While some regard cryptocurrency as just a digital number displayed on the screen of your computer, it still reflects a value in the shape of real money. That is why scammers have now adopted the online route to loot bitcoin and other cryptocurrency investors. Scams like bitcoin loophole scam have already emptied the online wallets of millions of crypto investors, and the number is growing with every passing day.
Online scammers use a mix of different old-school and relatively new scamming techniques to trick the innocent bitcoin traders. Despite their bad reputation, Ponzi schemes are still thought to be true by some newbie investors. These schemes actually rely on new investors’ money to pay out the older investors. They always end with a fraud.
While all these things are true, it is important to now how and why many people are still falling a prey to these scams. That can help you avoid them when you come across one.
They Exploit Your Greed
It is true that investing in bitcoin may benefit you in the long run, but you can’t become a millionaire overnight. Most of the schemes start with a group of scammers distributing referral codes on several social media platforms. When new members join, they are offered some share of the new funds if they bring in new investors. That is how these pyramid or Ponzi schemes work, they basically exploit your greed and make you attract new investors towards the scam.
They Use Lies to Deceive You
Many false cryptocurrency platforms scam their investors right away, and then keep them updated with false data to deceive them.
One false platform named OneCoin successfully made tricked the people into investing $3.8 billion, and the platform didn’t even exist in reality.