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This is a translation of the original article located here:
https://bitcointalk.org/index.php?topic=5058626.msg47345560#msg47345560 (https://bitcointalk.org/index.php?topic=5058626.msg47345560#msg47345560)

Friends, let me tell you about one amazing rule that will allow you to save a lot of money. Now on the forum there are unpleasant trowels about trust managers who have been turned into fraudsters. It pushed me to share my thoughts. Please do not take this as a desire to teach you life. This is not true. I will simply tell what I adhere to myself and hope that this will help you too. So let's formulate this most important rule:
 
  If someone offers you to invest in something profitable and at the same time offers a fixed percentage of profit per month (especially, and especially if this percentage is significant), then you have a fraudster. Stay away from him

No one will ever be able to provide you with a fixed percentage of profit per month for any substantial long-term period. No one, never for anything. Is that the Lord God, but he is unlikely to do it). You may have a reasonable question: "Why?"
There are many reasons here. I do not know them all, but I will give only those that seem reasonable to me.
1. Markets are constantly changing. They change in such a way that the profit can get a minority to the detriment of the majority. And the minority is constantly changing. This does not mean that you cannot be successful in the long run. You can. But in the short term ALL traders periodically either sit in drawdowns or in losses. And sooner or later it can be so serious that such grief - the ruler of other people's money simply cannot physically pay the declared interest to its depositors. In this case, scam comes and sobering.
2. Argument from the contrary. Imagine the impossible. What really is a miracle on earth is a trader capable of consistently making at least 10 percent of profit per month on any long-term basis. I hasten to convince you that such a genius of trade trustees of their funds are not needed. Using even quite an average initial deposit of, say, a couple of thousand US dollars, this wizard of the market can make a fantastic fortune in a reasonable time. Which will suffice not only to him until the end of his life, but his great-grandchildren will remain. It's all about the so-called compound interest.
The formula of compound interest is googled in a couple of minutes. We take a calculator and count.

Here is the compound percentage formula for our rule:
 X (1+ (Y% / 100)) to the power n
where x is the initial deposit amount, Y% is the monthly interest rate in percent, n is the deposit term in months.
Suppose the initial deposit amount is $ 2,000. Percentage per month promised to you - 10. Contribution - 12 months. How much will we get from such trading in a year?
 We consider: 2000 (1+ (10/100) and we build all this to the 12th degree (!!!). It turns out: ~ 6276.85. Not enough?
And where are we to hurry? Wait, do not rush, everything is still ahead, we are a miracle - traders and do not forget that we are starting from a relatively modest amount, but we have already done roughly X 3.13 in a year. Let's look at how much our capital will grow in the following years:
The second year_6276 X 3.13 = 19643, 88. Not bad at all, right?
Third year: 61485 (here I’ll further round the numbers, removing the values ​​after the comma, so the real numbers will be even higher)
Fourth: 192449
Fifth: 602365
Sixth: 1885404. As we see our miracle - the trader has exceeded one million in just the sixth year of trading. Once again I ask: why should he mess with depositors? Well, okay, let's go on.
Seventh: 5901317.
Eighth:> 18,000,000
/// /// /// ///
In a couple of years there will be a billion, and a trillion dollars this trader will earn within fifteen years. Further consider not see the point. I think from the forum bitcointower, he will leave much earlier)

TLDR: don't trust anyone offering you a fixed rate of return, if it sounds too good to be true then it probably is. Great advice but very much over-complicated here.

A fixed return is possible if the creditor is absorving the risk.

Creditor runs risky investments using your money, but gives you fixed returns in exchange for lower yield. This is fine as long as there's oversight over liquidity to guarantee the fund manager didn't lose it all - it'd then become a ponzi.

The thing is only those who want easy money would want a fixed percentage of profit per month or a fixed percentage will always attract those who think cryptocurrency is all about the money and not the technology. It will always be something more than that for people to start investing in it.

I always have two rules for a fraudster.

1. If it is too good to be true, then it probably is.
2. If you need affiliates to earn some money, it may be paying now but who knows how long it will last?

