Bitcoin Forex Scam
‘Bitcoin’ and ‘forex’ are both wildly popular terms. Although cryptocurrency has supplanted forex as the most widely known speculative trading asset, there are still plenty of forex brokers. Unfortunately, both of these terms are associated with fraud, given the large number of online bitcoin and forex scams today.
It is possible to trade both bitcoin and forex with a regulated broker who has full transparency and an ethical approach. With these brokers, you can make money and feel that you are in good hands. However, there are unfortunately more fraudulent bitcoin trading schemes and forex brokers than there are legitimate entities.
The key to keeping your money safe online isn’t avoiding forex and bitcoin altogether. Instead, it’s vital to understand the dynamics of bitcoin forex scams and to know how to avoid them. If you do lose money in a bitcoin forex scam, seek help from Fundrecovery Australia right away. Our experts can dramatically improve your chances of fund recovery success.
What Is Forex?
Forex is often talked about as a get-rich-quick scheme. However, it isn’t just a fly-by-night scam, but is a time-honored form of trading. Forex involves trading currency pairs. For instance, if you expect a certain country’s economy to perform well, especially compared to another country, you would trade the relevant currency pair.
This sounds simple enough. Actually, the apparent simplicity of forex trading is one of the main reasons people think that forex trading is easy. However, forex trading isn’t easy and isn’t a surefire way to make money. In fact, it can be more difficult to see profits from forex trading than other types of asset classes.
The forex market is one of the world’s largest and most volatile. Even the most carefully planned trading thesis can be turned on its head with a sudden natural disaster, economic crash, or unexpected election result. A country or a government could suddenly buy or sell large stakes in specific currencies. This can profoundly affect a forex position completely without warning.
Any forex broker that claims that clients can reach a certain level of returns is most likely a forex scam. No broker can guarantee returns for clients, and brokers who do are not telling the truth. However, most bitcoin forex scams go beyond simply promising modest returns per month but claim their clients can make millions of dollars trading forex. These claims should be absolutely dismissed.
Is Bitcoin a Scam?
Cryptocurrencies are an exciting new era for money. Now, there’s no need to fund an online an account with conventional currency and then pay with a credit card or bank transfer. We can simply keep all of our funds online in the form of a purely digital currency like bitcoin.
However, not everyone is happy with this development. The number of crypto scams keeps growing. In fact, there are more fraudulent schemes than legitimate crypto opportunities. It’s gotten to the point where many people ask, ‘Is crypto a scam?’
Cryptocurrencies aren’t inherently fraudulent. However, the blockchain is a place where many cyber criminals hide their ill-gotten gains. The anonymity of the blockchain is an attractive benefit for people who have committed financial crimes and want to hide their money. Although regulations are being put in place to make crypto exchanges more accountable, crypto scams continue to increase.
Two Types of Bitcoin Forex Scams
There are two types of bitcoin forex scams:
Fake brokers who offer trading of both bitcoin and forex
Fake forex brokers who accept only cryptocurrency for deposits and withdrawals
Of course, a broker can combine both of these strategies. The first type of bitcoin forex scam involves brokers that offer mainly highly speculative assets. They may choose these assets because they are trendy and attract a lot of targets. Another reason they will choose highly volatile assets is that they can easily convince the client that the money was lost in the trade when it just ended up in the fake broker’s pocket.
The cryptocurrency and forex market can turn on a dime. Unregulated brokers take advantage of the lack of knowledge among their clients to tell them what happens during a trade. This means the fake broker is in control.
They can show fake data showing that trade lost money when in fact no trade was made at all. For the few investors who check the fake trade with real-life results, the broker can point to a time when the trade was supposedly executed to try to prove they lost money in the actual trade.
The second type of bitcoin forex scam may or may not offer trading of cryptocurrencies, but they may offer other assets as well. However, their requirement is that all funds should be deposited and withdrawn (although in actuality there are usually no withdrawals) in cryptocurrency. The sole purpose of this is so the scam brokers can keep transitions under the radar of authorities.
A regulated broker may offer cryptocurrency as a payment option, but they will also offer credit cards, payment platforms, and perhaps bank transfers as a means of depositing funds. If they refuse to allow any other payment method than cryptocurrency, that’s a red flag.
How to Avoid a Bitcoin Forex Scam
To stay safe from bitcoin forex scam, consider the following as red flags:
- No licence or a third-rate licence.
- Aggressive tactics to get clients, including spamming.
- No transparency – the identities of people in the firm cannot be confirmed independently.
- Fake contact information.
- Vague terms and conditions.
- High fees.
- Won’t allow withdrawal of funds or will make withdrawal difficult or inconvenient.
- Lack of communicaiton.
What to Do If You’ve Lost Money to a Bitcoin Forex Scam
If you’ve lost money to a bitcoin forex scam, don’t give up. Crypto recovery is possible if you work with Fundrecovery Australia experts. We will consult with you and map a strategy for success. With our crypto trace technology and bitcoin forensics, we can give you a head start with crypto recovery.
Have You Lost Money to Bitcoin Forex Scam? FundRecovery AU Will Help!
Fundrecovery Australia is staffed by crypto trace experts who use specialised technology and methods that are designed to uncover information about crypto transactions. We consult with clients, launch a cryptocurrency investigation and create investigation reports that can help you succeed in your crypto case.
