Bitcoin, and the entire cryptocurrency ecosystem, has been touted as the “Wild West” of investing. Citing the market’s extreme volatility, traditional investors have been critical of investors who put sizable resources into their crypto wallets. While Bitcoin and other established altcoins are volatile, they aren't riskier than equities on the stock exchange.
However, some crypto projects raise red flags and seem suspicious. Even crypto experts think that some of the projects are scams. The latest to be labeled as such is Bitcoin Supersplit. What is Bitcoin Supersplit and is it truly a scam to avoid at all costs?
What is Bitcoin Supersplit?
Despite the name, Bitcoin Supersplit doesn't have anything to do with Bitcoin directly. Instead, Bitcoin Supersplit is a platform that uses AI to trade Bitcoin contracts for the difference. Users don’t trade actual digital currencies through the platform. Computers speculate on cryptocurrencies’ volatility and bet on whether the price will rise or fall.
A user can get access by investing capital and earn profits that are generated on the investment limits.
Because of cryptocurrencies’ extreme volatility, experts have warned against trading in CFDs since they can be even riskier than trading in the coins themselves.
Why Bitcoin Supersplit appears to be a scam
It hasn't been determined yet whether Bitcoin Supersplit or other similar platforms are, in fact, a scam. However, experts have issued warnings to anyone considering investing their money through them.
For one, Bitcoin Supersplit boasts claims about high investment returns. Any trading platform that promises high returns in such a volatile market is selling fluff. While it’s true investors can make money trading cryptocurrencies, it’s far from guaranteed.
Another reason for hesitation is the lack of oversight. Traditional crypto exchanges like Coinbase and Binance have some level of accountability. Coinbase as a company is publicly traded on the NYSE and would feel any effects from negative publicity if it were a scam. Bitcoin Supersplit isn’t beholden to shareholders or regulation. For this reason, the inner workings of the company are still a secret.
The lack of oversight means crypto CFDs can be traded in most of the world. However, one of the few places they are banned in is the U.S. Crypto experts and even senators have asked authorities to create crypto-specific regulations to stop market abuse and exploitation.
Crypto investing is risky and experts advise trading with reliable exchanges.
Without a long track record to gauge market trends and influences, investors have to mainly trade on speculation. In the case of newer “meme coins,” that speculation sometimes is based on internet memes and social media activity.
Even so, established crypto exchanges like Coinbase allow investors to buy, sell, and trade cryptocurrencies securely. Robust verification and anti-cybersecurity measures make it easy to connect bank accounts to send fiat currency back and forth.