Beware! Digitalassetcryptocurrency 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.
Digitalassetcryptocurrency boasts about being “totally different from its competitors and trying to achieve something special starting with the website design, trading platform”, etc. The website design is quite frankly hideous – that website looks like it was created in premodern times – and the broker does not actually give access to a functioning trading platform. We are not sure what the special and different thing they were trying to achieve was but they failed – the broker is a confirmed scam with a warning on its name and cannot offer you anything at all.
Digitalassetcryptocurrency REGULATION AND SAFETY OF FUNDS
Digitalassetcryptocurrency provides a US address. This is surprising as – due to the merciless forex regulations in the country – there are currently very few brokers based there, all of them being quite big and established. Furthermore, foreign brokers are banned from accepting US clients – if you are based in the US, your only possibility is to open an account with a broker regulated by the NFA and CFTC. If a broker is not licensed by these two financial authorities, they don’t have the right to offer services to US traders. Unsurprisingly, Digitalassetcryptocurrency did not show up anywhere in the NFA register but one place they did show up at was the FCA’s warning list.
The FCA is the reputable authority responsible for regulating forex brokers in the UK and if they have blacklisted someone, it is because they are offering financial services illegally on UK ground and are probably a scam. This should be your que to leave Digitalassetcryptocurrency’s website and check out a legitimate, licensed broker instead.
Licenses are not given out just like that under the strict jurisdictions of the NFA, the FCA, ASIC (Australia) and CySEC (Cyprus). In order to become regulated by these authorities, brokers should maintain a certain minimum capital – €730 000 in the EU and the UK, A$1 million in Australia and as much as $20 million in the US. If you are working with an European or Australian broker, your deposits will be kept in segregated accounts, separate from the broker’s own funds – this means the broker cannot use your investment for their daily financial operations. European brokers are also obligated to participate in compensation schemes which ensures that if such a broker goes bankrupt, their clients would be able to receive compensation of up to €20 000 in the EU and £85 000 in the UK. When it comes to US brokers, thorough documentation is required – brokers should release data on opened and closed trades on a daily basis. Finally, leverage restrictions exist to protect clients from losses – brokers in the US cannot offer anything higher than 1:50 to retail clients, and 1:30 in the UK and the EU.
Digitalassetcryptocurrency TRADING SOFTWARE
Digitalassetcryptocurrency did not provide us with any sort of functioning trading platform – when we accessed their client area, we were only able to see how Bitcoin is doing on different markets.
Such a thing could not be used for trading – and being able to trade is surely the very reason you want to open an account with a broker in the first place. If you want to see what the best the industry can offer is, try established platforms MetaTrader 4 and MetaTrader 5. Both platforms offer many advanced charting tools and customizable indicators as well as useful features like Expert Advisors, opportunities for developing your own trading bots and indicators with the coding languages MQL4 and MQL5, and a market full of trading apps, add-ons and even more indicators. Many legitimate brokers offer the software so be sure to see what MT offers for yourself.
Digitalassetcryptocurrency TRADING CONDITIONS
The fact that Digitalassetcryptocurrency did not provide us with any Terms and Conditions is an enormous red flag – legitimate brokers usually have extensive Terms and Conditions and you should always read those carefully to know exactly what you are agreeing to. In the case of this broker, that could be completely anything.
Digitalassetcryptocurrency accepted a deposit as low as $1 even though they stated that the minimum amount for deposit is $500. This means the broker is pretty desperate and is willing to take whatever you are willing to give. Besides, most legitimate brokers would not ask for more than $250 for a basic account and there are enough among them that would gladly set up an account for much less – between $1 and $100.
Additionally, we believe that Digitalassetcryptocurrency is running some sort of investment scam because of the following sentence in their FAQ:
They have not mentioned what the trading period of each plan is which means it might be quite sometime before you are allowed to withdraw your funds – the people behind Digitalassetcryptocurrency will probably be long-gone before you could. Don’t be surprised if you are making crazy returns in only a matter of days with this broker – scammers often manipulate platforms so it would look like you are doing impossibly well.
Finally, without a functioning platform, it is pointless to talk about spreads or leverage – you would simply not be able to trade with this broker.
Digitalassetcryptocurrency DEPOSIT/WITHDRAWAL METHODS AND FEES
It was impossible to make a deposit unless you used Bitcoin or Ethereum – the two cryptocurrencies with the biggest market cap. Don’t get us wrong – cryptocurrencies themselves are a completely legitimate and secure payment method, sometimes even more secure than more conventional ones. But they are also adored by scammers because such transactions are practically irreversible because of crypto’s blockchain technology – when you own Bitcoin or Ethereum, you own a part of the blockchain, and when you make a transaction you are basically transferring your ownership of that part. The only way to get your money back is if the recipient sends it back and therefore restores your ownership. And you can be completely sure that scammers like Digitalassetcryptocurrency would do no such thing.
HOW DOES THE SCAM WORK?
The weird thing is that such scams are never very imaginative but they seem to trick a lot of people – you see an ad on the Internet for a broker’s website and decide to check their website out. Then you start thinking to yourself “Man, that actually sounds great, I should maybe register an account to find out what they have to offer.”
Once the scammers have received your contact details, they won’t leave you alone before you deposit – and with time, they will start asking for bigger and bigger sums. You will probably see that you have turned unbelievable profit in no time so you will keep transferring money – just know that it is fairly easy for platforms to be manipulated. At some point of course, you would want to withdraw and this is where it gets complicated. All sorts of clauses in the Terms and Conditions and additional fees will show up – the scammers will try to delay your withdrawal and milk you as much as possible. By the time you figure out something is wrong, your “broker” will be long gone – with your money.
WHAT TO DO IF SCAMMED?
Be prepared that happy endings are not very likely and the chances of you seeing your money again are not big. That is why prevention is key – you should always read Terms and Conditions carefully and make sure that your broker is legitimate by checking if they are actually licensed.
If you got scammed, there are still things you could do. Notify the authorities in your country and share your story with as many people as possible – this way, they would know to avoid such types of scams. Change all passwords that you gave the scammers access to. If you have deposited with a credit or debit card, ask your card provider for assistance – you could get a chargeback within 540 days with both Visa and MasterCard. Bank transfers are a bit harder to reverse but that is still not impossible.
Finally, don’t trust anyone trying to pass as a recovery agent and offering to retrieve your money for a small fee – this is just another type of scam, usually conducted by the same people that robbed you in the first place.