About Bitcoin Forex Scams

About Bitcoin Scams

Bitcoin and Forex are two hot names in the financial world. However, they also trigger associations with scams and may cause risk-averse investors to stay away. Are forex and bitcoin inherently problematic? Why are there so many bitcoin forex scams? Looking closely, it is clear that there are legitimate options for bitcoin and forex trading but it is essential to know what to look out for to avoid bitcoin forex scams. 

What Is Bitcoin?

We have al heard of bitcoin, may own some or trade bitcoin but may not be sure how it works. The technology behind bitcoin, cryptocurrencies, and the blockchain can be complex. Anyone who is considering getting involved with cryptocurrencies should find out as much as they can about them and understand, to the best of their ability, how they work. 

To start with, bitcoin was the first digital currency introduced in 2008. Since then, there have been thousands of other types of virtual coins that have hit the market. These other coins are referred to as cryptocurrency.

They have no physical exchanges and are not regulated by governments but are managed by the blockchain, which uses ledger technology. All transactions are encoded and anonymous, which can make some users feel more secure but can provide others opportunities to hide illegal activity.

What Is Forex?

Forex stands for “foreign exchange.” Forex trading involves trying to make money on fluctuations in value between two currency pairs, such as the euro and the U.S. dollar. Forex is a huge yet volatile market. Government and institutional investors can move the market in just minutes without warning with huge purchases or sales. Natural disasters and political events can also affect the value of a currency.

Individual investors can make money on forex, but they usually have to gain skill and experience before they see returns. Since many changes can occur outside of a trader’s time zone that can affect their currency pairs, many traders opt for day trading and avoid holding currency pairs overnight or use bots that can buy or sell automatically. These bots, however, still require human intervention to trade successfully.

Why Are There So Many Bitcoin Forex Scams?

People who want to get away with defrauding the public usually take advantage of people following a hot trend. The idea is that among the huge mass of people wanting to get in on forex or bitcoin, there are going to be a few people who are easily persuaded or who are so desperate for a chance to make some money that they may not pay attention to details or investigate brokers before signing on.

Where there is excitement, there is also hype and scammers can make extravagant promises that seem to validate rumors they have heard. For instance, many people have heard stories about traders making a fortune on forex and bitcoin. We may not know them personally, but it sounds familiar. The broker can pretend to be that person or to have the secret to make these stories a reality for their lucky clients. However, these clients are not so lucky when they discover the broker is taking their money.

Bitcoin Forex Scam Brokers

There are plenty of bitcoin scams and forex scams, but the two are used together in cases of scam brokers that offer fake opportunities to trade bitcoin and forex. They will use the words “forex” and “bitcoin” copiously in their advertisements to capitalize on the trendy topics and insist to prospective clients that they have extensive knowledge and experience in trading bitcoin and forex and can use their advantages to make money on behalf of their clients.

At this early phase, it is possible to sense a bitcoin forex scam from the language and the emphasis. Fraud brokers tend to emphasize guaranteed returns when with these volatile trading instruments, there are no guarantees. They also make it seem as if they are the ultimate experts and the traders are wholly dependent on them.

Another sign of bitcoin forex scam brokers is that they are not regulated or poorly regulated. There is no question that any broker with no license should be avoided, but also investigate the kind of license the broker has. If it is not the first or second tier, avoid them. Third and fourth-tier regulators often do not take prompt action if there is a complaint about bitcoin forex scams.

Be careful to check actual licensing and not where the broker claims to be located. Some bitcoin forex scams will say they are located in Cyprus to make it appear they have a license from CySec, a top-tier broker. However, looking closely, it may be obvious they do not hold a license from CySec but a third-tier license or none at all.

How to Avoid Bitcoin Forex Scams

There is no guarantee that the broker you are working with is not fraudulent or that you will not have a major dispute with them. However, taking these steps can greatly lessen your risks of falling victim to bitcoin forex scams
  • Sign up only with a well-regulated broker
  • Check that the contact information is accurate
  • Look carefully at the About Us page
  • Check terms and conditions
  • Ensure there is absolute transparency about fees and procedures
  • Talk to customer service. Is it easy to contact them? Do they answer questions?
These are steps you can take to avoid unscrupulous brokers. Remember, there are plenty of safe and reliable brokers for forex and bitcoin trading. Do not be fooled by hyped-up claims and false promises.
Cryptocointrace experts can provide you with assistance if you have lost money in a bitcoin forex scam. Our team of researchers knows what to look for when investigating a bitcoin forex scam. We can provide you with information and guidance through our crypto reports that will help you get results. Contact our Cryptocointrace professionals today for a consultation.

If You Have Been Affected by a Bitcoin Forex Scam, Talk to Cryptocointrace Professionals!

If you have lost money in a bitcoin forex scam, talk to Cryptocointrace today. Our team has the expertise and knowledge as well as tools to perform in-depth research. We are skilled at investigating all types of scams and have extensive experience in the financial industry. We will help you get results for your claim and resolve your complaint or dispute.

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