Avoiding the next Bitconnect

Avoiding the next Bitconnect

Scams are insanely popular in the crypto environment, possibly due to the fact that there’s such a lack of regulations as well as such a large amount of investors wanting easy money. A lot of people have been scammed or attempted to be scammed (myself included) and scammers are finding new ways to get money from the new investors. A popular term to go by is “if it’s too good to be true then it usually is”.

Why did Bitconnect do so well at scamming?

It attracted people with its promised high returns and clever marketing. Money was invested into marketing to get more and more people involved and improve UI to make it look legit. The big red flag would’ve been the fact that if their investing bot was as good as they made out then why would they need to give it to small investors putting in 0.01btc? The referral program system and the high promised returns would’ve triggered the dopamine in “get rich quick” investors.

Bitconnect updates

Trevon James seems to be the only one coming under fire with lawsuits and court dates whilst there isn’t much mention of the others involved. Carlos Matos seems to be involved in other scams and trying to make them look legit (good luck to him). Eventually I believe it will get resolved but whether people will get their money back is another question.

 

My personal battle with scams

When I first started I was subjected to the usual telegram paid group scams and ended up following some random guys advice just because he had a few good results; I made a lot of money from this, but I knew this was not the right approach for if I wanted to do well in the future. Therefore, I studied every call he gave and analysed why he was giving it and what the end result was, although this was a good time for me it go’s back to the saying of “everyone’s a genius in a bull market”. I also paid money for another paid group which was a complete waste and from what I’ve gathered 90% (minimum) of all paid groups aren’t worth it.

Very recently a “Venture Capitalist” messaged me and a friend saying he was interested in investing in our business (We ran a promotion business for ICO’s to get extra exposure). There were a few red flags which made me uneasy, but we then got sent a contract which we had a look through and were going to get it read over professionally but we still stayed by the saying “if it’s too good to be true then it usually is”. He then messaged us saying that we had to send ETH over to him “so that we had skin in the game” and let’s just say things ended there.

I also got involved in a HYIP website (high yield investment programme) which went the way I expected and learnt my lesson from that. I don’t regret falling for this as it was a very valuable lesson and a very small amount of my portfolio. It was interesting looking back and thinking “why did this get my attention” and big factors were because it enticed the dopamine by showing your balance increasing every 60 seconds- laughable looking back at it now. Have a look below at the website home screen and have a laugh for yourselves.

The new up to date scams are ETH giveaways which surprisingly generate a lot of money, I have no sympathy for people who lose their money because they’re promised to receive more money in return for sending money first to someone. If you lose money this way, then it’s more of a natural selection type process in the market and clears the inept out.

Summary

Scams are always going to be around in crypto, especially whilst it’s this unregulated. Keep an eye out for HYIP’s or other ways that you are promised money from doing nothing. Some scams are much harder to look out for such as Mt Gox when it dissolved and a lot of people lost money (apparently investors are being promised their funds back but at a rate of 1btc-

$400 or thereabouts.) Coins are best to be kept on hard wallets and not on exchanges as you can easily lose life savings from being irresponsible.

Crypto is still like the Wild West and everyone is out for themselves. Take care and don’t get rekt.

Ched.

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