Bitcoin Scams Review

Bitcoin Scams Review

Understanding the Dangers of Cryptocurrency Scams

Cryptocurrency Scams: What to Watch Out For

Sock Business

This Florida-based company offers a full suite of cryptocurrencies, including Bitcoin, Litecoin, Dash, Ethereum, Ripple, and Monero. One thing to keep in mind is that while these cryptocurrencies are virtual, each has a real value. They’re real and are traded on exchanges, not paper cash.

Sock Business promotes itself as an exchange for a number of cryptocurrencies. It charges up to 0.75% on the first 10,000 each investor puts in.

Online Gaming/Magic: The Gathering

This website invites you to exchange Magic: The Gathering cards for cryptocurrency.

When you place your order, the person at the other end of the line will transfer you cryptocurrency using the method and exchange rates they’ve discussed.

The Importance of Blockchain Technology

As far as scam tactics go, bitcoin scams are amongst the most complex. Many bitcoin scams don’t want to reveal their true intention, which usually boils down to one of three things: asking you to send funds, promising you returns or guaranteeing high returns.

Bitcoin scams vary from other scams because the most important characteristic is the technology used. For bitcoin-based scams, there’s Bitcoin Core, a cryptocurrency client that’s very similar to Bitcoin. Other cryptocurrency scammers use altcoins, many of which are also very similar to bitcoin. Scammers might claim that you could use altcoins for transactions, and while this can be true, the scammers aren’t actually using altcoins.

In 2017, we documented eight bitcoin scams.

Keep Your Eyes Out for These Warning Signs

According to the team at Cryptos Watchdog, “The price of the coin does not increase significantly in a time frame, except for high exchange rates with other cryptocurrencies.”

In their opinion, a promising cryptocurrency does not go up in value as fast as other cryptos, and tends to fluctuate around $40.

The big price decrease, sometimes due to a major hack or a technical glitch, is likely a scam.

On the other hand, the price of a good or service is likely to increase rapidly.

“This is often the work of hacks or a company or agency taking advantage of their customers,” advises

Crypto Maniacs — aka the Digital Gangsters — will promise huge returns to investors, who are often in the dark about the risks involved.

How to Spot a Scam from the Start

A good place to start when evaluating a cryptocurrency investment opportunity is to familiarize yourself with basic concepts about cryptocurrency. Bitcoin, for example, is the world’s most widely used cryptocurrency. Blockchain refers to the technology that drives it. Cryptocurrencies and blockchain are similar, except that blockchain is less transparent, which can make it harder to verify claims and bring legitimacy to businesses. Remember that most cryptocurrencies are also scams, so if you find a company that promises cryptocurrencies, then your chance of winning is low.

If You Think You’ve Been Scammed

If you think you’ve been scammed, take the following steps to recover:

Notify your bank. The bank will need to send a chargeback order to the scammer’s bank to reverse your chargeback. The bank needs to also change the address associated with your payment and report the incident to their fraud department.

Contact law enforcement. If you’ve reported the fraud to your bank and they haven’t acted, you should report it to the FTC. You may need to request the company take down their website or block your account.

Report the incident. The Federal Trade Commission and Better Business Bureau are both good resources for making a fraud complaint.

Exit the situation. After you’ve tried to resolve the dispute, quit the company’s online chat and stop responding to calls or emails.


and to prevent its customers from losing their Bitcoins. On CoinGuard, the company must send you an email confirming the first two (for both parties), and they must not sell your Bitcoins for at least 24 hours (since you’ve requested the check).


This company accepts Bitcoin, Litecoin, Ethereum and Ethereum Classic as well as Monero. It provides you with an easy-to-use platform with no login and absolutely no fees. The platform can manage Bitcoin Wallets, along with receiving and sending Bitcoins. It also has a Bitcoin exchange that you can trade your BTC for a wide range of different currencies such as euros, U.S dollars, Chinese Yuan, and more.

Thanks to the recent appreciation of Bitcoin, the service is expensive.