By Evan Spicer
Director of Cryptocurrency Investigations
Bitcoin reached an all-time high of $66,974 after lingering around $62,000 for a couple of weeks. What pushed the value of cryptocurrency up was the introduction of a bitcoin ETF, or exchange-traded fund, in the United States. For seasoned traders of assets such as bitcoin, the recent rise may be a signal to wait for this cryptocurrency to drop in value and profit from the next rise up since it is a volatile asset.
Bitcoin’s Volatility and Traders’ Desperation
However, those who are new to trading and those who look for deals on social media and outside of the rubric of regulated brokers may instead buy out of desperation before bitcoin goes higher. Obviously, this is not a wise move. Anyone who has followed the movements of bitcoin and other cryptocurrencies has observed its volatility.
Just a year ago bitcoin was valued at $11,00 and rose to $60,000 until it plummeted on bearish comments by Elon Musk. After a drop to $30,000, the increased adoption of bitcoin and other cryptocurrencies as a payment method and the release of a U.S. bitcoin ETF caused the recent rise to $66,000.
Bitcoin, as the first cryptocurrency is a kind of benchmark for the digital currency sector. It is a general measure of the health of cryptocurrencies and the general interest in them. They are often considered as a way to make money, although the extreme volatility of bitcoin has caused gains to turn to losses relatively quickly.
Those who believe in the long-term story of bitcoin and cryptocurrencies recommend holding onto bitcoin and ignore the dramatic highs and lows. However, those who trade according to deals that promise quick returns from cryptocurrencies are likely to be disappointed by the fluctuations in bitcoin’s value.
Experienced traders are accustomed to “buying the dips and selling the rips” in any asset. In other worse, they may buy low and sell high, which makes logical sense and will allow traders to gain the most from these trades. However, quick deals on social media and unregulated brokers often push their offers in the opposite scenario and encourage people to buy when the asset is high, because of the desperation factor – for the people who want to buy before it’s too late.
These unreliable brokers and trading deals cause significant losses for traders who are taken in by extravagant promises. Customers who want to recover money from these deals should enlist the aid of a fund recovery agency. MyChargeBack experts guide consumers who are dealing with fund recovery from crypto fraud. We consult with clients, research brokers and merchants, and help authorities track down fraudulent parties, and can help return funds to clients.
An Expected Increase in Cryptocurrency Trading Deals
Although it is wiser to wait for a dip in bitcoin before buying, we can expect an increase in deals, offers and services from unregulated brokers advertised on social media and in spam emails. They are waiting for people who want to make some quick money rather make a smart investment and who want to get into bitcoin before the next rise.
Their targets are people who are likely to dip into their savings to buy bitcoin and feel that it is a sure thing since it has risen so much already. However, these traders may not be aware of the 50% erasure of its value in the spring of 2020 and other dramatic movements.
With the rise in bitcoin’s value, there will be more people who will be taken in by unregulated brokers who simply want to get money from traders. They could be running Ponzi schemes or other operations that simply take money without trading it and will ghost, block or disappear rather than allowing withdrawals.
Because all transactions on the blockchain are anonymous, it can be difficult to track down these unregulated brokers. This is where financial services company dedicated to fund recovery provides the best chance of getting money back.
Customer Losses Will Create a Greater Need for Fund Recovery
With the widespread desperation to quickly buy bitcoin before it rises further, there will be more brokers and deals that will reach out to customers willing to chase cryptocurrencies upward. However, they will most likely not offer them real trading but are likely to deceive them into handing over large amounts of money to trade.
When customers ask to withdraw funds, they provide some excuse, encourage further trades, charge high fees, or will block them. In this case, customers will need a fund recovery agency to help them in crypto recovery.
The blockchain is complicated, and it is important to leverage the expertise of a financial services firm to get money back from the blockchain. It will consult with clients, create a crypto report from information provided, and will work towards unmasking the identity of the people behind the deal.
Signs of Problematic Bitcoin Trading Deals
There are signs of brokers and deals traders should avoid:
- Broker is not regulated
- Lack of visibility about who is actually running the brokerage
- Bad reviews and warnings
- Aggressive marketing
- High fees
- Evasive when asked questions about trading
- Will not allow withdrawals
- Cuts off communication
Any of these signs should be an indication to stay away from the broker, but the most important is to check the broker’s license. Many claim to have licenses, but these could be falsified or maybe a license from a sub-standard regulator.
Contact MyChargeBack for Expert Cryptocurrency Services
The MyChargeBack Group has built relationships with more than 800 banks around the world, and we are also adept at cryptocurrency fund recovery. We understand the complexities of the blockchain and have proven methods to look for patterns through blockchain transactions to unmask users. We handle the most challenging cryptocurrency cases and can retrieve funds for our clients.