Hello everyone, I am Paul from Crypto Odd Talk, currently sharing my insights in the Binance official group. If you find Paul’s words helpful, give Paul some attention, and I will share more with everyone later.

Let’s start telling the story.

Xiao Li is 26 years old this year, and he is a newcomer to the cryptocurrency world. He was introduced to cryptocurrency by a friend and usually looks at others' trading experiences in Binance Square. Initially, he approached it with a learning mindset, but unexpectedly, this casual browsing led him into a carefully designed trap.

One, encountering the sharing of 'big shots'

One day, Xiao Li saw a profit statement on the square. The screenshot showed that a certain ID earned 300% overnight in contracts. This so-called 'big shot' wrote:

'The trend is here, as long as you dare to follow, opportunity is wealth! Brothers, those fated to join the group, let’s fly together!'

In the comments below, there is a chorus of envy, with some shouting 'the teacher is amazing', others asking 'how to join the group', and some saying 'following the teacher made a fortune'. Xiao Li was tempted—he originally only bought a bit of BTC and ETH sporadically, with limited returns. But seeing others make tens of thousands of dollars in just a few days made him start to itch.

So, Xiao Li clicked on that post and casually joined the Telegram group link left by the big shot.

Two, the 'gentle traps' in the group

As soon as he entered the group, the administrator warmly welcomed him: 'New friends joining the group, the teacher will lead everyone to stable profits; feel free to ask if you don’t understand!'

There are hundreds of people in the group, and messages are sent out every now and then:

  • 'Thank you, teacher, I made another 30% today!'

  • 'Following the signals entered successfully, turned the position around!'

  • 'VIP strategies are so stable, it's simply delightful!'

The seemingly active atmosphere made Xiao Li trust more. Over a few days, the group owner would regularly send out some 'free strategies': for instance, suggesting to go long on BTC at a certain point, with profit-taking and stop-loss settings. Xiao Li tried following once, and indeed made a small profit.

'This teacher is indeed impressive!' Xiao Li thought to himself, secretly pleased.

Before long, someone in the group began talking about the internal VIP group: 'The public group only shares sporadic opportunities; the real profits are in VIP, and the teacher will guide one-on-one.'

The administrator added: 'VIP only costs 1000 USDT for a year, which is nothing; you can earn it back with just one trade.'

Xiao Li began to hesitate. 1000 USDT is not a small amount, but thinking of those profit screenshots made his heart waver again.

Three, inducing increased positions and losses

In the end, Xiao Li still paid the money and entered the so-called VIP group. At first, the signals seemed reliable, making some profits and losses, but overall, there weren’t any major problems.

Until one day, the 'teacher' issued a serious instruction in the group:

'There will be a big market movement tonight! This is an opportunity to double your position; everyone go all-in on ETH, target price XXXX, no need to set a stop-loss, this opportunity is rare!'

The 'promoters' in the group immediately flooded the screen:

  • 'I went all in!'

  • 'Follow the teacher's signals!'

  • 'Brothers, don’t hesitate, just do it!'

Driven by the group atmosphere, Xiao Li gritted his teeth and increased his position, nearly betting all his funds in the account.

However, the market suddenly reversed, and ETH fell instead of rising. Xiao Li’s position lost money all the way, ultimately leading to liquidation. The money in his account vanished overnight.

Xiao Li panicked and immediately questioned in the group: 'Teacher, didn’t you say it was stable? Why did we lose everything?'

The group instantly fell silent, and then the administrator replied blandly: 'Investing has risks; operate with caution.'

After a while, Xiao Li realized he had been kicked out of the group.

Four, the logic behind the scam

Xiao Li later understood:

  1. The sharing in the group is mostly fake. Some use Photoshop to create images, while others use simulated trading screenshots.

  2. The 'promoters' in the group are not ordinary investors at all. Those who shout 'the teacher is amazing' every day are actually the 'actors' of the scammers.

  3. VIP fees are essentially a way to harvest. The membership fees paid by newcomers are the profits of the scammers.

  4. Rebates and reverse orders.Some signal groups will ask everyone to open contracts on certain exchanges, making money from rebates, and even deliberately shout reverse orders to make retail investors lose money while they pocket the commissions and betting profits.

Xiao Li’s money was not only harvested by the market but also calculated by the scammers' tricks.

Five, awakening and warning

After experiencing this liquidation, Xiao Li’s heart was completely cold. He began to reflect: How could a truly capable trader be flaunting profit statements in the square every day and earnestly pulling people into groups?

If there were really stable ways to make money, they could quietly make money themselves instead of spending time helping strangers 'get rich'.

Xiao Li gradually understood that the information in Binance Square is mixed. Those sharing their profits may be scammers or just trying to earn rebates. For retail investors, the cost of blindly following trends often results in the hard-earned money evaporating overnight.

Paul hopes you

There’s a saying in the crypto world: 'What others show is not profits, but traps.'

Those seemingly effortless stories of getting rich are often the opening of a scam. Real trading requires self-learning, thinking, and taking on risks, rather than entrusting fate to a stranger 'teacher'.

Xiao Li's experience is a microcosm of countless 'copy trader scams' in the cryptocurrency world. May latercomers not repeat the same mistakes:

  • Do not easily believe strangers’ profit-sharing;

  • Do not casually enter so-called 'VIP groups';

  • Do not entrust your funds to others for control;

  • Don’t fantasize about getting rich quickly.

In this market, the only thing that can protect your assets is your own rationality and caution.