Cryptocurrency Scams – How to Keep Your Investments Clean

What’s up everyone, its Austin over here at
the Crypto Playhouse and this morning we are bringing you something that has been highly
requested by a bunch of our followers. We are going to to talk to you guys about
cryptocurrency scams. The space is absolutely rife with them. There’s a bunch of different kind of ways
that people are presenting these scams. And today i’m going to help you break down
the different types of scams, and how to keep yourself covered so that you don’t fall into
one of these traps. So today we’re going to be looking at kind
of the baseline trading scams, some scams that involve mining contracts, and then were
also going to look at the slightly tougher of the institutional level scams; and these
larger projects that pulled exit scams, ponzis, and things of that nature. So let’s jump in and keep you guys protected
from all those crypto scams out there. Alright so we have a ton of followers that
are constantly DM’ing us, sending us screenshots of this new investment program, this new mining
operation, this new thing in crypto that promises it’s going to make them tons of money. They come asking if we can verify whether
its real or a scam. I can honestly say that at this point, we’ve
yet to have been brought one that wasn’t a scam. I mean it is just absolutely rampant. So I’m going to grab my laptop here and kind
of give you guys some insight into how wild some of these are. And were going to start with the baseline,
basic scam. It’s just done by an average joe on social
media, and its trading based. Like here were going to start with “investment
with arnold”. This guy claims that you can make, lets see,
as much as a bitcoin in less than 2 weeks, with a system that 89% accurate and $500 can
earn you $9,500 in fourteen days, or $2,000 can earn you $21,500 in eighteen. Aside from the fact that the numbers just
never seem to add up with these, as a trader I just, you know its such a red flag. Look, the reality is people, traders are humans. Nobody wins all the time, there is no reputable
trader out there with an 89% win ratio. I’ve seen people with fifty fifty win ratios
that are absolutely killing it because they cut their losses early, they let their profits
run. Nobody is winning with 90% ratios, it does
not exist, it’s not real. If you have a trader that comes to you and
says, hey I’ve got this crazy win ratio, number one its not real. And number two, it’s a really easy one to
poke for. Ask them for an accounting of the actual trade
account. Ask them to see it, I guarantee they’ll run
with their tail between their legs. So remember, traders are humans. Even if they’re using one of these quote “magical
bots” that bot is trading against humans. There’s no bots out there that win all the
time, there’s plenty of trading bots, but they’re being tuned by human traders, that
is how they stay consistent, that is how they win. And even when those are bringing in profits,
they are not bringing in 90% win ratios. Really easy people, if they’re telling you
they’re winning ALL the time, its a scam. Alright, so the next thing I’m going to
touch on here with the crypto scams is that of crypto mining contracts and whatnot. This is a really interesting one for me, because
those of you that have been around since the beginning of crypto playhouse know that we
actually got into the space through crypto mining. I was building rigs, I’ve done multiple different
kinds, my partners got a few baikals, I think we have a litecoin ASIC as well, think we
might have an antminer around? Anyways, we’ve dealt with all kinds of different
mining rigs, and with the market as pummeled as it is these days, I’m the first to admit,
it is not profitable on any kind of scale to mine right now. That is the simple fact. Your ROI for the hardware at this point in
time is so insanely long there is absolutely no way any reputable business model would
still be mining and pushing it as profitable venture. I loved mining, I really did. But guys, this is simply not something that’s
profitable anymore. I’ve got here, lets see, we’ve got “marcus
marc” I wont read you the whole comment but basically, goes on to say “look, I can
say this person is trustworthy and reliable for bitcoin mining contracts, earn $4,732
off a $1000 investment…in two weeks”. People, this is so insanely impossible, it’s
just mind boggling to me. So let me clear it up real quick, mining contracts
are something out there that are real like nicehash, you can buy hashing power. This isn’t 2017 anymore, you’re not going
to be making hundreds and thousands of dollars a week mining on the current hardware with
the current prices, its as simple as that. It is not real, stay away from anyone that
promises you guaranteed returns or a guaranteed amount of time before you get your investment
back with a ming contract, it absolutely is a scam. Alright, so my final one that I’m going
to be touching on here is absolutely the hardest one to pick out, it’s not a simple one, two
process. It’s definitely something that you learn,
but I’m going to kind of go through a few of the basics and then really show you guys
what you need to start breaking down these different projects and see the red flags from
the beginning. So, obviously were looking at full fledged
projects, ICO’s, coins, different things that have, you know, either pulled a ponzi,
or an exit scam. Or you know, realistically it’s not even a
scam, but something i see investors do a lot, is just invest in projects that quite simply
don’t have the basis to really even be in the space. Now that’s not so much a scam as an investor
mistake. But i’ll also kind of give you some tips on
avoiding those as well. So, obviously if you’ve been in the crypto
space for any amount of time, you’ve probably heard of bitconnect. You know, WASSUP, WASSUP, WASSUP! Yeah, that guy. Absolute grade A ultimate example of a ponzi
scheme. So many people bought into this, millions
and millions and millions of dollars were lost. There were so many people pumping this up. I mean just, youtubers, Instagrammers, twitter
people. “Oh I’m making profits, this and that, and
Im making all this money, get in on it!”. It was a ponzi, of course they were making
money, this is how a ponzi scheme works. For those of you that dont know, a ponzi tends,
to kind of, perform better than other scams, because people actually do get payouts in
the beginning. The whole idea behind a ponzi scheme is if
you get enough people that will come in and invest their money, the original investors
