Not like previously created financial instruments, Bitcoin created hope and opportunity for those of everyday Joes. However, there are just as many Bitcoin Scams in the cryptocurrency world. Dragons Den Bitcoin scam initially popped out during Q1 of 2018, however nowadays there are rumors that a group of so called seasoned traders are pitching novice traders a system that has been invested in by Dragons Den investors.
What is Dragons Den Bitcoin Scam?
Dragons Den Bitcoin Scam also known as Bitcoin Loophole scam or Bitcoin Code Scam is a traditional hit and run game targeting those of desperate people.
The first time we saw Dragons Den stars being featured in a so called Bitcoin trading startup gem, acting as if they have found a holy grail AtoZMarkets team marked them as a high risk trading group. It is similar to those of Forex Fund Manager Scams in a way. But before we go through details, let’s explain Dragons Den Bitcoin Scam, how does it work?
Simply put, those people behind those of fake trading systems, aim to use celebrities from Dragons Den. The very first fraudulent Bitcoin Loophole project involved these fake traders acting as if they presented their idea at BBC’s famous Dragons Den TV show initially asking for GBP 200K, but ending up receiving 10 times as much as what they asked for.
Was Bitcoin Code ever on Dragons Den?
The Bitcoin Code was created by a so called trader called Steve McKay. The official website describes Steve as “the genius behind The Bitcoin Code”. A quick reverse google image search turns out to be endless, thus it is likely that Bitcoin Code founder Steve McKay is a dubious online character, not a real person.
When the infamous Bitcoin Code Dragons Den Bitcoin scam ads ended up on social media, many of the dragons took twitter by storm too.
"Fake ads using Dragons Den and myself as clickbait then directing to a Bitcoin site are a scam. Don't click or it feeds the ugly and DEF don't give them money."
— Deborah Meaden (@DeborahMeaden) April 4, 2018
It turns out that Bitcoin Code was never on Dragons Den.
Bitcoin Loophole scam details
So, is there any Bitcoin Loophole? Is there any possibility that you can turn $250 into $13,000 profit within 24 hours? Can you guarantee any profit in Bitcoin trading?
There is no holy grail in trading, therefor there is no secret into Bitcoin Loophole. Bitcoin Loophole and Bitcoin Code are SCAM, fake! In order to be able to turn $250 into $13,000 profit you have to take massive risk.
These websites connecting traders into brokers only aim to make their income from affiliate and lead gen results, therefor they don’t much mind whether they make money or not. Essentially speaking they can just short one trader and long the other one in order to make money for one and lose money for another. This method among Forex brokers is referred as an arbitrage (not quite full meaning of arbitrage) or abuser strategy. Especially introducing brokers and affiliates of some CySEC Forex Brokers used attract novice traders between 2014-2016, when trading bonuses were common in Forex industry.
A factor traders are missing with these introducer scams, is the fact that they actually are not involved with actual bitcoin trading, but rather CFD trading, often with market maker CFD brokers. These brokers make their money when their investors are losing money, therefor, playing with odds, they pay CPA (Cost per Acquisition). For every funded account the broker would pay the introducing affiliate a certain amount of commission between $150 - $600.
How to avoid Bitcoin Trader Scams
Those traders considering to give their money to anyone claiming to have a successful trading strategy should always ask for a historical performance. Check the details of the statements. If you see the accounts being doubled with a few entries do not proceed with that fund manager. He is a scam fund manager!
Meanwhile, just because a website you found online claiming to be a regulated company does not mean they are. So, do your own due diligence. FCA UK Next Coin Market warning is a good example for such a company as well.