Top 3 Bitcoin Scams to Avoid in 2020
The bitcoin market has taken a new turn int he last year. With growing popularity, comes the rising risk of getting scammed or cheated. Since it is an online peer-to-peer currency, there is no government to monitor them and keep them regulated. What seems like the beauty of the currency is also the biggest drawback. After major scams like the USI Tech scam, there has been an air of tension among bitcoin investors. It is still one of the most popular online currencies and in the years to come could replace conventional currency.
Here are the 3 scams to watch out for in the year to come.
1. Infamous Pozi Scheme
For many generations, people have been falling bait to the various Ponzi schemes. From the time when gold was the currency and kings would solve disputes, till the age of bitcoin. This is one scam that has made millions for many cheaters. The idea is to accept an investment with the hope of giving them a return in a fixed period. This more often than not is a scam, where the accepter makes a run with the money. The same has happened in the bitcoin market. A South Korean Website called MiningMax has taken millions from its users and not given a single return. The company is now untraceable and all the investments are lost.
2. Exchange and Selling Platforms
With money comes the greed to grow it. There are many platforms on the web that promises to take your investments and sell them when exchange rates reach the desired amounts. These are automation platforms that instigate a fake sense of trust. When in reality, they are scamming many. USI Tech was one such platform. They promised to take an investment and then sell it when the bitcoin costs hit a high. It got hundreds of investors who wanted to double the money. In the process, many lost all their funds.
3. Malware Injection
A malware can drain your fund without you knowing it. This has been the most common online threat since the inception of the internet. An investor looking to double his/her money has often made some online searched that have not ended well. When you visit a website seeking information about bitcoin growth, these can be a playground for malware. Malware can enter your system and compromise your information. This further leads to hacking your bitcoins, altering your personal information or selling your currency for illegal use.