Bitcoin: 3 Of The Greatest Bitcoin Scams

With the ups and downs of Bitcoin over the last few years, many tried to take advantage of Bitcoin users. Scams like these are not uncommon even today. Malicious individuals still try to make a fast profit or just act maliciously for the fun of it. Here you will read of the five biggest bitcoin scams and learn where to watch out when doing bitcoin business.

1. Fake Wallets

Scammers started creating fake wallets that looked similar to trusted ones. They even used famous logos and names for their wallets. People were tricked into downloading it thinking its legitimate since some of them could be found even on Android mobile stores. Scammers also scammed users by promising greater anonymity. Tricking people into believing was easy. Users download the wallet, it works fine for few days and then the app crashes and the user is left empty-handed. You can protect yourself by finding an accredited, popular wallet and consult with other bitcoin wallet users.

2. CyberGames

Many investors made huge investments in a company called GAW Miners. The company convinced the investors that large amounts of computing power are necessary to mine bitcoin so he made tons of fake mining contracts. The investors got angry when they didn’t get the returns they were promised. The owner of the company got away with more than $10 million worth of funds. To protect yourself from such scams, go through a deep research on mining providers that are well-known and acclaimed.

3. Fake Exchanges

One of the most popular scam methods. The way it works is these exchanges have lower credit card processing fees. This not only compromises your bitcoin investment, credit card details are also put at risk. This is why you always need to use reputable exchanges that are trusted rather than using an unknown site that gives you a lower price.