The rise in the price of Bitcoin that takes place back in 2017 gain a lot of attention from crypto followers around the world. Sadly, every benefit has a corresponding consequence. One of the disadvantages noticed by new investors in the Bitcoin market is its increasing number of frauds and scams. Not only that but a lot of retail investors shared their story after taking their venture in Bitcoin.
Beginners in the world of cryptocurrencies should take a look at the following Bitcoin scams we are going to list below.
Exchange Scams
No matter how decentralized Bitcoin is, in most cases, crypto followers can sell and purchase any form of cryptocurrencies at exchanges. Its easiness makes exchange attractive for most new investors; there is still no assurance that buying and selling cryptocurrencies in this marketplace is safe and secure, considering that no authority governs the transactions.
Thus, a lot of new investors were left without any penny in their wallet after signing up in trapped exchanges. Back in 2017 December, a lot of South Korean exchanges were publicized, which causes the country’s authority to shift their regulations.
You can spot this kind of scam easily. But if you are not going to avoid it, it will become more costly. One of the biggest indications of an exchange scam is its unrealistic prices. Offering a huge amount of discount is the main strategy of exchanges scam to lure the starters.
Multilevel Marketing
Multilevel Marketing is another scam you should pay attention to when investing in Bitcoin and other forms of cryptocurrencies. This exists in both the physical world and digital spaces. They are called as MLMs. They provide predicated quick return offerings. The twist here is that it requires more amount as an exchange for higher sums of profits.
Cloud Mining Schemes
A lot of Bitcoin users prefer mining to receive new Bitcoin tokens without the need to exchange or buy them. But mining, despite being the easiest way to earn bitcoins, is considered a resource-intensive activity. Considering the simplest steps of mining new coins, it requires a huge amount of electricity and power. Thus, you should spend a lot before you mine one bitcoin. On the other hand, a lot of companies these days allow their users to lease a service space to perform Bitcoin mining. To start bitcoin trading you can visit https://pushmoney.app
A lot of these companies provide a “lifetime contract,” which maintains the same amount to pay monthly. On the other hand, since there is an increase in the mining process’s difficulty, you may receive a smaller sum of profits every time you mine. In addition to that, other companies also provider bolder claims about their return profit. The problem is that these companies are not transparent when it comes to diminishing returns and true costs. It is important to pay close attention to its opportunities as well as know and understand the associated costs and risks related to mining before you make an investment.
Conclusion
If you are planning to enter the world of cryptocurrency, especially Bitcoin, it is important to take a look at the possible risks associated with this move. Keep in mind that cryptocurrencies gather a lot of interest among a wide array of crypto followers. When there is an increase in its number, it becomes highly susceptible to different forms of threats, which include hacking and theft.
Those are just some of the notable scams you should keep an eye on when mining or trading Bitcoin. Be a wise Bitcoin user. Don’t get scammed. Use your bitcoins safely and store it securely.