Many people are asking the question, “is Bitcoin a scam?” because of the widespread speculative nature of the currency. While many of these websites are legitimate, there are also numerous examples of shady actors who have preyed on those who are naive enough to buy into the hype. These criminals are often well-known in the financial industry and may be tempting you to fall for their tricks.

Some of the most common ways for scammers to get your money include online dating. In many cases, they promise huge returns on investment schemes. Then, they disappear. Some even impersonate businesses and government agencies. Some people have even paid fake Coinbase and social security companies to get their money. It is extremely hard to tell which of these scams is genuine. But if you’re looking for information about whether bitcoin is a scam, consider these facts.

Scams involving cryptocurrency involve the use of psychological manipulation and deception to lure victims into sending their money to unknown recipients. They usually impersonate a trustworthy entity to entice you into making a transaction. Some scammers may pose as a trusted institution or community member. Others may pretend to be a work colleague, friend, or even family member. You should never trust anyone who tells you that they know the price of Bitcoin before you do. They are likely working in a pump and dump scheme, which artificially drives the price of Bitcoin. It is also common for investors to withdraw all of their holdings for a profit and sell the rest at a later date.