Bitcoin is a new technology and most users are not familiar with its working infrastructure. While many great minds work hard to make it more promising for everyone, there are some cons among our midst who take advantage of people interested in this tech. To help you make sure you don’t get scammed by a fraudulent, we are giving you the following tips. Follow them to stay safe!
A fraudulent scheme always promises insane profits and little to no risks. Ponzi scheme are prolific for old investors as the scheme gets new investors soon enough. A scammer always invests on the promised returns to first investors and continues to do so as soon as they get more people following them. Such schemes don’t take long to crack once the investors stop investing.
You can’t reverse Bitcoin transactions. Therefore, you need to look for red flags or legitimacy issues before sending anything. If the website or individual has no contact details listed on the website, it is not a definite sign of fraudulent but a major red flag.
A Fraudulent always tempt their subject to pay in a hurry. They successfully convince their target to act at a moment’s notice or they will miss a big profit or something. So if a company is really persuasive for you to act fast or you will lose something big, they are giving a clear sign that they are not worth of your trust and money.
Keep in mind not everyone in Bitcoin business is a scammer. One thing that is found in every scam is that the victim is asked to pay in advance. In most cases, the victim is asked to pay money even before any good details are provided to him. This helps preventing the victim to identify anything about the fraudulent party after they receive the money.
For more tips on how to avoid being scammed in Bitcoin Business, read our Bitcoin scam site warning guide!