When I thought about writing this article, I wondered how I would fit all the important information regarding Bitcoins. But knowing about Bitcoins has become a need nowadays. You may have heard of multinational companies, such as Tesla, investing in Bitcoin worth millions of dollars. But what is it exactly, and why has it gained popularity so quickly? Bitcoins are a form of cryptocurrency, or digital currency, that has emerged as a new form of payment.
Here is a list of benefits offered by Bitcoin
- Decentralized currency without any government intervention
- Globally accepted currency
- No limitation on the amount of investment allowed
- Low transaction fees
- Accounts cannot be frozen like traditional bank accounts
An article by TIME magazine reported that scammers stole cryptocurrency worth $14 billion in 2021, which was double the amount in 2020. Despite the use of encryption to secure Bitcoins, traders can get scammed.
Top 3 Bitcoin Scams to Avoid in Current Times:
- Fake Exchange
Scammers can set up fake Bitcoin exchanges offering profitable trading prices. Traders will participate in the exchanges hoping for large profits; however, they end up with cheap Bitcoin in exchange for their own currency that is possibly more valuable. Hence, you should only use well-known exchanges for Bitcoin transactions, for example, BitQt.
- Money Transfer Fraud
The scammer sends emails to traders, proposing they will get a part of the funds if they help in the transfer process. However, this only exposes your personal information, and you don’t receive any portion of the transaction.
Malware is software that sends information about your device to hackers once installed. It changes the Bitcoin addresses during transactions and sends Bitcoins to the hacker. Similarly, ransomware is software that blocks access to your device’s files until Bitcoins are paid as ransom. Thus, you should install anti-malware software to protect against such harmful software and always recheck the Bitcoin addresses because Bitcoin transactions are irreversible once processed.
One-Stop Solution to Scams!
My sister and her husband had invested in Bitcoins, so I decided to try my luck. However, I never expected to be scammed and lose nearly all my investment. Fortunately, I came across a consultation company, Chargeback Way, while trying to recover my money. So I immediately contacted them through a short form on their company website. I was not expecting such a quick response, but I was contacted the next day. The consultant informed me I had fallen victim to a fake Bitcoin exchange and about the process of recovering the Bitcoins. After collecting evidence against the scammers and effectively building my case, the company recovered the entire amount within a week. Without the constant guidance and reassurance, I would have given up quickly, but thankfully it is over now.