How Bitcoin scams work
Stealing Bitcoin is virtually impossible unless the user consents to it. Therefore, the new techniques employed seek to rely on the user’s lack of experience in this field.
Since the user is the weak point, they try to convince them to invest in „miracle solutions“ in which they are offered exaggerated amounts of profit, without any backing. In this way, the user would fall for a scam, from which only the user himself would be completely harmed.
One of the most common scams of this type is Crypto Code
What is Crypto Code?
Crypto Code is a scam that is based on a type of scam aimed at those who are new to cryptocurrencies. This scam, known as a recycling scam, has a simple goal: to get the user to deposit their money into specific accounts, in order to offer non-existent services.
To do this, the scammers linked to Crypto Code have created a whole world to support their idea, which ends up convincing a totally false idea.
Crypto Code advertises itself as an application for the novice trader’s solution. We all know that in this Bitcoin market, the profit comes from being able to buy Bitcoins at a modest price, and sell them at a slightly higher price: in itself, trading is a kind of basic trading, but including some predictive skills, and technology in the process.
As Crypto Code offers, the solution comes in the form of an application or service, which is based on a kind of Bot designed to be able to predict and trade efficiently. The efficiency is such that it is 99.4% effective, making a perpetual profit at all times.
Given this profit, and the automated pace of the application, Crypto Code indicates that up to 13,000 euros can be produced in a 24-hour period, and as stated on its website „you can become a millionaire in as little as a couple of weeks“.
Anyone would think that a programme of this quality and effectiveness, if it existed, would cost a fortune. The funny thing is that the site implies the service is completely free, with just an initial deposit. If this hasn’t already set off our alarm bells, the following in this article will.
How does Crypto Code really work?
Crypto Code is not new to the market, and has been around for quite some time now, but under different names. Crypto Solution, Bitcoin Millionarie, Bitcoin Billionarie, Bitcoin Bank, etc. These are some of the names under which this application has been offered before, and all of them are related to the same procedure: the so-called recycling scam.
But to be clearer about how it works, we need to understand the enemy. The recycling scam, has 5 steps, and each one is constantly repeated:
- Customer lure
- Deception and offer
- Solicitation of deposit
To explain this scam in detail so that you don’t fall for it, we will explain each of the steps.
In attracting customers, Crypto Code starts with its multiple banners scattered around the web. Most likely you will find different banners where there is information linked to Bitcoins, and a millionaire solution for every new user on the market. The attraction of the customer comes by different means, but their intention is to get the potential customer to enter the pages where the fraud databases are. Once this step is completed, they move on to the next one.
The deception and the offer are given by the structure of the page. The Crypto Code website contains a wealth of content: from videos of celebrities claiming the effectiveness of trading for profit, to testimonials from hundreds of people who have become millionaires, and culminating in photos of people who have achieved financial freedom. The site is designed to lure the user in, trick them and offer them a solution to their money problems.
Which brings us to the next step, the deposit request. Crypto Code indicates that it is totally free, however, in order to operate, it requires an initial deposit which they indicate will be the capital to invest. Interestingly, the capital to invest is a minimum deposit of 250 euros, which has the promise of multiplying indefinitely. Once the deposit is made, the process of scamming begins.
Any inexperienced user with basic Bitcoin knowledge will get excited at this stage. The site will constantly send out reports indicating how your small investment of 250 euros is steadily growing: it is gradually maxed out and the reports show more and more money accumulating inside the site’s account. It all seems like the dream process that was enunciated, until you try to withdraw the money.
Withdrawing the money is completely impossible. No matter what you try, you will always come up against an insurmountable wall when trying to withdraw your winnings or get your money back: network problems, problems with the website, the bank has already received your money, but does not reflect it. It is even possible to contact customer service, which will only prolong the matter and one day the account will be deleted and we will never hear about our money again.
This, of course, creates a very bad reputation for the website. Although on their website they claim to work miracles, outside the website, the forums are full of comments from people who have been scammed. This kind of comments damage the reputation of the website, so the recycling process comes into play: same procedure, but the website and the application change their name so as not to get involved in what has already been done with this system. They are simply preparing to continue the scam under a new name.
Anyone who has been a victim of this scam will be discouraged. Any new investor will want to get their money back, however they will most likely get a very bad impression of Bitcoin, and stop trusting it.
The complete solution to avoid scams – eToro
With the doubt in mind about Bitcoin scams on the internet, we started looking for possible solutions to what may end up affecting us.
Unfortunately, if we have already fallen victim to the scam, getting our money back is impossible. Once we accept that our money is in someone else’s hands, there is no going back. Prevention is the only solution.
In order to opt for prevention, we must turn to websites with an unblemished reputation, and with a large number of users who use them constantly. One such international investment platform is eToro.
eToro is a platform for different types of investments, where we can find from the aforementioned Bitcoin, to many other cryptocurrencies. The site is completely user-friendly and is constantly looking for user growth in the field of trading.
Unlike the scams mentioned above, eToro makes its profits from transaction fees. This means that every time a trade is made, eToro gets paid for it. It is in eToro’s interest that its users are successful and therefore make a lot of trades.
To this end, it offers basic, intermediate and advanced courses, as well as tips for users. It has a friendly community ready to help any newbie, and a customer support service that is foolproof: the idea is that the more experienced the user, the more profit he or she makes.
At eToro, trading profits come with experience. It is not a miraculous overnight profit with no effort: this does not exist in the Bitcoin world. However, eToro will look for the user to grow within its platform, to eventually generate the profits that will give them monetary independence identical to that offered by scam sites.
Finally, eToro does not only focus on cryptocurrencies: you can also find investments in stocks, shares, etc. The truth is, when it comes to withdrawing your money, you can always get it back, whatever your investment, which makes eToro the perfect solution for you.