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