How to Identify Bitcoin & Cryptocurrency Scams

How to Identify Bitcoin & Cryptocurrency Scams

Bitcoin and cryptocurrency scams are a real problem in the current climate. However, there are ways to tell if something you’re hearing about is real, or just someone trying to fool you. Here are the signs you need to watch out for.

With the Bitcoin economy growing, it is becoming increasingly easier for scammers to assume identities and spread false information. As a result, it is important to carefully review any information you read. The following information will help you determine whether or not any information you possess is accurate.

One of the most common misconceptions surrounding Bitcoin and other cryptocurrency is that its users must be computer geeks who can only ever make money mining, trading, or selling cryptos. This is not true, as anyone can make money with cryptos, provided they know what they’re doing. Here’s how.. Read more about how to mine bitcoin and let us know what you think.

In many ways, the world of cryptocurrencies is still the Wild West, a world of misinformation aimed at extorting money from unsuspecting investors. Our team receives between 1 and 5 emails a day about inquiries about various companies or individuals who they think are planning to scam them or who have already successfully scammed them. All of the following examples are from people who have contacted us.

Most of these scams are fairly easy to detect with a little research and diligence. Here are some ways to easily spot these scams.

Guaranteed return

If something sounds too good to be true, it probably is, and the world of cryptocurrencies is no different. No one can guarantee an income to someone who invests in bitcoin or cryptocurrencies.

It’s entirely possible that the crypto currency you buy will rise by 20% or even 50%, but it’s equally possible that it will fall by the same amount. If somewhere a guaranteed daily, weekly, monthly or annual income is advertised, you need to move on. The risk is just too great. Here’s an example of an earlier site that promised similar returns and managed to attract $15 million in investors.

How to Identify Bitcoin & Cryptocurrency Scams

Due diligence

What steps can you take as part of your due diligence? First, ask yourself if you would trust the site if it wasn’t a crypto-currency site. Would you trust a stockbroker if their website looked like the one you are analyzing? Why else take the risk? If there is even a 50/50 chance of losing your money, the risk is too great and you should move on.

Here are some basic steps to check the reliability of a company:

  1. Check the page for spelling errors or vulgarity. Scammers are often based in Ukraine or Russia, and English is not their first language.
  2. Make sure the website does not contain any logos or images that appear to have been copied from other websites.
  3. Visit the About Us page or Meet the Team. Profiles of founders/owners/managers should typically include links to LinkedIn or other social media. Click on these social media accounts and do a little research.
  4. Make sure LinkedIn profiles actually contain information about the company you’re looking at. This is to prevent cases where a scammer simply adds someone’s profile without knowing it. (Yes, this is common, especially in ICO scams).
  5. Check the registration date of the domain name and compare it to the About Us or Meet the Team page. For example, you can find out when a domain name was registered. B. Find out with the Who-Is service here. Who Is simply checks when the domain name was registered and provides some basic information about the owner. Most of the information in the Who’s Who section can be faked. The important detail you are looking for is the registration date. There should be no discrepancy between the information on the website and the registration date of the domain name. For example, if they claim to have been active for 3 years, but the domain name was only registered last year, then you have a problem.
  6. You’re looking for z. B. Google a domain name or trademark + scam :  The BitConnect scam.
  7. If you’ve heard on Twitter or Reddit about a new company mining cryptocurrencies, setting up an ICO, or doing cloud mining, it’s probably a scam. These are usually bots that automatically respond to relevant messages, and most victims are on these two social networks. Facebook came in third.
  8. Pressure tactics: If you’re told you have a limited time to make money with a new cryptocurrency, or people are trying to make money off of your FOMO (Fear of Missing Out), move on.
  9. Phone calls: No reputable company or broker will ever call you to offer to invest.
  10. Follow your intuition, don’t let greed fool you. We often know when something is wrong. If you feel this way, keep walking. There will always be other options.

Bitcoin and cryptocurrency scams are one of the most widespread scams of our day. From initial investment to the end of the scam, these scams follow a common pattern.. Read more about bitcoin mining and let us know what you think.

Frequently Asked Questions

How do you know if a Bitcoin is real?

Cryptocurrencies have been on the rise for the past several years, making some of the world’s biggest companies sit up and take notice. Bitcoin, the first cryptocurrency, has been around since 2008. Since then, many altcoins have been launched, including such ones as Ethereum, Litecoin, ZCash, and Dash. These digital currencies are used to carry out transactions online, and they are either mined by people or purchased using traditional currencies like the US dollar or the Euro. Cryptocurrencies have gotten a bad rap over the years and are often described as “a nasty way to pay for things.” But, is this really the case? Bitcoin isn’t actually money. If a government says it is, even if that government is Bitcoin’s creator, it becomes “real” for that government at that point. So, how do you know if a Bitcoin is real? Well, it depends on who is asking if you should buy it. If a friend or family member who has been investing in Bitcoin for a while asks you if you should buy it, buy it. If the Federal Reserve Bank of Atlanta says you should buy it, don’t.

How do I find my Bitcoins?

What is Bitcoin? Bitcoin is a decentralized digital currency that is not tied to any country’s currency. It is mined, traded, and stored like gold or other precious commodities. It is used to pay for products and services, like regular currency, and can be transferred from one person to another without going through a bank or third party. Bitcoins are created by computers solving complex mathematical problems. Every so often, someone sends me an email asking how to find their Bitcoin. They know generally what Bitcoin is, but they don’t know how to find the address. They know it’s a digital currency, but they don’t know how to get it. They know it’s not a stock, but they can’t find the address. They’re not sure if it’s a currency, but they can’t find the address. They’re not sure if it’s a security, but they can’t find the address. They’re not sure if it’s a collectible, but they don’t know the address. They’re not sure if it’s money, but they can’t find the address. They’re not sure if it’s a commodity,

Can I trace a Bitcoin address?

A common question that comes up on a Bitcoin forum or social media channel: how can I find the wallet or address that owns that Bitcoin? As you may know, Bitcoin wallets are like bank account numbers, and it’s pretty easy to find out where the money came from. Simply connect your wallet to a Bitcoin client like the popular Blockchain.info and you’re good to go. Bitcoin is a digital currency that has been in existence since 2009. It is a form of cryptocurrency that is used to transfer money over the internet. Since it is digital, it can be stored in a wallet, which acts as a bank account. A wallet can be from a cloud service such as Coinbase, a website, or a physical device.

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