If you got scammed because you wanted to cash in on the bitcoin craze, you may not agree that Bitcoin is a worthy investment.
Have you ever fallen into the traps of a financial skim and went, ”I am NEVER putting my money on that again?”.
There are mixed reactions in people at the mention of investing in bitcoin.
Before investing in bitcoin, you have to understand what bitcoin is, why bitcoin is or isn’t a worthy investment and how to not get scammed as a beginner trader.
Doing research and due diligence on bitcoin help prevent you from taking an uncalculated risk hence preventing you from losing money.
You can start by investing as little as a dollar to 5 dollars.
Money which you won’t feel pain when you lose.
Also, don’t buy bitcoin from untrusted sources, buy from trusted bitcoin platforms like Coinbase.
Like stocks or any financial investment, you may cash in (luck out) or lose.
Get prepared to go either way.
Bitcoin is volatile and the prices appreciate and depreciate in seconds.
Alertness and decisiveness are both fundamental ingredients in the recipe of a successful bitcoin investment trader.
As a beginner bitcoin investor, it’s best to rely on the skills of professional bitcoin investors to make them money.
Even if you’re relying on a professional, you can get scammed.
Scammers are very pushy, don’t have a history of trading and someone reported them for cheating.
Don’t underplay these red flags, go with your guts, an investment manager will tell you.
If you feel it’s too good, knowing how the bitcoin market is, then it’s too good.
Also, scammers don’t give you a way out.
There’s no exit strategy.
How would you feel when you enter a building with no exit?
That’s how scammers do and bitcoin scammers aren’t different.
They choke you, figuratively, until you gasp for breath.
Getting scammed through bitcoin can lead to a devastating impact on your finances, start small.
It is necessary to have a trustworthy expert, if you are trading with one, to avoid being scammed.
In case you want to start trading in bitcoin or are already an investor or trader, there are signs you need to beware of before getting scammed.
Know how a bitcoin scam works, how to spot them and how to get your money back from a bitcoin scam.
Want to start an online/offline business in Kenya or work legitimately from home and make a fortune, don’t hesitate to contact me on GERTRUDE DOT AKINYI AT GMAIL DOT COM
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What are the Types of Bitcoin Scams?
These are examples of bitcoin scams.
Social media scams
Hackers use social media to reach bitcoin investors by creating fake social media accounts or hacking social media accounts of prominent people.
Twitter is known for rampant bitcoin scamming incidents.
The hackers ask followers of a prominent person to direct their money to a certain blockchain address and they will get double the funds they have invested.
Exchange and wallet hacks
This type of bitcoin scam involves bitcoin scammers breaching the email addresses of bitcoin investors, stealing their personal information and using that information to steal bitcoins from their wallets.
Hackers use fake ICOs to create fake websites that resemble the real ICOs and instruct bitcoin users to deposit coins into a compromised wallet where they will steal them.
Social engineering scams
Social engineering scams are bitcoin scams where hackers use psychological manipulation and deceit to get access to a bitcoin user’s personal information.
A hacker sends emails linking their targets to a fraudulent website that will obtain important details such as financial information, personal address, phone number, email address or other personal information.
Defi Rug Pulls
Defi rug pulls are the latest type of scams in the cryptocurrency market today.
Decentralized finance (Defi) aims to decentralize finance by removing gatekeepers for financial transactions.
Bitcoin investors have complained that there are fraudulent activities with this decentralized finance system.
How Does Bitcoin Scam Work?
A bitcoin scam is fashioned the old way as to any either scams that are available on the Internet.
A fraudulent email is sent which leads bitcoin investors to a website specially created. The investors are asked to enter their private key information on this website.
When the hackers have acquired this information, they can use it to steal the bitcoins in your wallet.
It is important that you do not click on any link in a message that will direct you to a site.
How Do You Spot a Bitcoin Scammer?
A bitcoin scammer’s main agenda is to steal your bitcoins or your money.
To avoid falling victim to a bitcoin scammer, here is how you can point out any anomalies when investing in bitcoin.
A bitcoin trader unceremoniously contacts you
When a trader contacts you out of the blue, without you seeking them out first, chances are that you have been marked and they want to scam you.
Bitcoin scammer asks for personal information
Your personal information includes your name, address, phone number as well as financial information.
This is enough for a bitcoin scammer to rip you off your money.
Asks you to keep your interaction with them a secret
When a bitcoin investor does not want you to share their information with other potential investors, chances are they do not want to draw any attention to themselves.
When too many people focus on them, they may be caught short in their lie and their activities will be shut down.
They ask you to be quiet about your investment
A bitcoin scammer will ask you not to talk about your investment with other people.
They claim that you should let your money do the talking for you.
When you hear this, chances are that it is probably a scam. Walk away while you still can.
They ask you to send money upfront in order to receive your prize
An investment that asks for money in order to get a prize is most likely a scam.
Do not send money upfront and to your bitcoin scammer.
Examine all odds and ask around.
Do research before you do any transactions.
They ask you to send money through a wire transfer
Bitcoin scammers will ask you to send money through a wire transfer or a reload pack to avoid being caught.
