CryptGain review – 5 things you should know about cryptgain.io

CryptGain review – 5 things you should know about cryptgain.io

Rating: 1

Beware! CryptGain is an offshore broker! Your investment may be at risk.

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The very name of this website implies that it is about promises of profits through cryptocurrency trading. And indeed, CryptGain presents itself as a “financial services company that offers market enthusiasts from all over the world a choice of over a hundred digital financial assets”. But like many other websites that promise the same, this is actually a scam trying to cash in on the hype around cryptocurrencies. In fact, CryptGain is identical to some other fraudulent schemes we have encountered. You would be well advised to stay away from CryptGain.

CRYPTGAIN REGULATION AND SAFETY OF FUNDS

One sure way to know you’re dealing with scammers is if the website tries to hide who owns and runs it.

CryptGain’s homepage does not mention either the name of the company or its address. Even in the Terms and Conditions and the Client Agreement it is not immediately apparent which is the legal entity behind CryptGain. On a careful reading of the text we find that the purported owner is Star MKT Ltd. It is noteworthy that the name of the legal entity is embedded in the text in the form of an image. The only reason to do this is if one wants to prevent the name from being detected by internet search engines.

Star MKT Ltd is also listed as the owner of another fake broker we have reviewed, GoldenCoins. The two websites are in many ways identical and we have little doubt that they are the work of the same scammers.

CryptGain claims that the governing law of the Client Agreement is that of the Seychelles, although the jurisdiction is misspelled. This is an offshore zone without any significant regulations for brokers, except for a minimum capital requirement of 50,000 USD. But Star Mkt Ltd is not listed among the companies authorized by the Seychelles Financial Services Authority.

A general internet search shows that this company is listed as the owner of a digital marketing website. It is therefore possible that this company has nothing to do with the financial fraudsters who use its name. What is certain is that CryptGain is not licensed for the services it claims to offer.

You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

CRYPTGAIN TRADING SOFTWARE

On the CryptGain website, we see descriptions and images of a typical web-based trading platform as used by many of the scams we review. But we have not been able to access this platform and check what parameters are set in it. At the time of writing this review, registering a new account was not possible. But it’s not a big loss, because scammers like CryptGain only offer fictitious trading and use trading software as a way to deceive their victims that their money is really being invested.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

CRYPTGAIN TRADING CONDITIONS

CryptGain doesn’t even bother to describe the terms of the trade it supposedly offers to make it look more like a real broker. The website claims that CryptGain offers three types of trading accounts, but their description does not include specific parameters such as commissions and tradable assets. The three accounts are linked to investments of 50 000 USD, 100 000 USD and 250 000 USD respectively. These amounts are ridiculously high, considering that many leading brokers allow you to start trading with amounts of 50-100 USD.

CRYPTGAIN DEPOSIT/WITHDRAW METHODS AND FEES

CryptGain promises “many payment options to fund your account”, including “all major debit/credit cards, direct bank-wire transfers, and a number of leading e-wallets”. But the website again lacks any specific information, unlike the websites of legitimate brokers. The inability to register an account prevented us from checking what payment methods were actually available.

However, experience shows that financial fraudsters of this type prefer cryptocurrencies. The reason is that these transactions allow for a high level of anonymity, while at the same time not allowing for refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or FasaPay.

The legal documentation also does not shed enough light on the conditions and fees associated with deposit and withdrawal. The only thing we learn from the Terms and Conditions is that the minimum withdrawal amount is 100 USD by credit card and 250 USD by wire transfer.

The only fee specified is that for an inactive account. If the account is inactive for 60 days, it is charged a one-time maintenance fee of 200 USD, and then a monthly fee of 90 USD. While some genuine brokers also charge dormancy fees, they are not as high.

HOW DOES THE SCAM WORK

Many people are looking for ways to make money passively, but do not have the necessary knowledge to invest in the financial markets themselves. This makes them a target for the many online scammers posing as brokers. If you come across some of them and give them your contacts, you will be contacted by skilled scam artists who will assure you that they can take on the incomprehensible aspects of investing for you. You will only be required to invest and take profits.

But when you try to collect even just a fraction of your money, it will turn out to be impossible. Your supposed profits will suddenly evaporate, or you’ll find that you have to meet impossible traded volume requirements first. Fraudsters often insert huge withdrawal fees into client agreements amounting to 10%, 20% or even more. You won’t be able to hold scammers accountable because they hide behind fake names and shell-companies offshore. Scammers also typically use non-refundable payment methods.

WHAT TO DO WHEN SCAMMED

First of all, you should be very careful not to fall straight into the clutches of other scammers. Another common scam is to promise money recoveries from fake brokers for an upfront fee.

If you used a credit or debit card for the transactions, you can charge a chargeback. Visa and MasterCard have a long period in which they allow such requests – 540 days. But keep in mind that fraudsters can dispute if you have provided them with a copy of your ID and proof of address. It would also be helpful if you alerted the authorities in your country and other people online to the activities of the scammers.

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