How to loose money on Bitcoin
How to loose money when trying to invest in Bitcoin.
Every time a new financial product is released – there will be multiple scams that feed on your lack of understanding and desire to make money – to steal your money. Beware the Bitcoin Scams and make sure you do not loose money on Bitcoin.
This is the oldest trick in the book and most widely used – because it works. Scammers will clone Cryptocurrency exchanges, wallets or paper wallet sites to steal your Cryptocurrency.
Never input your private key on a site you accessed though a link. Sites like MyEtherWallet will show the security certificate on the address bar: you will see the “green” and the “lock” on the genuine site as shown below.
Pyramid schemes feed off your desire to make money quickly. Cryptocurrencies have one of the highest returns in all investment classes. A coin can go up 100% in a day, a week or a month. Bitcoin has gone up 1000% in one year. However these returns are never guaranteed, Bitcoin has also gone down 50% in a couple of days and usually has corrections of up to 35%.
No one knows where the price will go, pyramid schemes will offer you some guaranteed daily, weekly or monthly return. Be assured, they will run with your money – as they use new investor money to pay out the older investors. Until the money runs out, they dissappear.
Exchanges can also disappear with your money or Bitcoins. They can get hacked and your Bitcoins can disappear. It has happened with the biggest and most trusted International exchanges. There is a common saying in the Cryptocurrency world “There are two types of Cryptocurrency exchanges, ones that have been hacked and ones that will be hacked”.
“There are two types of Cryptocurrency exchanges, ones that have been hacked and ones that will be hacked”
Protecting your money
- Best way to invest in Bitcoin is to buy Bitcoin
- Use only secure sites with verified security certificates
- Dont invest in packages, contracts or other Bitcoin investment products that might or might not include buying the actual Bitcoin
- Store your Bitcoins in a secure wallet where you control the private key – not the exchange
- Get yourself a hardware wallet
See our wallet recommendations here: https://getbitcoinsnow.co.za/wallets/