Bitcoin, Ethereuem and other cryptocurrencies are hot commodities in online trading which has made many risk-takers earn big.

Many have however been scammed in their quest to get rich quick via these digital assets.

Bitcoin is the largest and most popular of these digital currencies not backed by the government or central bank.  As of October 2021, judging by market capitalization, BTC maintains its top position with a price of more than $62 billion.

Bitcoin

Bitcoin

Although many have earned big with Bitcoin and other cryptos, the prospect of these quick riches has blinded some people to the risks and enabled crooks to lure them into scams.

Top Bitcoin Scams You Need To Know

Here are the major Bitcoin and other cryptos related scams you need to know. These new versions of classic frauds are listed below;

  1. Virtual Ponzi Schemes: Some crypto crooks created opportunities to invest in digital currencies and create the illusion of big returns by paying off old investors with new investors’ money.
  2. Romance Scams: Crypto fraudsters persuades people they met on dating apps or social media to invest or trade in virtual currencies and then scam them. Other crooks pose as legitimate virtual currency traders or set up phony exchanges to lure people into giving them money. There are also straight-up hackers who break into the “digital wallets” where people store their virtual currency.
  3. Celebrity Endorsements: Many have been scammed when they were lured by people who pose as billionaires and celebrities. Scammers promise to multiply their investment in a virtual currency but pocket what they send. Another is the use of messaging apps or chat rooms to plant rumors that a famous business mogul is backing a certain cryptocurrency. Once they’ve lured investors to buy and driven up the price, the scammers sell their stake and the currency plummets in value.
  4. Bogus websites: Scammers also create phony sites with fake testimonials and enticing investment opportunities, guaranteed returns, as long as you keep investing.

Precautions Against Bitcoin Scam

  1. Don’t put money in a virtual currency investment if you don’t really understand how it works.
  2. Don’t speculate in cryptocurrencies with money that you can’t afford to lose.
  3. Don’t invest in or trade virtual currencies on the advice of someone you’ve only dealt with online, whether it’s an anonymous tipster in a chat room or a supposed romantic partner.
  4. Don’t believe social media posts promoting celebrity cryptocurrency giveaways.
  5. Don’t share your “private keys” — the long letter-and-number codes that enable you to access your virtual currency — with anyone. Keep them in a secure place.

If you want to dip into this brave new world of money, these precautions are important to avoid being ripped off.

Prestmit, is however one of the best and legitimitate platforms to trade, buy and sell various digital assets. This includes gift cards, bitcoins, USDT, litecoins, dogecoins, airtime and data topup.

Also Read: How Bitcoin Price Has Great Influence On Other Cryptocurrencies