3 Types of Bitcoin Scams to Avoid in 2020

Cryptocurrency is in buzz for a couple of years now and so does the scam related to cryptocurrency. The notion of bitcoin millionaire attracts more and more eyes towards the cryptocurrency world. The successful story of getting rags to riches due to cryptocurrencies often attracts people. Many con artists know about that and seek it as an opportunity to scam people.

With the year 2020, the new aws mining scheme is already making a lot of buzz in the cryptocurrency world as a new scam. Here we discuss cryptocurrency scams including aws mining scam that you need to be aware of in the year 2020-

Ponzi Scheme

Aws mining is an example of Ponzi schemes that offer a lot of promise to the investor and sells a dream of achieving financial freedom with bitcoin. Aws mining sells a dream of 200% of return on investment to people and catches the eyes of a lot of investors.

To join the scheme for aws mining, the user needs to create an account, and buy a bitcoin mining contract that had a crypto mining power associate to it.

Aws Mining Contract:

  • 1 CMP – $40
  • 1 CMP – $400
  • 3 CMP – $1200
  • 5 CMP – $2000
  • 10 CMP – $4000

Similar to the Ponzi schemes structure, users need to join other members to earn more rewards. By recruiting, other two affiliates user can increase his/her rank. With each increasing rank user, get about 10% of the amount invested by new joining.

Just like other Ponzi schemes, the returns are misguided and company offers do not hold any liability of losses towards investors. Most of the time people behind the scheme run away with all the money.

Fake Cryptocurrencies

Fake crypto coins offer as an alternative to bitcoin. The usual phrase used to sell such crypto coins is to get into the bus of the increasing price trend of the fake coin that is on its way to becoming the next bitcoin in the future. The fake coins they offer are much cheap than bitcoin and most people like the deal. The fund’s people use to buy fake coin are directly go into the personal bank account of the fraudster and with which they can run anytime.

Old School Scams

Old school fraud is still popular and now it has evolved for cryptocurrency. Just like old fraud calls and emails where scammers contact you as a government official like from IRS and ask for payment to settle tax immediately. Now the con artist asks for bitcoin transfer. You can avoid such fraud if you are skeptical about this type of call and email.

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