Beware! Pure Cryptonic is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Pure Cryptonic is definitely a mainstream broker, but not in the way you would think. It’s one of those entities that put the word Crypto in their name, and from then on, they find it unnecessary to give any information about their legitimacy. While Bitcoin is surging, scammers adapt and take advantage to put their fraudulent crypto offers on the market. The digital coins are not governed or controlled, which makes it even easier for most scammers. As a business of this kind, Pure Cryptonic doesn’t share much information about the company, does not present legal documentation, does not care about regulations etc. It’s a potential scam, and you can see why we think so in the full Pure Cryptonic review.
Pure Cryptonic REGULATION AND SAFETY OF FUNDS
Pure Cryptonic originates in the Marshall Islands, a jurisdiction infamous for the lack of financial regulator. As a result, the financial services companies operating legally from the island do not follow the rules or abide by any laws whatsoever. Marshall Islands brokers can carry out fraudulent activities or financial crimes without bearing any consequences for their actions, so your funds are not safe if you deposit with Pure Cryptonic. In fact, Marshall Islands is such an obscure jurisdiction that it’s impossible to verify that such a company is registered at all.
Avoid Pure Cryptonic and check these EU brokers and British brokers. The European financial markets are secure due to the customer protections implemented in the regulatory framework. A significant part of the safety measures is the deposit insurance funds laid down to protect traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. You need to know that shady offshore entities such as Pure Cryptonic can disappear any time soon, leaving traders and investors with losses almost impossible to regain.
Pure Cryptonic TRADING SOFTWARE
The trading software provided by Pure Cryptonic is web-based and limited in functionality. Many standard features you can find in MetaTrader are missing, so it’s definitely an unreliable platform. The EUR/USD spread is 3 pips, which is at least 3 times worse than the regulated brokers’ standards- 1 pip and below. The Buy/Sell difference is a significant part of the trading costs, so lower rates benefit traders and improve profit potential. So, Pure Cryptonic is a shady costly broker, which should be enough for you to stay away from them.
Instead, see well-regulated and trusted MetaTrader4 brokers and MetaTrader5 brokers. Both distributions are considered the best retail Forex platforms available on the market and provide sophisticated tools such as Expert Advisors, Algo trading and plenty of complex indicators, to name a few. The platforms also include a marketplace, where clients can find more than 10 000 apps and third-party developed solutions built from traders for traders.
The leverage is fixed at 1:200, and traders can’t adjust it to their preference. That’s a major downside, making the Pure Cryptonic services overly risky, and they knowingly put traders in a dangerous environment. 1:200 can cause a total loss very quickly, indeed, and it’s considered a ratio inadequate for most retail clients.
To enhance customer protection and reduce traders losses, many financial authorities restricted leverage usage. As a result, the EU, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide more than 1:50. The Swiss brokers aren’t leverage restricted, but Switzerland has a 20 million francs capital adequacy rule, which successfully drives scammers away.
Pure Cryptonic DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Pure Cryptonic is 500 EUR, or at least 5 times higher than the industry’s standards- $100 on average. The funding methods are Credit/Debit cards, Wire Transfers and CashU. Among those, direct bank card funding is safest because it allows getting a refund for an extended period of time, in case things go wrong. Wires and CashU transfers can’t offer such flexibility, so consider this fact, regardless of the broker.
However, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers if you have a preferred payment system. The companies on the lists are strictly regulated, so it’s not likely to get scammed.
As already mentioned, Pure Cryptonic presents itself as a crypto-focused business, so like many other shady businesses offering similar services, they consider it useless to provide people with legal documentation. As a result, traders are left unaware of many critical provisions, such as withdrawal requirements and fees. But most importantly, legal documents such as T&Cs, Client Agreement, User Agreement and so on serve as a contract between both parties. The absence of those indicates it’s a scam, and if you deposit money without a contract signed, you can’t defend yourself if things go wrong.
Overall, Pure Cryptonic is a shady broker and a potential scam, so stay safe and avoid this business.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Nowadays, scammers most often search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record, and they promise high returns, seamless trading and guaranteed profits. The scammers deliberately make traders believe that the Forex market isn’t a risky place, but actually, the opposite is true.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or even ask for additional deposits. Either way, traders are likely to lose some or all of the capital invested. The end is always the same. When fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!