Bitcoin Scams to Stay Away From

By: Shitlister

Over the years, Bitcoin has become a very profitable business to invest in; and with great profit sadly comes fraud. A large number of scams have been introduced to the Bitcoin world in order to try and steal large quantities of people’s money. Here are some of the biggest scams you should be aware of and stay away from.


Cloud Mining Scams

It can be difficult to spot a Cloud Mining scam as there are as many genuine ones about as there are fake. However, the way to spot the difference is relatively easy if you know what you’re looking for! Check whether the address of the alleged Cloud Mining site starts with an HTTPS- if its missing the ‘s,’ don’t trust it. If the site doesn’t let you select which pool to mine and instead chooses for you, leave the site instantly. If the link is sent to you by a dodgy looking social media account, for example on Twitter, then avoid it. These are all signs of a scam.


Fake Bitcoin Wallets

If Bitcoin is the currency you’re using when gambling online, you’re going to be using a Bitcoin wallet; it’s so important to look out for fake ones because there’s plenty around! A good indicator as to whether a Bitcoin wallet site is fake or not is by the name of the wallet- if it is similar to the name of an already existing, genuine Bitcoin wallet, it’s probably a scam. Furthermore, you should check to see if the address of the site the wallet is coming from has HTTPS at the start of it. If it doesn’t, and instead has HTTP, make sure you stay away- the wallet is definitely a scam. Lastly, ask other members of the Bitcoin/online gambling community. News about scam wallets usually travels pretty fast, and someone is bound to be able to advise you if you’re not sure.


Fake Bitcoin Exchanges

If you’re using Bitcoins, you’re going to have to get used to spotting a fake Bitcoin exchange. Luckily, there are some telltale signs to a fake Bitcoin exchange. Firstly, make sure that the website is secure; in the toolbar, the site should begin with HTTPS, not HTTP, and there should be a small padlock symbol. If there isn’t, avoid the site. Another sign of a fake Bitcoin exchange is if they offer their exchanges via Paypal. Don’t trust a site that asks for payment via Paypal because you can be sure your Bitcoins will never reach you. Lastly, look to see how the site is portrayed on social media. If the grammar is bad, or if they offer bargains that seem too good to be true, such as “Purchase Bitcoin for less than the market price,” steer clear. It’s more than likely a fraudulent site.


Ponzi Scams

Ponzi scams are incredibly frequent for those using Bitcoins. You can spot a Ponzi scam relatively quickly because they usually promise to do something that sounds amazing but in reality is utterly ridiculous, such as doubling your Bitcoin value overnight. You can also spot a Ponzi scam via the website they provide in the email; it will usually have the word ‘ponzi’ in the URL somewhere.


Phishing Scams

Phishing Scams affect the vast majority of people using the internet, not just Bitcoin users. However, there is a lot of Bitcoin phishing scams going around to try and obtain people’s passwords via fake wallets. Make sure you check where emails are sent from. Ask yourself, am I likely to have given this site my email or have they obtained it themselves? Don’t click any links or attachments in emails you’re unsure about.


Back to Top