By Michael B. Cohen
Vice President of Global Operations
It’s nice to believe in something – if it’s a realistic goal. However, people are getting a bit carried away with how much they think they can make trading digital currency.
According to a recent Harris poll, crypto investors have inflated expectations that can make them vulnerable to crypto fraud. Many of the shadiest crypto deals promise millions or billions to would-be investors. Inflated crypto investor sentiments may prepare them to fall into a trap.
The Harris poll revealed that 71% of crypto investors, compared to 44% of investors in other assets, said they believed they had what it takes to become billionaires. The poll was taken from a survey of 1,989 U.S. adults in mid-July 2022. It’s worth noting that this was during a decline in bitcoin price in the period following crypto winter – a time one may least expect to see such exaggerated confidence in crypto investments.
Is Youthful Exuberance a Factor in Inflated Crypto Expectations?
Age was also a factor in billionaire aspirations. According to the poll, 55% of millennials and 66% of generation Zers said they felt the expectation of achieving billionaire status was realistic.
It’s also interesting to note that this same age group tends to be more enthusiastic about cryptocurrencies than older investors. It doesn’t seem at all coincidental that this same age group holds the most digital currency. Around 20% of Gen Z and 23% of millennials say they hold cryptocurrency compared to just 13% of the general population.
Excessive Confidence Plays Into the Hands of Crypto Frauds
It’s clear from the study that young people who hold cryptocurrency are more likely to start out their investing years with the belief they will become billionaires. This partly explains why crypto frauds have been rising and are successful in robbing traders worldwide of billions.
When investigating crypto frauds, one common theme MyChargeBack experts find is the attempt to persuade traders that they will achieve huge returns from risky assets such as cryptocurrency and forex.
Many go as far as to guarantee that traders can expect to see specific daily, weekly, and monthly rates of returns. However, in reality, given the market’s uncertainty, no broker can reliably predict what kind of returns their clients will receive. The fact that these brokers promise returns is a serious red flag.
Given their confidence as evidenced in the Harris poll, young crypto traders are likely to see nothing shady about guaranteed returns, and may not notice the warning signs of crypto scams. Others may reason it’s worth taking the risk, that they are young and can more easily make up for losses than older investors.
Stay Safe from Crypto Schemes
However, in our experience combating crypto fraud, we’ve found that crypto trading schemes are ruinous to financial health, at any age. This is especially true if younger traders are seeking out crypto schemes to make enough money to cover college debts. Also, it should be noted that older traders who haven’t saved enough money for retirement are also vulnerable to financial frauds.
The key to keeping your money safe trading is to select a broker with a valid license from a top regulator. Research brokers well and confirm all information, such as names, addresses, and credentials. Ensure clarity about all terms and conditions, including fees, deposits, and withdrawals. Problems such as denial of withdrawals or sudden restriction of account access are a cause for concern. Speak to MyChargeBack experts if you suspect you have lost money to a broker or crypto platform.
MyChargeBack Will Investigate Your Fraud Case
MyChargeBack has developed working relationships with law enforcement agencies worldwide, has extensive knowledge and experience with crypto tracking, and can improve your prospects of getting your funds back