Join our Telegram Channel!Get Bitcoin News stories in Telegram × DismissBitcoin is attractive to scammers for the same reason it’s attractive to you: it’s fast, it’s international, and it’s irreversible.So as Bitcoin usage has grown, we have seen more and more Bitcoin scammers disappear with user funds.The following are some of the most persistent Bitcoin scams.These schemes attract people with low or no subscription fees and promises of sky-high returns on their deposits.They often rely on existing investors signing up new ones, which is the only source of revenue or growth.As with all , early investors get paid with the money from later investors.Inevitably when new investors stop signing up and depositing, the scheme collapses, since no more funds can be paid out.These are some of the warning signs that you might be dealing with an illegal scheme: Phishing scams are common in the online world.This is when a scammer creates emails, messages, login pages and/or websites that resemble a legitimate company.

Once users enter their information (like login username and password) on the fake website, the scammers have access to the users’ accounts.If it is an account where Bitcoin is stored, the scammers can easily make off with the money.Where users have the same password used on multiple sites, the scammers can often gain access to sites with more sensitive information.Bitcoin is generated through the process of mining, which confirms Bitcoin transactions on the Blockchain.Mining requires great amounts of energy, expensive equipment and upfront capital.Bitcoin mining investments emerged out of this need, whereby many users can invest in a mining scheme and get a percentage of future mining proceeds.There are some legitimate Bitcoin mining schemes, but there are far more mining scams than legitimate outfits.Since it is difficult for most investors to confirm if a mining scheme actually owns mining gear (or does any mining at all), there are many websites that to mine but simply take investor funds, pay high returns for a while to build trust and then simply disappear.

These are some of the things to be on the lookout for: There are some websites claiming to be wallets meant to store Bitcoin.Others claim to be exchanges, where one can trade Bitcoin.bitcoin client x64Others yet claim to do both, but many of these are in fact scam sites.bitcoin matrix scamThey simply get users to sign up and deposit Bitcoin or local currency for a while to build trust and then after a while make off with the money.bitcoin is a penny stockSince it is very easy to set up a scam website, it is impossible to always have an up to date list of scams.bitcoin is nonsenseYou should do your own research and learn to look for suspicious schemes.bitcoin open ledger

However, here are some sites that research/comment on scams: If you are putting your money , it's up to you to do your own research and investigation (Google and Reddit can take you far).ethereum pool mining softwareAnd remember: if something sounds too good to be true, it probably is.ethereum hat[Update #53 June 12th, 2017 – Testing Forumcoin Ethereum and SwissAdsPaysFaucet.bitcoin ledger blueAdded Forumcoin Bitcoin to the confirmed pay list.hunter coin bitcoin– Bryan][Update #48 May 15th, 2017 – MyFaucet.biz is a scam.DO NOT SEND BITCOINS TO MYFAUCET.BIZ FOR “VIP” STATUS!– Bryan][Update #29, February 16th, 2017 – My Bitcoin Faucet Guide was originally published on December 31st, 2013.

It’s been updated many times, but the version below has been revamped to focus on the few faucets I’ve found that still pay.– Bryan]Bitcoin’s price has climbed past US$1,000 again, increasing interest in Bitcoin faucets.I’ve put together a list of Bitcoin faucets that pay.Bitcoin faucets aren’t going to make you rich, but each faucet in my list is tested and monitored by me to make sure they pay.If you need more info on Bitcoins, check out my Bitcoin primer.Most Bitcoin faucets work by paying out tiny fractions of a Bitcoin in exchange for loading a page full of ads.There are also sites that pay Bitcoins for watching videos or doing crowd-sourced tasks.You’ll need a Bitcoin wallet, either a standalone client-side wallet or a cloud-based wallet like Blockchain.info.For Dogecoin faucets, download the Dogecoin wallet.Here’s my list of 18 faucets I know are paying, roughly in order of preference.Read on for descriptions of how each works.As consumers' adoption of bitcoin continues to increase and a number of major retailers have decided to accept the virtual currency, alarming cases of fraud with bitcoins continue to emerge.

Because bitcoin transactions are irreversible and not overseen by a central authority or bank, bitcoins are a popular vehicle for fraud and theft.Bitcoin scams are often initially promoted in online forums or chat rooms, with promoters creating an elaborate front to convince investors they are legitimate.The following are five of the most common scams involving bitcoin: 1.Bitcoin Ponzi Schemes and High-Yield Investment Programs.These scams lure people in with promises of high interest rates on deposits.As with other Ponzi schemes, early investors are paid out using investments from later investors.When new investors stop joining and payments cannot be made, the scheme collapses.These scams last often only a couple of months, but the organizers are prone to simply repeat the whole process again afterwards.Bitcoin Mining Investment Scams.Bitcoin mining involves validating transactions and providing security for the public ledger, known as the blockchain.This process requires extremely powerful and expensive computer equipment.

The mining scams typically involve orders for equipment that are paid for in advance and never delivered.(For an in-depth review of mining, see: What is Bitcoin Mining?)A bitcoin wallet is a software program used to store bitcoins.Wallet scams attract users with the assurance of greater transaction anonymity.Once the deposit level rises above a certain level, the scammers simply move the bitcoins into their own wallet.These exchanges attract users by offering credit card processing at more competitive rate than their competitors.The fraudulent bitcoin exchanges simply do not return bitcoin or cash after receiving payment.Phishing scams can involve emails informing people that they have been awarded or given bitcoins.They are told that they need to log into their bitcoin wallets through a link in the email that unbeknownst to them gives the phishers complete control the account.It is advisable to thoroughly investigate the background of the bitcoin-related company you are thinking of transacting with and look for transparency in their dealings.