How to spot bitcoin scams?

Cryptocurrencies are indeed the latest currency, but they can be difficult to understand for those unfamiliar with the industry or are not tech-savvy. Scammers reap the benefits of these flaws. You don't need to be concerned if you are new to cryptocurrencies; if you understand how, they function and use basic logic, you can defend yourself from scams.

Also, if you are searching for the best trading software, we highly recommend you use like this Bot. Here are some of the most popular bitcoin scams, as well as some tips on how to stop them.

Phishing Is A Form of Fraud.

No matter what area you work in, phishing is one of the most popular scams. Phishing is used to attract many bank customers.

This fraud occurs when a consumer receives an unsolicited email that appears to be from a legitimate source, such as your bank or a wallet or cryptocurrency exchange provider. The email contains links that will take you to a place that seems to be the same as the swap or wallet site you use, but it is not.

Scammers will be able to get all your personal and account information once you enter them on the fake platform, and they'll have links to your existing account, making it easier for them to rob your funds.

Check the URLs and see how you got to a legitimate website to stop phishing scams.  Never let away your private key to secure your bitcoins.

Exchanges and Wallets That Aren't Real

Fake bitcoin exchanges must be avoided in the same way as phishing must be avoided. These exchanges may seem legitimate, but they are merely a ruse to defraud customers of their funds.

Consumers would be enticed by certain exchanges of deals that are impossible to refuse. Some exchanges compel customers to open an account, pass or invest money, and even reward others who share or deposit large sums with incentives. However, after money is exchanged or invested into the sites, the payments are so large that withdrawing the funds becomes impossible. As a result, the con artist took your money.

 It is best to stick to well-known exchanges and those that you have previously used. If you come across a new wallet or swap, do some homework before creating an account. Do not feel obligated to move or deposit money into new accounts, and do not automatically have any personal information.


Even though cryptocurrencies are relatively recent, scammers will still use old tricks to defraud customers. Avoid letters or phone calls from those pretending to be from the ATO. This tax collector will say something to persuade you that you owe taxes, that you will be paid, and that a lawsuit will be brought against you until you pass cash.

The “Nigerian prince” scam is yet another popular one, and it has also been used in the cryptocurrency community. It's a fraud if someone emails or calls you from another country, offering you a large amount of money if you help them move funds out of their country.

So, how then do you keep falling for these tried-and-true ruses? It is just common sense that no one should contact or email you about deals, particularly if you are new to the field of cryptocurrencies. Unrequested calls and emails can be avoided.

Bitcoin Extortion

This scheme is like those perpetrated by con artists that pose tax collectors, intimidating and bullying people into giving in and moving funds. These con artists may even threaten to hack your account to frighten you.

However, this is just a lie because blackmailers don't have any evidence, and you won't suffer any consequences if you pay. It's all about coercion and pressure, and when they send out countless emails, they'll intimidate enough people into sending bitcoins to them.

How can you keep being blackmailed in this way? Look online to see if someone else sent the same email and had the same experience. If you're young, keep in mind that you don't owe any balances or taxes just yet. VPNs can be used to search websites anonymously and securely.

False Indications

The impersonation giveaway, which actors supposedly perform, is another kind of fraud that is very popular on many large pages and social networking sites. Scammers would pose a well-known celebrity and declare a giveaway, with the winners decided by the cryptocurrency sent to them.

The imposter would pledge almost to double the amount of cryptocurrency you send them, but this will never occur. This scam can be found on social media, especially Twitter and YouTube, where they impersonate a celebrity or other notable figure via a live stream or video.

Impersonators help criminals as if they are losing out on something significant to make a poor decision about moving money. The giveaway scam determines the number of cryptocurrencies to be given away, and they use fake bots and accounts to make it appear as though people have earned.

Some people give their personal information and finances to these fake accounts, fake videos, and fake claims because they are persuasive. Scammers often use the blue checked checkmark on Twitter, leading many users to believe the account is legitimate when it is not.

Scammers obtain the blue checkmark on identity by assuming control over others that have already been checked and then altering it. Scams still have many shares and likes, but bots rather than human people do them.

So, how can you stop falling victim to a con? Any celebrity that promotes a cryptocurrency giveaway on social media is a con artist. Thus far, no star has mentioned using bitcoins, and even if they have, it will be on their own verified Twitter account rather than a random verified account.

Examine the scam account's username and tweets and compare them to the celebrity's actual account. Examine the given cryptocurrency address using a blockchain explorer. You'll be able to see how much money the scammer has and whether money is being exchanged or not.

Final Thoughts

There are many scams out there, but if you want to avoid being taken advantage of, you must learn how to recognize fraud and how to avoid it wherever possible. Fortunately, there are tools available on the internet to assist you in avoiding being a victim of such scams. Many of these services also provide helpful tips for avoiding being a victim of fraud. You can make sure that the material you use comes from a reputable source so that you can learn how to detect internet scams without putting yourself at risk. Never hand out your details to strangers, and never give them money to send to anyone else.

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.