Posted on March 01, 2021 from Dean Astilla
“I lost my money to bitcoin.”
“What happened? Where did you buy this ‘crypto investment'?
“What do you mean where?”
“IDK where, my cousin/friend/company invested it for me.”
“Hey crypto fam! Today, let's talk about the tell-tale signs of bitcoin scams so you can avoid them. You’ve probably heard at least once where unregistered and
unlicensed individuals ask you to invest your hard-earned money in crypto under their management.
These people use the hype of crypto to lure you into buying.
Even traditional investment firms are using them to attract more investors and appeal to the younger market, the Gen Z and Millenials who are the ones more inclined to new kinds of investment instruments, especially crypto.
But as much good as it has given a lot of people lately, scammers will always be one step ahead of those who are not knowledgeable enough about crypto.
Those people will take the name of cryptocurrencies to cheat money out of other people's pockets.
For this post let's talk about 3 tell-tale signs so you can avoid these scams!
When a 'fund manager' guarantees you a GUARANTEED or a FIXED RETURN, you gotta run for your life before he runs away with your money.
Crypto fam, we have to understand that there's 𝗡𝗢 𝗦𝗨𝗖𝗛 𝗧𝗛𝗜𝗡𝗚 𝗔𝗦 𝗚𝗨𝗔𝗥𝗔𝗡𝗧𝗘𝗘𝗗 𝗥𝗘𝗧𝗨𝗥𝗡. The only thing that’s guaranteed is that whoever you’re talking to is a scammer OR worse he doesn’t probably know what he’s talking about.
Even if you talk about THE BEST financial gurus, they will never guarantee returns from their investments and trades because…
𝑇ℎ𝑒𝑟𝑒 𝑤𝑖𝑙𝑙 𝑎𝑙𝑤𝑎𝑦𝑠 𝑏𝑒 𝑙𝑜𝑠𝑠𝑒𝑠.
Even top firms will only say, "Past data doesn't guarantee future portfolio performance."
If a 'fund manager' asks you to invite your friends or family to invest in bitcoin before you can start earning, that's most likely a Ponzi scheme.
They get will probably get a cut from your friends' buy-ins and give some back to you as 'investment returns.'
But the truth is, the money you put into their ‘investment portfolio’ will only be paid to whoever invited you.
Other 'fund managers' would even encourage groups of friends to pool their funds together to 'invest' it. Other investment firms other firms will never allow this practice to avoid being sued.
3. REAL-LIFE CONSISTENTLY EARNING TRADERS WILL NEVER ASK FOR YOUR MONEY
There's only one simple reason why: they can earn it.
If the ‘trader’ you’re talking to is actually good in trading and consistently earning, they would never need your money.
Sure, the potential wins are greater if you have a bigger capital, but other people are shouldering the risk of losing money that the 'trader' can't probably pay if he losses the capital since this unregistered ‘trader’ isn’t even insured.
I personally know real-life consistently earning traders, and they would never trade other people's money.
Take note of these 3 and you should be able to avoid most of these scams.
In addition to the info you just learned, you should also know the following:
*It's not exactly legal to solicit other people's money for investment unless...
*The soliciting individual needs to be licensed and recognized by the Security and Exchange Commission of the Philippines.
*The license SEC gives can only be used for stocks, NOT for forex and cryptocurrencies.
I know these scams smell so good, but there's no such thing as zero-risk investing. There's no shortcut to your first million (or even your 50th) whether it be dollar or peso and whether you're in crypto, forex, stocks, or in business.