Bitcoin Investment Scams Poker Players Should Avoid
Many poker players are kicking themselves for not buying Bitcoin sub-$10,000 or getting rid of their Dogecoin at .01. However, one thing you don’t need to do is gamble on certain “Bitcoin investment” scams that are out there.
Today, we are going to give you a heads-up on some of the top Bitcoin and crypto investment scams out there. This will help you HODL your crypto and keep you from falling victim to the net Bitconnect scam.
Shitcoins / Scam Cryptocurrencies
There are thousands of cryptocurrencies out there with many not worth a penny. In fact, some would love to get to a penny. The reality is that many cryptos are formed hoping to form a mania similar to what Dogecoin and certain other coins have enjoyed.
The problem is that many of these coins fail to provide a real-world benefit or even improve on an existing crypto. Then there are some coins that are not even viable currencies. For example, there are many cryptos on PancakeSwap that are nothing more than glorified placeholders on a blockchain. They look legit but soon the coins either disappear or lose all value.
Pump and Dump Scams
There are some cryptos out there are fall into the category of shitcoin but are not outright scams. They may be coins that are effectively abandoned or just never caught on. Bytecoin is a great example of this type of coin.
Sometimes you will see holders of this coin propose what is known as a pump and dump scam. They buy up a bunch of the coin to try and drive prices up and get others to buy. Once the coin is up, they dump the coin for a profit.
Often, what happens is that only the earliest adopters of the pump will benefit from the dump. Many people will end up getting burned, especially those that bought at the top of the pump.
A common scam that’s run is the classic Bitcoin investment scam. The company claims that you can earn a crazy return on your investment in cryptocurrency. Some of these claims are completely outrageous, such as a 300% return on your money in a month’s time.
At its core, this is an old-school Multi-Level Marketing scam where the early adopters may see some profits, but the majority of people will never see a dime. The company will often look legitimate and will even make payments to investors. However, after a time the company will quit making payments and will ultimately run off with player funds.
There are various Bitcoin mining scams out there where you either pay money to have someone else mine for you or you mine for crypto using your PC. The most common mining scam is where you buy or rent hash power to receive an expected return. This return is generally based on how much hash you buy rather than a block reward.
Another scam is where a site claims that you can mine for various cryptocurrencies using your PC. Often, what is happening is that you’re using your PC to mine crypto like Monero and they are paying you out in your expected crypto. This is a lesser scam because you may actually get crypto. However, you are certainly not getting paid full value. If you’re lucky, you’re getting half value.
If It Sounds Too Good To Be True…..
We’ve all heard the saying of “if it’s too good to be true, it usually is.” That applies to various Bitcoin and crypto investment scams. While some believe that crypto, in general, is a scam, smart people know that Bitcoin and certain cryptos are legit wealth-building instruments. It is the backdoor attempts to grow wealth that you need to be wary of.
With any money-making endeavor, there will be someone out there trying to scam you out of your money. The same is true with crypto. Keep a careful watch on potential “opportunities” and use your better judgment before “investing” in a fishy-sounding crypto “investment.”