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8 Common Bitcoin Scams and How to Avoid Them : Kolin Lukas
As seen in Binance Academy
There are several cryptocurrency scams in the blockchain space. Some of the most common include blackmail, fake exchanges, fake giveaways, social media phishing, copy-and-paste malware, phishing emails, Ponzi and pyramid schemes, and ransomware.
Let’s briefly discuss each of them so you can learn how to avoid the most common Bitcoin scams and keep your cryptocurrency holdings safe and sound.
Introduction
As long as new technology is introduced into the world, fraudsters will continue to search for a place to thrive. Unfortunately, Bitcoin gives cryptocurrency scammers an interesting opportunity as it’s a borderless digital currency.
Bitcoin’s decentralized nature allows you to be in full control of your investments. However, it also makes it harder to delineate a proper regulatory and law enforcement framework. If scammers manage to trick you into making mistakes while using Bitcoin, they may end up stealing your BTC, and there is virtually nothing you can do to recover your crypto.
That said, it’s crucial to understand how scammers work and learn how to identify potential red flags…