It’s a cliche at this point to call cryptocurrency “The Wild West”, but this statement is so often repeated because it’s true. Just as in the historical gold rush, plenty of people have gotten rich on Bitcoin. Also like this economic free-for-all of history past, plenty of new Bitcoin buyers get scammed. Today we’ll look at how to get Bitcoins without getting scammed.
How to Get Bitcoins the Right Way
Learning how to buy Bitcoins is easy, if you do your research first. Many different online cryptocurrency exchanges sell Bitcoin. Some of these exchanges accept fiat currency (British pounds sterling, Euros, US dollars) as payment for Bitcoin. Others don’t take fiat, and require users to exchange other cryptocurrencies for Bitcoin.
If you don’t have any cryptocurrency, you’ll have to use a fiat exchange, like Coinbase, Gemini, or Changelly. There are more examples, but these three offer you the best service, each appealing to a different kind of consumer.
Coinbase is seen as being for beginners, Gemini exchange for slightly more advanced users wanting to save money, and Changelly for people who want the most convenient Bitcoin buying option of all.
How to Protect Yourself From Scams
There are many Bitcoin scams. Most of them appear too good to be true, but unwitting newcomers still get lured into the traps. Here are some of the most popular scams.
Phoney Sites/Wallets
Some Bitcoin scammers created websites or Bitcoin wallets that look just like the real thing, but in reality just steal your private keys and your Bitcoin.
Giveaways That Want You to Pay
A common Twitter scam is to offer users 1 Bitcoin if they send in 0.5 Bitcoins first (the numbers will vary). These offers will often come from fake accounts that look like they belong to crypto celebrities.
Ponzi Schemes
Bitconnect was shuttered last year, and its users lost millions. A Bitcoin ponzi scheme will usually say they have some unique automated way to trade Bitcoin for profit, and that you will get a cut if you deposit money first. These companies make payouts, but they’re made up of new user deposits, not investment returns. Ponzis look like a miracle for a while, but all eventually fail.
Learning how to get Bitcoin is the basis of all crypto trading. If you’re new, work only with reputable Bitcoin brokers, and avoid Bitcoin scams like these that seem authentic but are really predatory.
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