The Bitcoin and cryptocurrency craze has shown that it is no fluke or a flash in the pan. It seems that cryptocurrency is here to stay which means that you should be thinking about ways that you can make money from Bitcoin.
The problem is that many people have a fear of missing out when they see the big gains happening all the time. They want in on the action so badly that they end up making mistakes that can cost quite a bit of money.
And chief among them is that they can be easily scammed. Don’t make the same mistakes that others make and allow yourself to get scammed like them.
In this article, I will go over the things to look out for so you don’t end up losing your Bitcoins.
1 – Technical support scam
When you create BTC account, you get a set of keys that only you have access to. If anybody else gets these keys, they have access to your wallet and can take your Bitcoin and there is nothing you can do about it.
You should never give your keys to anybody no matter what. With that in mind, there is a scam in which people hand over their kes and their Bitcoin as a result. What happens is that spammers flood the web with technical support websites with phone numbers. If you have a problem, you may call one of these numbers without realizing that it is not legitimate.
If the technician asks you for your keys, then hang up the phone as it is a scam 100%. No technician has any reason to know the secret key to your wallet. Also, never send any coins if requested by these technicians.
2 – Giveaways
Another popular scam is a giveaway. Since people are so eager to make money from Bitcoin, they are more than willing to enter a contest to win some coins or any other prize.
The way this scam works is that a person is randomly selected and chosen as a winner of the giveaway. All you have to do is to send over some Bitcoin as a way to verify your identity or address. This is when you know it is a scam since it is illegal to have to pay to receive a prize.
This isn’t to say that all giveaways are scams. There are plenty of legitimate websites that offer giveaways but they are very clear about the rules and requirements and won’t ask you to send them any currency at all.
3 – Fake wallets
One of the most difficult scams to identify is the fake wallet app. Some of these fraudulent wallets have made their way onto app stores like Google Play and the iTunes store.
The way they work is that you download the fake wallet onto your phone and enter your credentials. Then the scammer empties your actual wallet of the coins.
Don’t just download a random wallet app to your phone without doing some due diligence. Read reviews and check out where the developers are based. Research the name of the company and see if they are legitimate. Ask your friends who are also using Bitcoin what wallet app they are using.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.