Blog » Privacy » Avoid a Bitcoin Scam: Do This Before You Pay
Avoid a Bitcoin Scam: Do This Before You Pay
Anyone using cryptocurrencies needs to know about every Bitcoin scam and what the risks are. Read on to find out our secret to staying safe while paying with Bitcoin.
Spil Bitcoin keeps violating headlines and attracting investors and practical users from all overheen the globe, it has become even more significant to stay informed on the latest news regarding a Bitcoin scam.
When you overeenkomst with cryptocurrencies, you are exposed to higher risks than any other Internet user. If your device is hacked, if your traffic is intercepted, you stand to lose much more than a typical Facebook account, but your hard-earned crypto contant.
If you ask yourself: “Is Bitcoin worth the risk?”, then read our blog to find out how you can stay safe while using Bitcoin.
What is Cryptocurrency?
Cryptocurrency, also known spil digital contant, is an international payment network. Cryptocurrency enables exchanges inbetween any two pc users, creating a “Peer-to-Peer Electronic Specie System” and a public record of financial transactions.
Thesis cryptocurrencies, particularly Bitcoin , wield three attributes that surpass traditional currencies: Decentralization, Open Source, and Peer-to-Peer networking.
Most significantly, they are powered by the users with no central authority or middlemen. Albeit this can be a positive attribute to many living within oppressive governments, it is also this quality that permits a Bitcoin scam to thrive. (Read more below).
Here’s how it works:
Bitcoin Crash: China
Recently, China has recently banned Bitcoin and other cryptocurrencies. China has taut controls on currency, eliminating the capability to budge money ter and out of the country, making China the world’s largest cryptocurrency market, making up about 80% of total Bitcoin transactions .
Now, China is Blocking Initial Coin Offerings (ICOs), unregulated crowdfunding using cryptocurrency, and Bitcoin Exchanges. The government has even requested that all Bitcoin exchanges te Beijing and Shanghai be shut down, stating cryptocurrencies are “increasingly used spil a device te criminal activities such spil money laundering, drug trafficking, smuggling, and illegal fundraising”. It also included:
- Private Details: Exchanges are required to submit DVDs containing all user trading and holding gegevens to the local authorities.
- Travel Verbod: All those involved te the exchanges, including shareholders, controllers, executives, and core financial and technical staff are not permitted to leave the city and vereiste co-operate fully with authorities.
But it might not be the end of digital currency ter China. They actually project to kwestie their own digital version of the renminbi .
Benefits of Using Cryptocurrency
Bitcoin and other cryptocurrencies have the unique capability to transcend borders, surpass bankgebouw transfer fees, and be impervious to exchange rates no matter what the current state of your government or handelsbank.
It can even help fund freedom by permitting users to make anonymous donations to organizations that may not be approved of by local governments. For example, LBGT rights, abortion, political opposition, etc. all have the capability to find support through cryptocurrency.
Users can even start to Purchase Real Items. Spil Bitcoin resumes to grow, it is being used more often for a broad diversity of products. Here are a few examples:
Albeit there are slew of perks when it comes to using cryptocurrencies, there are also many risks. A Bitcoin scam can toebijten to anyone, so do your research before trading ter your handelsbank account for a Bitcoin wallet.
Some general risks include:
Since Bitcoin transactions are relatively anonymous, the verhoging does have the potential to attract illegal activities. This draws negative attention from governments, encouraging a possible kerkban on Bitcoin and other cryptocurrencies.
Unlike transactions made through your canap account, Bitcoin can never be substituted if it lost or stolen. There is no way to recover your bitcoins if someone hacks into your wallet. And no way to recover your account if you misplace your login details.
If you determine you’d like to specie te your bitcoins, there indeed isn’t a straightforward way to sell them. Albeit many exchanges suggest the service using different methods, it’s not spil elementary spil transferring money from your Paypal.
Presently, Bitcoin prices are significantly fluctuating . Any webshop interested ter accepting bitcoins would need to adjust their prices almost daily. Additionally, investors take a gamble when dumping funds into stocks.
Right now, much of the world hasn’t determined how to treat Bitcoin. Since Bitcoin isn’t taxed, it’s a threat to local currencies. If governments determine to make Bitcoin illegal, you may have a
hard time getting your money back.
It’s spil plain spil this: If your bitcoins are stolen, they’re nonrefundable. Someone can leap te the middle if your transaction and switches the destination of your deposit – called a Man-in-the-Middle (MITM) attack.
