What is a bitcoin scammer

An easy-to-spoof scheme that tries to lure crypto newbies is asking for a mere $25 to get started. For newcomers, the first step in learning how to buy and sell is usually a sign-up page that asks for a credit card number to “activate” their trading account. But when they send the card number, they’re hit with fees or fraud warnings.

Bitcoin scams often start on bitcoin-related forums, where people looking to buy, sell, and exchange bitcoin can post ads and screenshots of exchanges and other companies. It’s natural to assume that if they have sold bitcoins or exchanged them for cash, the same company also trades them in cryptocurrency. Many companies used this tactic.

Many scammers also set up fake coin giveaways on websites in the bitcoin ecosystem, such as BitcoinTalk.net.

How to determine if a company is legit or a scam

My daughter was tricked into believing her uncle was her long-lost friend who was going to move to America. So she paid him over $800 for a VPN and some bitcoins to get him to the U.S. The news on this kid was pretty scary, so I didn’t want to get scammed myself. But I did. I handed over over the money even though I didn’t have a VPN. The scammers were eventually traced to Malaysia, and I learned a valuable lesson. But I got my money back.

How to separate an ICO from a scam

An Initial Coin Offering (ICO) is an exciting way for startups to raise funds and build a product that would otherwise be too difficult to finance. Often, blockchain-based projects seek to improve a product in a new way or bring more good into the world, or they’re just hoping to make a profit.