Fraudsters have long used deceitful tactics to trick people into handing over their cash. However, nowadays cybercriminals are selling fake phishing schemes that appear to come from legitimate cryptocurrency Scam websites. Luckily, the majority of these scams have been stopped by internet vigilantes who have posted warnings about them online.
In this post, I will discuss how such scams work and how to avoid falling for them in the future.
UPDATE: The scammers are now using still new cryptocurrency names. For example, the latest scams revolving around “Bitcoin Gold” and “Crypto Currency of the Kingdom” scams. Also, a lot of scammers created fake websites related to “Bitcoin mining” or “Bitcoin exchange” which serve for one purpose only – to steal your private keys and to make money off of your stolen digital assets.
WHAT IS BITCOIN GOLD?
Bitcoin Gold (BTG) is a new cryptocurrency that launched in early December 2017. As the name suggests, Bitcoin Gold is a fork of Bit coin’s blockchain. Unlike its predecessor, Bitcoin Cash, which was created as an upgrade to Bit coin’s blockchain and represents an increase in the number of coins that can be mined – Bitcoin Gold is actually meant to fix what some see as a flaw in the structure of digital currencies.
While the majority of blockchains use Proof of Work (POW) consensus to secure the network, Bitcoin Gold instead uses a Proof of Stake (PoS) consensus system. This is how it works:
The protocol allows miners to mine with a small amount of money which they invest in an “electrum” wallet in order to validate transactions and earn coins. The more coins you have, the more chances you have to mine.
How does it work out for the average person?
This is where things get interesting. A lot of people are starting to question whether there is a scam behind Bitcoin Gold as it seems that the best way to earn money through mining this new digital asset is by creating your own mining pool rather than investing in the currency itself.
A study was conducted by Chainalysis that would show whether or not Bitcoin Gold is a scam. The study concluded that:
“Bitcoin Gold is likely a fair digital currency that can be used as such. It appears to have been created with the intention of functioning as a crypto-currency, though there have been some unnecessary innovations.”
HOW DO BINARY OPTIONS TRICKS WORK?
All of these scams are basically about binary options that are rife on the internet. Binary options are basically for people who like to gamble and most often than not it’s a scam.
So, how does it work?
You deposit money – let’s say, $1000. In return, your account is credited with $1000 worth of these fake “binary options” which can be traded for real cash. So you start trading – in fact nothing of value is traded as there aren’t any real assets – and at some point, before you run out of money your account gets frozen.
All of the people who invest in this scam are told that they need to deposit more money and that there is an 80% chance of winning an amount between $2 and $50. So, you deposit another $2000…
This scam is so well known that the internet vigilantes UAB “Kripto-šaudze” (“Crypto-Swindlers”) have already set up a web page where you can read all about these scams.
Here are some of their examples:
Example 1: “Paysafecard” and “E-Platform” (November 2017)
Example 2: “Online-Mining”, “Crypto Currency of the Kingdom”, and “Bitcoin Gold” (December 2017)
Example 3: “Bit coin Wallet” (January 2018)
If you want to check whether or not a website is genuine you can. If a website has a link to this web page on the website, then it is genuine and won’t be a scam.
Beware of scams!
Also, to learn more about binary options keep reading my post – “How to tell if a binary option is genuine or not”.
ONE MORE THING:
Even though this blog was created as a cryptocurrency trading blog, it became very quickly apparent that the crypto community needs a reputable source of information on how to avoid scams originating from fake cryptocurrency websites.
That’s why I decided to turn my attention toward helping people learn how to avoid getting scammed by misleading advertising and bad practices!
Stay safe! Don’t get scammed! Use your common sense and do your own research.
Cryptocurrency is a type of digital money. In some cases, it is decentralized and allows people to send payments securely without needing an intermediary like a bank or PayPal. Cryptocurrency such as Bitcoin, lite coin, and Peer coin can be used for – buying goods and services – sending money internationally – exchanging digital goods online – sharing computer power with the Cloud Mining platform.
Membership: With cryptocurrency, everyone has the opportunity to express their opinion without censorship, which is why they are gaining popularity. The most important thing is to understand how cryptocurrency works.
The cryptocurrency Marketplaces are full of different types of cryptocurrency and it is a pleasure to learn about each one so you can make the best choice for your future.
Cryptocurrency platforms, such as Recon, let you buy and sell cryptocurrency scams directly from your mobile phone or computer. If you are looking for a fast and secure way to buy a wide range of cryptocurrencies without intermediaries then this may be just what you need. It is very important to do your own research before you choose any type of cryptocurrency.
Buyers and sellers:
Everyone who wants to participate in the cryptocurrency market should have an account on a cryptocurrency platform that provides trading services. These platforms work like stock exchanges, so you can buy and sell –
Cryptocurrencies at the best prices. At first, it may seem hard to find a seller for a particular cryptocurrency, but there are many sites that help with this process.
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