Crypto Trading legal or is it often fraud?
However, the freedom and anonymity in money transactions, which is valued by many, is not free of disadvantages. Because the Crypto Trading transactions take place unobserved, the system is the ideal breeding ground for illegal activities such as fraud, money laundering or the financing of terrorism.
“Bitcoin just shows how much demand there is for money laundering in the world. That’s all.”
Larry Fink, head of the world’s largest asset management company Blackrock
Crypto Trading – Indications of fraud?
A prominent example of possible Crypto Trading fraud allegations with crypto currencies is the Onecoin. This owes its popularity not least to its distribution via network marketing (also MLM or multi-level marketing), i.e. a presumed pyramid scheme.
The company Onecoin OneLife sold alleged training packages; the Onecoin was positioned as the second strongest crypto currency after Bitcoin. The only problem was that there was probably neither the digital currency nor a block chain through which the crypto trading transactions could have been processed. Backers were assigned to the Bulgarian mafia, and the One coin was added to the sect prevention index in Austria. (More about this under Wallstreet Online.)
The situation is not much different with Swisscoin, which inappropriately comes from Leipzig and not from Switzerland. Stiftung Warentest, the German consumer watchdog, also considers it to be risky, in addition to the Onecoin.
Trading or have you already traded crypto currencies?
Do you suspect that you have been involved in fraud in crypto trading? Then you should contact a lawyer. Within the scope of legal advice, lawyers will clarify the respective facts and point out possible courses of action in case of fraud through Crypto Trading.
The law firm Herfurtner is specialized in fraud cases within the scope of Crypto Trading and Online Trading, for example in the enforcement of claims within the scope of CFD Trading or Forex Trading. You can contact us here.
Are crypto currencies a real currency?
Crypto currencies are not subject to any supervision by regulatory authorities such as the Federal Financial Supervisory Authority (BaFin).
In contrast to “real” money such as euros, US dollars, yen or British pounds, crypto money is not a crypto trading currency, but rather an object of speculation.
Speculation and Crypto Trading
This is because where the exchange rates of established currencies tend to fluctuate moderately, crypto-currencies in crypto trading are sometimes subject to enormous price movements. Price rises and falls in the double-digit percentage range within just a few days are not uncommon in Crypto Trading.
The best example is probably the best-known representative of virtual money, Bitcoin. (See also the Bitcoin Wiki for the question “What are Bitcoins?) Here, Crypto Trading not only experienced strong fluctuations within the price, but also between different exchanges.
This is due to the fact that the Bitcoin price is not fixed anywhere, but in Crypto Trading is determined solely by supply and demand.
Crypto Trading – Lawyer advises on rip-off, fraud and manipulation
The following therefore applies: anyone who gets involved in Crypto Trading must be aware of the risks associated with digital trading. Risks are not only inherent in the currencies themselves, but also to some extent in the trading platforms for Crypto Trading.
Some of the Crypto Trading providers are located abroad and are very difficult to reach in case of emergency. Especially in the area of CFD trading, which is also possible for crypto currencies with many providers, there are many dubious providers on the market.
In case of high losses or delayed or not executed payouts, it is worthwhile to consult a lawyer. A lawyer who is familiar with Crypto Trading will give you detailed advice and can take steps to recover lost money.
How does Crypto Trading work?
Cryptocurrencies can be generated in complex computing processes. The basis of the so-called “mining” is a worldwide network in which thousands of computers are connected. Metaphorically speaking, these computers solve cryptographic tasks in competition with each other.
The fastest computer is then awarded a certain number of coins, which is why immense computing power is required to be successful. In newer cryptographic currencies, the law that only the strongest wins has been replaced by the application of a random principle.
Crypto Trading and Blockchain
However, the generation of coins is not an end in itself, as encrypted financial transfers are simultaneously carried out directly between digital accounts. Important here: There is no central institution such as a bank. Rather, each of the computers involved keeps a digital “account book” in which each transaction is precisely listed.
This decentralised accounting, because it is distributed over many computers, is intended to prevent an external Crypto Trading attacker from having a chance, because not all records can be changed. This recording technique is also known as block chain.
“It might not be wise to dismiss virtual currency. In some respects they could kill off existing currencies and monetary policy. Citizens may one day prefer them because they are easier and safer to get than cash, especially in remote areas.
Christine Lagarde, Secretary General of the International Monetary Fund
What is an ICO?
