Dear Nigerians, beware of Bitcoin fraudsters

The most popular digital coin in the world, Bitcoin, recently broke the resistance level of $7500 after re-entering the bullish level above $7000. This development has made a lot of Nigerians inquisitive about how to invest in the Bitcoin market.

Just in case you are one of those contemplating this, it is imperative to learn how to keep your investment safe in this market. This is because thousands of Bitcoin investors have, overtime, been defrauded of their hard-earned money around the world. The fraudsters use both old and new tactics to defraud their targets in schemes based on Bitcoins exchanged through online ledgers known as blockchain.

Have you been approached by an unqualified investment professional asking you to invest in the Bitcoin market, without doing any professional analysis about the Bitcoin market? Perhaps this unqualified investment professional asked you to invest without even without showing you evidence of his accomplishments?

Have you been receiving email messages about investing in bitcoin with the promise of too good to be true returns on your investment in a brief time? Have you ever been asked for your private Bitcoin wallet login details?

If yes to any of these questions above, you might need to be incredibly careful. Bitcoin fraudsters use tactics such as:

Aggressive marketing 

Aggressive marketing tactics are often used by Bitcoin criminals to make you invest your funds in their scheme without conducting enough due diligence about them, like checking if they are regulated in their respective jurisdictions for such services.

If you’re being pushed hard to invest your funds quickly via unsolicited emails, Instagram, Twitter, or Facebook, without carrying out due diligence about the company or fund you are investing in, be cautious; there is a high chance that you will end up losing your funds.

Recently, a hacker compromised multiple accounts of YouTube users to broadcast a video of Bill Gates talking about investing in a cryptocurrency fund. Details revealed that the hacker had taken an excerpt from the original speech and stratified it with details of a Ponzi scheme, deceiving individuals to invest in the scheme.

Unrealistic returns 

One of the most peculiar characteristics of financial scams is the promise of unrealistic high returns. An investment firm that promises you 100% returns in a brief period after investing is a Ponzi scheme.

They use too-good-to-be-true tactics to lure victims into their Ponzi scheme nets. These financial criminals promise unrealistic returns to investors, returns never again seen (like the bull run of 2017) in the Bitcoin market.Identity theft

Recently, a bitcoin exchange known as Bisq found out that a hacker took advantage of a flaw found on its trading software and stole money directly from its users. These cryptocurrency thefts were executed when the attacker managed to compromise users’ accounts without their knowledge.

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Using cold wallets or a proprietary smartphone is recommended. These are specifically designed tools to keep your bitcoin from falling into the hands of hackers on the internet.

Next time you are thinking of investing your funds in a bitcoin fund or firm, consider the promised returns versus the performance of the cryptocurrency market. A fund cannot promise 100% returns, while Bitcoin is only seeing 9% increases weekly.

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