Cryptocurrency Scams are a popular way for scammers to trick people into sending money. Recently some high-profile people had their Twitter accounts hacked by scammers who sent out fake tweets asking followers to send money using Bitcoin – a type of cryptocurrency or digital money.
Cryptocurrency scams pop up in many ways. These scams may appear as emails trying to blackmail someone, online chain referral schemes, or bogus investment and business opportunities. But here’s what they all have in common: A scammer wants you to send money, or make a payment, with Bitcoin or another type of cryptocurrency. Once you comply, your money is gone, and there’s generally no way to get it back.
Whenever you buy cryptocurrency – you’ll have to store it somewhere right? Traders mainly deposit the cryptocurrencies on an exchange or in a digital wallet. While there are many different sorts of wallets, each has its unique benefits, technical requirements, and security. As with exchanges, you should investigate your storage choices before investing.
Hold on – before investing in cryptocurrency, we encourage you to learn about cryptocurrency exchanges. These platforms provide the option to buy and sell digital currencies, yet according to Bitcoin.com, you can choose from 500 exchanges. You should conduct a little investigation, read various reviews, and learn from seasoned investors before moving forward.
Diversification is a key to any calculated investment strategy, as it holds steady when you’re investing in cryptocurrencies too. Don’t deposit all of your funds in Bitcoin, for example, just because a well-known celebrity endorses it. There are dozens of options literally, and it’s best to divide your investment around to several currencies.
When you stumble upon a tweet (or a text, email, or other message on social media) that tells you to pay with Bitcoin – it’s a red flag. Other signs that something’s a scam? They might guarantee that you’ll make money (those guarantees are false); promise that you’ll double your money quickly (again, that’s always a fake promise); or say you’ll get free money in dollars or cryptocurrency (free money? Nope, not ever). If you spot a cryptocurrency scam, report it immediately to the related regulatory entity.