According to Wikipedia, an ICO – Initial Coin Offering or an IPCO (“Initial Public Coin Offering”) is an “unregulated method of crowdfunding used by companies whose business model is based on crypto-currencies”. The first ICO took place in 2014 and was initiated by Karmacoin.
An advantage for companies in this form of capital procurement is that it is fast(er). It also avoids the strictly regulated processes of the alternatives (for example, when going public).
The Ohlala platform, on which “private dates” are arranged, also relies on alternative crypto trading to raise capital. With its ICO, it wants to raise 100 million dollars. The founder reports in a video that she was invited to an important conference – probably because of the sensitive topic she is dealing with. This shows how difficult it is to get into conversation with investors in the classical way.
High ICO losses possible
Anleger werden jedoch von der BaFin vor einem unumkehrbaren Totalverlust beim Erwerb von Kryptowährungen über einen ICO gewarnt. In China und Südkorea sind ICOs mittlerweile verboten. Auch das Crypto Trading ist in der Schusslinie.
How does an ICO work?
In the Initial Coing Offering, units of a newly issued crypto currency are issued. Payment is made either with state-issued currencies such as the euro or with other crypto-currencies.
The term “ICO” is similar to the term “IPO” (Initial Public Offering), which stands for the initial public offering of a company. In both cases, the aim is to raise new capital from Crypto Trading investors (the “crowd”). A similar term is the “Token Sale”, in which so-called Tokens are sold. The first Token Sale was organized by Mastercoin in 2013.
Which ICO 2018?
Crypto currencies continue to be an attractive speculative opportunity for a certain proportion of private investors and Crypto Trading. This is also reflected in the number of new Crypto Trading currencies, as they will be issued in 2018. If you want to buy a new crypto currency, you will find some lists on the Internet that are updated by Crypto Trading operators, for example here or here.
Crypto Trading – What crypto currencies are there?
In addition to the first digital currency ever, Bitcoin, a veritable flood of alternatives has developed to this day. It is assumed that the number of crypto currencies is now around 1,600. The best known of these, which are traded the most, are
- NAV Coin
A complete crypto currency list can be found at https://coinmarketcap.com/all/views/all/.
An “exotic” in this list is the cryptocurrency IOTA, which – unlike Bitcoin, for example – does not use a block chain, but a “directed anticyclic graph”. This graph is called tangle and is arbitrarily scalable, allowing it to execute any number of transactions at the same time.
IOTA does not seem to be planned as a pure investment at first glance, rather the creators are committed to developing an industry standard for the Internet of Things. Although the currency is one of the most popular, it is currently only available in Europe via detours.
Crypto currency Ripple
Ripple is also different from other digital currencies. This is because the focus here is not on bypassing banks, but the exact opposite. Ripple aims to significantly reduce the transaction costs of global money transactions through Crypto Trading.
To this end, it has developed a crypto currency (XRP) that saves costs thanks to its high level of technology and the associated Crypto Trading automation.
Keeping an eye on the performance for a certain period of time is one of the advisable measures that can be taken before an Investment & Crypto Trading.
Although you are always looking at values from the past, at least one trend can be identified in crypto trading, which can play its part in decision-making. An overview of the price development of crypto currencies can be found here at finanzen.net.
How do you trade crypto currency?
Those who do not want to bother with the laborious process of mining or digging for coins can also buy the digital currency units or engage in crypto trading.
Buying a crypto currency is relatively uncomplicated: One has to register for it on one of the numerous “exchanges”, whereby usually a normal bank account is also required for legitimation.
Stock exchanges for buying crypto currencies and crypto trading include
Binance is a word creation from binary and finance. The stock exchange is one of the largest of its kind. It offers a large number of Altcoins and, according to its own statements, is one of the fastest crypto trading exchanges on the market.
Bittrex was founded in 2014 by three cyber security engineers. The US-based Crypto Trading Blockchain platform is characterized by “lightning-fast trade execution, reliable wallets and leading security practices”.
According to BTC Direct, “since June 2013, BTC Direct has acted as an intermediary in the purchase and sale of Bitcoins. On the Crypto Trading Exchange you can buy, sell and in future also store Bitcoin.
Changelly claims to have over 2 million registered users worldwide since its inception in 2015. The “popular exchange for crypto currencies” enables easy crypto trading with over 100 Altcoins.
