Cryptasap review – 5 things you should know about cryptasap.com

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

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Cryptasap presents itself as the most convenient trading platform and urges people to choose this broker to invest in financial instruments. But in preparing this review, we did not find a single good reason to trust our money to Cryptasap . This website is run by a suspicious and unregulated offshore company. The type of trading offered by BCBS is banned in many regulated jurisdictions because it is associated with numerous scams. We have every reason to believe that the Cryptasap is also exactly a scam.

Cryptasap Regulation and safety of funds

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

On the homepage of this website we see neither company details nor a contact address. The text of the Client Agreement states that Cryptasap is operated by a company called Cryptasap Llc based in Costa Rica. This is an offshore area where forex trading is unregulated and unsupervised. Instead of an exact address the landmark is given –  “blue building diagonal to La Salle High school”.

The website is available in English and Russian. The Russian Central Bank has issued a warning to investors that Cryptasap is not a licensed financial services provider.

If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Investments Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

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.

Cryptasap Trading software

After account registration we get access to a basic trading platform. But this is not software for forex and CFD trading, for binary options trading.

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.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

Cryptasap Trading instruments

Cryptasap claims to offer trading in currencies, cryptocurrencies, commodities, stocks, indices and Over-the-Counter (OTC) Markets. As stated, we have no reason to trust that this unregulated broker offers real trading.

Cryptasap Spreads and cost of trading

As stated, Cryptasap offers binary options trading, although this is not mentioned on the website. Binary options are financial options that come with one of two payoff options if the contract is held until expiration: a fixed amount or nothing, depending on whether the trader has guessed whether the price of a certain asset will be below or above a certain level at a certain time.

This is a very simple way to trade the financial markets, but it is this simplicity that makes it prone to scams and exploits. Binary options trading is banned in a number of major markets such as the EU, the UK and Australia. In the US, this trading is still legal but can only be done through the small number of regulated U.S. exchanges, known as Designated Contract Markets (DCMs).

Cryptasap offers a payout of 85%, which is an average level for this type of trading.

Cryptasap Maximum leverage

In binary options trading you cannot trade with leverage. Most financial regulators allow 1:30 trading for retail clients.  Leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses.

Cryptasap Deposit and withdrawal methods

On the homepage of the website we see the logos of many popular payment methods.

But in the deposit menu itself, we only see cryptocurrencies and a few obscure payment methods like AdvCash and Perfect Money.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

Cryptasap Minimum deposit

The website states that Cryptasap  requires a minimum deposit of 10 USD, but the deposit menu has a lower minimum of 5 USD. This shouldn’t tempt you because many established global brands offer starter trading accounts with a similar low entry threshold.

Cryptasap Withdrawal requirements

Cryptasap does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.