Bitcoin Malpractices That Exist | Bitcoin, the most popular crypto that exists is now considered as one of the most popular investments. But do you know that this has given rise to a lot of new bitcoin scams?
Yes, that is the truth and sadly, you can be a part of it if you don't know anything related to these scams. This article lets you know about all the types of bitcoin scams that exist.
RELATED: Wall Street Is Warming Up To Bitcoin
These Are The Types of Bitcoin Malpractices/Scams That Exist
Always be on the lookout for phishing frauds. Phishing attacks certainly are a favorite among hackers and scammers. Within a phishing attack, a concerned person typically impersonates a service, business, or individual simply by way of e-mail or other text-based communication, or by hosting a fake and manipulative website that seems like a real one.
The aim is always to trick a victim into uncovering their private tips or sending bitcoin to an address the particular scammer owns.
These kinds of emails often appear like they are legitimate ones but are fake in nature.
Surely one of the least difficult ways to fraud investors is to pose as an internet marketer branch of a good and legitimate business. Well, that's specifically what scammers within the bitcoin discipline are doing.
Many such exchanges exist and they presented themselves being a place to exchange and trade bitcoin but was eventually fraudulent. Many exchanges have thus scammed people away from their money by simply posing as a new respectable and legit cryptocurrency exchange.
Together with the increase in blockchain-backed firms, fake ICOs shot to popularity as a way to back these kinds of new companies. However, given the not regulated nature of bitcoin itself, the door has been wide open for all kinds of fraudulent activities.
The majority of ICO frauds took place through obtaining investors to commit in or by means of fake ICO websites using fake bitcoin wallets or other crypto wallets, or by appearing as real cryptocurrency-based companies.
Many have already been accused of such malpractices hence it is better to verify such wallets before actually deciding to place your money with them.
If you are into the trading industry, you must have known by now that humongous returns are simply not possible when it comes to bitcoin trading or crypto trading in general.
Hence, when a broker tries to provide you with the promise that your money will be doubled within a specific time frame, then the best option in such cases would be to stay away from such brokers as much as you can. They will simply take your money and run away and you would be left with nothing but grief and remorse.