How to prevent these 4 types of bitcoin and cryptocurrency scams? – CVBJ


To avoid Ponzi schemes, it is necessary to “go back to the principles of Bitcoin and blockchain”.

Daiana Gómez asks to be careful with altcoins, as many of them add no value.

Scams with bitcoin and other cryptocurrencies are a topic frequently reported by CryptoNews. As part of the DescentralizAR conference, panelist Daiana Gómez Banegas, who belongs to the NGO Bitcoin Argentina, gave some guidelines to prevent this type of fraud.

“How to Avoid Falling Into Pseudo-Cryptocurrency Scams” ​​was the title of Gómez Banegas’s talk. Throughout his exhibition, he exhibits four types of crypto asset scams: identity theft; scams at the time of the transaction; pyramid systems; and coins known as “shitcoins”.

“With the pandemic, we have all turned massively to the digital world and this has never happened before,” said the speaker at the opening of her presentation. He added that as a result, the the data of millions of people has been dumped into cyberspace and some criminals were able to exploit existing vulnerabilities.

Daiana Gómez (left) warned of the dangers of the cryptocurrency ecosystem during the “Decentralize” event, organized by the Bitcoin Argentina NGO chaired by Roolfo Andragnes (right). Source:

Identity theft in Bitcoin transactions

“Many criminals – because this is the definition that suits those who are made of this data – violate phone lines or imitate the personal accounts of Facebook, Twitter or WhatsApp of users referring to the community”, explains Gómez Banegas. Explain why, then with these fake accounts they interact with other users who really want to buy or sell cryptocurrencies.

In general, as the speaker explained, the criminals declare that they have the urgency to proceed with the operation. “I offer this job because I need the money now,” they often say. Or they say, “I am offering this trade with a much lower spread, at a much lower price than the market price you can find elsewhere.”

Gómez Banegas recommends taking precautions to verify the identity of the counterparty. For example, request a phone call or video call to verify that indeed, this is what they claim to be.

P2p transaction scams

Then, the speaker mentioned the possible scams that can occur when carrying out a p2p cash buy and sell operation (from person to person, without intermediaries).

As a recommendation, Gómez Banegas asks to go to the meeting point with a good wallet already installed (the NGO Bitcoin Argentina recommends Muun) and not to allow the broker to manipulate his client’s cell phone.

“Some wallets have a password recovery mode via a QR code,” he explains. And he adds that the broker could use it to get hold of the user’s private keys and steal the funds he has in his wallet.

This outlet reported on a recent case of suspected fraud in Argentina in which, apparently, this was the method used, according to the account provided by the person identifying himself as the victim.

The recommendation is to go with the programmed wallet, with the correctly performed backups and to share the address with the broker via message, in private. It is not necessary to display your cell phone and display the information on it.

Daiana Gómez Banegas, member of the NGO Bitcoin Argentina.

Pyramid cryptocurrency scams

“If someone promises me money, if someone promises me absolute winnings, if someone asks me for an amount to enter the system, if someone asks me to bring referrals to increase my earnings, it’s probably someone who wants to rip me off. ” Daiana Gómez thus introduces the third type of scam with bitcoin and other cryptocurrencies that are pyramid systems.

The online Wikipedia encyclopedia defines these financial schemes, also known as Ponzi schemes, as “a form of scam that attracts investors and pays out profits to previous investors with funds from newer investors.” He adds on this website that “the scheme leads victims to believe that the profits come from legitimate business activities, and they do not know that other investors are the source of the funds.”

“We bitcoiners don’t earn a dime just because someone enters the Bitcoin network,” says Daiana Gómez Benegas. Source:

Gómez Banegas recommends those interested in this type of business to “go back to the principles of Bitcoin and blockchain”.

Bitcoin doesn’t have an owner, it doesn’t have a business behind it, it doesn’t have a referral system, bitcoiners don’t earn a dime because a person enters the Bitcoin network and is a user, and we don’t lose anything when users decide to cash out and get your money. So if someone forces these kinds of measures on you, open your eyes and talk to that person. It is highly likely that this person is also being scammed and has no intention of harming them, but is simply immersed in this system.

Daiana Gómez Banegas, member of the NGO Bitcoin Argentina.

Shitcoins: they add no value

According to the CryptoNews glossary, “‘shitcoin’ literally translates to ‘piece of shit.’ This definition page adds that “it’s a derogatory term for an altcoin that doesn’t seem to have much of a future due to a weak proposition, disorganization, or poorly designed code.”

On the subject, Daiana Gómez spoke in her presentation. For the specialist, thousands of crypto-currencies listed on sites like CoinMarketCap or Coingecko, most could be classified as shitcoins.

Many crypto assets lack a basis to justify their existence and their sole purpose is to speculate on their price. Source: CoinMarketCap.

According to the specialist, these new currencies, in their white papers (or white papers) tend to have “a very complicated technical language and difficult to understand”. In addition, “the most dubious projects have no jobs reported and have very few updates and a tiny work team,” he says.

“It is in the collective imagination that of ‘the bitcoin train passed me, it is already very expensive, how did I not buy it when it was at 100 USD, or how did not did I not buy when it was 3000 USD? ‘ ”Says Gómez Banegas. The speaker adds that many altcoin developers and promoters are taking advantage of this narrative to sell the idea that a certain currency will be the next bitcoin.

The rapporteur explains that in most cases These new cryptocurrencies add no value and their only use is speculation on their price.: “What’s the problem with this incitement to speculation?” May this desire to enrich myself overnight weaken me in the face of immediate wealth proposals ”.

For Gómez Banegas, the idea that it is too late to get into bitcoin should be taken out of mind: “There are two good times to buy BTC: one in 2009 and the other now.

It is always a good time to buy bitcoin. Maybe you are not going to make the same profit as if you bought them 5 years ago. But, the reality is that there is still time to acquire the asset of the future.

Daiana Gómez Banegas, member of the NGO Bitcoin Argentina.

By way of conclusion and summary of her warning regarding shitcoins, the speaker calls for caution: “we must ask ourselves the same questions that we would ask ourselves before any investment in the traditional market and take these same guarantees”.

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