Hey everyone. One of my good friends recently started crypto trading after being introduced by this woman claiming to be from Singapore, who works with a team of traders and analysts. I also trade myself, but primarily on the Forex market.
Now there's a lot that I don't know specifically about the crypto side of trading, but there were quite a few red flags I noticed from what he was telling me.
Since starting, he's apparently increased his initial investment more than 10-fold from following this woman's strategy. I know there's a chance of seeing those kind of returns given the volatility in crypto, if you're lucky, but he's only been doing this for less than 3 months. I don't see how a legitimate, well-thought out strategy with proper risk management would generate these kind of returns. I can understand if it's someone's first time and they're doing this on their own (basically gambling or yolo trading), but this is someone else's "strategy" he's following, who's supposed to be a professional. A disciplined trader who knows what they're doing wouldn't be encouraging the kinda leverage you would need to generate a 10-fold return, let alone encouraging him to deposit the amount of money that he did.
There's also a lot of jargon I've never heard before, but after some explanation from my friend, it still doesn't really make sense to me. I don't know if maybe he's explaining it wrong, but it just doesn't add up. And it's certainly not terminology that I've heard in trading before.
For example, he's supposed to be learning "mining" this coming week, which I thought was referring to bitcoin mining. But again either he didn't explain it well or this "guru" is feeding him a load of rubbish, because his description of it sounded more vaguely like a hedge fund.
I asked him if he's been able to make any withdrawals. He hasn't made any yet but says he's in the process of doing so. I fear that whoever these people are are simply taking money from people like him with no intentions of giving any of it back. But since I know relatively very little about crypto, I didn't immediately voice my concerns, although now I really wish I did.
There's probably some parts I missed, but I'm going based off of what I remember from our phonecall yesterday.
I want to give my friend the best advice going forward, but I want to relay that advice from someone who knows what they're talking about. Any thoughts?
