In today’s post, we are going to be talking about a crypto broker who has had a bad reputation in the industry for a long period of time i.e., 28Crypto which operated both 28crypto.com and 28crypto.com.au. Their platform looks outdated and they are known to make many exaggerated claims, but as expected, they never hold their end of the bargain.
While the kind of products offered by them might seem very interesting, never make the mistake of trusting them blindly or else, you will get hurt financially. After all, when it comes to online investing, safety and security of the funds should be your number one priority.
License and Regulation
Ever since the inception of online brokers, there have been countless scams in the financial realm and regulators for the most part have failed to eradicate them. As consumers of the financial products, it is our duty to make sure that we deal with only regulated entities regardless of the kind of benefits other alternatives might feature.
28Crypto.com does not disclose any of their licensing information on their platform. Personally, we ran a thorough check on all the major financial regulatory bodies and just like we anticipated nothing relevant showed up.
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So, without any doubt we can say that this broker is not overseen by any authority and that is not a trait which should be entertained by the retail investors. The brokers who are regulated by entities such as the FCA and the CySEC are always more reliable because they have strict policies.
Moreover, if they fail to adhere to any terms laid by law, then you can take legal action against them. Since, this broker is not regulated, if and when high volatility occurs they can manipulate the price to an extensive degree and there isn’t anything which can be done about it.
Given the history of rogue brokers, we can say with certainty that it certainly won’t be worth your time or money.
28Crypto Platform and Founders
28Crypto.com claims to support both android and ios platform. However, know that we were never able to access them for some reason, but we definitely are not inclined towards giving them the benefit of the doubt.
During our investigation, we were only able to check out their web based interface and it does have all the necessary features. If you are an experienced trader, then you might miss having the privilege of using custom tools and automated strategies.
Lack of MT4 and 5 platforms might be a big deal breaker for a majority of retail clients. While the web based platform is pretty straightforward and easy to use, unfortunately it is simily a ficticous trading platform that operates similar to a real trading platform, however, there is no real trading taking place on the platform. The site 28crypto.com states that “28 Crypto is a brand owned and operated by Kerestir KFT located in 1054, Honved utca 8, Budapest 0109333115. ” After further reseach, it has been determined that this company is currently going by the name ProtoNetworks KFT and was registred by the Logosz Company Formation under the Krisztián Nagy, however, he is most likely a nominee shareholder. Our investigation team has connected the site to a company known as Pi Technology and are closing in on the real owners and their network of companies and brands.
Their domain data is protected by privacy services and looking at their entire operational model. It is undeniable that they are trying their best to keep a low profile.
Trading Software, Leverage and Platform
The main software interface used by 28Crypto.com is web based. They do not support any form of automation in trading commonly seen in the competitors. According to their homepage, they claim to offer upto 20,000 crypto pairs for trading.
However, we don’t think it is true at all. The kind of leverage provided by the broker is not mentioned anywhere on their platform and the fees associated with getting in and out of positions are also unknown.
In activity fees might be applicable, but to know the exact amount, you need to contact the support team. All in all, compared to many big and reputable exchanges, this broker doesn’t seem to offer any real services.
Deposits and No Withdrawals
The minimum deposit amount required to get started with this platform is not mentioned. However, it does seem to be dependent upon the kind of funding method you employ.
For example, if you are using Bitcoin to deposit, the minimum value needs to be above $130, for credit cards it needs to be above $500. We are not aware of the withdrawal fees, however, from the reviews, it seems that withdraw request are not honored. If you have no been able to withdraw, report it here.
Unlike many regulated brokers who go to extreme lengths to ensure the safety of the funds, this broker hides behind limited liability clauses. So, as an error if you lose funds by using the services provided by them, then you won’t be able to take any legal actions.
28Crypto.com Scam Reviews: Feedback from the existing client is one of the best ways to gauge a business. This broker over the last couple of years has built up a lot of bad reputation and you can find the comments on them by just doing a simple Google search.
Below, we have gathered a few testimonials from a popular forum (ForexPeacearmy.com) , check them out and see for yourself the kind of company they actually are.
My dad recently was scammed into investing quite a bit of money on a bitcoin broker called 28 crypto. It looks like the way they operate is to set up a wallet (on Sirix/Leverate) and then add in a bunch of extra money so it looks like you’re doing well, and then con you out of more money, and then as soon as you ask to withdraw they wipe the funds and account. If you try to withdraw it just gives you a notification saying ‘your financial consultant has been informed of your request and will contact you shortly to discuss’. I did manage to contact Leverate last night and we changed the account password, so I’m hoping this can buy some time – but also not sure if the ‘broker’ can still access the account whenever they want.
28Crypto.com Review Conclusion
28Crypto.com is one of the many shady brokers online who is just looking to take advantage of the people who are financially naive. Brokers like this one are known to employ manipulative marketing strategies and trick you into depositing with them.
Moreover, they all work for commissions which means the motive is clearly present. Cryptocurrency trading is an exciting venture, but do not try to lower your cost by choosing unregulated brokers. After all, transaction costs are negligible in the long run regardless of the kind of trader you are.