crypto scams.
There are many ways through which a trader can lose his/ her Bitcoin holdings. The terrible thing about Bitcoin crypto scams is the fact that they hide in the most unnoticeable places, leaving the trader vulnerable at the slightest chances.Bitcoin scams, fraud, and theft are on the rise every dawning day.
In this article, Xtrgate will help you guard against Bitcoin scams as an investor in the leading cryptocurrency asset.
THE GENERAL NOTE OF BITCOIN CRYPTO SCAMS
Like all crimes,there is always a form of identity particular to them. Bitcoin scams have an identity through which they can be detected from scratch. The contents of this section will show some of the tactics used by crypto scammers to perpetrate their crimes.
UNREASONABLE SENSE OF URGENCY
Many Crypto scams (not just Bitcoin) have a note of urgency in their expression. A scam Bitcoin plot would most likely sound as if the trader is about to miss a lifetime opportunity if he/she doesn’t act fast. Some scammers that use this tactic make it feel as if the trading platform will stop taking new trade orders any moment from the time they contacted their victims and tell such to hurry and so as not to miss the opportunity. The psychology of this tactic is to throw the victim off balance so that he/ she does not have enough time to verify some of the dubious tracks on the platform.
Many traders have fallen for this tactic, and they have been scammed as a result. Please understand that no cryptocurrency trade activity coerces peopleinto trading on its platform. Real and authentic trading platforms open their website platforms for all to review,when anyone is convinced of the potentials that reside on the platform, such can place investments on the platform. Only scam Bitcoin investments sound as urgent as if the world will fall apart if the trader does not invest immediately. As a general note of check, take at least a week to review a crypto broker’s platform before placing funds on its platform. Within a week, any serious trader should have been able to make some findings about the platform.
UNREASONABLY HIGH RETURN ON INVESTMENTS
Although trading cryptocurrency can be a very lucrative business endeavor, however, it often comes with its challenges. Many crypto scams promise unrealistic returns. The reason why they promise such returns is to blind the minds of their victims to the possibility that the platform could be a scam. As the saying goes,”when it sounds too good to be true, it probably is.” Many people have been duped because they focused only on the returns promised by crypto asset brokers, and not on the way they intend to generate those profits. There was a bitcoin broker in South Africa who promised a hundred percent return on investment in fifteen working days (three weeks). Many people flocked into his scam platform.
The platform got so popular that at some point, people queued as early as 3 am to place their investments on the platform. He had paid a few people in the first few weeks of his operation, so that encouraged many more people to join the platform. One day, he fled the South African shores with no way to pay back all the people who had willingly committed their funds to the scam platform. As a rule, do not be blinded by the returns on investment of any trading platform. Make your findings about the platform.Don’t be blinded by the fact that they claim to have paid some people. Crypto scams have a way of making themselves look very original. The cryptocurrency trading market works in the same way as the trade market of other assets, the market conditions are not stable, and they can cause a trader to lose on trade orders. Any broker that promises consistently continuous high returns is not being truthful, and may likely be laying a bait to attract victims for a crypto scam.
THE BITCOIN SCAM TEST
There are a lot of factors to look out for in spotting a bitcoin scam. The questions in this section will help you determine if you have found a Bitcoin scam or not.
- Does the website promise an amazingly high return on investment?
- Does the service promise returns in arbitrary timeframes?
- How does the service intend to make its profits?
- Does the website platform of the service show detailed information about the administrators of the platform?
- Can you find the name of the administrators of the platform anywhere on the internet?
- Is the platform’s website more than six months old?
- Are other verifiable websites linking to its website?
- What do google reviews say about this platform?
- Does Bitcoin talk have anything negative to say
- What do Reddit reviews say about this platform?
- Does this website promise something that seemstoo good to be true?
Answering all the questions above should give you an idea about the originality of the Bitcoin platform. As a golden rule, read a lot of reviews about the platform before committing funds to it. Do not be monotonous about the reviews of the platform,as some scam platforms host reviews to make themselves look credible to their victims. The only way around this is to read a lot of reviews about the platform of the broker. Reading many reviews will help uncover the entirety of the truth about the platform.
Another golden rule to guide against crypto scams is; don’t ever share your crypto wallet ID with an unconfirmed website. Many Bitcoin stammers intend to gain unprecedented access to the crypto holdings of an investor, and how better to carry out this terrible act than present the disguise of a real platform asking the trader to share his/ her wallet details. Scammers who use this strategy usually just change the security details of the wallet to shut the investor out of his/ her wallet or transfer the Bitcoins to other crypto wallets. The bad thing is whensuch scams are perpetrated; there are no ways of trading the Bitcoins because of the pseudonymous feature of crypto assets.
Another thing a trader should beware of is the fact that some websites are infected with malware designed to steal the details of the investor. The details stolen are used to access and drain the crypto wallet of the trader. The best way to avoid this form of Bitcoin scam is just to be extremely careful with one’s internet surfing nature.
Bitcoin has developed from a network of just a few individuals to a currency network that serves a global audience. It is easy for a scammer to hide in the shadows and haunt cryptocurrency trader in a network as vast as that of the Bitcoin, it is up to the trader to find a way to protect himself/ herself from the activities of con artists.