Bitcoin’s popularity is constantly on the rise, but so are scammers who are looking to use the massive media attention Bitcoin and other virtual currencies have received in order to promote various get-rich-quick schemes. This time scammers are illegally using the names and reputations of Germany’s Dragons Den cast to promote a scam named BitQt. Fake celebrity-endorsements is not a new phenomenon, but its definitely becoming the preferred baiting tool for many scammers and unethical digital marketers.
Why Is This Happening?
Scammers prefer using celebrities to promote their schemes because people tend to relate to them more than just anonymous people. This is why you can see Daniel Craig promoting Omega watches or George Clooney selling Nespresso tablets.
Germany was chosen in this case because that is where scammers are targeting their potential victims.
Who Is Responsible For This?
The people who are pulling the strings behind the scenes are affiliate networks who are operating in tandem with offshore Forex and CFD brokers. Affiliate marketers refer paying clients, and in return get paid commissions based on whatever deal they strike. These commissions can even reach as much as $1,000 per paying customer. And whenever this much money is at stake, it’s no wonder promoters will do or say anything to get their members to fund an account.
What Are Trading Robots And How Do They Work?
Bitcoin trading robots are automated trading systems which execute trades without any need for human intervention. It’s common knowledge that most of the trading these days is done through HFT or high frequency trading, and investors understand that this is the preferred solution. However, Forex and CFDs (contracts for difference) are known to be problematic since marketers tend to be very aggressive and use false advertising tactics to recruit new clients. This is also the reason why Facebook and Google have curbed CFD advertising on their platforms.
Can You Really Make Money With Bitcoin?
The short answer is yes! However, you better know what you are doing and its always smart to consult with professionals before investing. Get-rich-quick schemes are running rampant these days, but this should not deter anyone from seeking legitimate ways to generate money through bitcoin. For example, if Bitcoin is at an all-time low, chances are its worth buying some because historical patterns show that it keeps bouncing back up.
How To Avoid the Scams
First rule is to conduct proper research. It’s always smart to use industry websites from the financial or cryptocurrency niche. Other websites may look very nice, but they are not authorities on the matter and can offer very little insights. Secondly, if you are not sure or hesitant about investing, try asking a friend or relative. In most cases you will get a genuine response without a hidden agenda. Finally, if and when you decide to invest, always read the terms and conditions and never under any circumstances should you invest more than you can afford to lose.