Cryptocurrency Robots – How Newbie Investors are getting scammed

If you are interested in making money off of the cryptocurrency market, then perhaps you already know that you can mine cryptocurrencies, trade cryptocurrencies Forex style or just buy and HODL. That is of course if you have some kind of knowledge about the coins you are going to invest in. But what if there was an easier way to make money from trading cryptocurrencies? For example, a Bitcoin robot that guarantees it can make thousands of dollars and you don’t even have to lift a finger!

Somehow, I have a feeling you have already come across a similar offer. Maybe it was an ad you saw on Facebook or even a prominent news source. Or maybe you heard it from your favorite “crypto guru” on YouTube. Well, whichever the case, don’t get your hopes up until you hear who really gets rich from a cryptocurrency robot.

Fake News Sites Used For Marketing

As an investor, the first thing you need to know about these “easy money” robots, is how they get advertised. As I mentioned above, the robot ads sometimes appear to be on a respected and reliable news website. However, if you look closer, you will find out that these websites are often fake. Take a look at the example below. To the untrained eye, it looks like the article is published on the CNN’s money section. Even the authors name is real.

Image: a fake CNN website using a real CNN author’s name. At first sight,
the url looks real but it is not the actual url to the CNN money page.

Upon further investigation, one can notice that the entire website, including the url, is fake. For example, none of the links and buttons on the website are clickable. This particular scam was promoting a fake ICO and a fake cryptocurrency scam called Postero.io.

Once the fake news website has been created, targeted ads on Facebook, YouTube or other social media platforms are used to send investors there. When it comes to the marketing part, this is just the tip of the iceberg. Fake news websites and fake review websites backed by fake testimonials and promises of wealth can fool most newbies into thinking these cryptocurrency robots are the real deal and easy money is for the grabs. But, what exactly is the purpose of these fake robots?

Old Binary Options Crooks

To understand what the driving force behind the recent waves of cryptocurrency robot scams is and what their goal is, you have to know a bit of a history. Simply put, after the tough regulations and bans on binary options during the recent years, most of the scammers in that industry have shifted their focus to the cryptocurrency markets.

Image: A Bitcoin Robot Scam called BTC Robot 2.0.

With new and uneducated investors pumping in billions of dollars in new coins and ICOs, it is not surprising to see these seasoned scammers applying their shady scam operations here too. After all, this is yet another unregulated market just as binary options used to be and surely, scammers are here to take advantage of it.

CFD Trading – Not Cryptocurrencies

So, what really happens when an investor actually goes through and signs up to any of these promoted cryptocurrency robots with catchy names such as “The Bitcoin Code” or “Crypto Robot” and “Bitcoin Millionaire”? The answer is that they get redirected to a CFD or FX broker that is unlicensed and unregulated where they are pestered into depositing more and more money… which is precisely what the binary options crooks used to do before cryptocurrencies were popular.

As an investor, there is only one way you can protect yourself: forget about easy money schemes and especially cryptocurrency robots with too good to be true offers. Because they almost always work for the brokers and they are the only ones getting rich.

To learn more, you may want to visit ThatSucks.com, an anti-scam website that focuses on exposing scams in the trading industry – but it’s also a community for traders.