As a result of the crypto boom that is currently being experienced all across the globe, there have been hundreds of ‘get rich quick’ scams that sprung up in recent months. For example, we can now see a wide array of so called “automated trading systems” in the market. The creators of these platforms claim to make use of “advanced software coding” to help make sustainable profits (thereby luring in novice investors).
However, to stay away from such projects, we need to educate ourselves and learn some telltale signs that can help us make better decisions. For starters, to check for the legitimacy of a broker, we should see whether they have appropriate licensing or not. So for example, if the broker is based in the United Kingdom, they should be certified by the FCA, and if they are based in Australia, then they need to be validated by ASIC.
What Is Coin Bull?
Coinbull has been described as a “Cryptocurrency trading platform” which claims to deliver on many fronts including:
- Customer Service: the company claims to deliver an excellent trader experience in terms of “security, features, user-friendliness, tools and education.” However, none of these claims are founded on any factual data.
- Easy to Use: the company claims its interface is one of the most accessible in the market today, and can be used by novices and experts alike.
Signs To Be Wary Of
While all of the facts that are presented on the official company website may look really appealing at first sight, it should be understood that CoinBull is an “unlicensed service”. This basically means that, it is not running in accordance with official guidelines or laws, thereby making this service a potential scam. In addition to this, some of the other things that stand out include:
New To The Market:
All across the website, Coinbull claims to be delivering amazing exchange options for a long time. However, when we did some investigation of our own, we discovered that the domain name that the site is running under, has been registered only recently in July 2017.
No Details Of Founders:
Another sure shot sign which indicates something mucky is going on, is when a website does not provide any authority links. Coin Bull does not mention on their website any details regarding who the company is owned by. There are no names, no locations or any contact details that have been provided for us to get in touch with company representatives. All that is given is the following email address: [email protected]
What Claims Does Coin Bull Make?
CoinBull uses a fully “web based” design that can offer CFD trading with a wide array of cryptocurrencies including Bitcoin, Litecoin, Dash, Ethereum, NXT, REP, ZEC and STR. In addition to this, there are “three account types” that we can choose from when we open our account.
The company claims to provide its users with bonuses of up to 20%. This may look amazing, but on simple inspection of the “Terms and Conditions”, one can find that in order to keep reaping incentives “users are required to execute a minimum trading volume of 40 times for every $1 bonus”.
Other Important Details
Online Complaints: there are many blogs and discussion threads where users have come forth and claimed that withdrawing money from Coinbull is tough, and that bonuses are not delivered timely or are hard to obtain.
Unlicensed: as mentioned earlier, CoinBull is not a licensed broker and thus for people looking to make legitimate investments, they should consider some alternate means.
Coin Bull Conclusion
From all of the data that has been presented above, it becomes quite obvious that this service is not to be trusted completely. While certain short term gains can be obtained, due to a lack of specific details, there are many loopholes in this project. In closing, we would like to say that there are many other licensed trading platforms out there, and thus casual investors should go there rather than spending their money at Coinbull.