Crypto Trading - Information from a lawyer

Crypto trading - more and more cases of cryptocurrency fraud

More and more people are investing in Cryptocurrencies and many investors make considerable profits from it. In recent years, however, there have also been numerous cases of fraud in the crypto trading sector. Investors should always check carefully who they are entrusting their money to. This is because there are also many dubious providers on the market who may even risk the total loss of the investment.

Crypto Trading - Summary of the most important information from the lawyer

More and more people are turning to digital currencies, including Cryptocurrencies called.

Cryptocurrencies are digital means of payment based on cryptographic tools such as blockchains and digital signatures. Cryptocurrency is characterised by the fact that it is still not centrally regulated by governments or banks, despite numerous discussions.

Just like central bank money, cryptocurrencies are virtually "created out of nothing". This means that they have no special intrinsic value. The value of a cryptocurrency therefore only results from acceptance between trading partners (payers, recipients).

There are now numerous platforms for crypto trading. In addition to some verified and solid providers, there are also many black sheep. Investors should therefore inform themselves in good time about the reliability of the respective platforms. If you are unsure, it is best to contact a competent lawyer. The Lawyers from LAWMUC are available to answer questions about cryptocurrencies and crypto trading.

Crypto trading - fraud and manipulation or good business?

As crypto trading is not regulated by law, there are also good conditions for business models based on fraud or fraudulent behaviour. Investment fraud based. If fraud and manipulation are suspected, it is best to contact an experienced lawyer as soon as possible.

The best-known example of fraud in the crypto trading sector is probably OneCoin. This is a Ponzi scheme. This "cryptocurrency" was therefore not built on blockchain technology. As in other cases of suspected fraud, offshore companies were set up to make the "business model" difficult to trace.

Furthermore, in crypto trading, just like in Forex and CFD Trading, platforms that manipulate trading prices. Many crypto trading platforms allow you to bet on the price movements of some cryptocurrencies. This means that you do not become the owner of cryptocurrencies, but simply place a bet on their price development. And these price movements can be easily manipulated. Victimised investors often report delayed price entries and suspicious price fluctuations at the end of trades.

Furthermore, aggrieved parties also report negative experiences with some crypto trading platforms that simply keep the cryptocurrencies deposited for themselves. In the event of problems with the withdrawal of cryptocurrencies, you should act quickly.

In the event of suspected fraud or Investment fraud affected investors should promptly contact a lawyer who can review the case and the possible courses of action.

Crypto Trading - Experience

There are many reports on the internet about experiences in the field of crypto trading. It is undisputed that there are traders who have made millions with crypto trading. However, there are also many traders who report negative experiences, manipulation and false information in the field of crypto trading and have lost all their money in the process.

Crypto trading - state regulation?

Crypto trading is not regulated by the state. This is what makes it so difficult for investors to find a reliable provider for crypto trading. The Federal Financial Supervisory Authority (BaFin) tries to ensure security and legality in the area of crypto trading. Nevertheless, it does not have particularly far-reaching powers in this area, as the Berlin Court of Appeal had to decide.

If you have any questions or uncertainties, it is best to contact a competent lawyer in good time who can check the reliability of the individual companies.

Cryptocurrency - background and how it works

The cryptocurrency is a currency without its own ( intrinsic) value and can therefore only be trustworthy if the participants are convinced of its security. In the case of cryptocurrencies, new issues and transactions are therefore managed by many independent and mutually controlling participants.

Cryptocurrencies are created through the use of high computing power. This process is also known as mining. It is also referred to as "mining cryptocurrencies". Over the years, increasingly powerful computers have been required to successfully create coveted cryptocurrencies such as Bitcoin. It has therefore become increasingly difficult for owners of "normal" everyday computers to participate in new issues or transaction fees.

Crypto trading and what you need to know about ICO

Founders of new cryptocurrencies always face the challenge of finding enough start-up capital for their business. One possibility is the ICO.
Under ICO - Initial Coin Offering or an IPCO ("Initial Public Coin Offering") is a rather simple, as it is unregulated, method of Crowdfunding.

Many companies opt for this form of capital procurement as it allows them to raise start-up capital quite quickly and also avoid strictly regulated processes such as an IPO.

Investors who wish to invest in ICOs should be well informed about the business model and the fundamentals of the new cryptocurrency. An investment is generally riskier at this stage. If you are unsure, you should contact a lawyer at this stage.

Crypto trading - speculation or safe investment?

The prices of cryptocurrencies are subject to considerable price fluctuations. This is because the value of a cryptocurrency is changed solely by supply and demand. Experienced traders know this and can therefore make considerable profits through targeted speculation. Even though cryptocurrencies are certainly speculative investments, it is impossible to imagine today's financial markets without them. The Blockchain-technology is becoming increasingly popular and is also being used in more and more areas.

False/manipulated experience reports and reviews

Positive reports and experiences on the Internet are often bought or manipulated. Freely invented users report on individual companies that they have allegedly earned money with them.

But these stories are very often false/fake.

Crypto trading - how does it work?

The real aim of many crypto trading providers is to get their customers to deposit money into the account of a given unregulated broker.

The people behind this scam are paid by the broker to refer/lead them to new paying customers. It's as simple as that.

Therefore, these people try to convince their "customers" with the help of fictitious stories and lies that the programme is "guaranteed" to generate profits and that they absolutely have to invest in order to make money.

Crypto Trading Reviews

Many of the positive reviews on various websites are manipulated and should be treated with caution.

List of some platforms for cryptotrading: