We look at a website called CryptoTrader operated by “David Richmond” that claims to offer a way for those that sign up to make $5000 every day using a trading app.
(This should not be confused for a website that operates from cryptotrader.org.)
In the sales video, “David Richmond” claims to be a former-NSA cryptographer who had decided to use his mathematical skills to create an app that can make those that use it rich. The site operates from a number of domains including crypto-trader.cc and crypto-trader.co.
What is CryptoTrader?
The website – which was launched in 2017 – purports to offer the chance for those that sign up to make over $5000 “as a bare minimum”. When users sign up and enter their details, it soon becomes clear that this is another site that is designed to lure visitors into signing up for unregulated trading brokers and deposit large amounts of money which they’re inevitably lose. As such we have classified CryptoTrader as a Trading Get-Rich-Quick Scam – it falsely claims to have the secrets to getting rich trading just to lure victims to trading brokers.
What is a Binary Options get-rich-quick scam?
This is a scheme that tricks a victim into thinking they can get rich by trading with a particular Binary Options trading platform. The scheme will dress up Binary Options as a “secret” or “underground” way of making money.
Binary Options trading is where an investor attempts to predict whether a specific stock will rise or fall in value over a short period of time. If the investor predicts correctly they get a return on their investment, but if they predict incorrectly then they lose their investment.
It’s an alternative and less popular version of traditional trading, and it is poorly regulated. Additionally, most finance experts agree that Binary Options is similar to gambling. As such, there is no way to “beat” Binary Options or to “game” the system. There is no secret software or methods that can be used to guarantee wealth using Binary Options trading. Binary Options get-rich-quick scams have many similarities to schemes that falsely claim to help you beat online casino games.
These get-rich-quick scams use a variety of deceptive and misleading sales tactics to trick victims into signing up for Binary Options brokers by asserting that they can get rich by doing so. The Get-Rich-Quick scammers are paid a commission for referring victims to a Binary Options broker.
Those who sign up are required to pay an initial deposit into their broker account, and most will ultimately lose that money.
In the case of CryptoTrader, when we signed up we were referred to a broker called 72 Options. However it is possible the scheme uses many different brokers.
You can read more about Binary Options get-rich-quick scams in our article here.
Misleading Sales Tactics?
As is typical in this niche of get-rich-quick scams, this site uses a plethora of misleading sales tactics, including –
Using an actor to play the part of “David Richmond” – a person who doesn’t exist.
Fake claim that the site has won awards
Unrealistic claims of profits that can be made trading online
Outright false claim that the $250 deposit users are required to make is risk-free. Users who lose that deposit – which is likely to be most – will lose that money.
Fake limited spaces available claim
Use of spammy social media apps to mislead visitors
It’s a get-rich-quick scam, pure and simple. It falsely claims you’ll get rich trading online using some secret trading app. But there is no secret trading app – it’s just another scheme that will ultimately lose a user money. And there is no way for users to recuperate that money once it’s gone. The owners of this site will operate it for a few months and try and lure as many people to various trading brokers as possible, earning affiliate commissions as they do.