A popular method of making money on the internet is trading on cryptocurrency platforms, but it is very difficult to find honest brokers among the large number of scammers who skillfully use this method. To deceive investors, scammers have learned to create fake trading platforms, and it is not immediately clear how to recognize them and avoid being scammed.
Trading Platforms
The definition of a trading platform is - special software that allows market analysis with financial trading assets. Such platforms act as intermediaries between the exchange and the trader, meaning they are called brokerage sites.
To participate in a trading operation on the platform, you need to have an account with a certain amount of cryptocurrency. Trading is conducted on the broker's online platform. It is recommended to use trading platforms that provide information about:
- real-time data;
- margin accounts;
- stop-loss orders.
This will help secure the trades.
With trading, you can buy or sell virtual assets. To make a profit, traders earn from the price difference between buying and selling. Traders do not work in the long term with investments, they are content with receiving a small percentage of profit from each transaction, unlike those who invest.
Although this type of income is gaining momentum, it does not bring large incomes, as trading is not a reliable way to earn money. A small percentage of traders can achieve profits in the long term, most of them simply lose the invested money.
Trading Scams
As is already known, it is impossible to make large earnings from trading, so promises of high and fast profits are fraudulent schemes. Scammer-traders promise high profits in a short time by trading on the platform, but to start this trade, they need to find investors who will make a significant investment by believing in the promise of quick and high earnings.
To find clients, scammers use:
- advertising, phishing messages;
- social network mailings;
- emails.
In general, they spread information with fake links to the trading platform. If a user follows this link, they will be caught by scammers in deceitful networks.
Scammers use financial consulting for investing, also offering the launch of breakthrough startups under franchises, although this is all deceit, they steal money.
Fake Brokers
To lure clients and truly convince them that it is worth investing money in the specified project, and to acquire the cryptocurrency they specifically offer.
The methods vary, one of the popular ways to lure investors is advertising, in which a happy bitcoin holder has been earning on the trading platform for a long time. Lives abroad, drives a luxury car, bought a house or apartment, denies himself nothing. For this, fake videos, edited photos, possibly even created by artificial intelligence, are made.
Mostly, beginners in trading and those wishing to engage in cryptocurrency fall for these tricks. Investor trust is the main trump card for scammers on fake trading platforms. Pretending to be a trader, the scammer uses methods of psychological pressure on the victim, promising high income.
In most cases, fake traders do not have a license for such activity, to discover this, it is necessary to visit specialized sites where all information about traders and brokerage platforms is posted.
Trading Scams
Most trading operations can be considered scams. To start trading on a financial platform, an investor looks for a profitable and reliable one, but in most cases, this niche is occupied by scammers.
In the process of investing cryptocurrency, they present themselves as:
- experienced traders;
- investment managers;
- brokers.
They promise high income if the victim entrusts their funds to them. If in this situation the trader insists on an urgent investment of large profit and convinces that the risks are minimal now, one should be vigilant, especially if the offer came in a social network message - this is most likely a scammer.
Scammers are not averse to conducting such an action as acquiring new currency at the lowest price, while promising that its value will literally skyrocket in a matter of days.
They also organize groups in social networks to recruit more people who will want to actively buy this cryptocurrency. This method allows the new cryptocurrency to grow in value, attracting more and more people. When its price truly peaks, the value of the cryptocurrency then suddenly drops, and investors are left with nothing, while the scammers, having taken the money, disappear into the internet.