Cryptolux – The Problems with this Exchange

When Bitcoin was introduced in 2009, most people assumed that the cryptocurrency would eventually die out. A decade later, it has become the leading cryptocurrency in the world and has spawned a market valued at more than $2 trillion. Therefore, it is understandable why people would be interested in moving into this space and the demand for cryptocurrency exchanges has gone up as a result. These are platforms primarily established to help people in buying and selling the cryptocurrencies they want. Sure, hundreds of them exist, but their services can differ, as can their authenticity. This is where you will find this Cryptolux review helpful.

Individually assessing each exchange is time consuming and you will never be done with the choices because a new one is introduced every now and then. The best way to cut through the effort is to check the reviews of the exchange and this is what you should do in the case of Cryptolux as well. When you check out their website, you will find that they are promising you the chance of earning a stable, passive income between 1.16% and 3.84% on a daily basis, or even 50% in a month. All you have to do is invest in their ‘advanced crypto trading system’.

You will discover that there are two programs that Cryptolux can offer to you, which are Crypto Trading Program and Cold Storage Program and they are offering you the opportunity of earning crypto lux points. This is a new cryptocurrency token that has been developed for the Cryptolux exchange. All of this make it sound like a really good package for anyone who wants to benefit from the cryptocurrency market. But, there are a number of problems you will find. What are they? Let’s check them out:

It is not a crypto exchange

The first problem you will discover with Cryptolux is that it is not a crypto exchange, even though it advertises itself as one. Cryptocurrency exchanges allow people to buy and trade actual cryptocurrencies, whereas here you are only asked to invest money and promised a daily return. This means that if you want to invest in Bitcoin, you will not be provided a private key by Cryptolux that will help you write in the Bitcoin public ledger. This means that you will not be investing in cryptocurrencies via this platform.

You will also find that the Cryptolux website has logos of some of the renowned cryptocurrency exchanges, such as Bittrex, Binance and Bitfinex. But, this does not prove that they are working with any of these exchanges.

It does not provide any evidence

As mentioned above, there are investment programs available at Cryptolux that promise you returns on a daily basis and these are definitely impressive. The only problem is that they have not provided you with any explanation about how they plan on achieving these returns. Likewise, you will not find a proven track record of the platform’s historical performance, something that others do provide. They expect you to take their word for 50% returns in a month without any details and this does not make sense and is not practical at all. Moreover, they are promising you returns from the cryptocurrency market, which is known for its volatility and even the most experienced cannot and do not guarantee returns from this space.

It is not regulated

It is essential to check the regulatory status of the company you are dealing with. A look at the Cryptolux website shows that it is owned and operated by CryptoLux Ltd, a company registered in the UK. This means that it should be regulated by the Financial Conduct Authority (FCA), but this is certainly not the case. Hence, it is an unregulated platform that cannot be trusted.

Bottom Line

Due to the problems with this so-called exchange, it is best for you to avoid Cryptolux and look for a better option.