How to avoid scams while investing in Bitcoin?

Bitcoin is a virtual version of money, but it has great use as an investment asset and trading instrument. You can Register to make your bitcoin venture straightforward, and with this software, you can trade without any stress in your daily routine. The luring returns of bitcoin in the last few years is the fundamental reason for such a surge in bitcoin’s investors. Unfortunately, undeniably cryptocurrency exchanges incur robust security protocol at the instance, but hackers and scammers still manage to scam newbies and even experienced traders.

Most frequent scams in the bitcoin marketplace are initial coin offering scams; this is why China had to put a period upon ICO in 2017. Here are some ways you can prohibit getting scammed while investing your hard-earned money in this cryptocurrency.

Beware of ICO scams!

ICO is a fundamental of receiving cryptocurrency generated as a result of a crowdfunding process. During this venture, new startups issue new virtual coins and distribute them to investors in exchange for legal tender or other cryptocurrencies like bitcoin. The ICOs are utilized to raise financing to support its development, maintenance, marketing and operations; plus, they deliver a platform where backers can manage their projects and investments.

During this scheme, some scammers create white papers and pretend the project has been undertaken by an established organization or business that will bring significant returns once it gets market acceptance.

Check security protocols and legitimacy of bitcoin exchange!

Most people fail to consider this and get scammed in the bitcoin marketplace. Some bitcoin exchangers even lack security protocols which put their clients in greater danger of being a scam. These are the few things you need to check before signing up with any bitcoin exchange.

One of them is how do they keep your funds safe? Does it give you peace of mind when they don’t hold your private key? Secondly, do they offer insurance on all customer funds? It is important after the MtGox fiasco that the trading platform went into bankruptcy. It would help if you were sure that no one would lose money when trading or doing business with them.

Avoid Phishing bitcoin scams!

The internet is the wild west of scams. If you are simple enough to fall prey to phishing, you will be easily scammed in the bitcoin marketplace. For example, as bitcoin rises in value, so do the fees, and commissions exchanged with other users for using their services.



NFT game scams!

The number of NFT (Non-fungible token) games have been growing in popularity. Many children and adults are looking to spend their time on these games while collecting tokens or coins. They sell these with the idea that they can introduce to other people, trade them, or store them for a period.

The catch is that these games are not designed to be fair for everybody who participates in it. Therefore, to avoid scams on these games, it is advisable to research where you will buy tokens for NFT games.

Avoid cloud mining scams!   

While bitcoin mining is not an easy task, it has become famous thanks to this cryptocurrency’s general increase in value. As a result, you will find many scams across the internet that try to lure people that can mine bitcoin through cloud mining. To avoid being scammed by these mining service providers, only mine the bitcoins by yourself, and don’t hesitate to ask people who have done it before.

Cloud mining is a process which requires you to make a certain amount of contracts with a particular organization that offers the hardware and the software required for bitcoin mining. Lastly, do your research. It would help if you did not hurry on investing your hard-earned income into cloud mining services, as every investment carries risks and some losses too.

Don’t trust sites or forums!

Many bitcoin fraudsters on the internet use legitimate-looking sites that seem related to blockchain technologies but are just phishing websites that lead you into their scam website to get your personal information and email address for signing up with them.

The key to not getting scammed when using these sites is to do your research before signing up with them. To avoid being scammed by these email scams, most bitcoin traders use ‘two-factor-authentication’ while registering with the sites.