Cryptasap promotes itself as the ultimate trading platform, encouraging individuals to select it as their broker for investing in financial instruments. However, upon conducting this review, we found no compelling rationale to entrust funds to Cryptasap. Operated by an unregulated offshore company, this website raises suspicions. The trading methods it offers are prohibited in various regulated areas due to their association with numerous fraudulent activities. Based on this, it is reasonable to conclude that Cryptasap is likely a scam.
Cryptasap Regulation
The primary consideration when assessing a financial services provider is its regulatory status. Licensed brokers typically furnish comprehensive details regarding their operating entity, location, authorized jurisdictions, and regulatory oversight.
On Cryptasap’s homepage, there’s an absence of company particulars or contact information. he Client Agreement reveals that Cryptasap manages Cryptasap LLC, situated in Costa Rica—an offshore zone lacking regulation and supervision in forex trading. Instead of a precise address, a vague landmark reference is provided, such as “blue building diagonal to La Salle High school.” The website is accessible in English and Russian, with the Russian Central Bank cautioning investors about Cryptasap’s lack of licensure.
For those contemplating investment in financial instruments, particularly novice traders, it’s prudent to engage with a licensed broker situated in a jurisdiction with robust regulations. Depending on one’s location, selecting a regulated company overseen by institutions like the Commodity Futures Trading Commission (CFTC) in the US, the Australian Securities and Investments Commission (ASIC), the UK’s Financial Conduct Authority (FCA), or an EU regulator such as the Cyprus Securities and Exchange Commission (CySEC) is advisable.
Clients of regulated brokers benefit from safeguards such as negative balance protection and segregation of client funds from the broker’s assets. Moreover, brokers in the EU and the UK are mandated to participate in guarantee schemes that provide coverage for a portion of the trader’s investment in the event of broker insolvency—up to €20,000 in the EU and £85,000 in the UK. However, the risk of such insolvency is minimal due to stringent net capital requirements imposed by regulators—€730,000 in the UK and Cyprus, AUD 1,000,000 in Australia, and at least $20 million in the United States.
Trading Software
Upon completing the account registration process, users gain entry to a basic trading platform.
However, it’s important to note that this platform is not intended for forex, CFD, or binary options trading.. Reputable brokers typically furnish clients with a diverse array of trading software, encompassing desktop, mobile apps, and web-based platforms.
Among the most prevalent platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5), renowned for their comprehensive features. These platforms have become the industry standard due to their extensive customization options, support for multiple accounts, capability for designing and deploying custom scripts for automated trading, and facilitating the backtesting of trade strategies.
It’s crucial to understand that the mere presence of trading software does not guarantee the legitimacy of a broker. Financial fraudsters often use manipulated trading platforms to deceive victims into believing their funds are being invested.
However, in reality, these trades are entirely fictional, and the funds are siphoned directly into the scammers’ pockets.
Trading Instruments
Cryptasap asserts to provide trading opportunities in currencies, cryptocurrencies, commodities, stocks, indices, and Over-the-Counter (OTC) Markets. However, given its lack of regulation, there is no basis for trust in the authenticity of the trading services offered by this unregulated broker.
Cryptasap Spreads
As mentioned, Cryptasap offers binary options trading, although this aspect is not explicitly highlighted on their website. Binary options entail financial contracts with two possible payoff outcomes upon expiration: a fixed amount or nothing. The determination hinges on whether the trader correctly predicts whether the price of a specific asset will be above or below a certain level at a specified time.
Its simplicity characterizes binary options trading, making it susceptible to scams and manipulation. Several significant markets, such as the EU, the UK, and Australia, prohibit binary options trading, which is worth noting. In the US, although still legal, regulated U.S. exchanges known as Designated Contract Markets (DCMs) are the only platforms where binary options trading can be conducted.
Cryptasap offers an 85% payout, which falls within the average range for this type of trading.
Cryptasap Leverage
In binary options trading, traders do not utilize leverage.
Financial regulators allow 1:30 leverage for retail clients, but binary options trading lacks leverage. Leverage, while potentially amplifying profits, also escalates the risk of sudden and substantial losses.
Deposit and withdrawal Methods
Homepage features many payment method logos, but deposit menu mostly offers cryptocurrencies and lesser-known options. Scammers often favor cryptocurrencies due to the absence of refund mechanisms associated with these transactions. Reputable brokers offer diverse, transparent payment methods, excluding binary options’ leveraged trading.
Minimum Deposit
Website states $10 minimum deposit, but deposit menu shows $5 minimum instead. This isn’t a temptation; many reputable brands offer similar low entry thresholds for trading accounts.
Cryptasap Withdrawal Requirements
Cryptasap does not outline any exceptional conditions for withdrawal. However, scams of this nature typically employ hidden fees and other tactics to obstruct users from withdrawing their funds.