Avoid a Bitcoin Scam
If you use Bitcoin or other cryptocurrencies, you should be aware of the following risks.
Simply waterput, man-in-the-middle (MITM) attacks can switch the destination of money transfers (or any gegevens transaction for that matter). Spil the name implies, hackers intercept gegevens packages spil they travel inbetween two victims.
If you’re attempting to make a deposit using Bitcoin, a MITM can switch the destination of your transaction , leaving you out of money and your intended recipient asking where the deposit is – all they need to use is malware via emails or a collective Wi-Fi network.
To stay safe, use a VPN. Since authentication protocols are specifically designed to ward off thesis types of attacks, a VPN ensures end-to-end encryption, making you anonymous overheen public networks.
Hackers Can Access Bitcoin Wallets
Digital wallets, where you “safely” store your cryptocurrency, are at fault for providing powerless security of user accounts. Evidently, ondergrens individual information about a victim – their very first name, last name, and phone number – wasgoed enough to hack a test wallet ter Coinbase, according to Positive Technologies .
“Cryptocurrency related cyber attacks are on the rise. Spil cryptocurrency proceeds to explode te value and public awareness, wij can only expect this trend to proceed. I wasgoed recently the target of such an attack. I also personally know of numerous other cases of the same attack being successfully carried out. Even worse this type of attack is becoming everzwijn more common and is likely to see an even fatter boost thanks to the professional excellence of firms like Equifax, making it an urgent topic spil almost everyone is at instantaneous risk.”
Additionally, all crypto users should enhance their cryptocurrency security by activating 2FA (2-Factor Authentication) across all exchange accounts.
Even when your cryptocurrency activities are secured, there are still outward privacy issues that users vereiste be aware of.
- ISPs: Your Internet Service Provider (ISP) knows every time you loom into Bitfinex or any other Bitcoin exchange. Do you truly want them to know each of “anonymized” traffic logs? Not indeed, right?
- Public Wi-Fi:If you’re on public Wi-Fi , you certainly wouldn’t want to disclose the fact that you’re a Bitcoin trader to people who are on the same coffee shop’s Wi-Fi spil you.
If your ISP or Wi-fi “neighbors” see what you’re doing with online your cryptocurrency anonymity is totally sucked away. The online exchanges that you frequent, the online trading contraptions and wallets that you use, all become known to others. And a secret collective is not indeed a secret anymore.
How You Can Stay Protected
There are no comprehensive solutions for each Bitcoin scam and security risk. But there are building blocks from which you have to construct your own private cryptocurrency firewall. Keep thesis tips te mind:
- Beware of phishing attempts.
- Make sure that your OS is patched with the latest security updates.
- Be mindful of ransomware.
- Use secure non-guessable passwords and take other measures to protect yourself.
- Use a reliable VPN.
When you use a VPN, all your traffic (including the URLs that you browse) is encrypted. Neither your ISP or your coffee shop neighbor can get a single clue about your online activities. You can visit online exchanges, use your wallets and trade entirely anonymously – spil it should be!
A VPN also contributes to your security. Spil your traffic is encrypted, wifi hackers can’t hijack your session cookies or steal your plain-text passwords.
SaferVPN reliably checks all thesis above-mentioned boxes. It encrypts all traffic using bank-grade modern encryption. You can choose any of the 700+ locations te 36 countries to re-route your traffic and hide it from nosey eyes. More importantly, your real IP address is never logged so that your cryptocurrency activities remain truly private. SaferVPN is also listed on WeUseCoins , one of the largest cryptocurrency websites.
Albeit a VPN is not the finish security solution for your coins, it is an utterly significant component of the protection.
How to use Bitcoins to Pay for SaferVPN
Buying, trading, holding and mining cryptocurrencies are private activities that should be performed ter a private and secure way. Using a reliable Bitcoin VPN is a very significant component ter securing the privacy of your cryptos. SaferVPN’s private (no logs), quick and effortless podium not only contributes to your privacy while using Bitcoin but even accepts Bitcoin spil a payment method.
Simply choose the project that best fits your needs and select Bitcoin on the payment pagina. If you haven’t signed up yet, attempt our SaferVPN for free now (with a 30-day money back ensure , you’ve got nothing to lose)!
Have you bot a victim of a Bitcoin scam? What are your thoughts on Bitcoin? Share your thoughts te the Comments section below.