Top 7 Schemes To Be Aware of When Trading With Bitcoin

Thanks to Bitcoin’s recent surge in value, thousands of people from every corner of the planet are looking to join the network and start trading with this cryptocurrency to make a profit. It is a well-known fact that Bitcoin can turn the average people into overnight millionaires. Everybody wants to turn this dream into reality, thus are more than willing to trade with this cryptocurrency.

However, one of the biggest disadvantages that came with Bitcoin is online scams. Many people fall victim to online scams each day, which is why we wanted to give you a list of the three most common Bitcoin scams that you can come across when trading with it. First, we are going to provide you with details on one of the most reputable and safest sites to trade with Bitcoin and then, we are going to list the three most common Bitcoin scams.

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Where Do You Trade With Bitcoin?


Trading sites are the platforms where the magic of selling Bitcoins takes place. After you earn a certain amount of Bitcoins, you turn to these professional sites as they can help you sell your assets at the highest possible price, thus make a handsome profit.

One of the most reputable trading sites in the world is bitcoincircuit. This platform has thousands of users from every corner of the planet and even provides the traders with one additional service which helps them generate massive revenue.

1. Ponzi Scheme


The Ponzi scheme is one of the most popular schemes of all time. It was invented by Charles Ponzi, one of the most popular scam artists of all time, but some research even states that it goes way deeper than that. The idea of this scheme is very simple – you offer tremendous amounts of profits, then run off with the money.

In Bitcoin’s case, you can often see projects and strategies of how people can be offered returns of up to 10% per month. These offers are definitely Ponzis. With this scheme, scammers are always on the lookout for new investors. When scammers feel like they are close to being identified and that the scheme runs out, they just vanish and find new victims.

2. The Exit Scam

The Exit scam has been gaining popularity in the Bitcoin network recently. Here’s how it works. Scammers take the customers’ coins and start trading with them. But, they provide the clients with false data on the profits and number of exchanges. They are simply playing the accounting system. Hence, the balance on their wallet does not reflect on their real state since the coins are gone. When the clients start requesting withdrawals, they shut up shop and disappear.

3. The Stop Drive


The last scheme to be on the lookout for is the Stop Drive. This is a rather sophisticated scam as some scam exchange sites will ramp up the Bitcoin value just so that they can motivate you to invest money. Just before you invest money, they drop the prices, and you lose money. After you’ve made an investment and lost money, they just ramp up the numbers back to normal.

4. Fake celebrity posts

Recently, a new wave of very serious scams has taken over the YouTube platform. These scams claim that celebrities donate bitcoin or other cryptocurrencies. The video ads guarantee that the more bitcoin you send, the more bitcoin you will get back, emphasizing that “You can only participate once.” For example, fraudsters claim that if you send 1 bitcoin, you will get back 2 bitcoins. Unfortunately, victims in ignorance easily fall prey to these types of scams.

5. Old school scams


Cryptocurrency fraud is very difficult to discern. Sometimes it can be a fake email from the tax administration informing you that you have to settle debts in Bitcoin. You do not need to respond to such emails or calls because official institutions would never ask something like this from users.

6. Pump and dumps

This scam is as old as the stock market itself. It is about a group of fraudsters trying to buy a lot of shares. This increases the price of these stocks, and in the background of these rising prices attract foreign people to invest in stocks – using big promises of easy earnings.

7. Phishing


Another very common scam when it comes to cryptocurrencies. Today, through mobile applications, you can access various trading platforms, as well as crypto wallets. Unfortunately, this scam is very difficult to detect because the logo and name of the application are the same as that of the real, licensed platform, but if you take a closer look, you will notice that there is a difference that is often just one letter. Still, that one letter can make you run out of your money.

Final thoughts

The cryptocurrency market has been volatile since its inception. Cryptocurrencies are digital assets and their price is completely determined by the laws of supply and demand, ie how many people currently want to buy Bitcoin or another cryptocurrency. A combination of a number of factors, at particular time intervals, causes cryptocurrency prices to vary in seemingly ‘random’ directions.

Trading and mining cryptocurrencies is a really lucrative business if you manage to recognize and avoid scams that come your way. Experienced investors advise beginners to start trading first, because mining requires more time, but also money, because certain equipment is needed, and electricity bills are quite high. Also, it is considered that it is better to invest in several different currencies, so even if the value of a certain happens to fall, you do not lose all the money.

Speaking of money, there is a rule that you have to stick to, and that is to enter only that much money without which you can continue to live unhindered if you lose it.

Cryptocurrencies are in themselves a risky investment. Don’t increase your chances of losing money by falling for these types of scams. Be prepared for potential scams and trust your instincts. If something seems too good to be true, it is probably these types of scams.