If you’ve heard of arbitrage, this site would interest you. However Coinstic is not your routine company and if you’re thinking of investing in this company, it makes sense to read through this post before deciding to act.
There are many sites on the internet that have devised several ways to attract investors. Some of them are good authentic businesses while some are just scammers hiding behind the web projecting enticing investment opportunities to steal from the uninformed.
What is Coinstic?
This is a company that claims that its owner is a sort of software expert that has developed a smart way of buying cryptocurrencies cheaply and selling at higher prices.
Insomuch that this is a possibility, we have been looking at the company’s antecedence and reputation to determine if its claims are verifiable.
According to the Coinstic site, its software is constantly scanning the prices of hundreds of cryptocurrencies to determine the differences in their prices in some exchanges in the bid to take advantage of those differences and make profit.
It focuses on the top 10 coins in all these exchanges according to the site, focusing on the fluctuations in the prices of these coins is the way the Coinstic makes profit.
In other words, it analyzes all these exchanges to know which is buying the coin at a higher price than what Coinstic bought it and immediately sells and makes profit from the difference in price.
What Does Coinstic Promise Investors?
The site stated that investors with the company would earn 90% from every profit generated by their investments while Coinstic takes 10%.
The site even has what it termed a “live demonstration of our system” even though there is no way to prove that it is actually a real-life real-time action being undertaken by the supposed software.
What is obvious is that Coinstic is interested in getting investment deposits from investors so we had to run a background check on this company to make sure that it is not just another scammer behind the site who would take people’s money and move out of sight or even take down the site.
Who is Behind Coinstic?
One important question to ask before investing in any project or site is the reputation of the people behind it. In the case of Coinstic, there is no indication of the so-called founder, neither is there a proof that this is a legitimate company.
Also, most people in the crypto community have not heard of this company, neither is there even a proof that it is authorized to render any form of financial service by the authorizing the UK, the country where the site claims the firm is operating from.
This is rather suspicious because from our experience, 100% of businesses that solicit for investor fund offering them high hopes through massive profits end up scamming them.
Even though some of these companies pay the participants a few times, they almost always end up exit scams because their primary interest is the funds because their business models do not have the capacity to pay what they promised as profit to all the investors.
This is why the only safe financial investments online are those that are properly regulated by the appropriate regulating agencies. This is to make sure that the funds entrusted to the company by the investors are not diverted to personal use.
What is the History of Coinstic?
A Whois search shows that the domain was registered on October 28, 2018 for just one year. This may be that the outlook of the company isn’t long-term or that they are just new in the service and still trying to build an online reputation.
In any case, coin arbitrage services are hardly mainstream in the crypto industry. They also are not known to solicit for investment since it has not been proven as a reliable source to build a portfolio around.
A Shady Company
This is why we do not recommend Coinstic. The fact that everything about this company is shady is the main reason why no investor should put money in this business.
Remember that when a financial service is not regulated, the chances of making losses are high. The more regulated a business is, the greater possibility that you will not be scammed of your hard earned digital assets.
Would Wall Street Take Coinstic Seriously?
This is why institutional investors are the ideal investors to copy. Would a reputable investor invest with Coinstic with its shady background considering that no information about the company behind this arbitrage could be found on the site?
What we saw with Coinstic are at best unsubstantiated claims that they are buying and selling digital currencies even though there is no evidence they’re doing anything at all.
Furthermore, what they have is a very new site which is a proof that the entity behind it is not experienced in their line of business if you assume that they started when the site was launched.
If You Have Doubt, Don’t Invest
Finally, we recommend that investors stick with sites that have provable testimonies from users because they have rendered reliable services for years to the community.
Such sites usually have relevant government authorities regulating them, so your funds are safe.
If you’re serious about investing your cryptocurrencies, check our recommendation where you can be sure your funds are safe and that you’ll make profit copying experts.
On a final note, although we are not certain that Coinstic is a scam site, it is not a reliable one. If you’ve had experience with Coinstic, please share it with us in the comment box below.