We seem to live in the world of scams now a days. There was probably many scams back when I was a kid but now that I have kids they seem to be coming out of the woodwork. We just try to prepare our kids of possible scams so they may not lose money in the future due to a scam. Scammers if they would use their skills for good they could probably make a good living.
I have friends that have been scammed by repairman scam, e-mail scams to fake girlfriend from Russia. Some scammers make it look so real so they are hard to tell at times that they are really a scam.
Now we are at a time of Bitcoins and other Digital Currencies I bet we will see more scams in the future. Today let me give you a few things to think about when dealing with Bitcoins or Digital Currency so you may have a better chance of not being scammed. I bet there are a ton of scams out there and that is why we teach our boys to research into things before they invest in them. I also included a link in the show notes of the info from the Federal Trade Commision where I got some information on Bitcoin scams.
Bottom Line is to Beware of Bitcoin Scams
Since it was introduced, Bitcoin has continued to rise exponentially
beyond what enthusiasts predicted at that time. As much as it is highly volatile and unpredictable, it is fast becoming a globally-adopted digital currency, and unlike normal currencies, there are no central authorities overseeing Bitcoin transactions. Once a Bitcoin transaction has been carried out, it cannot be reversed or recovered which makes it a huge focus for fraudsters.
Because of this, it’s important for you to be able to differentiate between a legit Bitcoin program and a scam to prevent you from incurring a huge loss on a valuable investment. In this article lets talk first about these three major Bitcoin scams and ways to avoid them.
1. High-yield investment programs (HYIP)
These programs are also known as Ponzi schemes where people are
convinced to invest with a promise of high returns. Here, old investors
are paid from the investments of new ones, and this usually goes on for a short time before it crashes. These programs never work out since new entrants do not get anything from their investments.
2. Fake Bitcoin Exchange
These kinds of scams usually take place on social media where you may run into an ad saying you can buy Bitcoin for below market price. This is just to lure you to visit their website, and once you do, if you are not careful, you can be scammed.
3. Bitcoin phishing scam
This is when you receive an email that a particular amount of Bitcoin has been awarded to you, but in reality, the link in the mail to claim the award is actually to give the phisher the power to take control of the user’s wallet.
Some Ideas for Avoiding Bitcoin scams
- The first major thing you need to do is to carry out investigations on the company you intend to do business with. Simply visit blogs, read reviews, and check forums to learn more about the credibility of the company.
- Make sure any website you visit has “HTTPS” in its web link and not “HTTP.”
- Always trust your instincts, and if a deal sounds too good to be real, simply opt out. Don’t go into a deal because of the high rate of return promised.
- Make sure you verify facts listed in the advert. Take the time to
learn everything that there is to know before you get involved.
5. Invest in publicly-audited companies since they are the only ones
that give you the access to read their proof of reserve cryptographic
audit. This will make it easier for you to verify their Bitcoin
I currently mostly use Coinbase for most of my Digital Currency. Hopefully someday I will find where my Bitcoins that I had like ten years ago. I know it is probably just a pipe dream of mine.
As always, I am not giving you any Financial Advice and you should seek advice from your Professional Advisors to see what is best for your situation. See my Disclaimer at MillsWay.com. This is for entertainment only.
Welcome Back, hopefully you have never been scammed by anyone in your life time. I know I use google a lot when checking out places and reading different reviews and comments about the site I am checking out. Lets cover what Cristina Miranda with the Division of Consumer and Business Education, FTC said on November 26, 2019. The link to this is at the bottom of the show notes.
She wrote “Scams telling you to pay with Bitcoin on the rise. At first, scammers tried to get you to wire them money. Then, they demanded payment with gift cards. Now, scammers are luring people into paying them with Bitcoin – a type of digital money or cryptocurrency. Read on to learn how to spot and avoid some of the top ways scammers are trying to get you to pay with Bitcoin.
- Blackmail Scam. Someone says they know about an alleged affair, or something else embarrassing to you, and demands payments with Bitcoin or another cryptocurrency in exchange for keeping quiet. This scammers might use threats, intimidation, and high-pressure tactics to get you to pay right away. But, as we wrote in this blog post, that’s not only a scam, but also a criminal extortion attempt. Report it to the local police, the FBI, and the FTC at ftc.gov/complaint.
- Online Chain Referral Schemes. This type of scam works like a chain letter: someone promises that you’ll make money if you pay into the scheme. But, in a twist, these scammers say you have to use cryptocurrency to pay for the right to recruit other people into the chain…so that you’ll then be rewarded with more cryptocurrency. Except you won’t. Instead, you’re guaranteed to lose money.
3. Bogus Investment and Business Opportunities. Someone might offer you investment and business opportunities that promise to make you big money, or give you financial freedom. But remember, only a scammer will guarantee that you will make money — in dollars or in cryptocurrency.”
Hopefully between my ideas and the FTC info will help yourself and our kids to avoid some possible Bitcoin Scams in the future. I do believe in the following two sites which have ways to earn Free Digital Currency. PI isn’t an official Digital Currency yet but I am hoping it will be someday. Coinbase is my main Bank as I look at it for our Digital Currency that we currently have. Which is a very small amount.
I haven’t made a ton of money on this website yet. I have made some money on this website by watching some short films and taking a quiz after watching them.
They also have a way to earn Free Bitcoin when you Invite a friend to join. When your friend buys or sells $100 of crypto you both get free $10 in Bitcoin. Hopefully my friends will join up someday after they aren’t afraid of digital currency.
There are 42 different Crypto Currency on Coinbase website that you could buy or sell. I think of their website like my home Bank but for my Digital Currency. I have linked my home Bank to the website so when I sell Coins and want to transfer the money to my home bank I can and it is very easy to do. Same if I want to transfer money from my home bank to buy more Digital Currencies.
2. Pi Network – First Digital Currency that you can Mine on your Phone. Use millsway as your Referral Code if you decide to join.
Our boys are having fun with this phone app and watching it grow. Pi makes crypto mining easy for them. The Breakthrough tech allows them to mine on their phone without draining their phone battery.
Bottom line I wish I could tell you that there was a get rich way to get free Bitcoins but I am not able to tell you that. There probably are some people that say they have ways to get Rich fast with Bitcoins but it could be scams.
Bitcoins is like anything that has value. Things can go up in value or down in value depending on the supply and the demand. I have even owned stocks that were worth a lot one year and the next year they are a penny stock. Crazy…
I still feel if our boys use a small percentage of their Net Worth and Invest it wisely using Coinbase then they could possible to make some good returns on their money.
There are still so many unknowns for us about Digital Currency. I know that Darlene isn’t excited about them but our boys see it as the future. I feel it could be mainstream someday but maybe not in my lifetime. We are an Angel Investor in a Credit Card company that used Bitcoins to convert to Money so you can buy purchases with it. Time will tell if our Investment was a good on or a wasted one.
We want to give our boys the best chance to have their money last them thru their retirement years and have them reach their Financial Freedom goals. They need to live somewhat with a frugal mindset and spend less than they make so they can Invest towards their Financial Freedom goals.
Here are some positive quotes I like;
“Get your Money to Work for You… As hard as You Work for it.” By Napoleon Hill
“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett
“There is no way to happiness; happiness is the Path.” By Buddha
“Change Your Thoughts – Change Your Life” by Wayne W. Dyer
Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.
Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.
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Sources and Resources from Podcast (Available in Show Notes)