With the advent of cryptocurrencies, numerous trading applications have emerged in the market that is allowing users to trade online and earn virtual money. However, within these applications, some people are often going live with bogus platforms that are only to scam people.
That is what we’re here to discuss and give insights into. One should know what these trading applications are and how one can avoid them in the route of earning legit money. So, let’s get started:
What Are The Crypto Trading Apps/ Platforms?
Crypto trading applications/ platforms work somewhat similar to stocks, generating signals and then allowing the users to trade using the insights offered. For this purpose, you should first have a solid internet connection that would allow receiving accurate signals without any hassle.
For that, we recommend you go for ATT internet as it offers the right kind of internet connectivity you need for smooth trading. Using services from ATT will make it easier to enjoy a seamless connection without any latency.
On the other hand, it will also make it easier to open or close deals without having to worry about losing your trading information, profile sync problems, or anything else.
Coming to the point, these trading applications are extremely volatile and the models are based on the fluctuations that occur in the market. The users can register themselves on these platforms, put in real money and then begin trading.
So what’s The Potential Risk?
As highlighted earlier, most of the applications in the market are coming up with the idea of guaranteed earnings as a way of scamming people. On the other hand, these apps are based on the market situation (we’ve mentioned earlier).
Whatever happens in the market, affects the currency that you’re trading into. In addition to this, the applications also allow users to trade using different exchanges. Exchanges allow cross-boundary trades, making it easier for the users to earn more.
Then again, the volatility comes here too, and users not having any idea of how trading works are most likely to lose their money. On the other hand, the trading apps do feature a competitive range of tutorials and a free demo account.
Demo trading accounts are offered to amateur users so that they can learn trading without losing any money in actual trading processes. Upon registering, the users are asked about the account they want to choose and proceed with in terms of trading.
There, the users can opt for demo accounts. These accounts simulate real-life market situations, featuring demo virtual money. In addition, the account also provides a competitive insight into how to proceed with the market as well as connects you with an online broker that is responsible for aiding you throughout the process.
Once the process is completed, you’re navigated towards the payment option where you’ll have to submit the initial registration amount that will be used to provide you with the credit to trade. The risk here is most users don’t visit the demo account and proceed to trade right away, losing their money.
In addition, scam websites and apps just take the money and minimize the credits for trading purposes. Moreover, they subtract several payments in the process during payouts, making it a hassle for the users.
Potential Signs for Scams
Almost all trading applications involve initial investment money that allows users to register their accounts. However, that is how scamming platforms take the money and run away. Let’s take a look at the potential signs that show the app you’re using is nothing but a scam:
Ø Asks For Payments Firsts
Most applications ask for payment details; however, they don’t charge you until you start trading using the manual or automatic account. That is why you should be wary of how the app requires payments. If the account registration is not done and the app is asking for payments, then it’s better to stay away from it.
Ø Improper Trading Practices
It’s not recommended that you opt for the manual trading option without any prior knowledge of trading or how such apps work. However, what scamming apps do is illustrate that your trading techniques weren’t up to par resulting in the loss.
Improper signal/information generation does this and the app’s controllers make illegal transactions. Even the brokers that are associated with the users don’t respond or take responsible actions. The automatic mode is broken as it keeps fluctuating in terms of decisions, resulting in losses.
Ø Online Reviews
Whenever such apps come into the market, experts that have already been using such platforms often go for a test drive on them. You can find online reviews of such platforms and applications that have recently launched and find legit reviews about them too.
You’ll find a legit review about such apps and even know if they’re a scam or not. Or, the best way to do this is to ask a question in your online community. That way you’ll not come across bogus sites that favor the scamming site.
Cryptocurrency itself is quite volatile and one must be highly knowledgeable on how trading should be done using virtual currency. In the thought, crypto trading apps are themselves difficult to handle and operate, especially if one doesn’t know how they work or how the trading process works. That is why one should be vigilant when it comes to finding such apps before trading to ensure they’re not falling for a scam.