Profitcoins
In this review we provide explanations why Profitcoins is a cryptocurrency scam.
Profitcoins.io claims to be an arbitrage trading platform for cryptocurrencies. This means that it buys cryptos on exchanges with a lower price and sells them on exchanges with a higher price. The difference between the prices is the profit.
Profitcoins claims that they can make you more money when you use leverage. But this doesn’t make any sense. Leverage can be used with derivatives, such as CFDs, when the broker lends you money so that you can open a bigger trading position.
But leverage cannot be used with arbitrage trading, since you are buying the asset (cryptocurrency) directly. So, no leverage can be applied and Profitcoins is lying.
We had a look at the demo to see what trades Profitcoins takes and it was another nonsense. As you can see on our picture, the trades had only tiny difference between the buy and sell prices, ranging from 0.03% to 0.06%.
Such trades cannot be profitable, since crypto exchanges typically charge trading fees from 0.1% to 0.25% per trade. This means that these trading fees would be far bigger than the profit from Profitcoins trades, so you would be losing money.
Not to mention that one of the trades had a negative price difference from the start, the sell price was lower than the buy price. A sure loss!