Certainly, we have all witnessed the dramatic rise of Bitcoin value over the past data. As an example, the price of one bitcoin was $0 in 2009, but it’s now selling at $60,763.20. Such a turnaround of events has attracted both investors and scammers in equal measure.
So, what should you do if you want to take a plunge into this lucrative sector? Here we take a look at six bitcoin scams you should be aware of before parting with your hard-earned cash.
Let’s dive in!
Bitcoin mining scams
Scammers are currently taking advantage of the fact that mining Bitcoins on your own is somehow impossible due to the resources required. They will, therefore, try to convenience you to pour your money in their mining pool to accrue hefty returns. The fraudsters would then cease communication upon sending your investment.
On other occasions, the scammers would try to convince you to bring in new investors. And in this case, the money gotten from them would be used to pay you and so on.
After getting a significant amount of money from a growing number of investors, the scammers would then disappear with the loot.
Initial coin offerings (ICO)
Cryptocurrency organizations commonly utilize ICOs to collect money from upcoming users. This has resulted in a substantial number of great crypto companies.
On the flip side, a majority of these initiatives have also gone rogue. As an example, 80 percent of the ICOs have been found fraudulent.
In this context, a scammer can impersonate a legitimate ICO to solicit funds from you, especially if you’re on the verge of investing in cryptocurrencies.
Bitcoin Scams and fake websites
In this age and era, fraudsters can easily create fake websites to mimic legitimate crypto platforms. Therefore, it shouldn’t surprise you to encounter many of them as you try to scout for an investment platform or an alternative.
If you input your details into such sites by bad luck, hackers can use them to access your cryptocurrency wallet. Or con your money in case you’re new to the cryptocurrency market.
Not only that, fraudulent websites can also prod you to download software containing malicious code. Hence, enable scammers to steal your essential crypto account details.
Yield farming incentives
Yield farming constitutes a spread-out finance invention that allows you to get rewards from staking cryptocurrencies. For instance, it makes the lending process automatic by enabling you to get an interest upon providing liquidity. The Ethereum blockchain has majorly used the technique.
These acts as another source of Bitcoin scams since fraudsters have been able to copy this technique to steal funds from their victims immediately after they deposit them. While other scammers have played legitimate for prolonged periods before vanishing with the accumulated funds.
As you can see, there are various ways scammers can use to steal your Bitcoin investment. Therefore, you should always be on the lookout for any red flags relating to Bitcoin scams.
At Anticryptofraud we can guarantee 100 percent recovery of any of your scammed cryptocurrencies. If and only if you provide us will all that’s needed—for example, the hashes used on the call off transaction before your funds were stolen. Contact as today and see how we can help you recover your lost cryptocurrency assets.