Thanks to Bitcoin’s recent surge in value, thousands of people from every corner of the planet are looking to join the network and start trading with this cryptocurrency to make a profit. It is a well-known fact that Bitcoin can turn average people into overnight millionaires. Everybody wants to turn this dream into reality, and thus most are more than willing to trade with this cryptocurrency.

However, one of the biggest disadvantages that comes with Bitcoin is online scams. Many people fall victim to online scams each day, which is why we wanted to give you a list of the three most common Bitcoin scams that you can come across when trading with it. First, we are going to provide you with details on reputable and safe sites for trading with Bitcoin, and then we are going to list the three most common Bitcoin scams.

Where Do You Trade With Bitcoin?

Trading sites are the platforms where the magic of selling Bitcoins takes place. After you earn a certain amount of Bitcoins, you turn to these professional sites as they can help you sell your assets at the highest possible price, thus making a handsome profit.

Some of the most reputable trading sites have thousands of users from every corner of the planet and even provide the traders with additional services which help them generate massive revenue.

Ponzi Schemes

The Ponzi scheme is one of the most popular schemes of all time. It was invented by Charles Ponzi, one of the most popular scam artists of all time, but some research estimates that it goes far deeper than that. The idea of this scheme is very simple – you offer tremendous amounts of profits, then run off with the money.

[ymal]

In Bitcoin’s case, you can often see projects and strategies stating how people can be offered returns of up to 10% per month. These offers are definitely Ponzis. With this scheme, scammers are always on the lookout for new investors. When scammers feel like they are close to being identified and the scheme runs out, they just vanish and find new victims.

The Exit Scam

The exit scam has been gaining popularity in the Bitcoin network recently. Here’s how it works. Scammers take the customers’ coins and start trading with them. But they provide the clients with false data on the profits and number of exchanges. They are simply playing the accounting system. Hence, the balance on their wallet does not reflect their real state since the coins are gone. When the clients start requesting withdrawals, they shut up shop and disappear.

The Stop Drive

The last scheme to be on the lookout for is the stop drive. This is a rather sophisticated scam; some scam exchange sites will ramp up the Bitcoin value just so that they can motivate you to invest money. Just before you invest money, they drop the prices, and you lose money. After you’ve made an investment and lost money, they just ramp up the numbers back to normal.