Possible yes, just not the rates that people offer in many circumstances. This post hints at it. If someone could even make only 1% a day, that compounds to be a 3700% increase in just a year and a 142700% increase in 2 years. Why if anyone had a system that could create so much would they offer to let someone else access it for just a small fee or anything else? Anyone offering a guaranteed return of over about 20% (even that is precarious) per year is almost certainly working some sort of an angle.

I read the original post. I agree that promises about fixed monthly profits are a bad sign. Unless, of course, we're talking about really low percentage that is sometimes offered by banks. Anyway, if there's a contract, I think that it's okay to take such an offer. In case you don't get what you were promised, you can sue this person. However, the whole post is basically just about this single tip of not taking the offer that is too good to be true. What about some other trading tips? I mean, taking an offer with regular profits and no legal background that supports such promises is surely a waste of time and money, but there are so many other complicated cases people would probably be interested to learn about.

I remember all those HYIP scam crypto companies 2 years ago.All they've had was a decent looking website saying "Invest now and get 5% return per week,guaranteed!".All those lies about how they have an awesome trading team/trading bot tha's going to make 5000% return of investments and all the other bullshit.
Nobody should fall into this "fixed return investment" trap.

Your correct but a lot of these scammers offer unrealistic rates that will never be reached.  If anyone had such a sound strategy they could come up with at least a small amount of money themselves and grow it exponentially without needing outside funding sources.

As I read this it is kinda easy to say but I find it very confusing and hard to do in a actual trading and investing. But I guess it is worth to try though.

the rules are at least like bitcoin because I learned from my friends to get to know investors and I have trouble investors at this time

Julien, thank you for sharing this with us and to some of us that has been long in trading this is a great remainder and for me in particular I am not taking this advice and rules for granted.  Trading is a game and we should not even go into trading without developing our understanding on the above rules.  I have given advice to many traders especially the newbies on how to trade and i always told  them that they Should look for rules they can follow.

For some people like me, trading is very risky because market fluctuation very high. I am prefer invest and hold it for long term because i see the potential of this market. Its true that trading profitable because its making profits from market fluctuation but it need trading skill and dicipline on our strategy

besides that experience in trading becomes very important to support skills in trading. many are only aware of the profits they get, without knowing the risks, and that will backfire for themselves. for those who have experience in trading, high fluctuations become an advantage for them

traders like high volatility in market.this movement create huge opportunity for them to generate profits.so more expert us in analize market more opportunity created for us to gain profits.

It is easier said than done, thee is no trader in this world that would go a day in a year with consistent profit, we need to be realistics, anyone promising a fixed profit is running a ponzi scam, flexible return is possible provided the person is transparent and discipline, most trader end up losing money and there is a reason fo this, you are privy to all information

but we also have to look at the market conditions, trading in a moderate market condition, bearish is also very bad, inaccurate analysis and cause us to take the entry at the wrong time. The level of risk usually has a higher level than the expected profit

This sounds like a dividend and unless they are charging dividends themselves, I agree that it is hard to pay out that much money.
Now on the other hand, I have some bots working and they are providing me profits all the time. The more money I have, the more money they provide.

Not only you, but everyone knows that trading is a very risky business. Don't believed on anyone saying that it's easy to make money in trading, otherwise those guys are lying.

It's likely that the offer OP has posted is a scam because there's no fool-proof strategy in trading or investing. The compound rule looks very enticing for newbie, however you just needed your common sense to tell you that realistically, that's not possible so just be careful.

Thanks for the comment. By the way, in the original topic, one of the users shared the idea of a bank deposit. I forgot to say this. The idea is that if someone promises a fixed yield significantly higher than a bank deposit, then he does not need to collect depositors' money. If you are a miracle trader, then take a bank loan and trade. But fraudsters do not want to take loans from a bank.

Investment is risky...all form of invedtment jave the same degree of risk. It is dependent on the amount you put up for investment. My additional guideline or rule which is the basic principled applied. Invest only what you can afford.Small investment small possible losses, and it goes just the same with higher investment with high possible losses. Investment is to gain profits but if you place your investment to a wrong coin or project contrary to high value profits then you migth have a problem.Invest only the amount that is not committed to anything.good luck

absolutely because to get good and good things must try first, because with us not trying it will not know how to do good and profitable things too

Precisely, these schemes and models might work great for a few weeks or even a few months but they'll still have bad periods, just like even the very best traders do. Therefore offering a high fixed return is never feasible and is almost certainly a scam.

I never believe into HYIP kind of programs which are saying like paying interest on daily basis or weekly basis too. That is very much impossible for any business. But, in my country banks are paying around 0.5% interest rate monthly (actually they are doing per year basis and the rate of interest is around 6% to 7.7% and I'm taking the least one and on monthly basis).

Basically I'm not always ready to believe any new investment opportunities but I am looking for gaining some monthly interest from banks. I believe like 1% of fixed percentage profits will be possible for any business. But, profit sharing like 10% or 25% must not be true. We must stay away from them.

Even best traders are also finding failures time to time. If there are best traders existing then they might be having their own capitals to risk and will never look for others money for their trading purposes and they will not mess up things like paying interests periodically to others. It means, they are making losses that is the reason they need new capital and that is the reason they are offering such a profit-sharing schemes.

I am agree with this. In any investment market, there is market fluctuation. I am believe every investment we made, there is profitable investment and some investment loss the value. I think we should not trust to people who offering fix rate of return or promising big profits

Yes I’m in support of your number one rule, that it is not working out right now doesn’t mean it won’t work out tomorrow. Some people usually call it a quit whenever the market is no longer on their good side, they always think that the market is meant to benefit them always, forgetting that it goes round and does not favor everyone at the same time. Just have patience and wait for it.

As I understand your point is to make it clear for people that don't believe in dreams where someone promises fixed returns and for great trader, huge amount of money isn't needed. I won't talk about first one because that's scam, yeah, but second one, that's not so easy. Doesn't matter your skills, you can't decide future and you can't be that super lucky, I mean alone trading can't bring you much but other activities all together, depends on how workaholic you are...

but sometimes there are still many people interested in that. by offering attractive offers they can still get victims. therefore logical thinking is the key to not falling into the trap

It is true the OP used too many words to explain something really simple but I appreciate the effort he went through to explain as clearly as possible why it doesn't make sense for someone to offer you a fixed rate of return, the problem is that many people will still fall in that kind of scam because they are looking for a way to make easy profits without making any effort themselves and when you add greediness to that mix then it is obvious what the result will be.

Fixed rate of return on investment is a scheme used to attract investors, that tends to fail at the long run, several factors do have an impact on the means of return on investment, I invest base on the product or service are project developers are out to deliver.

Too bad most people here think money grows on trees. It's so easy to set up a site, offer cloud mining contracts (where you in reality aren't mining at all), promise people 200% annually, and you will at least trap in a couple of dozen noobs. It might not sound like much, but when your initial investment in terms of time and money to set up the site doesn't exceed $100-$200, but people's deposits are worth thousands, you have booked a 10x return without much effort.

If you have a longer time horizon, you offer less rewards, but pay out people during the initial phase to have noobs shill your platform because they "earn" money, you will have even more success. On average, these platforms don't make it past the 12 months, which we have seen with Bitconnect as well.

The best investment is Bitcoin itself, or even other cryptos directly, but people always chase the wrong investments. ::)

That is just due to being greedy. I have seen many people are asking like "where to invest my bitcoins" or "how to multiply my bitcoins". In my opinion they are forgetting that their bitcoin itself a wonderful investment vehicle, instead of securing it, they ate looking for risking that gold laying goose. Greedy people always easily get trapped by scammers one day or other as they rush for multiplying their capital, their brain goes fade away.

When no market is stable and not yielding in fixed rate then we cannot expect fixed returns for any investment. I guess only banks will be able to offer such fixed returns for our capital. But, world wide interest rate for fixed deposit is not good compared to what we do get from crypto investment opportunities.

Most of the investment that said fixed percentage is almost a scam, when they unable tonpay again they will just flee, when we want to invest we need to do research and think logically, if there is an activity that always gives profit then they wont be needing our money

Yes.Before making such investments,make sure you know what is your investment all about and how can you make profit from it. A lot of scammers today are convincing the investors to invest because the profit is fixed or even doubled or tripled from your basic salary rate.Be careful with this kind of people.They may be sound interesting at first but in the end they will just leave you pennyless.

I do not really understand the topic OP but it states that holding is one key to a success of bitcoim investment as time passes by. It is just like suggested that hold now so that you will earn tripple or more fold of your invested money when you hold. Well, I just say that investing in cryptocurrency is difficult and risky so a holder must have a good decision making when trading.

Do not trust any unknown source that just become popular from some media . using price analyzing for comparison its great to help decide taking market action . And also the most important in crypto is " Be Realize with anything you face it " market always right .

A wise investor doesn't just believe with engaging and attracting words. If they are offering something beyond the limjt, then it is probably some kind of tricks and want fraudster to trap you. There is no easy money. Investing in cryptocurrency is also tough.

Being an investor it is a must to consider various factors associated with it. Most being the project, it's product, the backing team, partners associated with the project, funding team, public and private sale targets. Such a way more and more market values need to be considered, without which only on luck an user can invest what he afford to loss.

think simply, in the world of investment it is not possible to generate profits that are "equal" and fixed every month. if anyone offers it, they just cheat and persuade you to participate in their fake project investment. because we also know, crypto market is very volatile and is unlikely to produce the same value every month and is stable. there will definitely be a period of ups and downs.

Never hear any one about offering about some percent profit with investing your money on some project, keep away your mind like that because its really way how to make you faced scam investing and lost your money.

There are indeed common factors should really be considered first as an investor.There might be some other ways to validate things
but the goal is still one thing which is to make profit on any investment we are engage on. Knowing the project potential at first isnt really enough as
been said strong and dedicated team plus into its transparency.

Investing on new crypto project is always risky than compared to the altcoin and bitcoin investing since we know and can have some idea about what for people were using it but new project with just jopeful words might not convince many which results in failure of the project,so you could end up losing.

but if we are good at analyzing, we can certainly make a lot of money. experience is needed for that. by knowing the rules set, we will not get lost when investing, and not lose money in vain

Everything can be decide when things already happened, we can't assured that after researching and studying such projects will definitely give us assurance of succeeding with our investment, there's still factors that will comes up and delayed or prohibits the success of any projects that has
been introduced.

Be very observant and always use your instinct before placing your money.

A friend of mine got into one of these Crypto Ponzi schemes a year ago and he wanted to leave his job to market this full-time. He got a fixed return of 15% on his investment and huge referral bonuses for people that he introduced to this. I explained Bitcoin trading and Alt coin trading to him and how fixed returns on investments like this was a scam, but he ignored all my warnings.

The "Investment" / "Ponzi scheme" collapsed 3 months after our debate and he lost more than 90% of his initial capital investment. He also lost a lot of friends and even family that got burnt too. Now he blames the Bitcoin price for everything that went wrong with this.  ::)

Yup. I do remember my friend invested around $1000 on a scheme where they cheated him that this coin would yield him more profits. The coin name is "Onecoin" and you know what happened to Onecoin. Hence either choose the best ICO after complete study or just go with existing coin with good growth and volume.

Thanks a lot! Very insightful!

I have learnt a lot from this submission.
 The information provided is of immense benefit to me and I believe to a large extent other novice like me.
Thanks.

Many people who are good and analyzing the project and made millions in 2017 even fot failed at the bear market so actually the price of crypto influences the new project as well so good project need to be launched at the right time or it may also get failed.

As someone whose only experience "trading" is buying some alts in an exchange, I know it would be hard to have a consistent profit. Sure someone trading stocks may be able to spread the risk by taking money from multiple investors and diversify but it's no assurance that nothing will go wrong and all the money will not go up in flames.

If have money I can invest I'd rather just buy and hold BTC or loan it out to people I know.


But of course they'll just say that they may have come up with a good idea but they are too broke and have no access to credit to accomplish it themselves.

I think those who succeeded in analyzing the projects in 2017 are very different from the 2018 project and in 2019 there have been too many projects created so that investors feel bored because there are no good project developments that make many investors reluctant to invest anymore that making a lot of projects lately failed.

Rules that are very extraordinary useful for beginners who want to invest. But, from the calculations you do maybe for people who have large capital, is very easy, what about the small financiers?

Really they didn't find good project in 2018? But what about the project of 2017,how much of them got into bigger level?

So all of the people were going with the flow not basd on analyse they just trust the words given by project team and investing for the short term profits.

Even if there is a possibility to earn it can’t be fixed the dynamic model more trustful then the same amount  you will get every period of payment that they promised

Thank you this beautiful and informative post. Unfortunately for people are greedy, and people who say they will give a high profit per month they know it.. peoples give a few months profit, then they lose everything at once...

Hey OP, you have a very nice post up there and I must say thank you for sharing.
The only way not to make great losses is to daily be on a look out for guidelines/rules applicable to trading. I do this search daily and I am always opened to learning and in this process I  have learnt that no investment is easy and all investments are risky, just that some investment are more risky, so the best rule is to only invest what I am willing to lose.

I don’t borrow or commit much money on an investment no matter how promising it may look

This forum of investment is equally for large capital people and low one because this is open forum no restriction to invest small amount of money or high amount of money, according to me if someone want big profit they can invest small capital but for long term and who wants quick profit they will have to invest high amount of capital, but at right time.

Just like a ponzi scheme investment who promise you a big returns and yet they failed to do so. Though this is a great rule, and a very helpful for every newbies. Investors whether you’re small or big still need to be more careful since right now, many fake projects are out in the market and scamming people. Don’t believe to any promises in cryptomarket there is no sure profit at all.

therefore it is necessary to have accuracy in choosing a project. although many are like you are talking about, but not all are like that, many are good projects, and have healthy development

That is a great truth!  We should not expect too much from our investment and when interest look too good to be truth then we have to be careful no matter who is promoting it.  The person may not get money to pay you any amount that is above the worthwhile interest.

there's no difference between those years  . if a person is smart in analyzing projects  , he can always choose a good project no matter what year or time . when it comes to rules , i think the is only one rule that all investor must follow and that is to buy low sell high   but some investors are just hard headed . they dont follow that simply golden rule  . they have come up with thier own rule which is unofficial and if they loose they blame crypto  .

You need more than just analyzing if you want to invest in new crypto because the new coins don't have a history before and you are only predicting the chance for that coin to increase higher. Maybe you need to wait more than 1 year to see the price increase and no one knows what will happen with the new coin.

But if you invest in the old coins which already have a history, you might get a chance to see the price get a pump or get an increase because the supports from people increased. I don't invest too much in new coins because I know that it will be a pain in my head if I cannot make a profit in less than 1 year. But if it's for day trading, then I think it is worth to try with the new coin.

I am glad you have gained a lot from this discussion, it is indeed a very useful post not just to you alone but everyone who is either already trading or intends to trade but the overall rule not stated on the post is always endeavor to commit whatever resources or many that you will be willing to loose.

Even the big traders and trusted trading sites with all the assurance of paying back to lenders do not take loans from banks and I am sometimes tempted to ask why they don’t do that since they are so sure. So the point is, trade only what you can lose

I love this article, the op makes a lot of sense in writing this. That number one point is really the main thing here, avoid those that makes such promises. Though to me, I would say that people who don’t know anything about ICOs should better stay out of it. I hardly invest my time and money in ICOs.. I just take a chill till I see something that is really good and promising.

I don’t think there are many good opportunities, most of them are scam, like seriously, lol. Based on my personal experience most of the ICOs I see are just copying what the others have done and they don’t try to create something new and unique, just the same thing that others have done. You should avoid ICOs like this, they are scam at times.

If you really value your money you should not trust their first comer. learn how to manage them and with the help of your head you will achieve much more success than for you it will make a bot or Manager. BUT this need to still learn to - not have all the cold head.

It is really great that newbies are reading before they are investing now which is totally what we need, just a year ago or so people jumped in both feet into many things including bitcoin and ethereum but also brand new ICO's as well so right now seeing that new crypto people read general information before they start investing is a great feeling.

Moreover, they should also note that not all things you read will be a wise information, some of them will be useless and just plain wrong, I am not saying this one is but I am just saying there are ones like that out there. Read stuff and than read the replies for that stuff as well which makes the worlds difference, you can read something that makes super sense to you but if there are many negative responses than maybe its not really a good post.

    I have an investor rule for myself, only invest in what you believe in long-term. Short-breath investments are too risky, they can be
profitable but at what cost and how much profit? Long-term investment in under-going project is money you have now to worth
millions in +10 years. We are in that situation now, we can invest dollars and have millions in future.

What makes the new projects risky is because their fate is yet to be determined after listing on the market. One important thing is, not all these new projects are worth investing in because some may end up unsuccessful due to inexperienced team management or poor product and idea which cannot attract the interest of investors. This is why a personal research is necessary before investing in new projects.

This days it is very difficult to see an altcoin that is more than the ico price.  Most of the projects that were louch last year are currently below ico price and that makes it very difficult for people to sell except the bounty hunters as it is not good to sell below the cost price.

Do not invest when they hype is much or when lots of investors are taking profit, it is obvious that's the peak and the peak, diminidhing return set in,Ensure you research using several review and personal study.
Invest in product/ project with past proven success record.

Times have changed since 2017 and 2018. People don't see icos as attractive as they were years ago because of all the scams and bogus projects that wete launched just to get people's money. If i were to invest in a coin, i'd likely go with a coin that has an established foundation and an already working product.

This will help but I guess I won't be doing so because of a lot of computations to be followed. This rule may be a good one yet, I will be sticking to what I have already been doing in my investments.

maybe in the current conditions and conditions as investors must be able and clever in seeing every opportunity that will be obtained in any investment with crypto currency because investment with crypto currencies is very risky

Being worry about what had happened and not being confident to do something this year is really bad things because no time will remain the same, if price was down last year so it will rise again and then it will give you profit, so the only best and important rule is to buy at red means fallen price and sell at Green or at high price, in short take advantage of bitcoin volatility.

Thanks for sharing this one bro. You should be wise when it comes in investing to avoid getting loss. Being oriented on what is happening on the market will really help every investors. Knowing the all the terms all about cryptocurrency will really  help to indicate when to invest. 
We don't need to expect big amount of crypto on your investment especially if you only invested little amounts of money.

knowing that of course we will not be surprised and violate the existing rules, so that our work seems not in vain because it violates the rule. of course this must be considered properly

I get a red signal when the price at PRE-ICO  is quite very low, couple with high bonus allocated to investors compare to the price at ICO, also the team involve in the project must be traseable with verifiable good past track record

They are not necessarily intentionally lying

As these people might have in fact made easy money with Bitcoin when it went straight up for a couple of years. If they were lucky to buy low and then sell high, it may in fact feel like it had been an easy journey for them. But as these days are most definitely over, now we have to slowly grind ahead as there is less opportunity to earn money and more opportunity (if I can say so) to lose it. To put it differently, now we are in the mainstream where only a few select earn consistently while the rest of the pack is mostly losing

The great volatility days is over when we do see price swings that almost 30-50% on a short span of time which can really give out possible profits
but now we are seeing different and as being said we would need to grind hard now yet price movements arent really that big when it comes to percentages but somehow
risk of losing in an instant is less compared on huge price swings.

Become investor is hard without know details of ICO and altcoin investing, many investor have lost much money because always make investment on fake ICO and always wrong time for investing and buying some altcoin.

For sure team work is very important and they must have well determination about future of crypto as our entire investment is on their shoulders, so if the market of any ICO  project gets red zone, we should invest as it needs small amount of money to be there but whenever you leave you will be able to make huge profit, the only rule is buy red and sell high.

therefore analysis and predictions that mature into the main step before investing in ico. many ico are scam, but there are also many good ico, so our job is to sort them out so they don't lose funds, it's very scary to meet ico scams, because they raise funds and take them away

Well, it looks like these days are not quite over yet

But this is what we should have expected (and I have written about it a few times in the past). If money leaves the cryptoscene (e.g. due to a very long bear trend and then a stagnant market which this trend culminates in), we should in fact see increased volatility without turning into an established trend over time

This is set to to happen because less money is synonymous with less liquidity. But less liquidity means that the market becomes susceptible to sudden pumps and dumps. So if after today's pump comes as powerful dump, this theory should be deemed confirmed as I am disposed to think