The bitcoin industry has been progressing at a very fast rate since the past few years. A large percentage of the people are investing in bitcoin and the other crypto-currency. The BitClub network has been expanding with new members getting added up in the network.
The sector of bitcoin and crypto-currency is liable to uncertainties. But the other phenomenon it is exposed to is scams and cheating. The members of the BitClub Network over time have repeatedly complained of such scams. With technological advancements, hackers have somehow found it easier to break into systems nowadays.
The scams in the bitcoin industry can be harmful and can cause great loss to a person. This article discusses five Bitcoin scams of 2020 and how to avoid them.
5 Major Scams of 2020
The most traditional and the most common scam of all time is malware. Malware can be dangerous to an individual. Malware is software designed to cause damage to a system or spy and collect essential information from a system. If used in the bitcoin chain, the hacker trough this malware and easily to get access to your bitcoin wallet and can transfer all the funds into his account. A very easy way to avoid this scam is to keep your system and wallet protected with anti-malware software.
2. Ponzi Schemes
The second type of scam in the bitcoin industry is Ponzi schemes. Here, the investors are tempted to invest in different schemes and the same money is used to pay profit to previous investors. In short, the displacement of money takes place and the investors are made to believe that their investments are paying off. To avoid such a situation, one has to be very careful while taking a scheme. One has to see if the adviser is a legal one, is the investment company a legitimate one, any secretive strategies or incomplete paperwork, etc.
3. Sextortion Email Scam
These scams have seen a significant rise in 2020. Hackers threaten the individual from releasing ardent videos featuring them. Claims of knowing the IP address of the system, etc. are made. Bitcoin is demanded in exchange for restraining from doing so.
The only way to be safe from such scams is to first protect your system with anti-virus software. If you ever receive any such mail, be brave enough to file a complaint.
Scams and frauds are present everywhere. Especially when it comes to money, people can stoop down to any level. The only key to avoid such instances is to be aware and alert.