You may be wondering what to look out and how to avoid online intern scams when dealing with bitcoin brokers.
How to pick a broker
You must consider what you want to do with your bitcoins when deciding on a broker. If you plan to use the bitcoins as a medium of exchange, for example, you want an exchange you can trust. You will need to use the broker’s services for trading. They may be a reliable one if you can trade with them securely and the commission is reasonable. On the other hand, if you plan to use bitcoins as a speculative investment, you may not be interested in a broker that has a high commission or expensive fees for transactions. The answer to the second question depends on what services you plan to use. If you want to hold the bitcoins in a bank account, you should avoid any exchange that charges high fees.
Why scams are rampant
Buying bitcoin is a relatively new concept in Australia, and fraudsters see it as a new business opportunity. Online transactions are more difficult to trace than card transactions and direct debits because they can be conducted with bitcoin and without access to any banking details. This makes them attractive to con artists and especially to those in China or Russia who have made internet payments safer for criminal groups to perform illegal activities on other continents. Given the rampant online crime in these countries and the general financial chaos in the European Union, these online exchanges and trading platforms are still extremely popular.
What to look out for
Bitcoin brokers are frequently portrayed as the safest, best options for buying and selling bitcoin but there are a lot of ways to get scammed with bitcoin and these are just some of them. Image by news.Bitcoin.com Scammers We already established that you are highly susceptible to a fake bitcoin broker, but you can easily fall victim to a scammer or hacker who preys on your need for security. The first big red flag is that a bitcoin broker is registered on local domains. Any known bitcoin broker should have a US registration. The reason is to protect the consumer from fraud and be able to get information about complaints. But, fraudsters are clever and they know how to protect themselves.
Why you should be cautious
According to a recent study from the University of California, one in four bitcoin customers have fallen victim to at least one online fraud, with scammers stealing over $5 million from bitcoin users in the past year alone. That said, almost as many of those customers had no idea their bitcoins were stolen in the first place. In other words, one in four bitcoin users thought they were receiving their money from a legitimate merchant when they actually didn’t. Interestingly, customers using bitcoin exchanges were actually the most likely to be victims of theft. Other than the obvious danger of losing your money, many scammers use these online bitcoin brokerage scams to do an additional step of tricking you into handing over even more of your money.
There is no one-size-fits-all answer to the question, “what to look out and how to avoid being scammed when dealing with cryptocurrency brokers.” In this section, we are going to offer a review of some of the more well-known players in the market.
But before you start looking around, take these things into consideration:
One of the first things to look for is that the company has an explicit “Terms of Service” on their website. Some brokers feel the need to make it more complicated than it needs to be, with lots of words and paragraphs of legalese. For example, when I logged into a fraud broker, the terms of service link were not actually there, or there is no name to the company or address. Look for funny or strange terms like a high minimum withdrawal or exorbitant fees.
Scam terms and conditions
There is no one-size-fits-all answer to the question, “what to look out and how to avoid being scammed when dealing with cryptocurrency brokers.” In this section, we are going to offer a review of some of the more well-known players in the market.
But before you start looking around, take these things into consideration:
One of the first things to look for is that the company has an explicit “Terms of Service” on their website. Some brokers feel the need to make it more complicated than it needs to be, with lots of words and paragraphs of legalese. For example, when I logged into a fraud broker, the terms of service link were not actually there, or there is no name to the company or address. Look for funny or strange terms like a high minimum withdrawal or exorbitant fees.