Investments are a great opportunity to build wealth but like with most great opportunities, counterfeits abound.
So! to do what we can to keep you safe in these "Investment Streets” we have compiled some tips to help you avoid investment scams this year:
- Do some research: we know… research can be boring, but! Think about it, it is better to spend some minutes googling and asking around about this great new investment opportunity you found than to loose money! Do what you can to avoid stories that touch, you'll be glad you did!
- Be cautious of opportunities you need to pay for ON THE SPOT: If they are trying to get you to invest right there and then the first time you are hearing about the opportunity? It might be safest to pass on it. Yes, some investment opportunities could be time sensitive, but you should not feel like you can’t even take a second to think and decide. Having to make a decision under "duress" is tricky and should be avoided if possible. When making important decisions like where to invest your money, it is important to be level headed to some degree and able to make informed decisions.
- Understand the Ponzi scheme template: If you NEED to invite 10 of your friends, if there is no clear structure for how profit is being made, if the returns are always, always consistent… Chances are, it is a Ponzi scheme. Knowing the basic template of how Ponzi Schemes operate will you help you smell them from a mile away and avoid them. With Ponzi Scheme's, no real profit is made, it's basically taking money from A and giving it to B so what happens when B decides to pull out? C is left empty handed.
So, now that you know a few tips to avoid scams this year, we hope they help you sort through opportunities and pick out ones that are viable and worth it!
If you have any questions, feel free to leave a comment, we'll be happy to help!