Types of bitcoin scams you should know about

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All of the types of bitcoin scams fall under high yield investment programs(HYIP). A high yield investment program is any type of investment that requires you to deposit funds and promises you a guarantee return of more that the initial amount you’ve invested.

All legit investment programs will not guarantee you any thing. Only cryptocurrency scams will do that.  They will state clearly where the profits will come from. They will also state the potential looses you might face.

There are many legit ways to make money with bitcoin online but you have to work in order to start earning. On this post I’ll share with you some of the types of bitcoin scams you can come across.

Here are some types of bitcoin scams to look out for:

Bitcoin Cloud mining

A Cloud mining company is supposedly to be a company with offices somewhere Europe or anywhere else. For you to start earning in any fake bitcoin mining company you have to sign up and deposit a certain amount of bitcoins.
This are website that will promise to mine for you if you invest in them. All you have to do is choose certain hash power. That hash power should generate some earning every time they mine.

You will be given a bitcoin address which you should use to send bitcoins to, direct from your bitcoin wallet.
This websites usually have nice designs with a few images to show you their offices an mining equipment. The website might promise to give you a certain percentage per day, week or whatever. The first few members might get paid to lure more unsuspecting members.

In most cases you will also be promised to refer your friends to earn more. This can work for a few days, weeks, months even years. It will all depend on how much the the site is paying out.
After a certain number of period when the founders feel they made enough money, they stop paying. Or they shut the site down and hit the road.

Doublers

Doublers are the fast payers out of all types bitcoin scams. A Doubler is a site that promise to give you twice the money you deposit in 24 hours. This are very common internet scams that should be avoided.

Some of them might promise to pay you just a quarter of your deposit plus your initial investment. This types of websites they don’t tend to last long. Only a few days to a month, then the site will be gone.

Revshares

Revenue Sharing or Revshares use to be big back in the day. This sites work like this. You buy traffic in a form of a banner, landing page or video from them and they send people to your ad.

For users to start earning they will have to buy what is called Advertising Packages or AdPacks. With this AdPacks users will have to surf a few ads a day then their AdPack earnings will grow.

This types of online businesses are usually scams. If there’s one legit revshare that you are in the please let us know. Anyways this I classify them as types of bitcoin scams since most of the don’t work long.

Fake Forex Trading Companies

Now this might surprise you why I put it in the list. In FX trading you can trade for yourself and make decent money or be rich. It all depends on your trading skills.

But here’s a thing, the reason why I including this type online business here is because there’s a number of people claiming they will trade for you. All you have to do is give them a certain amount of money then they will help you earn.

This usually doesn’t workout since most of them are scammers trying to take your money. If you’ve given someone your money and they are really paying you and you are making profits then congrats.

But we all know the game, when those people feel they have made enough. They shut the site down and leave you hanging, so yes those are part of type of bitcoin scams.

Peer to peer programs:

Peer to peer were once big in some parts of the world especially in South Africa, Nigeria and India. The biggest of them all was MMM Global.

In a peer to peer program you sign up and you will receive a bitcoin address or bank account of someone you should Provide Help(PH) to. After PHshing you can wait for a while, few weeks then you GH(Get Help) from other members.

Usually you receive more than you have PH for, say 20% more. All of this should go on as long as all member participate. You should also refer your peers for you to earn more money.

The founders of this programs are the ones who make the most money since they start the circle. The more members join the program the higher they earn. Clearly this are one of the best bitcoin scams we’ve ever seen.

Fake Initial Coin Offering(ICO)

This are alternative coins to Bitcoin who are suppose to be the next big coins just like , Ethereum and few others.

In a ICO, you are required to invest in the new coin that will one day be one of the biggest in the industry of cryptocurrency.

Most of this so called up coming altcoins don’t go anywhere. Some of them are centralized and their value is initially set, meaning they are given value by the founders. There’s quite a number of this fake coins in this industry.

What you should know all legit cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple, Monero are mined. And they all have a blockchain, a public ledger where their blocks are recorded for everyone to see. There are dedicated miners who mine this coins and all their transactions can be traced in the blockchain.

Multi Level Programs

Multi level programs come in many ways, one of them are Matrix Programs. This is were you invite your peers to participate for you to earn something. Everyone has to get it with a initial amount of money or bitcoins.

The more people you invite the more money you make. In this types of programs there’s no business or product to be offered. You shouldn’t confuse them with Network Marketing companies were you have a product to sell.

In a network marketing business you always have a product or service to sell. Even if you don’t recruit you can still make money by selling the product.While in multi level programs you don’t have any product or service to sell. Once you stop recruiting, your earnings also stop.

Conclusion

As you can see there’s quite a lot programs online which seem legit. The ones that seem too good to be true they probably are. On way to stay updated is to follow bitcoin scams news in sites like Cointelegraph

You can stop wasting your time in some crazy investment programs and start working for bitcoin. Or rather take your time and find legit ways to make money using bitcoin or make money online

I’m glad to have participated in most of this programs. I’m able to share all of this types of bitcoin scams based on my personal experience. If you have on type of scam that is not listed here please let us know in the comment section.