Cryptocurrency popularity is at an all time high. In light of the recent price surge in the value of Bitcoin, which has skyrocketed to almost $10,000 in value, the market has been flooded with a wave of new investors that are entering the crypto game with little to no oversight.
It’s now incredibly easy to purchase Bitcoin via a number of different platforms such as Coinbase, which allows for fast and simple purchase via credit or debit card. Although the cryptocurrency market can be an unforgiving, brutal environment, many new investors simply buy in and begin conducting trigger-happy investment into a broad spectrum of ill-advised platforms and ICOs.
It’s no surprise that a wide range of scams have emerged in the market to exploit haphazard crypto investors. While the cryptocurrency market has been home to scammers and fraudsters since inception, newer scams aim to target the innate laziness of armchair investors by offering them guaranteed returns provided by “advanced cryptocurrency trading bots” and other spurious magic bullet systems.
In this article, we’ll take a look at Crypto Magnet, a painfully obvious cryptocurrency scam that promises extremely high guaranteed returns for very little investment. We’ll highlight the key factors that make it easy to identity Crypto Magnet as a scam to help you avoid similar, less-obvious scams in future.
What is Crypto Magnet?
Crypto Magnet promises to provide users with returns of “at least $2,750” on a daily basis. The Crypto Magnet platform is a variation on the “automated trading solution” scam that is rather common at the moment- typically these platforms state that they possess a highly effective automated trading algorithm that provides extremely high guaranteed returns.
The rationale behind the Crypto Magnet platform is almost laughable when assessed with a critical eye. The creators of the Crypto Magnet platform state that their “reversals patterns algorithm” opens trades only with assets that present a reversal pattern that is identical to other profitable patterns in the past- and only if it has a 94.2% chance of being a profitable trade.
This word salad has nothing to do with technical analysis whatsoever, and is perhaps the most obvious clue that the Crypto Magnet platform is scam- aside from the obviously fraudulent nature of the site itself.
The biggest red flag thrown up by the Crypto Magnet platform is that it’s extremely new. A cursory whois of the Crypto Magnet domain reveals that it was registered on the 12th of November 2017, despite claims made on the site that the platform is more than 3.5 years old.
The second red flag presented by the Crypto Magnet is the fake reviews and testimonials on the site. The gaudy nature of the platform doesn't deliver much in the way of technical information, and instead focuses on providing readers with artificial social media screenshots and conversations between “real users” that primarily depict bikini models and sports cars.
The images used in these testimonials are well-known stock images that are regularly recycled in a range of different crypto scams. Another red flag is the complete lack of deposit, withdrawal, or company information.
Lastly, the crypto software that is provided by Crypto Magnet is exactly the same software offered by other well-known scams such as Crypto Code and Crypto GPS. This worthless software makes completely random trades based on false signals, and will definitely trade your account to zero.
How Crypto Magnet Really Works
The overall goal of the Crypto Magnet platform is to trick unsuspecting investors into depositing money with Cryptopoint, an unregulated cryptocurrency broker. While Crypto Magnet doesn't operate Cryptopoint, they do generate affiliate commissions by directing investors to them.
Cryptos may be a hot asset that can generate investors a significant return in a short amount of time, but there is absolutely no guaranteed method of profiting from the crypto industry. If you’re interested in dumping some funds into a high-risk, high-reward venture from the shady shelf, then you may want to consider getting on board with a more reputable high yield investment program, but this method can be pretty risky.
Our verdict? Unless you’re committed to flushing money down the drain, avoid investing in Crypto Magnet at all costs.