TOTAL SCAM: Profitcoins review

Profitcoins websiteIn this review we provide explanations why Profitcoins is a cryptocurrency scam.

Profitcoins.io claims to be an arbitrage trading platform for cryptocurrencies. This means that it buys cryptos on exchanges with a lower price and sells them on exchanges with a higher price. The difference between the prices is the profit.

Profitcoins claims that it can make you up to 1% per day for free. Really?

Profitcoins scam

There are several red flags that prove that Profitcoins is a scam.

Fictitious leverage

Profitcoins claims that they can make you more money when you use leverage. But this doesn’t make any sense. Leverage can be used with derivatives, such as CFDs, when the broker lends you money so that you can open a bigger trading position.

But leverage cannot be used with arbitrage trading, since you are buying the asset (cryptocurrency) directly. So, no leverage can be applied and Profitcoins is lying.

Fake opportunities

Losing tradesWe had a look at the demo to see what trades Profitcoins takes and it was another nonsense. As you can see on our picture, the trades had only tiny difference between the buy and sell prices, ranging from 0.03% to 0.06%.

Such trades cannot be profitable, since crypto exchanges typically charge trading fees from 0.1% to 0.25% per trade. This means that these trading fees would be far bigger than the profit from Profitcoins trades, so you would be losing money.

Not to mention that one of the trades had a negative price difference from the start, the sell price was lower than the buy price. A sure loss!

1% a day?

Scam planProfitcoins is offering several investment plans with profits up to 1% per day, in other words 30% per month. Such a number is very high and it is impossible to achieve on a consistent basis.

It is true that arbitrage opportunities appear on cryptos, but they are smaller and smaller as the markets become more liquid. Then you also have the problem that once you sell on the second exchange, you have fiat money sitting there and you have to do something with it. And moving fiat money is even more expensive than moving cryptos.

All in all, nobody honest can promise a fixed monthly return on cryptos.

Illegal service

No licenceAnother problem of Profitcoins is that it is providing investment services without the necessary licence. It allegedly is based in the UK, so it should be registered with the Financial Conduct Authority.

But it is not, Profitcoins is not licensed by the FCA, therefore it is operating illegally.

How they get your money

They want your cryptosProfitcoins will tell you that you have to send them your cryptocurrency, so that they can make you money. And this is the catch, you will be sending your crypto money to an anonymous and illegal entity.

Do you think you will get anything back? Either Profitcoins is a total scam that won’t pay you a single dime, or it is a Ponzi scam that might pay some profit at the beginning, but sooner or later will collapse anyway.

Conclusion

Profitcoins is a scam, don’t send them your cryptocurrencies!

Money can be made in crypto trading, but it requires learning and a profitable strategy. You can try to build one on free demo with a regulated broker.

Don’t trust anonymous entities promising you free money, free money does not exist.

Summary
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Profitcoins
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