5. Exchange Scams
Despite their decentralized nature, most cryptocurrency is still bought and sold on exchanges.
While this makes it easier to trade coins, regulation is still underdeveloped in many countries. Many investors have been left penniless when the exchanges they use turn out to be honey traps.
In 2017, South Korean financial authorities and the local Bitcoin community exposed a large scale Bitcoin scam: a fake exchange called BitKRX.
It presented itself as part of the largest trading platform in the country and stole people’s money. Watch out!
To avoid this type of scam stick to well known and safe cryptocurrency exchanges that offer a regulated place to buy, sell and trade.
5 Ways To Be Scammed Out Of Your Bitcoin
That’s my rundown on the top ways to lose your Bitcoin through scams. It’s still a jungle out there, so stay vigilant and take as many steps to protect your digital wealth as you can. A proactive approach at keeping your Bitcoin safe is always the best line of defense.
Author: Andrew Crossland
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.
