Types of Scams

Some of these scams seem downright ridiculous, such as ones offering payment in bitcoin for promises of offshore bank accounts and access to high-net worth clients.

In that case, you might decide to investigate further, but first, consult with a business attorney to make sure that no law is being broken.

2. Cryptocurrency Laundering Scams

Some scammers claim to offer safe investments that allow you to invest in cryptocurrencies without fear of losing your funds. The problem with this is that some crypto scams take this approach by selling you a promise of “redemption” when their scheme is busted.

Investing in bitcoin or another cryptocurrency doesn’t make you immune from losing your entire investment to another scammer.

How to identify the scam

Cryptocurrencies are already a high-risk investment, and the potential for a scam is much higher. When cryptocurrency startups operate in the U.S., they’ll usually publicize their business structure to reassure people they’re legitimate. To ensure your safety, use the SEC’s Business Corporations Services to compare the company’s history and contact information with the company’s website.

Scam and fraud attempts to defraud users of cryptocurrencies are common. These scams can often be convincing, as their business premises don’t usually reveal any other activity. Below, check out three types of cryptocurrency scams that you’ll be sure to encounter.


Spoofing is an alteration of the blockchain address used by a cryptocurrency company to identify itself to users.

What to do if you fall for a scam

If you decide to invest in a cryptocurrency startup, your first step should be to make sure you are dealing with a legitimate startup. Most scammers are based overseas, so keep an eye out for companies with no physical address and return addresses of post offices. Here are three of the most common scams associated with cryptocurrencies, and what you can do if you fall victim.

1. Mavrodecko: The Mavrodecko scam requires would-be investors to exchange a large number of dollars, euros or other foreign currency to buy cryptocurrency. The company takes a commission on every sale, usually about 15%. As a result, you have to send more funds to get back into the currency you can trade freely.

Hacks are also common when dealing with Mavrodecko.

The Future of Bitcoin

Bitcoin’s rapid ascent in value in 2017 has thrust it into the realm of mainstream consumers.

Bitcoin was only founded in 2009, but it has grown exponentially in popularity over the past couple of years. A report from the BBC said that Bitcoin is the fifth most valuable currency in the world, with a total value of around $141 billion.

Bitcoin is considered as a better alternative to traditional currency because of its reduced transaction costs and its flexibility. People can buy things at the touch of a button, and the value of Bitcoin can fluctuate at the speed of light, making it a hot commodity for speculators.

Even though the market is volatile, many people who are in favor of cryptocurrencies believe that it will continue to grow.