Bitcoin scams - how to recognise and avoid BTC scams

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Since time immemorial, people have been cheating other people and in turn becoming victims of scams themselves. In times of the internet, a new term emerged: Cybercrime. And with the advent of cryptocurrencies, there are now Bitcoin scams. Not in the sense that Bitcoin is fraud, but in the sense of Bitcoin scams, i.e. scammers who steal Bitcoins from others.

This article looks at the most common Bitcoin scam schemes and how investors and consumers can protect themselves from Bitcoin scams.

Bitcoin: Dangers lurk everywhere on the internet

Frustration and shame spread among victims in equal measure. Frustration about the theft, but also shame that they did not recognise the scam and fell for it. Victims of scams like Bitcoin scams are not stupid or unworldly. It can happen to anyone regardless of education, background, age or current profession. Even IT professionals and marketing experts in, who one would most trust to recognise Bitcoin scams, become victims of cybercrime through carelessness.

Now, scams are not a novelty. But the internet makes it even easier to act rashly. Bitcoins are transferred with just a few clicks. If you had to go somewhere the next day, withdraw money and do something with it, you would have a lot of time to think about it.

But with a smartphone or a PC, you don't even have to physically move anywhere. Everything is done very quickly and easily with just a few clicks. That is virtually predestined for BTC scams. By the way, NFTs also continue to enjoy increasing popularity, but here, too, you have to be careful.

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Appeal to greed and artificial time pressure are effective methods

Basically, it is quite simple to set up a BTC scam in order to steal Bitcoins with it. Only two basic things need to be considered (apart from technical knowledge):

  • Appeal to the person's greed
  • Building up an artificial time pressure 

Both of these principles, especially the appeal to an emotion such as greed or fear, are used in almost every scam. In order to seek victims among cryptocurrency users, both of the above principles are excellent. Why?

ConclusionOn the one hand, many speculators are currently active in the crypto market. Hardly anyone uses Bitcoin & Co to simply make payments. On the contrary, people want to make profits, maybe even get rich with it.

In addition, the crypto market is extremely volatile. This means that, for example, the Bitcoin price at the Bitcoin Market Cap can rise by many percentage points in a few days, or even hours. Bitcoin traders are therefore used to making "quick profits" with the coins.

At the same time, crypto traders are also aware that things can happen quickly. Unlike other asset classes, such as bonds, which react very sluggishly in price, transactions in cryptocurrencies often have to be made quickly.

On the other hand, cryptocurrencies are traded exclusively online. The potential victim can therefore act from the comfort of their "safe" home and with a certain degree of anonymity.

This is exactly what Bitcoin fraudsters exploit. On the one hand, they promise very high profits. At the same time, they suggest to the victims that they have to act quickly. Either because only a limited number of people can profit from it. Or because otherwise they will miss out on the high returns.

And there is another advantage to the Bitcoin scam in particular: Bitcoins can be traded anonymously. It is possible for the fraudsters to receive payments completely anonymously and then convert them into another currency.

  • Bitcoin fraud is often structured according to the same scheme
  • Bitcoins offer the advantage of anonymity for fraudsters