3 Bitcoin Scams To Be Wary Of

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Bitcoin is perhaps the most popular cryptocurrency available today; and of late, it has been causing quite the stir. Anything that skyrockets in value (almost overnight) warrants the right to be under the spotlight. Back in 2009 a single Bitcoin cost about US$1, and in 2013 it was worth about US$266. Right now, as of this writing, a Bitcoin is valued at about US$16,695. I’m sure that by the time you read this, the value would changed, for better or worse – earlier today, it peaked at US$17,154. Whether you’re already part of the Bitcoin community or if you’re considering getting into the Bitcoin trade, you should keep an eye out for folks and/or programs that may try to cheat you of your hard earned money. Here are three Bitcoin-related scams that you should know about.

Fake Bitcoin Wallets

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Bitcoins are normally kept in a digital wallet, from which you can make and receive payments. Typically, there are four types of wallets to store your Bitcoins; web, desktop, hardware and mobile. The most popular of the four, is the mobile wallet – no surprise there. Be wary of phony wallets that have begun appearing on both Apple and Android stores. Most of these fake wallets have logos and names that look and sound almost identical to legitimate and reliable wallets. What most of these fake wallets do, is to allow the quantity of Bitcoins stored to reach a certain level before emptying your account. We recommend downloading wallets directly from a respected provider’s website.

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Bitcoin Phishing Scams

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If you’re not already familiar with it, phishing is an attempt to acquire sensitive and personal information like usernames, passwords, phone numbers, addresses, and even credit card details, by masquerading as a dependable entity in the digital sphere. More often than not, Bitcoin phishing scams send the user an email claiming that they won Bitcoins. However, to collect their winnings, the user needs to log into their wallet via a link provided in the email. Once you key in your wallet’s details into the fake site from the link, the scammers will have access to your stash of Bitcoins.

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Bogus Cloud Mining

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Without getting too much into the technical aspects of it, cloud mining companies basically charge users a nominal fee for mining (requires vast amounts of computing power) cryptocurrencies on their behalf. The users then receive financial rewards back for their investment. However cloud mining scams don’t really spend the time, effort or computing power to actually conduct any mining. These fake cloud mining sites then pay the users lesser than the value of the contract. After a while, the bogus cloud mining company stops its payments, and the subscriber’s pledged cryptocurrency disappears.

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