Stay Away From Scams and Ponzi
Bitcoin is the most successful cryptocurrency, and also the first cryptocurrency.
Investing in highly volatile Bitcoins and other cryptocurrencies is risky business. These currencies are all electronic or virtual in nature, they have no physical presence. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days and held on to their investment are now living a multi-millionaires life.
Because Bitcoin is the most successful cryptocurrency there are also a lot of scams associated with Bitcoin. Before you start with any type of cryptocurrency you must first know how it works. Con artists prey on those who don’t know the difference between a legit crypto platform and a fake one. A Ponzi scheme from a legitimate affiliate program.
3 Red Flags Of Scams
Scammers fool people into thinking that their well-designed website give them a semblance of legitimacy. But on closer inspection these sites won’t pass.
Here are some giant red flags you should be aware of:
- Website Has No SSL Certificate – It is very important for a website that deals with cryptocurrencies to have an SSL – Secure Sockets Layer, certificate installed. Websites with no SSL only display HTTP before their domain names. Websites with SSL show HTTPS. Many scam websites are here today, gone tomorrow types of sites. This means once they have scammed a certain number of people they will shut down the site and move on to a fresh domain. It is quite easy to transfer websites files from one domain to another. This is why these scammers can set sites very easy and quickly.
- The Offer Is Too Good To Be True – Whether you are trying to get the best rates for your dollars or bitcoins, it is only natural that you’d want the best possible deal. Since cryptocurrencies are decentralized, most crypto exchanges have their own exchange rates. However, these rates don’t vary by much. If you see a website offering rates that are significantly lower or higher than other established exchanges, then it is a giant red flag. It is better to do business with a trusted platform with higher fees than to try to get the best deal out of an unknown website that could possibly swindle you out of your entire fortune.
- Beware Of Ponzi Scams – Some Ponzi scams are not as obvious especially if they have been around for a few weeks or months. This is because their first members would already have received their profits. They are also posting glowing reviews on internet. At fist glance, you might be fooled into thinking it is a legitimate crypto operation especially if you personally know someone who’s made money fro the scheme. Check out those positive reviews, and you will see they are basically saying the same thing. I also be they would have their on affiliate or referral links somewhere on the review.
Always have these three red flags in the back of your mind. They will save you from loosing money.
Keeping Your Bitcoins Safe
There are basically two general types of wallets to keep your bitcoins and other cryptocurrencies safe. Cold Wallets and Hot Wallets. I will hear describe the pros and cons of each types of wallets so you can make an informed decision when choosing which wallets to go for.
Hot Wallets
Hot wallets are called hot because they are connected to the Internet which generally means it is easier for hackers to hack into and steal your valuable coins from you. Examples of hot wallets include those free wallets at your favorite bitcoin exchange website like Coinbase or Kraken but also mobile wallets.
Desktop wallets are another from of hot wallets especially if you install it on a system that is connected to the Internet. However, you do have control over your private keys, and you can encrypt your wallets to prevent hacking attempts. The only downside to desktop wallets is it your computer gets destroyed or stolen. It this happens you can pretty much say goodbye to your bitcoins.
There have been many instances of theft in hot wallets. Some hackers have even managed to steal millions of dollars’ worth of bitcoins. Hot wallets are great for storing small amounts and transacting on the fly. But if you have got quite a sizable number of bitcoins, then it is best to move these to offline or cold wallets.
Cold Wallets
Cold wallets are the preferred storage method of people with a significant amount of bitcoins. Examples of cold wallets include paper wallets and hardware wallets. Paper wallets may sound a bit funny at first because we are talking about storing digital currencies here. But it is precisely why it is one ot the best types of wallets for long-term storage. With paper wallets, there is zero chance of anyone hacking anything on paper. The downside is it can be stolen, or it can get burned, or destroyed. To keep your paper wallet sage, consider putting it in a safe environment like a safety deposit box.
The second type of cold wallets is the hardware wallets. It is a physical offline device that is pretty much like a glorified USB that can be plugged into your computer when you need to make a transaction. There are three main brands that are very popular among crypto owners. These are Trezor, Ledger Nano, and KeepKey. All three will cost you some money but will definitely help keep your virtual treasure chest safe.
Why Is Bitcoin The Most Successful Cryptocurrency
Why is Bitcoin the most successful cryptocurrency? Maybe because it was the first known.
Blockchain is the technology that makes Bitcoin and other cryptocurrencies very secure. This is an open-source, distributed database that is stored in nodes or computers within the network. It is also very safe. Once an entry has been added onto the blockchain it will stay. Fraudsters can’t steel your Bitcoins without too much effort.
Bitcoin has now becoming integrated into the everyday lives by many people and are used as a online payment method all over the world. Maybe because with Bitcoin you can send any amount of bitcoin to anyone in the world in a matter of minutes. It is also cheap to send or pay in Bitcoin.
Wrapping Up
These were just some few points, but surely as important as you should know.
Because Bitcoin is the most successful cryptocurrency a lot of people want to make money from Bitcoin and other cryptocurrency. With that you also see a lot of scammers trying to make money scamming you. Therefore it is really important that you do your homework before you start. That you learn as much as you can about Bitcoin and cryptocurrency. If you do that you significantly reduces the chances of being hit by any of the scammers out there. So, take your time before you start with any form of cryptocurrency.
If you always have these few tips in mind, I’m sure that you also will find out that Bitcoin is the most successful cryptocurrency.
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