With so many trading brokers available online these days, it’s hard to tell which one is legit and safe to trade with, and which is possibly a scam broker. One of those new brokers, who claims to be reliable, secured, and legit, is Cryptec.io, and in this Cryptec review, we’ll try to determine whether their claim is valid or not.
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So, what is Cryptec.io?
Cryptec.io is an unregulated (not the best feature to start with) cryptocurrency trading broker who provides a supposedly unique trading opportunity for traders. The platform offers 120 plus cryptocurrency assets in the form of CFDs (stands for contract for difference), with a leverage of up to 1:40, which is quite high considering the volatility of cryptocurrencies. Although the platform doesn’t offer fiat pairs, if you are a cryptocurrency enthusiast, most chances are that it won’t bother you considering the fact that you’ll have more than enough other trading assets available.
The online trading (or investing) sector involving Bitcoin and other cryptocurrencies has become a hot sector for quite a lot of scams, and the best way to combat that is by educating yourself about it. To know more about this crypto brokerage and its pros and cons, keep reading our Cryptec review, so by the end of it, you’ll have enough information to make an informed decision.
Regulation and Customer Support
So let’s start with one of the most important things for traders – regulation. Technically speaking, there’s nothing really wrong with an offshore brokerage and their policies if it ensures fair trading conditions. However, in the past few years, too many offshore trading companies have lured investors with false claims and have exploited them blatantly. As far as the security of the traders’ funds goes, unfortunately, you won’t have much control over your funds once you deposit with those offshore brokerages (including with Cryptec), and the conflict of interest is live and present.
Please note that we have no intention to claim that all unregulated brokers, such as Cryptec.io, are scams, but unfortunately, a vast majority of them are. One must wonder why Cryptec’s company information is so scattered – the company’s owner is Point Place Ltd, which is located at Cnr Old and Church Street, P.O. Box 2290, Roseau, Commonwealth of Dominica. The payment processor is MeanTech OÜ, located at Harju maakond, Tallinn, Estonia, and their phone number is, in fact, in Denmark – +45-78726185. Sounds suspicious? Well, you’ll be the judge.
Also, note that the domain name is quite new and was registered less than a year ago, on 08/09/2019, and for some reason, the expiry date is quite soon – 08/09/2020. Why would a serious business register a domain name for just one year?
Leverage and Trading Conditions
The platform features a wide range of crypto assets. The complete list of trading instruments can be found on the left side of the screen, and things such as leverage and margin are revealed on the sidebar, which means that before you open a new trade, you’ll already know all the requirements. One of the downsides of the platform is that the spreads are quite huge, so if you’re an intraday trader, then chances are you won’t be able to make money with Cryptec.
Also, note that this trading broker doesn’t allow scalping or any other kind of arbitraging, so the lack of these components might make it less attractive for some traders. The leverage offered is capped at 1:40, and in order to unlock higher leverage, you must deposit more capital.
Cryptec offers five account types, and among the exclusive benefits of the top accounts are custom educational series, 100%-150% bonus, access to executive account managers, and scalping short term intervals.
Deposit and Withdrawal Process
The minimum deposit amount to start trading on Cryptec’s platform is $250, which is quite high (some brokers require only $100-$150), and the minimum withdrawal amount is currently unknown (for some reason, it wasn’t mentioned on the website). The broker accepts major credit and debit cards, along with bitcoin, of course, and the fees might differ based upon the payment method the trader chooses.
Here’s where the problems start – First, the withdrawal processing time is said to be around ten days, which is way too much time and more than the average, compared to other brokers. Second, during our research, we also found multiple complaints from traders who tried to withdraw their money but couldn’t. Here’s just a sneak peek from the trusted website trustpilot.com:
“I stated that I was impressed by the software, service and transparency. They have a very good way of convincing customers into investing until it is time to process withdraw. I have only been with them for 3 months and the last two months have been the most difficult. I could not withdraw my funds, I had to use a recovery Firme. Thankfully they were able to process my withdraw and I am lucky to have gotten my $7k back.” – Posted by Dean M.
“They try to get you into the next level so you get higher trading power,new traders (VIP) will call you and next thing you know all your funds disappear,you can hear them partying in the background on you buck I’m sure,then ask you who did the trades and try to blame you for bad trades and try to get you to deposit more funds in your account. A trader then offers refunds to try to build up your account. When you try to make a withdrawal you’ll find out the refunds where really bonuses and they have to be payed back before you can receive anything!” – Posted by Paul Glandon
Cryptec is Operated by PROFTIT company
While doing our research we found evidence that Cryptec uses PROFTIT CRM system. Moreover, we found more evidence that proves Cryptec is actually being operated by PROFTIT company itself. This means that Cryptec is just another piece of PROFTIT’s scam method. i.e, a method used to launder the money that is being stolen by illegal Cryptec.
Conclusion – Is Cryptec a Scam or Legit Broker?
At the end of the day, Cryptec.io is still a risky broker. The trading conditions and withdrawal process are weird and unclear, to say the least. Moreover, the existing traders’ feedback we found online gives more reasons to be worried and suspect it might be a scam broker. Overall, we advise you to be very cautious and do thorough research before investing in this crypto broker.