Utah entrepreneur Matthew Poll was recently interviewed regarding cryptocurrency. More specifically, he was asked about cryptocurrency scams and what day traders should be watching for when trading it.
To watch the interview, click play on the video below titled Matthew Poll Scam or Scams to Watch For When Trading:
Matthew Poll Scam or Scams to Watch For When Trading Cryptocurrency TRANSCRIPT:
IS DAY TRADING CRYPTOCURRENCY A SCAM?
“It’s like yes and no, you know, it’s there’s not a direct answer to that. And what I mean by that is it cryptocurrency is so new. It’s this industry that some people are saying it’s gonna be the it’s the future, you know, and what’s happening right now isn’t like a once in a lifetime opportunity like this is a once in a existence opportunity that’s happening.
And so when you have something like that that’s got so much momentum, I mean we just hit, for example, we just hit over a $2 trillion market cap in crypto by itself, which is insane money.
So to say like, Is it a scam? Well, no $2 trillion coming from banks and investment firms and individuals wouldn’t be putting their money into something on that level if it was a scam. But are there people who because of all the hype, taking advantage of people that don’t know like, what’s going on? Absolutely, absolutely.
What to Look For
So there’s a lot of things that you want to look out for to avoid any scams. I don’t know if they’re particular to the state of Utah, or out in or outside of the state of Utah, but you mix day trading, and crypto. And you’re likely going to find someone out there who’s falsifying claims, taking money from individuals and trading it, maybe not getting registered properly. Or even running a Ponzi. Right, just an outright Ponzi.
And it’s not the industry, it’s the people. It’s not necessarily the vehicle. It’s if there’s money there, and there’s hype, there’s always going to be someone with a black cloak that comes in and abuses it. And unfortunately, you know, you’ve got to look out for that stuff. Because there’s a lot of good when it comes to cryptocurrency. And you just don’t want to get stuck in a scam, I mean, because they do exist for sure.”
WHAT OTHER SCAMS SHOULD CRYPTO TRADERS WATCH FOR?
“The one I would look out for the most the ones I hear about the most often is your lack of transparency and what’s happening. Like I would say, that’s the biggest way people get scammed anything, is they go on trust, or they go on feelings, or they go on some intuition, you know, something that’s just not factual, and they’re just not seeing the picture.
So the things I would look out for around day trading, and scams would be like giving your money to someone blindly. And not actually seeing the transactions that are happening. Not actually being verified return statements. And just trusting that like something that handed you is actually real, when in fact, they could be falsified.
It could, I mean, I hear stories about people that come to us all the time, who they’d given 10s of 1000s of dollars to someone only to find out that they weren’t even trading it, they weren’t even day trading it the whole time. And so it’s like, yes, that’s gonna be a scam, that’s gonna leave you in a bad position. But ultimately, that person’s gonna get caught.
Violation of the Law
Also, they’re ultimately going to be in violation of the law, they’re gonna get caught at some point, a lot of times, we call these ponzis. And you just don’t want to get stuck in the middle of that. Because ultimately, you’re just, I want to call it donating. But you’re, you’re just, you’re just giving your money away at that point.
So transparency would be the biggest thing I look for in anything that has to do with day trading. Transparency, testing, the more control you have, like, if it’s you day trading, obviously, that’s gonna be safer than someone else do trading for you.
Just because you eliminate that risk, you eliminate the risk of them running off with your money. Or not trading it at all and never have the trading it. But if at least you’re doing it, you know that risk is gone. And then it’s like, Okay, got it. Well, I’m gonna do my own trading. How do I eliminate any scams that might have been there? Well, the only type of scam that would be happening would probably be one to yourself. But you didn’t take enough time to test your system. You didn’t take enough time to like back tradee. Or actually verify that like what you’re doing was going to make sense.
Don’t Call It a Scam
Or I don’t even know if you’d call it a scam, but it’s just really just a bad practice. Like you just go in too hard, too heavy on intuition or a whim, rather than starting light, you know. And just doing a little amount you know, $1,000 versus 100,000 to test it. And to see if it’s actually going to work.
Whereas so many people, I want to say scam themselves by just going in too hard, too heavy in the in specifically with day trading. And a lot of the factors that motivate those decisions are class. Like they get too heavy in their investment in costs. Or they get, you know, maybe they spend a bunch of money in education. And they feel this force, like, oh, I’ve got to make that back every day. Or I’ve got to like, cover this old thing that happened in the past.
And it’s like, that motivation, will scam yourself into breaking your own rules, breaking things that are high, much higher and risk than something that you could easily have tested for $10. The now you invested 100,000. And why? Only they experienced more risk, right?”