Bitcoin scam is a serious, huge, and grim issue that deserves every investor’s attention. Many people fall victim to scammers or fraudsters while trying to invest, trade, or exchange Bitcoin, for that matter, any cryptocurrency. Victims of stolen/lost Bitcoin might not be able to properly narrate their side of the story of the pain and anguish that they went through. The chance of recovering lost Bitcoin from crooks is slim but not impossible.

The digital currency Bitcoin has been around for almost three years now. It’s grown from a small niche interest among tech-savvy early adopters to one of the most popular and well-known ways to buy things online. For that reason, it’s natural that people have questions about how exactly this decentralized cryptocurrency works and what its potential downsides are. A lot of those questions come from folks who have been bitten by the bitcoin scamming bug. The term refers to any type of cryptocurrency fraud, whether it involves thieves taking your money or faucets that reward users with virtual currencies based on how often they visit a website or app. Bitcoin scams can take several different forms, but they all share one thing in common: They involve deception or trickery designed to get you to part with your money quickly and efficiently. If you think you might be dealing with a bitcoin scammer, you might want to double-check the following points before handing over your cash:

Do they have the right number?

First, it’s important to understand the difference between a scammer and a legitimate business. A scammer is anyone who perpetrates a scam, whether that’s through sting operations or by contacting you with a fake offer in an email. Most scam emails are not scams and the majority of them are legitimate businesses looking to make a quick buck. All you need to do is decide if their “sale” price sounds right to you and if the terms of the sale sound legitimate. If you do end up purchasing something, make sure you ask questions and get in touch with the seller if you doubt anything.

Are they asking for personal information?

Personal information—such as your social security number, bank account numbers, and current account numbers—is a common way scammers get their hands on your money. You might think that you’re simply clicking a “Join” button and your information is being logged into a server somewhere—but in reality, that information is already out in the open. Your financial institutions already records all of your financial transactions, and scammers can easily access this data with ease. You should also be on the lookout for social media adverts that seem to be showing up in emails. These are often designed to ask for your email address or other personal information in an effort to send you a marketing mailer.

Are they promising fast cash through Bitcoin scam?

If someone is offering to give you cash without showing you the goods or posting any proof of identity, it’s probably a fast cash scam. There are many bitcoin faucets around, and many of them offer users cash rewards when they’ve “bumped” their account by “fauceting”—that is, visiting the website or app many times in a row. If someone is offering to give you cash and you “bump” your account, they will send you coins based on the number of times you visit the website or app. Be careful with faucets, especially if they’re “free” coins with no charge to enter or win. Some faucets may require you to “bump” your account each time you visit a certain number of times or “spin” the wheel to claim your prize.

Are there hidden fees or charges?

Many scams overcharge for the items you purchase or the service you receive. Keep an eye out for hidden fees, especially if the seller is pretty familiar with your financial situation. Some of these fees include a setup fee, transaction fees, and a reward for the person who first “bump” their account. Keep in mind that some of these hidden fees may be hidden in the concept of “free” coins. You should always know what you’re getting before you part with your money.

Is the seller using an escrow service?

An escrow service is a middleman that holds your money until the goods are received and is responsible for the authenticity of the transaction. There are many different types of escrow services, and the most common ones involve hiring a third-party company to act as a check against fraud. An escrow service can also help you track your order and ensure that it will reach its destination. Make sure you’re paying attention to the seller’s descriptions of the service to make sure it’s accurate.

Does the seller have a verified identity?

If someone is selling you something like a car or house, it’s a good sign if the seller has verified identity with the authorities or has a valid reason to be selling from that location. In many cases, you can verify a seller’s identity by looking up their information in a public database like or When in doubt, always ask for personal information in an effort to confirm the seller’s legitimacy.

At what point in the process did this scam happen?

Most of the time, the scam happens during the buying process. First, the seller identifies themselves to you and attempts to sell you something. If they are unsuccessful, they might try to resubmit the offer with different details, or even call you with a different number. If you’re being scammed, you might be too weary of the process to report it right away. It can take you days or even weeks to report a scam to the authorities. In that time, the scammers might have gotten your money or information. You should also be mindful of when you’re supposed to report a scam to the authorities. Some scams don’t even involve money, just the attempted purchase of a product or service from you.

Bottom line

When it comes to Bitcoin, there are plenty of question marks around Bitcoin Scam. While it has been around for three years and has grown from a niche interest among tech-savvy early adopters to one of the most popular and well-known ways to buy things online, there are plenty of questions about how it works and what its potential downsides are.

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