How to spot a Bitcoin scam in Africa, as reviewed in South Africa. Bitcoin trading has seen a significant increase in numerous African countries in recent years and despite its popularity and the profits that can be made from it, there are numerous security issues that surround the trading of cryptocurrency. As with conventional trading, there are factors that African traders need to consider regarding regulation and the legitimacy of brokers and the same can be said for Bitcoin trading.
Although, Bitcoin trading has a substantial amount more to look out for including cyberattacks and hacking attempts, fraudulent exchanges, and numerous other threats. Bitcoin cannot be regulated due to its decentralized nature and traders are urged to protect themselves as far as they can to ensure that their funds are not at risk.
A greater and more imminent threat in modern times surrounds the existence and consistent emergence of scams that seem legit to the extent that they can fool even the most seasoned traders.
Key indicators of a Bitcoin scam
Bitcoin scams come in many shapes and sizes, although there are some key indicators that African traders can look out for.
Malware Downloads
Bitcoin is often used by scammers as bait to lure traders into downloading software which will inevitably damage the trader’s computer. There are fake Bitcoin wallets that attract users by letting them click on URLs which are often posted to social media platforms.
These are normally in the form of advertisements that promise large profits in Bitcoin and as soon as the URL is clicked, it leads to an app download with embedded malware.
Bitcoin phishing impersonators
These impersonators are commonly found on social media platforms and work to impersonate the Bitcoin brand itself as a tactic to gain the trust of unknowing victims.
Once they have gained the attention of a trader, they entice them to enter their private Bitcoin key in order to see if the trader exists in their database. Once the trader has given up their private key, the impersonators have access to the trader’s wallet.
Bitcoin-flipping scams
These scams offer Fiat currency for Bitcoin and are quite popular on websites and numerous social media platforms. Traders are often required to pay a start-up fee, or they are promised that their initial investment will be doubled overnight.
When falling prey to this, the trader instantly loses their Bitcoins and it can never be recovered.
Bitcoin pyramid schemes
These are in the form of high-yield investment programs that promise the trader guaranteed profits that double, or even triple as soon as they sign up and they refer friends and family to do the same.
Conclusion
Although there are numerous benefits and gains that can be made from trading Bitcoin, there are however, as with everything connected to the internet, ways in which individuals with malicious intent will target unsuspecting traders.
African traders must ensure that they are able to spot scams and that they conduct thorough research into brokers and exchange programs to ensure that they are able to tell legitimate providers apart from scammers.
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