How Can You Safely Trade Bitcoin in 2021-2022?

Bitcoin and other cryptocurrencies have taken the world by storm, with their rise in value and use among consumers taking nothing short of exponential growth.

The past several months have seen bitcoin skyrocket to the $47000 mark creating quite a stir in financial markets around the globe. In fact, bitcoin has risen more than 1000% in 2021 alone! Demand for bitcoin is steadily increasing as well. For instance, bitcoin transactions are at an all-time high:

As prices stand now, there’s surely good money to be made – for those who know what they’re doing that is. And right now there are plenty of people out there trying to take advantage of bitcoin users, both new and experienced, by tricking them into bitcoin scams.

Like bitcoin itself, bitcoin scams aren’t anything new – they’ve been around for years. However, the internet makes it much easier than ever to scam people out of their bitcoin- as well as allowing bitcoin users to take advantage of others’ lack of knowledge on how to use this new digital currency safely.

So let’s talk about bitcoin scams: How do they work? What are some ways you can protect yourself from getting scammed? And how can you trade bitcoin safely?

Here are the top five ways that a fraudster could try and trick you into giving up your bitcoins in exchange for nothing or something worth less than bitcoin:

1. Bitcoin pyramid scheme: This bitcoin scam involves a site’s admin charging you bitcoin to invest in bitcoin transactions. He or she then pays bitcoin dividends to investors, who are encouraged to recruit more members via bitcoin – usually the new members will also have to pay bitcoin into the “scheme,” and so on until it becomes unsustainable. The process can be reversed with everyone else losing their paid-in bitcoin, while the person at the top of the pyramid gets away with all of it.
2. This bitcoin scam involves a site’s admin charging you bitcoin to invest in bitcoin transactions. He or she then pays bitcoin dividends to investors, who are encouraged to recruit more members via bitcoin – usually the new members will also have to pay bitcoin into the “scheme,” and so on until it becomes unsustainable. The process can be reversed with everyone else losing their paid-in bitcoin, while the person at the top of the pyramid gets away with all of it. Bitcoin scam sites : These bitcoin scams often advertise bitcoin investment opportunities that have no value or are otherwise untrustworthy. For example, they could promote bitcoin gambling websites in which you might win some bitcoin if you’re lucky – but they won’t pay out any prizes by saying that many people have tried but failed to win anything.
3. These bitcoin scams often advertise bitcoin investment opportunities that have no value or are otherwise untrustworthy. For example, they could promote bitcoin gambling websites in which you might win some bitcoin if you’re lucky – but they won’t pay out any prizes by saying that many people have tried but failed to win anything. Bitcoin hacking scams : These bitcoin scams try and trick bitcoin users into giving up their bitcoin by claiming to hack them. For example, bitcoin hackers may send you an email pretending to be from a website or exchange stating that your bitcoin has been stolen and asking you for private information (like credit card number or login credentials) so that the “hackers” could block your bitcoin before it is lost forever.
4. These bitcoin scams try and trick bitcoin users into giving up their bitcoin by claiming to hack them. For example, bitcoin hackers may send you an email pretending to be from a website or exchange stating that your bitcoin has been stolen and asking you for private information (like credit card number or login credentials) so that the “hackers” could block your bitcoin before it is lost forever. Bitcoin Ponzi schemes: These bitcoin scams usually involve multilevel marketing, where people are promised a share in bitcoin if they recruit others who invest bitcoin of their own – with new bitcoin being generated by those who are recruited to generate income from recruiting more members into the scheme. The process can be reversed on everyone else losing all of their bitcoins, while the person at the top gets away with everything.
5. These bitcoin scams usually involve multilevel marketing, where people are promised a share in bitcoin if they recruit others who invest bitcoin of their own – with new bitcoin being generated by those who are recruited to generate income from recruiting more members into the scheme. The process can be reversed on everyone else losing all of their bitcoins, while the person at the top gets away with everything.: If it sounds too good to be true, it probably is. Don’t trust bitcoin bitcoin sites without reviews, and don’t be afraid to ask questions.: This is the safest way of holding bitcoin – hardware bitcoin wallets store your private keys physically outside of your computer system, so it’s highly unlikely that they could ever be hacked.

The best way to protect yourself from bitcoin scams?

1. Do your research! If it sounds too good to be true, it probably is. Don’t trust bitcoin bitcoin sites without reviews, and don’t be afraid to ask questions.

2. Never send bitcoin to anyone who contacts you in private – public bitcoin bitcoin wallet addresses are perfectly fine, but never respond to an email or message asking for bitcoin payment information.

3. Use a hardware bitcoin wallet: This is the safest way of holding bitcoin – hardware bitcoin wallets store your private keys physically outside of your computer system, so it’s highly unlikely that they could ever be hacked. Examples include TREZOR and Ledger Nano S .

What bitcoin bitcoin Scams should you watch out for?

Bitcoin scams come in all forms. The most common bitcoin bitcoin scams involve bitcoin bitcoin sites and exchanges asking users to pay bitcoin to use the site or make a transaction. One example of this is when somebody poses as a website’s admin charging you bitcoin to invest in bitcoin transactions. He or she then pays bitcoin dividends to investors, who are encouraged to recruit more members via bitcoin – usually the new members will also have to pay bitcoin into the “scheme,” and so on until it becomes unsustainable. The process can be reversed with everyone else losing their paid-in bitcoin, while the person at the top of the pyramid gets away with all of it.

As bitcoin catches on as a mainstream payment method, there will be more bitcoin fraudsters trying to steal your money. Always try and use exchanges with reviews and that have been established for some time such as CoinBase .  Also, before investing in any scheme, always ask around about the legitimacy of it especially if there is no solid evidence of the company’s longevity or management team.  Bitcoin scammers are known to take advantage of new users who are not careful enough.  Always remember:  if a service looks too good to be true, it probably is!  Always do your research, and keep an eye out for  bitcoin scams.  There is a new one coming up everyday so we will have to stay alert at all times if we ever want to protect our bitcoin investments!

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