The Most Frequent Bitcoin Scams And How To Avoid Them

Tips & Tricks

When the interest in cryptocurrencies , especially Bitcoin, broke out a few years ago with the huge increase in the value of a single BTC unit, many people understood the possibilities of cryptocurrencies and Blockchain.

But not all initiatives to start generating revenue in Bitcoin were so well intentioned, as a new currency with high levels of anonymity and so much hype on the internet became the perfect excuse for the many scams with Bitcoin and other altcoins that have been aroused in the crypto world.

It is true that cryptocurrencies are a favorable sector for scams, because they mix attractive features for criminals: They are decentralized, anonymous and everyone wants them.

However, throughout history, anything related to money has been an excuse to scam. So continue reading to learn about the most frequent scams with Bitcoin and how to avoid them.

1-Ponzi Schemes

This is one of the most common methods to trick investors and people who want to multiply their money and start generating passive income.

The rise of cryptocurrencies has been seen as a perfect opportunity to resume this fraudulent scheme.

A Ponzi scheme is that a company offers the opportunity to start generating income from an initial investment.

In this way, the person who has invested will begin to receive the money from new investors, but if no one else decides to invest, the scheme is broken and the money is lost.

How To Avoid Ponzi Schemes

  • Do not invest in advance: As reliable as the company seems, never do.
  • Beware: We cannot live a life distrusting everything. But, if we are promised a lot of money from a little known company, we most likely should miss the opportunity
  • Find out about other ways to generate Bitcoin: We all want our wallets full of BTC, but it will be better to work them as we would to earn a few euros.

2-Pyramid schemes

Not everything that bears the word scheme in its name has to be a scam, but another scam that is very common in the world of finance and investment, and more recently, in the crypto world, is that of the pyramids.

These are very similar to Ponzi schemes, but their risk will not necessarily involve you losing money. But, at a minimum, you will lose time and energy.

In essence, a pyramid scheme in the world of cryptocurrencies will occur when a company or group offers you to generate Bitcoins or altcoins if:

You give money, you subscribe, you use a product, etc. But you will only generate more if you get other people to do the same, that is, if you get referrals.

How To Avoid Pyramid Schemes

Run away from any referral system: Enough years have passed and we still find new opportunities to make money every day that require you to invite a lot of people. Do not waste your time or money, run away from these referral systems.

Make sure it is possible to make money if you decide not to get referrals: One of the most annoying aspects of the pyramids is that they seem too good to be true, but, if you simply want to work instead of going door to door, you probably cannot make a lot. If you can't make money from your work, it is very likely that a scam is being cooked.

3-ICO false

If you already have some experience in the world of finance, you may know the term IPO (Initial Public Offering). But, in the world of Bitcoin and cryptocurrencies there is something similar, although definitely not equivalent:

These ICOs are a method of crowdfunding or collective financing, in which a company asks for financing for a new product or service, which usually makes use of the Blockchain and in return offers tokens, that is, a new cryptocurrency, usually with the promise that this will become important.

How To Avoid Fake ICOs

  • Invest for the project, not for the coins: When we take a look at Kickstarter or Patreon and decide to give a creator (a) of content or project a few dollars, we do it because we believe in it, not because we are going to do rich although it sounds boring, this should be our criteria for ICOs.
  • Invest in altcoins that are already worth something: Boring, but, generally, it will be the best we can do. There are many variables involved so that something becomes valuable, usually: Time in the market. Therefore, invest in Bitcoin or an altcoin with a good reputation.

4-Fake Gifts And Raffles

Not always the only way to be scammed comes from losing our money, even if it is the bluntest.

More than one of us receives a lot of emails a month from newsletters or newsletters, to which we have subscribed without even remembering when.

In the world of cryptocurrencies it is quite common to see advertisements and gift offers or the opportunity to participate in a raffle for an attractive prize in Bitcoins or some altcoin.

To participate, they could ask us for money, or some information, and the damages could be to waste our money, or at least our time and subscribe to something we do not want.

How To Avoid Fake Gifts And Raffles

  • Doubt these opportunities: Gifts and raffles are a common marketing strategy on the Internet and social networks. However, we must ensure that whoever offers them is reliable, and that it exists. Thinking of "too good to be real" is usually a good way to avoid being scammed.
  • Never give money or personal data: Why not giving money is quite self-explanatory, but the risks of providing personal data may vary. Never provide bank or card information, use a password that you do not use for anything else, and do not give your email if you do not want to receive things that do not interest you.

5-Fake Or Insecure Exchanges

A cryptocurrency exchange, cryptocurrency exchange or cryptocurrency exchange house is a company, usually in the form of a web, desktop or mobile application, which allows you to buy one cryptocurrency with another.

Some allow you to buy Bitcoin with fiat or fiat currency, and then in another exchange, Bitcoin is exchanged for another altcoin.

How To Avoid Fake Or Insecure Exchanges

  • Use the best-known exchanges: The world of cryptocurrencies and Blockchain is known to innovate, but when it comes to not losing money, it is best to inform us about the most popular and most used exchanges, and stick to them.
  • Never leave your money in an exchange: Even if you are using the safest internet exchange, be sure to pass your Bitcoins or altcoins to your wallet every day. The exchange will not necessarily disappear overnight, but there may still be risks of hacking or security breaches.


If there is something we should take home after knowing some of the most frequent scams in the world of crypto, it is that there is no easy money, no easy Bitcoins, or other easy altcoins. It is unfortunate, but true, and it has been historically also with traditional economies.

In general, we should use our perception, and remember that anything that offers us a lot of money or excellent passive income without doing anything other than giving some of our money in advance usually smells bad, and there is a good chance that it is a hoax or fraud.

Cryptoeconomics is still young and promising, but there are also risks and opportunities for those who want to take advantage of the expectations generated by so many success stories thanks to cryptocurrencies. Everything has their own advantages and disadvantages so before using any platform read all about them. Many people have question about bitcoin era scam. According to the experts review bitcoin era is not scam but it's a smart choice for investors. In the end we conclude that everyone need to be careful while investing in bitcoin.

So always remember to inform yourself well, and be willing to wait a little longer to start making money with Bitcoin and other altcoins.


Author: Admin

Admin is a professional blogger and digital marketer at 99techpost. She writes about Digital Marketing, Technology, WordPress, SEO, Web Design and Development . You can also follow us on facebook & twitter. Feel free to contact us if you have any queries.

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