Do you want to avoid Bitcoin scams when trading or investing in this cryptocurrency? If so, these tips should help you spot Bitcoin scams.
One thing that makes Bitcoin attractive to most users is the anonymity it promises. Unfortunately, this enables scammers to blend into the scene with seemingly plausible claims. What’s more, most people don’t know much about Bitcoin, making them soft targets for scammers.
Luckily, some crypto investment platforms shed light on these digital assets. For instance, quantum ai explains Bitcoin and other digital currencies that users can trade on the website. Consequently, you can use such a platform to start trading Bitcoin. Unfortunately, some scams are not easy for new crypto investors to detect. This article provides tips to help you spot Bitcoin scams.
Contents
Fraudulent Bitcoin Brokers and Crypto Exchanges
A crypto exchange or Bitcoin trading platform allows you to purchase and sell cryptocurrencies. However, some sites and applications seem like genuine crypto exchanges, yet they are platforms that fraudsters use to scam unsuspecting Bitcoin traders.
Therefore, research the crypto exchange or broker you want to use when trading Bitcoin. Perhaps, you can start by reading reviews other users have written about a crypto trading platform. Avoid a Bitcoin trading platform that purportedly uses automated technologies to beat Bitcoin fluctuation and get you the best deals.
Also, a broker can be untrustworthy and entice you with lucrative introductory offers. A broker can promise you a once-in-a-lifetime offer to get your money. Therefore, avoid overhyped brokers and crypto exchanges because they only want your money. Some of these platforms charge expensive commissions and high withdrawal fees. Some can even set extra fees for withdrawals or trading.
Guaranteed or Very High Returns
A crypto trading or investing platform can promise you unrealistic returns. Therefore, check the profits that a Bitcoin trading app or website guarantees you to determine whether it’s feasible. For instance, a Bitcoin investment company can promise you a 1,000% return within 18 months. While this sounds amazing, it’s unlikely to happen.
However, scammers know that such fake promises attract some investors. Therefore, avoid any investment that promises or guarantees you very high returns without a strategy to prove how this will happen.
Unusual Investment Packages
A crypto investment can allow you to subscribe, invest a specific amount, and receive weekly or daily returns. However, such returns are usually unsustainable, slowing or even stopping after a while. The internet has many such offers and tricks. Therefore, understand how the investment works before spending your hard-earned money on it. In most cases, such packages are too good to be true.
Non-Existent or Unnamed Team Members
Like conventional investments or businesses, you want to deal with real people. Ideally, you want to know who runs the investment. Therefore, start by researching the owners of the platform via which you want to invest in Bitcoin. Check their background and social media profiles. Also, find out for how long the exchange has been in business.
Although this may sound like a lot of work, it will help you determine the legitimacy of the platform you use to invest in Bitcoin. Also, this research will enable you to know the person to follow if things don’t work out as expected.
Business or Government Authority Impersonation
Scammers can impersonate a business or government authority to steal from innocent people. For instance, some people have deposited fiat money into Bitcoin ATMs, paying imposters that claim to be specific government authorities. Some have lost cash to scammers that pose as reputable crypto exchanges. Therefore, ensure that you’re dealing with the right company or government authority to avoid losing money to scammers.
Final Thoughts
Bitcoin is a lucrative cryptocurrency, making it attractive to scammers. If planning to start trading or investing in Bitcoin, understand the possible scams and ways to avoid them. That way, you can ensure the safety of your investment or the money you use to trade this cryptocurrency.
