3 Scam Warnings for Smart Traders: Key Takeaways
- Learn to avoid 3 common scams including one of the worst — the influencer crypto scam.
- The SEC rejected a new bitcoin ETF. Here’s why it matters to you…
- Is crypto legit? My take on bitcoin, crypto, and the blockchain.
Scammers Live Off Your Money
The only way scammers keep going is that people fall for their BS. It’s my duty to warn as many people as possible about their tactics.
Sadly, it’s like playing whack-a-mole — take one down and three more pop up. A lot of people don’t want to believe it, but scammers want to take your hard-earned money.
Here are three types of scams to watch out for. Pay close attention to scam #3 as it’s a BIG problem right now…
Scam Warning #1: None of My Top Students or I Trade for Anyone Else
Heed this warning well. One of the biggest trading scams out there comes from people saying they’ll trade for you.
They use my name or the names of top students. When confronted with their BS, the scammers say, “Oh, this is a backup account. I reach out to my followers here. I can’t risk having too many messages on my main account.”
Here’s an example of a scammer impersonating Mark Croock…
Don’t fall for it. Stay safe from the con artists by arming yourself with knowledge. I don’t manage other people’s money or trade for them. None of my top students trade for anyone else. We’re traders who teach strategies. Your goal should be to become a self-sufficient trader.
Scam Warning #2: Beware of Imposters With Fake Usernames
Scammers don’t just use the names of legit traders and teachers. They use completely fake screen names. For example, a recently arrested promoter used the name of a famous movie villain.
There are also bot accounts created by promoters. They’re usually names with a long string of numbers at the end.
Scam Warning #3: Beware of Crypto Scams
Many of today’s scams revolve around crypto. There’s an entire crypto scam industry. Scams include influencer crypto scams, crypto mining scams, and crypto giveaway scams.
Some scammers say they’ll trade crypto for you. Or they offer to manage your stock account but you have to give them crypto to fund it. Or they want you to pay crypto upfront for their services.
I’ve been trading for 20+ years. I have never seen an industry with this many scams. I’m not calling out specific individuals. But understand that bitcoin is the currency that unites the world’s criminals.
Remember the Silk Road marketplace? It had illegal arms deals, drugs, human trafficking, and even staged assassinations. Just because it was taken down doesn’t mean criminals stopped using crypto. They just moved to encrypted messaging apps.
There’s SO much nasty behavior and SO many scams that it’s easy to wonder…
Is Crypto Legit?
I’m not bashing bitcoin or crypto. But it’s my duty to educate as many people as possible. I believe you should learn about speculative assets and investments. And I have several top students who trade crypto — like Matt Monaco and Kyle Williams.
My all-time most profitable student is a trader who applied my patterns to crypto. I hope crypto and the blockchain live up to their potential. But right now it’s…
One of the Biggest Scams in Trading Today
I know people don’t want to hear this. I’m not saying don’t trade crypto. Learn about it. Trade it if you must. But don’t fall for the BS…
Expect the worst out of everybody in finance — including in crypto. Again, crypto and blockchain might have solid functions in the future. And there’s no denying how far it’s come…
Crypto Is the Best Performing Asset of the Past Decade
Numbers don’t lie. Bitcoin was the best-performing asset of the past decade. It beat the Nasdaq 100 by a factor of 10.
But bitcoin and crypto have a ton of promoters. Don’t just listen to them. They’re like penny stock promoters. They say “Hold, everything’s fine. Have no doubts.”
Not everything is fine. It’s good to have doubts and sell into strength. I want you to be cynical. The recent ruling by the SEC is a clear sign of things to come…
SEC Rejects Bitcoin ETF
There are two bitcoin ETFs already. Both the ProShares Bitcoin Strategy ETF (NYSE: BITO) and the Valkyrie Bitcoin Strategy ETF (NASDAQ: BTF) are futures-based.
On November 2, the SEC officially noticed the NYSE’s application to list Grayscale Bitcoin Trust (OTCQX: GBTC) as an ETF.
But last Friday the SEC rejected an application by the CBOE to list a proposed VanEck Bitcoin ETF. Here’s why…
SEC Cites Potential for Fraud and Manipulation
The proposed ETF would track bitcoin directly. But the SEC says there’s a lack of regulation and too much potential for fraud and manipulation. Why? While futures-based ETFs are regulated, crypto and crypto exchanges are not.
It’s not even clear which regulatory agencies should have control over crypto.
What Newbies Don’t Know About Crypto Scams Can Hurt Them
A lot of people are really excited about crypto. Again, I’m not bashing it. But what you don’t know in this industry can hurt you.
The crazy thing is, compared to penny stocks crypto is a free-for-all…
The Difference Between Penny Stocks and Crypto
Penny stocks fall clearly under the SEC’s regulatory umbrella. Yes, there are unethical promoters and penny stock manipulation. But at least there’s no question which regulator oversees penny stocks.
Meanwhile, the SEC classifies cryptocurrencies as securities. But the Commodities Futures Trading Commission thinks of them as commodities. Crypto exchanges are viewed more like banks and regulated by the Bank Secrecy Act.
That’s why SEC Chairman Gary Gensler called crypto the ‘Wild West.’ He wants to see better protection for investors…
More Regulation But First More Crypto Scams
I’m sure over time there will be more regulation. If you’re bullish on crypto that’s a good thing. Before that happens, we’re likely to see more crypto scams unraveling. It wouldn’t surprise me to see some of these altcoins drop 30%, 50%, even 70% in a few days.
Even as I write, Bitcoin looks like $65,000 might be a double top. It dropped below $60,000 again. It’s trading around $58,000.
I gotta say it’s a particularly nice day when we have a big OTC runner like $ELEK the $USD is strong & $BTC $ETH & faaaaar too many #crypto scams to count drop hard, feels like there’s justice in the world severely lacking lately. I dunno maybe I’m just biased, but it feels good!
— Timothy Sykes (@timothysykes) November 16, 2021
People say, “Oh, the governments are just trying to stay in control.” If you want to make it about freedom vs. government, fine. Be my guest.
My concern is that financially naive people think crypto is safe. It’s not.
If you love bitcoin and crypto you might be up a lot. I’m happy for you. Just remember it’s good to…
Take Profits Off the Table
This whole thing with the SEC rejecting the ETF should help you understand. This isn’t just me saying, “Be overly safe and conservative.” This is a warning. Ignore it at your own risk.
But it’s also an opportunity to learn more and I have great news…
New Guide Coming Soon: How to Spot Scams and Protect Against Big Losses
I don’t know the exact title yet, but I have a brand-new three-hour guide coming soon. It’s already filmed and almost ready. My goal is to educate you about how to spot scams.
Will you watch it? Let’s see who wants to know the truth about scams — including crypto scams — bad enough.
Will you watch the new guide and learn to stay safe in an industry full of scammers? Comment below, I love to hear from all my readers!