Tips to Avoid Bitcoin Scams

 Paul Greenhalgh   General   28 April, 2014

Bitcoin is a type of currency that is completely anonymous. This means that transactions cannot be tracked. Although this can make Bitcoin an attractive currency to use when gambling, it also comes with a number of risks. Also keep in mind that Bitcoins do not contain any intrinsic value. Even if you are successfully gambling Bitcoins, it is important to be aware that they could lose their value rapidly and at any moment. For example, if governments decide to ban them then they will rapidly drop in value. One significant risk that people should also consider before investing in Bitcoin is that scammers love to use it as a way to rip people off. If you are interested in gambling with Bitcoins then learning how to avoid scams is an important part of the process. Here are ways to avoid bitcoin scams while gambling.

Hold Your Bitcoins in a Secure Online Location

Keeping your Bitcoins online can be very risky, and so in order to avoid having them stolen keep them in a safe location. Scammers love to access online wallets that do not have a multi-factor authentication process, and so in order to keep your Bitcoins secure make sure that you secure them with a password as well as a code that is created by your mobile phone. Keep in mind that if you are able to access your online wallet with a simple password, then scammers will easily be able to hack into your account and steal your Bitcoins. Once your Bitcoins are stolen, it is almost impossible to retrieve them, as scammers can pass them through multiple accounts until they all but disappear.

Avoid Transferring Your Bitcoins Using a Credit Card or PayPal

While gambling, it is important that you do not attempt to exchange your Bitcoins using a credit card or PayPal account, as a scammer can easily steal your information. On top of this, all a scammer has to do is say that they did not receive the Bitcoin and issue you a charge back on your credit card or PayPal. They can also claim that the transaction was not accurate or fraudulent. Either way you will be faced with your credit card company removing the charges, and you will have lost your Bitcoins forever.

Ensure That You Are Using a Legitimate Bitcoin Gambling Site

There are many fraudulent gambling sites out there that are using Bitcoin. In order to avoid being scammed by one of these sites, it is important that you ensure it is secure. To do this, look at online reviews of the site. Submitting your credit card information on any fraudulent site will put your finances at risk.

Look at the Fair Market Rate Before Purchasing Bitcoins

Due to high volume trading and currency exchanges, Bitcoins are known for having a fair market value. This means that the value can change from minute to minute. When gambling with Bitcoin, it is very crucial that you are aware of the current market value of Bitcoin in order to avoid getting scammed. For example, you may think that you are winning a substantial amount of Bitcoins on a gambling site only to find out that you are making two to three times less then you thought you were. If you want to be aware of the true fair market value of Bitcoins then it is a good idea to compare the prices given on multiple exchange sites in order to see what Bitcoin is worth at the time. If a gambling site does not display the exchange rate of Bitcoin on their site then you should be wary that you are getting ripped off if not scammed.

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