A recent article on CaptainAltcoin.com spoke about the rise of cryptocurrency fraud in Australia. The nation saw a sharp increase in cryptocurrency related scams with some explicitly tied to online casinos. Today, we will talk a bit about cryptocurrency scams and what to look for when dealing with cryptocurrency online casinos.
How Are People Being Scammed?
One reason that bitcoin and other cryptocurrencies have grown in popularity over the last few years is that they are decentralised and mostly unregulated. Most cryptocurrency transactions are next to untraceable, and those that use cryptos love the anonymity associated with using them.
However, this has led to a steady rise in scams. Just do your research, and you can find numerous examples of these scams. Some examples of these include investment scams, romance scams, and scams that involve personal threats.
The scams most relevant to those frequenting this site are online casino scams. Often, the way that these scams work is that you sign up for an online casino, usually a new one, that offers the ability to deposit or play with bitcoin or altcoins. Players then later find themselves either unable to win at the casino or unable to cash out any winnings. Eventually, the casino shuts down and runs off with the cryptocurrency collected.
The unfortunate thing is that once a cryptocurrency casino shuts down, there’s nothing that players can really do to recoup their funds. These casinos are set up with fake names and information and in countries and usually on less than reputable web hosting providers. Knowing this, we are here to give you some tips to help you avoid cryptocurrency scams, including online casino scams.
Avoiding Cryptocurrency Scams
Cryptocurrency scams are on the rise due to the rising popularity of the medium and the lack of real options to track and prosecute scammers. As such, it is best to practice diligence in avoiding these scams. Here are some ways to protect yourself from cryptocurrency scams, especially online casino scams.
– Cryptocurrency Investments Are Scams
While this isn’t exactly related to online casinos, it is one of the most common. Ignore high rate of return cryptocurrency investments. Cryptocurrency investment schemes are all scams. They run on a pyramid scheme basis, meaning your money is only going to those running the scheme.
– Be Wary of New Crypto Casinos
You know how some people avoid new technology products until they have been out a while? That’s what you should do with new cryptocurrency casinos. The majority of online casino scams come from new online casinos that accept cryptocurrency. This is especially the case if they allow you to play with it as well.
– Look at Casino Reviews
For any casino that you’re considering, especially cryptocurrency casinos, it is wise to look at online casino reviews. Search for any negative reviews and customer reviews and look for any consistencies. In particular, any problems with payments from the casinos.
– Look for Licensing Information
Major licensing bodies license and regulate legitimate online casinos. A lot of your scam casinos will either lack licensing information or will have vague information. Furthermore, the company will typically be one you’ve never heard of.
– Look Out for Atypical Bonuses
It’s not uncommon to see legitimate cryptocurrency casinos offer higher than usual online casino bonus offers. However, if you see cryptocurrency casinos offering bonuses of 400% or more, then that’s a good sign that they may be a bit scammy. The same applies if they give you unlimited usage on high bonuses. Most casinos will give realistic bonuses and usages on those bonuses.
Check Out Our List of Cryptocurrency Casinos
If you would like to save the time and hassle of trying to decipher which online casinos are legitimate, just check out our list of recommended online casinos. Many casinos on our list, such as Ignition Casino, allow you to deposit using bitcoin and are completely safe.
These casinos already have an established history, are licenced, and offer realistic terms and casino bonuses. Playing on these casinos assures you of payment when you’re ready to cash out. Moreover, you have a realistic chance to win while playing at these crypto online casinos.