Ways To Avoid Bitcoin Fraud

Ways To Avoid Bitcoin Fraud

24 December, 2017

Avoid Bitcoin Fraud

The increasing prices of Bitcoin and the pace at which it grabs billions of dollars in the market lure more and more people to it. This huge section of people that show interest in Bitcoin will obviously include people of different shades of character. There would be trustworthy as well as unreliable people involved in it. The second section brings in scams and frauds in the activities involved. Most of the countries have separate Bitcoin banks such as the bitcoin österreich (Bitcoin Austria), Bitcoin bank in Vienna, etc. Bitcoin plays a crucial role for the startup companies also. The link www.forbes.com/sites/samameen/2017/12/06/how-cryptocurrency-is-changing-the-game-for-startup-investors/ explains in detail about the role of cryptocurrency in startups. As the popularity increases, the chances of Bitcoin scams or frauds also increases. So, how can one identify those scams? Here are some points which can help you to identify the scam.

The Mandatory HTTPS Encryption!
The scammers usually make use of social media as people often blindly trust social media posts. Most such advertisements will urge the people to buy Bitcoin saying that they are buying it at a lower rate. What you need to realize is that it is a marketing trick which uses the fake exchange method. When you visit a currency exchange center, always ensure that the HTTPS encryption is there. A secured HTTPS ensures that the site is secured and encrypted. If there is the only HTTP instead of HTTPS, then you should be more careful. There are a lot of fake exchanges that claims to sell Bitcoin for PayPal. The site will ask for the amount which you want to sell to get your Bitcoin. However, you will never get the Bitcoin, and also, the site will disappear the next day only to appear again with a different domain name.

Use Bitcoin Wallets Carefully!
A Bitcoin wallet also faces a threat, because people can trespass to the wallet and get your passwords. Wallets are used for storing the Bitcoin and not for doing any transactions. So when you select a Bitcoin Wallet, make sure that you select the one with high-security features. If you plan to download a Bitcoin wallet, then you must run a security check to find out if there is any malware. There is a lot of software available which are efficient in finding out the viruses on a website or from any app.

Phishing Scams
Phishing is one of the common scams that occurs regularly. Phishing happens when someone makes you believe that they are a reputed company and then gives you a fake website address. When they sent you the email or messages, you will trust those companies and visit their website. When you visit the website, you will probably get a malware and eventually you will lose your Bitcoin. So, whenever you get an email from a new company, it would be better if you can do a little research first and then check the email and the website.

Beware Of The Ponzi Scam!
You will see a lot of advertisements claiming that they can help you double your Bitcoin. Stay away from them. It could be a possible scam known as Ponzi. If the site asks to create a new account, it is better to ignore that site as you might lose all your Bitcoin details if you logged into the site. So, whenever you do something with the Bitcoin, it is advised that you first check whether there are any scams and then proceed so that you can keep your Bitcoins safe.

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