WARNING: Run if you see this signs….
The term Ponzi Scheme was coined after 1920’s con artist, Charles Ponzi. Today I want to share some tips with you on a rather controversial topic — PONZI SCHEMES.
We realize that a lot of people have been scammed in one scheme or the other and we decided to compile these useful tips for you, on how to spot a Ponzi Scheme and avoid it:
- It offers unrealistic returns, especially in a short period of time: When you plant a Tree, you have to water it and wait for it to grow and bear Fruits before you harvest right.. You Invest a seed and overtime, you reap a Tree with Fruits
This applies to your Investments too — Investing is long term and the longer the Investment, the better the rewards. Ponzi Schemes play on the lack of patience and the desire for INSTANT SUCCESS to trap individuals. If you want to avoid Ponzi Schemes, you must understand this fact — If it’s too good to be true, it probably is.
- You do not know what your money is used for: It is important to understand what your money is used for when you invest. If an Organization offers 70% return on your Investment, ask about what they do with your funds. How do they afford to make such high interest payouts in a short period of time? High risk Investors are in the right place when they invest in companies that Trade Crypto currencies but this type of Investment is not a good choice for low risk Investors who cannot afford to loose their funds.
- It offers low risk and high returns: This is another variation of Point №1. One of the principles of Investment states that: The higher the risk, the higher the returns and the lower the risk, the lower the returns. This is why Crypto can generate you massive returns in one day and crash the next day while Government bonds will leave you at consistent returns between 3–6%
While these Ponzi schemes keep getting smarter, you have to stay as educated as possible on issues regarding your money. Always do your due diligence and research the organization you chose to put your funds into. Ignorance can be a silent killer so stay connected with financial news updates.
We can’t guarantee that doing these alone will keep you safe from Ponzi Schemes but it’s a start. As you go upon diversifying your Investment Portfolio, please keep your eyes open and stay safe out there.
