There are many crypto trading brokers in the market, some legit, and some who are not. Crypto trading scams have become common and are everywhere. So, it is up to you to vet which broker is legit and a scammer.
Cryptocurrencies are virtual currencies that live online and are not backed by the central bank or government body. As with any other financial “giant,” cryptocurrency is highly volatile and offers incredible interest to willing risk-takers. Various forms of cryptocurrency have given rise to millionaires over the years, causing tremendous growth in value.
The value growth has led to more and more people wanting to try their luck in the cryptocurrency market. However, some criminal elements and bad market players are looking to defraud willing investors. As such, so many potential investors are now shying away from investing in this fast-growing and fascinating industry.
Who is a Crypto trading broker?
A cryptocurrency broker is an individual or a firm that serves as an intermediary between a willing investor and the cryptocurrency market. These brokers make it easy for a customer to buy the various cryptocurrencies at their prices.
Seeking a cryptocurrency broker’s services is more of a necessity for a beginner in the cryptocurrency market. Crypto trading brokers offer a suitable environment for beginners looking to venture into Ethereum, Bitcoin, Litecoin, or any other cryptocurrency form.
How to tell if a Cryptocurrency Broker is a Scam
- They promise excessive gain on an investment
- You will be asked to invite more users
- They ask for your passwords
- It has previously had issues with scamming investors
- The firm has no public information on Google or social media sites
Common Cryptocurrency scams
There are hundreds, if not thousands, of unregulated online brokers claiming to be certified to deal with cryptocurrency trading. Do not be fooled by the fancy offices and the serious outfits these brokers posts on their sites or profiles to convince you to invest your money.
As a trader, you need to be wary of any promises that are too good to be real. Chances are, once you deposit money, most of these brokers will charge you a high commission. Alternatively, they can put in measures that make it almost impossible to access your funds.
You can now be a legit broker by asking for their certification and doing your research online. Please find out how long they have been in business and go through their customer reviews section. A firm without a license or an online presence is suspicious. Also, check for how long the site has been up, avoid recent websites without a community base.
Appealing impossible promises on returns
While cryptocurrency can bring huge profits, some fast-talking swindlers will satisfy the investor’s greed to get more money. A fraudster will come to you with promises of a significant return on your investment without adequate information on the investment strategy.
Once you fall prey to the…
Read more:Are Crypto Trading Brokers Scam?