1. Initial Fleece Creation
The initial fleece creation is usually where scammers fool you into giving them a few hundred to a few thousand dollars by promising huge returns. You will see how that happens here.
You are at a bitcoin meetup and a person introduces himself. He says that he is an experienced trader and is able to help you make profits and which you can get to your account in no time with such capital. He will tell you that he will invest a portion of your money in an account that is providing returns much higher than what you can get elsewhere, He will later turn around and say that this has been a risk free investment and you can get your profits in 30-45 days.
Reasons Why People Get Scammed
In addition to various scams, there are several reasons that people get scammed. Some people get scammed because they fail to do some necessary due diligence prior to getting involved in the forex market. They will see an attractive offer on the forex market and think that it is too good to be true so they end up getting scammed without ever having met the person who claimed to be in charge of the currency.
Another reason why people get scammed is because they do not realize that most of the brokers who get hold of their money will recommend or sell the forex to them at an unrealistic price. In this regard, some people even end up losing their life savings.
How to Identify a Scam
Some popular forex scams include fake online dealers, fake money orders, and fraud broker sites. When the Internet is involved in any business transaction, it’s very likely that the worst are involved. Forex scams usually do not give a complete picture of what they are trying to do or what services they are selling. These scammers give you a message saying that they can make you money with their trading services but these programs are never designed to make money for its users.
To avoid these scams, make sure that you pay only after working with a legitimate and trustworthy company. If the company says that it will pay you in Bitcoins, check it out. They may be trying to scam you.
What You Can Do to Avoid Getting Taken
I will not be sending my readers fake press releases. I am going to suggest you that you do not allow money to move in your account after the 1:00PM. That is the time when you want to start taking some money and liquidating the rest. This also is the time when online scammers are most active in trying to take advantage of new traders.
This time of the day is very vulnerable because you are exposed to the money moving out. Not only that, but you can also get information from people that are in the room. You should stay away from the money moving out of your account and focus on how to make more profit from your initial position.
How Do You Know You Are Being Scammed?
What most people don’t know is that a large number of people that are victims of forex scam.
Ultimately, you are your own person, and if you are determined enough to make a living from trading in forex or trading cryptocurrencies you can succeed. The key to making a career out of trading cryptocurrencies is learning the market properly and learning the risks of trading.