Things to Note Before Venturing Into a Bitcoin Investment

0
151

We all know that bitcoin is the new gold. Many Nigerians today seek the possibilities of investing money into projects and get some profit from it. Bitcoin came on the seen as a sudden saviour due to the high rate of the cryptocurreny. Nevertheless, some scammers have seen it as a way to take peoples hard earned money.  It is not hard to see bitcoin has successfully attracted a lot of nefarious individuals looking to scam others. In fact, it appears there are more bitcoin-related scams showing up in Nigeria every single day. As one would expect, there are a few different types of scams that are more prevalent than others. Here are a few you ought to watch out for:

PONZI SCHEMES

Virtually every ponzi scheme with a bitcoin investment should be treated with a lot of scrutiny. While there is a way for people to make money with other’s money – no one has successfully done so on a large scale. Trading itself is a very risky business, yet it is also the most legitimate way to increase cryptocurrency holdings over time. Unfortunately, there are quite a few large-scale investment opportunities, all of which will eventually turn into a scam. Ponzi schemes  in the bitcoin world will always attract desperate people and shills, and there is quite an abundance of these programs available right now.

CLOUD MINING AND MINING HARDWARE

There are quite a few companies who claim to manufacture hardware, and most of them will offer pre-sale discounts to anyone investing in that company. It is not surprising a lot of these companies offering pre-sales are complete scams.  The company provides no evidence of their mining hardware or research. Companies like these often trick people into depositing funds in the hopes of getting a cheaper new bitcoin miner. However, they will continue to delay shipping and eventually run off with the money. Every cloud mining venture should be looked at very closely, as the number of legitimate companies can be counted on the fingers of one hand. Even then, ensuring a return on investment is virtually impossible due to volatile bitcoin prices and mining difficulty increases.

 

Are you planning to join the bit coin rush? Thread carefully, it might not seem like it looks.