How to Get Your Money Back from a Bitcoin Scam
Bitcoins are notoriously known for their no chargeback or refund policy.
Bitcoin’s decentralized structure makes it impossible for any single party to arbitrate disputes between users.
There are however, some rudimentary chargeback and refund functions that can be incorporated in bitcoins to help you get your money back.
Transactions cannot be reversed, it can only be refunded to the person receiving the funds.
Here is how you can get your money back from a bitcoin scam.
Contact the fraudulent cryptocurrency investment platform
Reach out to your bitcoin scammers and ask them to give you your money back. Inform them that you will take the matter forward to the authorities if they do not do their due diligence.
Report the incident to financial authorities
Inform the finance authorities that you are a victim of a bitcoin scam and follow up with them to see how they can help you get your money back.
Get help online
There are online procedures that help you trace your money from a bitcoin scam.
Be careful not to fall for another potential scam as you trace your money.
Use trusted sources on the Internet that have been successful to other bitcoin scam victims.
Inform your cryptocurrency wallet provider
Get word to your bitcoin wallet provider that your bitcoin trader scammed you. They can help you get your money back.
Hire an expert
Sometimes you cannot rely on your own skills to get your money from a bitcoin scam.
Use a professional who understands blockchain and all of the bitcoin algorithms used by scammers to steal money from users.
A bitcoin expert will get you your money almost in an instant.
FAQs on Can You Get Scammed Through Bitcoin?
1. Can you lose money on Bitcoin?
YES, Bitcoin is a shaky market where you can earn or lose money big money.
Start investing with small amounts like a dollar to 10 dollars, money you won’t feel a big pinch when you lose it.
2. Can you get Bitcoin back from a scammer?
Yes, you can get your bitcoins back from a scammer.
Contact the trading platform where you lose your money then warn them.
Now, that doesn’t guarantee you they’ll return.
Trade only on trusted platforms.
3. What do I do if I get scammed on Bitcoin?
If you get scammed, call your bank or cryptocurrency exchange platform to report the scam so they block any future transactions.
Protect your identity to avoid identity theft and more scams
Contact a cyber investigator.
Bitcoin isn’t untraceable as we’d love to believe.
4. Is it worth investing in Bitcoin?
Yes, it’s worth it investing in Bitcoin.
You have to have the patience of a lion.
5. What are the risks associated with Bitcoin?
The risks associated with bitcoin include:
Loss of money.
6. Can I invest $100 in Bitcoin?
Yes, you can invest $100/10k shillings in Bitcoin and as low as a dollar.
7. Why are Bitcoin irreversible?
Bitcoins are irreversible because they can be reversed by the receiving party.
You will depend on the goodwill of the receiving part to get your bitcoins.
8. How do beginners invest in Bitcoin?
Investors invest in bitcoin by joining a Bitcoin Exchange Platform like Coinbase
Then getting a Bitcoin Wallet,
Connecting the wallet to a bank account.
9. What’s the minimum amount to invest in Bitcoin?
The minimum amount to invest in bitcoin is $1
Other platforms like Coinbase set their minimum at $2/200 bob.
10. How do you know when to buy Bitcoin?
You buy bitcoin from 3 -4 pm or 11 pm to midnight.
11. Are banks worried about Bitcoin?
Yes, banks are worried about bitcoin.
12. Is too late to buy Bitcoin?
No, it’s never too late to invest in bitcoin.
13. How do I get free Bitcoins?
You can get free bitcoins by working online
Getting shopping rewards
Get gift cards
14. Can a regular person buy Bitcoin?
Yes, anyone can buy bitcoins, only start small don’t start with a billion dollars like Elon Musk.
Resources Related to Can You Get Scammed Through Bitcoin?
How to Spot a Scammer When Working Online in Kenya
How to Start Day Trading in Kenya and Make Over a Million in a Month
Bitcoin scams are on the increase because a bitcoin can make a whole year’s income.
The number of bitcoins in the world is limited too, leading to an increase in bitcoin scams.
The more limited bitcoin is, the more scams there are.
Do your research and have an entrusted bitcoin professional to do your investment for you.
If trading bitcoin alone, start from trusted platforms like Coinbase.
Also, know there are different types of cryptocurrencies you can invest in, Bitcoin and Ethereum are the most popular ones.
Don’t start with investments that will leave you homeless or declaring bankruptcy, start small then build your bitcoin investment.
Realise the bitcoin market isn’t reliable, you may make money in a minute or lose it all.
Don’t trust any ”guru” telling or forcing you to invest in bitcoins because it’s a high return business/market, do your research/due diligence.
Bitcoin is at a high-risk end of the investment spectrum.
You cannot rely on your skills to succeed in bitcoin investment.
Get to know how bitcoin scams work and find ways to prevent them from happening.
Always think of yourself as a target because you’re a target.
Have you been lured into a Bitcoin scam and got ashamed of revealing what happened?
There’s no shame in getting scammed, there’s shame in not exposing bitcoin scammers.
Share your experiences in the post below of how you got bitcoin scammed.
Did you get your bitcoins back? Will you ever trade bitcoin again?
What are the best bitcoin platforms for Kenyans to use?
What were your experiences on those bitcoin platforms?