Coinbase, founded in 2012, is, according to its own statement, “a wallet for digital currency and a crypto trading platform where traders and customers can do business with new digital currencies such as Bitcoin, Ethereum and Litecoin”. The company is headquartered in San Francisco, USA.
Cryptocoin calls itself “the leading Crypto Trading consulting and investment platform in the field of crypto currencies”. The Luxembourg-based startup specializes in buying and selling Bitcoins and other crypto currencies.
Kraken claims to be the world’s largest exchange for trading Bitcoins. The Crypto Trading company, founded in San Francisco in 2011, is – confirmed by independent media – the best-rated and safest platform for Bitcoin trading.
Litebit is a crypto trading exchange from Holland, where you can trade many old coins and unknown crypto currencies.
ShapeShift is a Crypto Trading Web and API platform that has been around since 2014. It is designed to perform Bitcoin and Altcoin transactions with what it says is “the highest level of security and efficiency”.
Cryptocurrency Wallet – secure storage
The term “wallet” refers to software that serves to securely store acquired crypto currencies. It is also used to receive and send crypto money.
However, the currency itself is not stored in the Wallet. Rather, this is the storage location for the public and private key.
While you can compare the public key with the IBAN of an EC card, the private key is something like the secret code. You need both to access your coins.
Crypto Trading – Welches Wallet für Kryptowährungen?
Wallets are stored hot or cold, either on a computer connected to the Internet or separately. Hot wallets are easier to use and are therefore preferred by beginners and for fast transactions.
If you use crypto currencies as a crypto trading investment, it is better protected by a cold wallet (external hardware, paper or even number memory).
However, you should protect yourself so that you neither lose the wallet nor forget to access it. Otherwise it can happen to someone like that gentleman from Great Britain who accidentally disposed of his hard disk with 7,500 Bitcoins. This was at times equivalent to a loss of a staggering 127 million US dollars.
Online trading with crypto currencies
In addition to the stock exchanges, there are also online trading platforms where you can speculate with crypto currencies. The numerous online brokers offer this within the scope of CFD trading. With Contracts for Difference you bet on rising or falling prices.
The special feature is that you do not actually own the respective currency, but only trade on the price development in Crypto Trading. Among others, these brokers have cryptocurrency in their portfolio:
- IQ Option
CFD trading is very risky – quite a few private investors have lost large amounts of money. Because a supposed credit balance on the online trading account does not mean that the broker actually pays out the invested funds including the profits
Further information about crypto currencies can be found on the page www.krypto-x.biz.
Crypto trade tax
Derzeit herrscht Unsicherheit beim Thema Crypto Trading, Kryptowährung und Steuer. Das Finanzamt betrachtet den Handel (noch) als privates Veräußerungsgeschäft. Dies gilt bei Tausch oder Rücktausch einer Kryptowährung in Euro innerhalb eines Jahres. Der Ertrag muss versteuert werden, wobei eine Freigrenze von 600 Euro zu beachten ist.
Keine gute Idee dürfte es sein, die Krypto-Transaktionen beim Crypto Trading und daraus resultierende Gewinne vor dem Finanzamt zu verschweigen. Denn die Blockchain zeichnet alle Transaktionen auf und ist damit für Finanzbeamte im Zweifel ein „offenes Buch“.
Why invest in crypto currencies?
Does crypto currency have a future? Should I invest in digital currencies? And when is the right time for crypto trading? Many a Crypto Trading private investor who sees opportunities for a good investment business against the background of the Bitcoin price explosion in December 2017 asks himself these questions.
An understandable behaviour, since the Bitcoin price has risen by 1,600 % in 2017 alone – those who were there early could earn good money. In the meantime, however, the prices have fallen sharply again.
Is the Bitcoin boom over?
Diese Frage lässt sich nicht seriös beantworten, nicht wenige Experten sehen aber schon die nächste Blase auf sich zukommen. Auf der anderen Seiten spricht der technologische Reifegrad vieler Kryptowährungen dafür, dass das Ende der Fahnenstange noch nicht erreicht ist. Wer in Kryptogeld investiert, geht Risiken ein – dessen muss man sich auch beim Crypto Trading bewusst sein.
Fraud in Crypto Trading – Lawyers offer support
Anyone who has lost money in Crypto Online Trading does not have to write it off.
Instead, it is worth discussing the matter with an experienced law firm. Crypto currency news can be found at the law firm Herfurtner.
Their lawyers have successfully advised many clients and have been able to recover some or all of the money lost through Crypto Trading.
For a first contact click here.