Unless you have are off the grid or living in a cave, chances are you have heard of forex trading and cryptocurrency. These two very different financial trends have in common: they are highly popular. Unfortunately, some want to take advantage of their popularity and try to lure unsuspecting customers into crypto scams or fake forex deals.
It can be challenging to know legitimate deals and which brokers are tricksters. Scammers do not necessarily adopt telltale signs such as typo-ridden hypey promotional material or poorly designed websites. Now forex scams and shady crypto deals can look sleek, professional, and identical to the real thing.
It would be a shame to stay out of real opportunities because of more than a few rotten apples. It is true that people have made money with forex trading and are enjoying the flexibility, convenience, and profitability of legit crypto investing. However, determining which deals are real and fake requires some knowledge and the willingness to do thorough research.
Don’t give up hope if you have already lost money to an unregulated forex broker or a crypto scheme. Fund recovery efforts are often successful if you go to professionals who are adept at tracking these schemes and negotiating with banks or regulators.
MyChargeBack gives guidance to consumers trying to recover their funds from merchant disputes, crypto scams, or other types of fraud. Talk to MyChargeBack professionals and get started on fund recovery.
What Is Forex?
Forex is a word that is thrown around a lot, and to some people, it can seem removed from their everyday lives, but it is just an abbreviation for foreign exchange. Forex trading involves comparing two foreign currency pairs and predicting which one will rise in value.
Think of a European vacation. You may have decided to delay trading money until you could get the very best rate for your home currency against the Euro. This is the basic principle behind forex trading.
However, forex is far more complicated than just changing money on vacation. With an average daily trading volume of $6 trillion, forex is the largest market in the world. It is also a fast-moving market. One headline can send a currency surging or spinning in a downward spiral. In addition, governments and institutional investors can buy or sell currencies without notice.
It is hard to keep track of economic developments worldwide to predict the next move of a government or a multinational corporation. This is why individual forex traders may see an unexpected spike or get crushed.
Most people who begin trading forex do not make money until they have experience handling the swift moves in the market. Therefore, forex deals that promise novice traders outsized returns in just days or weeks are probably not honest.
What Are Cryptocurrencies?
If you do not buy or sell cryptocurrencies such as bitcoin yourself, you probably know someone who does. After hitting the schene in 2008 with the premier or bitcoin, rising in popularity, declining after 2017 because of the prevalence of fraud and surging back up again in the wake of the COVID-19 pandemic, digital currencies have been on a rollercoaster ride.
Like forex, cryptocurrencies tend to fluctuate wildly in value. For instance, between October 2020 and April 2021, bitcoin rose from $10,000 to $60,000 before dropping on skeptical tweets from prominent investors. At the end of 2022, bitcoin is around $50,000 and still moves rapidly with the news cycle and other factors.
Cryptocurrencies are digital currencies that can be used for purchases and trading. There is no physical equivalent, and people access them through codes and keys. All cryptocurrency transactions are recorded on the blockchain, with every new transaction creating a new block. Although anyone can see transactions, they are entirely anonymous.
Pros and Cons of Crypto and Forex Trading
One of the significant advantages of forex and crypto trading is that it can be fun and exciting. Cryptocurrencies are at the beginning of a trend and are likely to be here to stay. Forex has a slightly different advantage–it has been around for a while, but it is also here to stay.
Crypto and forex are ideal assets to trade for people who don’t mind risk, are not trading with money that they need (and can afford to lose), and like fast-paced trading. With these assets, you can make quick trades rather than long-term investments.
The downside of crypto and forex is that they are inherently risky. They are not the right assets for conservative buy-and-hold-style investors. Many people find that forex and crypto trading is stressful because the assets fluctuate so often and in multiple time zones. To ensure they get enough sleep at night, investors may prefer to buy a blue-chip stock and hold it long-term.
Another disadvantage of crypto and forex trading is they attract many dodgy players who want to take advantage of inexperienced traders. You may have seen crypto scams advertised on Whatsapp or social media. Some of these scammers try to pass themselves off as licensed brokers. It is essential to use caution and avoid fraud.
How to Spot a Crypto and Forex Scam
The following are common signs of a crypto or forex scam:
Unrealistic guaranteed returns
No contact information
No transparency about who runs it
No written terms and conditions
Not secure website or no website at all
Demands additional deposits yet won’t release funds
Charges high fees, commissions, and spreads
Encourages clients to trade on the margin (with money they don’t have)
Does not accept credit cards or money from online payment platforms to fund accounts
Refuses to allow clients to withdraw money
Does not respond to communication
Do not engage in any type of trading with any service that demonstrates any of those red flags. If you have lost money to forex and crypto scams, fund recovery is possible if you work with experts who are on your side
Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive working knowledge and relationship with regulators as well as the dynamics of crypto recovery and can improve our prospects of getting your money back.