New users find cryptocurrencies a very complicated and confusing thing to use, thus making scammers’ potential targets. However, with excellent knowledge and good old fashioned common sense, you can do many things to protect yourself from these scammers. In the article below, we will show you the most common Bitcoin scammers’ practices and how you can avoid falling into the trap of these scammers. 


There exist so many blackmail threats whereby strangers threaten you so that you can give them Bitcoin as extortion means. The most common means of extortion is through emails that involve a sender sending a message perpetrating that his/her computer has been hacked into your computer and is operating it via a remote desktop protocol.

The sender lies that the critical logger has been integrated into your computer’s webcam so that anyone can see everything you are doing. They will then give you two options; either send the Bitcoin to expunge the material or do not send and see the contents sent on your email on all your social media networks.

Ensure that your personal information is not leaked as scammers use them for these schemes.

Fake Exchanges

The continuous growth of Bitcoin’s popularity has made many people to be involved in them. It has led to the rise of scammers that have taken advantage of them by setting up fake Bitcoin exchanges. The fake conversations come with a wide variety of things, such as providing competitive market prices, which dupe people to get the real deal to access cheap Bitcoins.

Ensure that the exchange you are using is very reputable when purchasing or selling Bitcoin.

Free Giveaways

Scammers have used how fast the information spreads on the internet for their advantage. They will offer free giveaways of Bitcoins for sending a small amount of money for registration or asking you to give them personal information. Report this content once you see them on the internet since they are fraudulent to prevent other people from falling victims of the same.


Anyone can create a social media account and impersonate the other person. A person will copy and wait until they publish any content. They will then be the first people to reply with a free give away similar to the original content’s author. It now sounds like the original author is stating it. An impersonator will also use the same accounts to send people direct messages in taking some actions to defraud them. 

Ensure that you never participate in any giveaways. If you get any message in your account from an unfamiliar person, ensure that you check it extensively to determine if they are authentic.


Scammers have become more creative by using the ever-innovative technology. If you want to send Bitcoin, ensure that you have checked the addresses more than once. Hackers can install some malware programs that will change Bitcoin’s address when pasted from the clipboard of the user for the Bitcoin to be sent to the address of the hacker instead.

A Bitcoin transaction is complicated to reverse once confirmed by the network. It would help if you were very careful when allowing any administrator to access your device.

Meet in person

A person selling Bitcoin can ask you to meet in person when purchasing it locally to carry out an exchange. If it is a party that is not well known, then you need to be very careful since you may get robbed or injured. You can also get a very fake and counterfeit fiat currency.

Money transfer fund

Avoid replying to emails or any other communication form from strangers online, stating that they need the assistance of moving some money. Do not fall into this trap; avoid it as much as you can.

Phishing Emails

It would be best if you were very cautious with emails coming from the services you use soliciting for your actions, such as setting your passwords or clicking some things to provide an interaction with them regarding your accounts. It can be a challenging process to find out the email is fake, trying to access your account and a legitimate from a product’s company.

You need to double-check the email first before taking any necessary actions on what you are being asked to do.

Ponzi Schemes

Avoid participating in schemes that entails a person offering you sure returns in exchange for upfront deposits. This method is now a Ponzi scheme that involves the principal’s depositors to pay the investors they worked with previously. It usually ends with people losing a lot of money in return.

Pyramid schemes 

Pyramid schemes entail giving people some commission regarding the number of people they invite. The system grows at a very rapid speed but with less return on those who joined.

Prize giveaways

Prize give away is another scam that involves tricking people into giving their personal information. If you give out your personal information, a hacker can easily use the information in accessing your accounts by impersonating you and defrauding you.

Pump and dumps

Do not be deceived by a person that they know how the Bitcoin price is going to be for you to invest. In this scenario, a scammer tries to increase the prices artificially to enable you to invest so that they can dupe you the profits.


This scam usually contains malware that blocks your device so that you can pay a ransom in Bitcoin. If you want anything removed, you need to seek the professionals’ assistance first instead of paying the ransom first. Before downloading any application, ensure that it is not a fake one, which is not imitating a legit one.


Scammers are everywhere in this world. Everything nowadays is done online, that is where the scammers have set their targets. The Bitcoin industry has been hugely affected by such occurrences. I am glad that we have helped you in this article on how to know what is a scam and how to avoid it.