El Salvador has become the world’s first country to legalize bitcoin as an official method of payment. This historical event has led bitcoin to stay in the spotlight for far too long. Bitcoin scams are increasing alongside the market cap of the most popular cryptocurrency.
Do you have an interst about protecting yourself from bitcoin scammers? Read our article to learn about the 6 bitcoin scams to watch out for in 2021!
1. The 2021 Bitcoin Trader Scam
The instability of the stock market has led crypto scammers to take advantage of a vulnerable population. 2021 has been host to hundreds of businesses that fell victim to bitcoin scammers. The bitcoin market cap rose to unstable proportions. This made bitcoin a profitable coin to scam people out of.
Bitcoin traders managed to scam cryptocurrency exchanges and personal accounts alike. Users of exchanges that experienced a security breach were quickly withdrawing their crypto.
Unfortunately, these scams are all too common to report every occurrence. However, public exchanges are beginning to increase their security protocols due to these breaches.
2021 is full of scams that have left people to lose their trust in cryptocurrency. However, this makes it even easier for scammers to strike.
In addition a trade scammer will likely propose a swap between two cryptocurrencies. To avoid being scammed, remember to only use verified trading services.
2. The Popular Bitcoin Wallet Scam
Bitcoin wallets are continually being updated. Do not worry, understanding how to obtain and operate a cryptocurrency wallet does not have to be complicated.
Targeting crypto wallets is a recent scamming trend. Your crypto wallet can be present online or in a cold storage physical wallet.
For example, crypto scammers can ask you for your online wallet security codes. They can email you pretending to be IT support and obtain your password this way.
Moreover, no IT professional or support team should ever ask for your security question answers or passwords.
Keep your wallet and cryptocurrencies safe by investing in a physical cold storage hardware wallet. Physical wallets keep your cryptocurrency secure and offline.
3. Top Bitcoin Mining Scams
Bitcoin mining refers to the process of earning bitcoin by downloading mining software. Blockchain technology continues to support the mining efforts of bitcoin miners.
Thanks to bitcoin miners because the computers all over the world can help continue the data verification process. Because of their efforts, blockchain tech has become the backbone of cryptocurrency worldwide.
Bitcoin mining scammers can rick you by inviting you to download faulty software. To avoid this, only download approved software from verified websites.
If anyone personally emails you about bitcoin mining software, block them as soon as possible. Consultations about bitcoin mining should involve identity verification by professionals.
Bitcoin mining is a rewarding way to earn extra cryptocurrency. Download the appropriate software to begin enjoying bitcoin mining and avoid scammers! Good luck!
4. Trending Scams Using Bitcoin
Bitcoin scams have been around for over a decade. Since bitcoin keeps generating attention, more scammers are taking action.
One of the trending bitcoin scams involves prompting you to pay for something in bitcoin. Bitcoin is slowly being introducing into payment mechanisms around the globe.
However scammers are taking advantage of consumers who are unsure of how crypto payments work. Keep in mind that your retailers should inform the public whenever they implement new payment methods.
It is also a good idea to purchase from reputable retailers that you have shopped with in the past. You can always contact your retailer directly to ask them about their payment methods if you are unsure.
Other scams include being tricked into trading bitcoin for fake cryptocurrencies and sending a fake bitcoin trader fiat.
5. Emails From a Bitcoin Scammer
Bitcoin scammers have clever ways of getting in contact with you. Remain wary of anyone who directly emails you without being prompted to do so.
Receiving emails from a bitcoin scammer is a sign that it may be time to update your security settings.
If you frequently receive contact from people asking for your information, then consider creating a new profile. Visit https://www.bytefederal.com/ for more information.
If you feel like your safety is under danger, you can contact authorities to report a complaint. Doing so will help future individuals from being any harassment as well.
Be mindful of the number of emails your professional cryptocurrency services send you on a regular basis. This will help you know when there has been a crypto security breach.
6. The Bitcoin Mentorship Scam
Entry-level crypto investors can fall prey to mentorship programs. Social influencers, who educate you about cryptocurrency must be heavily researched before they are paid.
Bitcoin is one of the earliest coins to exist in the cryptocurrency world. Financial advisors have had to take advantage of the situation while educating themselves about blockchain tech.
However some early crypto investors have begun to offer verified mentorship programs for individuals who are interested in learning about crypto.
Bitcoin mentors that are unofficial, however, can easily take advantage of new investors. Always do your research before you send anyone money or cryptocurrency!
Stay Protected From Bitcoin Scams
In conclusion you know all about the top 6 bitcoin scams of 2021. How will you incorporate this information into your security preferences?
Remember, if anyone unfamiliar contacts you about investing bitcoin on your behalf, report them as soon as possible.
If you are still in need of tech inspiration, check out the rest of our blog posts to become updated on the latest trends and tips!