In the world of cryptocurrencies, where growth opportunities seem limitless, fraud is thriving. One of the brightest signals is the promise of unrealistically high returns.
When you are promised a return of 10-30% per month, you should be wary. Even the most successful investment funds and traders can rarely guarantee such figures. The promise of high and fast returns is a classic sign of a Ponzi scheme.
If the project cannot clearly explain exactly how revenues will be generated, this is a cause for concern. Reliable investments have a clear business model and transparent sources of profit, while fraudsters often use complex or obviously unclear schemes.
If it is necessary to attract new participants to receive the promised income, this is a sure sign of a fraudulent scheme. In such projects, the income of the first investors is formed from the contributions of subsequent investors, which is unstable and doomed to collapse. If the project under the guise of an exchange, be sure to check the availability of this exchange on aggregators such as CoinMarketCap, Coingecko, Cryptorank.
If withdrawing your earnings requires you to make additional payments first, this should be alarming. In legitimate projects, withdrawal is not conditional on making new payments. This technique is used to lure more money out before the scammers disappear.
Be vigilant and always do a thorough analysis before investing in cryptocurrency projects.
Aibiemka