will get their “payouts” from this “profit system” but those payouts are really just
other investors money that’s being refunneled, and the hope is that these investors that
are getting their payouts take their money and once again reinvest it. And it’s just this cycle of moving investor
money from one place to the other so people think, they’re getting payouts, but eventually
the money runs out. Thats what happened with bitconnect, the money
ran out finally what was happening and they disappeared. Not before of course they tried to come back
with bitconnectx, and then bitcoincashconnect and all these other kind of side projects
that came from it, amazingly some of them from the same team. But, you know, this is a super easy one. Guaranteed payouts, stop believing that. There no such thing as a guaranteed payout,
in this world, especially in trading. There is no is nobody, no bot, no nothing
that will give you consistent profits every single day, no drawdowns. It doesn’t exist, and if you get a program
that is telling you you’re going to make those daily profits, walk away right there. There is no way they can provide that with
any form of honesty. Now of course that’s the basic ponzi, we also
have exit scams. And one of my personal favorites was prodeum,
which we will show you their lovely exit scam message as soon as we finish that up. But you know, one of the things with an exit
scam is basically they’re going to drive this project to look legitimate as long as humanly
possible and then they’re just going to up and disappear. How can you guard yourself from that? Realistically there’s no way to completely
cover yourself, but my final part here about kind of picking up on projects that aren’t
scams, but shouldn’t be in the space in the first place, this goes along with that. Were just going to just kind of break down
how to look at a project and immediately see whether or not there are issues at hand. Number one, go to the website. The first thing that you should do when you
look at any crypto project is ensure that there’s a whitepaper. Whether we like it or not cryptocurrency is
a very technical space. If a project is launching they don’t have
the time put together a decent length, decently descriptive that actually breakdown their
project there is no way you can verify the validity of what their goals with their project
are. I mean number one, absolutely read that whitepaper. I can’t tell you how many i’ve read at this
point, it’s absolutely bonkers but it’s worth it. The second point is look up their team members,
and don’t just click on the linkedin links, actually dig. I’ve had a number of team members that I’ve
found for questionable projects that had linkedin profiles, but then upon some google searching
i found that either that person didn’t really exist or that they had a very sketchy past,
possibly even an arrest history. So you know, you’ve got to look at the team
members. And it seems like, you know a very basic one,
but just go through the website, look at the website construction, see how much time and
effort was put into it, does it look like it was slapped together? There are good projects out there with lackluster
sites, but the reality is if a company is really trying to solidify themselves and go
mainstream they are going to take the time to bring in developers, they’re going to have
people that are going to make it look professional. Along with that you can check social media,
this is a huge one. A presence on Reddit, the bitcointalk forums,
very important. Any reputable project is going to be posting
on these platforms, providing information, and there should be an active conversation
going on about the project itself. So definitely look into those three things. Check out the whitepaper, go and check out
the team, and definitely go and look at their social media accounts. You know, bitcoin talk, reddit, twitter, telegram;
all of those are really really important, and most projects that are any kind of reputable,
they’ve got all of that information out there and visible for you. Alright, so the one last thing I did want
to mention on kind of looking into projects is, this is just something I personally do,
i kind of call it like blockchain forensics, it’s something you definitely have to learn. I’ll put a link up, but one of the nice things
nowadays is with etherscan you can look at any ethereum based project, and the contract
code, the transactions being made. If you’re looking and inspecting an ethereum
based project, I highly suggest taking that contract code, putting it on etherscan, and
that will show you if you go all the way back in time, whenever the ico or coin distribution
happened; you’ll be able to see those coins go out. And it’s usually pretty easy to pick out the
team wallets due to the size of them. It’s very easy at this point to actually keep
track of where a company’s funds are going thanks to the blockchain. I’ll have some links on etherscan so that
you can kind of how to do that. I’m not going to get too much into that, but
if you do have the technical knowhow I highly suggest checking that out, because it can
give you a boatload of information. So anyways guys, I hope you enjoyed this,
hopefully it can keep you away from jumping into some crazy cryptocurrency investment
scam. We’ve actually got another video over on our
partner site, mydaytradingtutor talking about some foreign exchange scams and how to pick
those out as well, so if you’re interested in that I highly suggest you go check out
that youtube page as well. And we’ll have some more interesting crypto
content coming for you soon.

8 thoughts on “Cryptocurrency Scams – How to Keep Your Investments Clean”

  1. People's greed keeps blinding them and they keep getting burned by these crypto scams. It's the same on the FX side. Ponzi schemes are as old as humans ?

  2. Grant me the serenity to put my trust in the block; courage to confront the skeptics; and wisdom to accelerate adoption

  3. Radio affects most intimately, person-to-person, offering a world of unspoken communication between writer-speaker and the listener. -Marshall McLuhan

  4. Sweet video!
    I know I have lost a lot to scams! I hate that the crypto space is so full of them!
    Have you heard of Uptrennd?
    It's a new crypto social media site that pays to post!
    Come check it out!

  5. You could share your content on Uptrennd too 🙂 It is platform for crypto themes only 🙂 Will you check?

  6. Good evening! Tell me please is it you account ?

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