The world of cryptocurrency has recently reached the heights of fame when people started to discover the various benefits of investing in cryptocurrency. With the rise in demand, comes the rise of various cryptocurrencies, one of which is Bitcoin.
Is Bitcoin investment a scam?
Over the years, Bitcoin’s value has gone up and down. While being a controversial topic since the birth of Bitcoin, it has completely managed to take its investors on a rollercoaster ride with the rapid price change. There are a variety of success stories by the people who invested some money and got millions in return when the price of Bitcoin peaked in 2017. However, people who got inspired by these tend to fall into the traps set by the Bitcoin investment scammers. Now, to answer our question of is “Bitcoin investment a scam?”, we shall explain different types of scams revolving around Bitcoin investments.
The different types of Bitcoin investment scams
- One of the famous Bitcoin investment scams is when the scammer makes fake Bitcoin exchanges and lures innocent traders into them. This fraud may convince the traders stating that their company will be able to get them better returns and rewards. However, all of this is just a trick to get the trader to invest the money. Upon investing some of the money, the scammer will show that the trader’s account has achieved returns as a trick to get the trader into depositing more money. As soon as the trader starts putting in more and more money, the fraudster will block the trader and flee away with all their money.
- Another common scam method that is not only used in Bitcoin Investment but many others as well is known as the Ponzi scheme. In such schemes, the fraudster or the cybercriminal uses the money of the new investor to pay the old investor. This scheme is prevalent all around the world and the main point that the scammer uses to convince the traders is that their money will increase in a matter of few days. These schemes also promise the traders a reward when they get in other people to invest in this scheme. However, this never happens as all of it is a scam.
- This method is a little bit different than the other bitcoin investment scams. In this method, the scammers will publicize a different currency and convince the investors that this new currency is an alternative to bitcoin. These cybercriminals will also use a name that is similar to Bitcoin in order to trick the investors.
- The fourth type of bitcoin investment scam is through emails. The scammers will send emails to innocent investors pretending to be from a government authority and ask the investors to pay a fine for violating a so-called rule. The panicked investors will proceed to give the money through the option given in the mail. These payment methods are usually wire transfers so that the scammers cannot be traced.
These methods can certainly make the reader question themselves that is the bitcoin investment a scam? The answer to this question is can only be found while reading on.
Ways to avoid Bitcoin investment scams
One of the common ways to avoid Bitcoin scams is by paying extra attention while doing any kind of transaction. One must do proper research on the internet and read some reviews before investing in any scheme. Although the rewards and bonuses may sound tempting, you must always make sure that the company has a government-regulated license. To conclude all that has been said above, we shall revisit our question, ” is Bitcoin investment a scam?”. The answer to this is there are many scams around Bitcoin investment but if researched properly and invested in the right places, Bitcoin investment is not a scam.
In case you have been or are a victim of bitcoin investment scams, make sure that you report it with us. We will look into it and get back to you with the best solution possible. Till then, keep on reading to know more about various bitcoin investment scams!