With bitcoin so hot and popular right now it makes sense that some people would come up with bitcoin scams to try to scam you out of your money. By being aware of these popular scams, you can protect yourself.
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Making money with bitcoin may seem like a great idea and a fast way to increase your net worth, but you have to be on the lookout for scammers. Just like with any business, when there is a way to make money, others are going to try to exploit it to scam people out of their hard-earned dollars. Make sure that you keep an eye out for these popular scams so that you can protect yourself and your money.
Bitcoin Phishing
Phishing isn’t new – it has actually been around for a very long time, but now phishers are turning their attention to bitcoin and bitcoin owners. They will make a post on social media or send direct emails to people trying to get personal information from you, such as your private key and social security number. Once the phisher has your private key they can easily spend bitcoins from your wallet.
Fake Wallets
Another popular scam is the creation of fake mobile wallets. After you buy bitcoin from a seller with the best bitcoin exchange rates in Australia, you need to keep them in a wallet. Mobile wallets are very popular and many scammers have made their own, offered them for download, and then will use them to steal your bitcoin. Make sure that you only use reputable providers when downloading a wallet.
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Fake Cloud Miners
You can earn bitcoins by allowing your computer to be used to validate bitcoin transactions, but you do have to be careful when installing the company’s software on your computer. Fake mining companies will take your money, pay out bitcoins, and then disappear. Make sure that before you sign up with a mining company, you have fully vetted them and that they are legitimate.
Just like with any other business, bitcoin scammers will do their best to take advantage of actual users who are working hard to make money. By being aware of these three popular scams, you can take steps to be more aware of what and who you are dealing with online and to try to better protect yourself. Keeping your bitcoin safe is important, so you need to be careful when dealing with any online companies or people.