Since it was launched in public, Bitcoin has always been the number one headline in most news. Almost most of us have encountered the term “Bitcoin” as it is being used to scam millions of users around the world and paying for black market goodies.
Financial professionals still don’t have enough idea regarding the usefulness and legality of Bitcoin. Throughout his whole history, the price of Bitcoin has fluctuated a lot. Some of you might found Bitcoin during the years that it has high price exchange value, which made you interested in investing in it.
Considering its popularity, a lot of hackers formulate their own version of Bitcoin scams, and you need to know about it before investing.
What Is a Bitcoin Scam?
The definition of a Bitcoin scam is way different from what you used to know as its meaning. Bitcoin is a form of digital currency that is very unregulated. Bitcoin’s value is being given because of an agreement. Basically, it is defined as a moneybag featuring a lock, which is in the form of Bitcoin private keys.
Bitcoin scams are both public and criminal in nature. Considering that it is not being managed by the government or third-party entities, things become more complex and difficult. That’s why most con men and hackers have the chance to scam millions of Bitcoin users.
In this post, we are going to provide you with the different Bitcoin scams that you should take note of. So, if you want to know more about it, then keep on reading.
Fake Bitcoin Exchanges
Creating an affiliate branch that looks like a legit and respectable organization is one of the easiest and simplest methods to scam Bitcoin investors. Well, that is what exactly most scammers and hackers in Bitcoin are doing. One of the notable examples of fake bitcoin exchanges is the South Korean scam BitKRX.
They claimed to be the organization that helps you trade and exchange your bitcoin tokens, but unfortunately, it was 100 percent fraudulent. As stated by the Coin Telegraph, BitKRX is a type of Bitcoin scam that presented itself to be the branch of the South Korean Stock Exchange and South Korean Futures Exchange. The BitKRX is using this fraudulent affiliation to encourage Bitcoin users to use their organization in trading and exchanging Bitcoin. In 2017, this scam was ended.
Fake Bitcoin Scam
Fake currency is a classic form of scam that involves cryptocurrency and bitcoin. One of the good examples of this Bitcoin scam is My Big Coin. As you can notice to the name of this scam, the website is selling fake Bitcoin tokens. Back in 2018, the United States Commodity Futures Trading Commission filed a lawsuit against the website that lured Bitcoin users and investors.
Bitcoin Gold Scam
Bitcoin gold scam has lured a lot of bitcoin investors and users around the world. This is very naive. The nature of this scam is that it encourages Bitcoin users to sell and trade their Bitcoin tokens as an exchange for gold. As concluded by CNN in 2017, the BTG (Bitcoin Gold) wallet lured loads of Bitcoin users by promising them that they can exchange their Bitcoin tokens with gold. One of the perfect examples of this scam is mybtgwallet.com. The said site was using a legal site to encourage investors to give their private seeds and keys.
Before using the bitcoin, trading platform read the useful information here iplayapps.de also make sure that you know and understand the ways of scammers luring you to get your Bitcoin tokens. As much as possible, ask the professional Bitcoin users about the safest ways to invest in Bitcoin.