What Is Bitcoin & How To Avoid Bitcoin Scams

What is Bitcoin?

satoshiBitcoin is a famous cryptocurrency in the world today. It is a virtual currency that was produced in 2009 by Satoshi Nakamoto. All Bitcoin transactions are carried out without involving the bank. It is neither controlled by a person nor by the government. It is a form of a decentralized currency.

As a result, all transactions involving bitcoins are done within minutes. The monetary value of bitcoin is determined by software that only a few people know how it operates. Most people love to trade using bitcoins, but only a few of them understand how this digital currency works. That’s why there are numerous frauds that are surrounding this cryptocurrency. This article will provide an honest bitcoin review that you need to know.

How Bitcoin works

The founder of Bitcoin wanted a platform where people can securely exchange cash electronically without using third parties like PayPal or banks. This would allow users to receive money even they do not trust or know the one who sent it.

Basics

Users are required first to download the Bitcoin software which later connects to the internet and generates two unique keys. These are the keys you are going to use to exchange your bitcoins with other clients. One key is public while the other one is private. The public key acts as your public address that others can you use when sending bitcoins to you. The private key is like your passwords and keeps impersonators away from your bitcoins.

A good thing to do is use a hardware wallet like Trezor or Ledger. They are regarded as the best hardware wallets for storing cryptocurrencies.

Naturally, most people think that the value of bitcoin will continue to appreciate every passing day, but that is not the reality. Bitcoin is a volatile currency, and most people have never understood this.

There is a dark side of Bitcoin that most people do not know, but this article will unearth the negative side of this digital currency. If you want to know more, continue reading this bitcoin review for more information.

Ways of Spotting Bitcoin Scams

-Malware downloads

Bitcoin is mostly used as bait to make you download harmful software that will destroy your computer. According to a risk evaluation company, Zerofox.

Fake wallets of bitcoin will appear on your computer to attract you to click their URLs which are harmful to your computer. Most of these attacks occur through social media.

This makes users to download a malware-laden app which damages his computer.

-Phishing Impersonators

Bitcoin impersonators are rampant especially on social networks. They impersonate bitcoin brand to help them gain victim’s credibility and trust. A phishing bitcoin website will always entice users by offering them a free search by entering their bitcoin key to check whether they exist on their website. After entering it, the key is phished, meaning that the scammer can spend bitcoins obtained from your wallet.

-Bitcoin-flipping scams

These scams promise to offer an instant exchange of bitcoins for cash after you make your initial payment. They may also promise to double or triple your bitcoin investment overnight.

Scammers succeed because they advertise their services to unsuspecting users all over the internet.

-Pyramid Schemes / MLM

They are just the flipping scams above, only that it is not easier to recognize them. But finally, the scammer steals all your bitcoins from you without any apologies.

Pyramid schemes and ponzi schemes exist in the world of Bitcoin and many are exposed daily by scam busters like NoBsImReviews.com – They recently busted the USI Tech ponzi scheme and many others like it.

Unfortunately many people never do their due diligence and end up investing only to be left disappointed when the whole program later collapses.

However, this bitcoin review will give you solutions on how you can save yourself from bitcoin scammers!

How to Safeguard Yourself from Bitcoin Scams

Just like in the other become a -millionaire-quick schemes, bitcoin scams succeed because of lack of information by its users. The following cautions will help you to be safe when using bitcoins as discussed below;

-Avoid trusting anyone who is purporting to give or assist you in mining bitcoins

-Avoid URLs that have social media profiles that advertise crazy bitcoin offers.

-Be extra vigilant when dealing with bitcoin dealers who are ever online .because they can convince you to lose your bitcoins.

-Do not engage in any financial deal involving bitcoins via a direct message on social media accounts.

You cannot be able to reverse any bitcoin transaction after it has been sent. This implies that a hacker can access your computer and send all your fortune in his wallet within minutes.

If you follow the above prevention measures, then your bitcoins will not be stolen by impersonators or scammers easily.

Check out our other post on Bitcoin here

Ways To Make Money With Cryptocurrency & Bitcoin

Each day, more and more people are engaging in cryptocurrency transactions.

Why?

Because of the rise in popularity of the digital currencies and the promises that one can make a lot of money off them. According to seasoned investors, you can earn handsomely by investing in cryptocurrencies wisely.

Some of the most popular digital currencies today include Bitcoin, Ethereum, and Litecoin.

Below are the most prevalent methods you can use to make money with digital currencies:

1. Buying and Selling Provided you have some money to invest, buying digital coins remains one of the easiest ways to invest in cryptocurrency world.

Nevertheless, you need to understand what a wallet and an exchange are before you venture into that business. You use the wallet to store your digital coins while the exchange helps you to buy and sell those coins in your wallet. When buying cryptocurrencies, just like in any other market, you need to be careful when buying and selling in order to make some money. However, you will only make money if the value of the crypto-coin goes up.

For example, those who bought Bitcoin in the first 3 years after its inception are enjoying more than 100% profit if they are selling their coins now. Apart from long-term investment, you can consider initial coin offering (ICO) flipping where you buy coins at the starting value when a new cryptocurrency hits the market for the first time.

Once the value of the coins rises to a certain percentage, you can then sell them in an exchange market.

2. Accepting cryptocurrency Payments In case you own a business where you offer products and/or services, you can choose to accept payment in digital coins of your choice.

All you need to accomplish this is a digital wallet and customers willing to use this form of payment. To some extent, you have to lower the cost of the service or product to be bought through digital coins to entice more people to use the service. Since the value of the digital coins varies, you have to estimate your product or service cost depending on the type of cryptocurrency you want to use. After getting the coins, you can hold onto them until their prices rise before spending them to buy new products or selling them. Customarily, you can exchange your digital coins with U.S. dollars.

3. Day Trading Nowadays, you can trade cryptocurrencies as you would other traditional currencies. Here the idea is to purchase digital coins earlier in the day and later sell them when their value has increased usually on the same day. For each trading day, you buy and sell only if there is a profit margin in order to make money.

You need to understand how trading markets work as well as things that affect the prices of a particular cryptocurrency to be a successful trader. Each day you have to aim for a certain percentage, for example, 1%. In case you are consistent and compound your earnings, then you will earn a solid income over a very short time.

4. Mining Lastly, you can get your preferred cryptocurrency coins through mining. However, it may take more than your normal office computer to mine some type of digital coins like Bitcoin.

Why? There has been a widespread mining of coins making it a bit difficult to make a solid income through mining. Moreover, some people own big mining rigs where they focus on mining a particular cryptocurrency.

For you to have a better chance in any mining operation, you must invest in high-tech graphics cards and other expensive computer hardware accessories. Nonetheless, the money you get from selling the coins that you mine must cover all the costs associated with your mining operation such as electricity bills, rent and so on.

Fortuitously, if your mining operation is efficient, you can earn some money though not much. On the other hand, before you even start mining, you need to understand that some coins are very hard to mine compared to others while some are more profitable to mine than others are.

For instance, it is relatively easy to mine Litecoin or the less popular coins like Monero compared to Bitcoin although their value is also different.

Conclusion

Regardless of the ways you use to get some cash from cryptocurrency world, you have to be knowledgeable of the prevailing market conditions. In some cases, you have to wait for a long time before your coin gains enough value before selling.

There are instances when your digital coins may fail to penetrate the digital market properly meaning your losses will be permanent. However, with enough knowledge and an ideal digital coin selection, you can make a lot of money with cryptocurrency.

Check out top resources for trading cryptocurrency: