Cryptocurrency is an industry that's attracting a lot of excitement and a lot of scammers. cryptocurrency is an emerging technology and it hopes to replace traditional money its major appeal that is decentralized which means there's no authority like a bank or government. Overseeing the virtual currency the idea. Many people take this advantage of scamming. One of the methods is HYIP.
I wanted to explain about this high-yield investment program and why they are a scam? what are these high-yield investments program? They are just companies that take your money with the promise that is going to give you a high-yield return. The problem here is that they give you a certainty they will tell you that they will certainly pay you a certain amount a year a month or even a day. We cannot have daily profits from the market it's so volatile that you cannot have daily profits even the forex market okay which is one of the less volatile markets. You cannot have daily profits it's almost impossible to have the same profit every day even I mean the same profit every year is quite impossible but having it every day is a Nutopia and doesn't exist.
Their problem also is that they give you a high-yield return and that means even going up to 10% a day. I'm not kidding they will promise you to pay you ten percent are day but you know what maybe you are that kind of guy who likes risks and who knows that it's going to be a scam but you say yourself well if I put $5,000 there today the next day I will have 5500 dollars in 500 profits then I take the money away and I have the profit with an almost free risk. unfortunately, that's something you cannot do because they will lock your money so they will lock your money for a certain amount of time they won't let you take your money away in one week or two weeks. They will have you lock the money for a couple of months maybe even a year on top of that they convince you to re-invest the and that's something really important because they don't have the gain so they need you to re-invest gain and not take away the money what is this game called well it's one of the oldest scam methods is the Ponzi scheme.
Now let me explain a little bit how the Ponzi scheme works. Ponzi scheme so basically a pyramid. You have a pyramid where you have the entries out here and you have the older guys up here the thing is that this pyramid scheme needs always new inflow of capital. So people that bring the money in why is that because you're going to pay the interest of the older people with the money of the new people so you always need new people and many new people. It gets exponential you know it's unsustainable at one point the Ponzi scheme will fall it has to fall and when it falls the people up here already took your money and also the people who started the Ponzi scheme are the ones that will get rich. They will take the money and go away so when these companies when this high-yield investment program cannot find any more people to bring intake close and then get away with the money and not just your profits but also your entire investments.
These companies are also usually in tax havens. Why there are in tax havens because the regulation is so low that these scammers can get away with almost anything and also think about this if you invest at $5,000 in that investments program are you going to sue a company that is outside your country because you're going to pay a hell out of more than $5,000 to sue that company. So that's also a good hedge these companies.
Why people fall in these scams it's really easy because people normally people don't want to work. I give you an example One of my friend told me why you are working in Fiverr. It's so tough to find a job. I don't have the patience to start learning graphic design. I will invest in an HYIP site. I don't need to learn how to trade. I just need to invest and wait. After a few days got 100$ Profit.When he invest 500$.Then they told my friend you got 100000$. You need to pay 20k usd for tax. How lame excuse.
In the end,if you want to take a risk. I have advice that is don't invest again and again in same website. Invest low amount.
This is my first post.If I make mistake pleaseForgive me as newbie.
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