Bitcoin scam - Guidelines in Choosing a Bitcoin Platform to Avoid Scams

Bitcoin scams are no longer a new trend in cryptocurrency. Over the years, investors and traders have suffered several bitcoin scams both from crypto exchanges and crypto investment schemes. 

You are a proud owner of Bitcoins after buying several of them back when they were much cheaper, and now you want to trade them so that you can reap the benefits of the cryptocurrency’s astronomical value. However, you don’t have the slightest idea on how and where to sell them. This is where a Bitcoin exchange platform comes in.

If you’re relatively new to the market, a Bitcoin platform is a digital marketplace where coin owners can buy and sell Bitcoins using fiat currencies like localbitcoin.com - an online platform that acts as a sort of middleman between buyers and sellers of Bitcoin (one of the biggest place to purchase fiat to crypto) or other cryptocurrencies called altcoins – crypto-to-crypto like we have Binance.com (user-friendly and affordable). The currency abbreviation or ticker used for Bitcoin is either BTC.

An exchange platform for the cryptocurrency can be in the form of a desktop or mobile Bitcoin app, where it matches buyers with sellers. It also works like a traditional stock exchange where traders can buy and sell the cryptocurrency through a market order or a limit order.

But as with anything related with trading this type of digital currency, there is always a risk of falling victim to cryptocurrency scams. The key here is to be aware of what to look for to spot any fraudulent activity that’s out to leave you scammed of your Bitcoins on exchange platforms. Here are a few tips that could help you out:

1.   Fake wallets and exchange platforms

As Bitcoin rose to prominence, more people wanted to be owners. Unfortunately, there are despicable scammers who wish to take advantage of this trend and have set up their own fake bitcoin exchange platforms. These platforms may trick users by offering unrealistically low market prices that make people think that they’re getting a steal with cheap Bitcoin. It’s always prudent to use a reputable platform when trading Bitcoin.

2.   Avoid the new

Early adopters always want to stay ahead of the pack, but when it comes to using a new platform, let them take the risk. Avoid getting involved until you’re 100 percent sure it’s legitimate.

3.   Use the most popular

There’s a reason why particular platforms are so popular: a lot of people use them. And when you know this happens, you can be confident that there’s nothing suspicious about them. Remember, there’s safety in numbers.

4.   Know what to expect

Once you know how a platform works, you already know what to expect. When this happens, you’ll be able to spot anything suspicious easily.

5.   Always use two-factor authentication

This generally involves getting a unique code through your phone every time you log in. It may be a hassle, but it’s better for tighter security and protection.

6.   Check the URL before signing in

It’s always a good habit to check the URL bar if you’re using a desktop app and look for the “https” and “secure” lock symbol. Make sure you have the correct URL before signing up.

South Korean scam BitKRX presented itself as a legitimate platform to trade Bitcoin but was eventually found as fraudulent. The fake platform took on the part of the real Korean Exchange (KRX) and scammed people by posing as an authentic cryptocurrency platform.

To help you avoid such scams here is a few lists of blacklisted websites from the Financial Markets Authority (FMA) that offer investments that include cryptocurrency.

 Here are experts opinion on how to stay safe with bitcoin

Always Be Wary

It always pays to be armed with the right knowledge before diving into the world of trading Bitcoin. Let these tips guide you to avoid fake Bitcoin platforms and lead you towards the legitimate ones that can help you maximize the benefits you can get from your Bitcoin investment. Pretty soon, you’ll be an industry expert and be trading your Bitcoins safely for your own financial gain.

Let us know the best crypto exchange you are using in the comment section.

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