While cryptocurrencies continue to bring their investors, Ponzi and the Pyramids continue to defraud people.
I want to enter the subject directly without ever extending the word because this is really an important issue for crypto investors. While cryptocurrencies are gaining value day by day (at least, what is known), people can think of "how can I evaluate my crypto money?" or "How can I earn more?" questions are coming up and after a little research they actually come across some sites that will harm investors. Here is an important article you should read if you have an investment in crypto and a friend says "I found a site, there is a good profit rate, come invest".
Many people do not have the slightest trouble spending this money after having crypto money. Before buying a product with a normal value of $ 1000, "Is this expensive?" When people come to spend or invest in cryptocurrencies, people who think are able to invest or spend large amounts of money because they don't feel like they are spending real money. The eyes of malicious people who know this weakness of people are in crypto investors.
What is Ponzi / Pyramid?
In fact, many of us are aware of what this system is. Ponzi (ponzi order, ponzi system) or Pyramid is the name given to the system that people call “chain of happiness” in the world. The method, which was first applied in the 1920s by the Italian immigrant Charles Ponzi, takes its name from its first practitioner. The system actually works very easily. In order to enter the system, you need to invest and it is promised that you will get high daily / weekly returns. As long as the system collects investors, it really pays as much as the first investors promised. It uses the money of new investors to make payments, and the investors start depositing more money by saying “it really pays off”. This investment event continues to some extent and then the system becomes unable to make payments because the system cannot find a new investor. At this point, the founder or head of the system collects all the money in the middle and gets involved in losses. The money deposited by the last entrants to the system is gone.
How does the Ponzi / Pyramid come across?
As we mentioned at the beginning of the article, there are tens or even hundreds of ponzi / pyramid websites that people who want to convert crypto money into investment can easily come across through search engines. Bitconnect, the most well-known of them, started this system in the crypto world about a year ago, and 1 Bitconnect, currently valued by millions of members, about twenty cents, or a fifth of the dollar, is currently trading at $ 293. Although it is known by crypto followers that the website that has provided astronomical gains to its investors so far is ponzi / pyramid, many people agree to take this risk and continue to invest. It is difficult to predict when the system will collapse, but when the number of new members starts to decrease, we can say that the danger bells will start ringing for Bitconnect.
Bitconnect is not the only example of this issue, but many domestic and foreign websites also appear under the name of "HYIP" (high return investment program). Some of these sites have been open for a period of 6 months and subsequently have lost their losses, some have survived for only 5 days, and some continue to collect money from people, as they never paid. Since the sole purpose of these sites is to earn more money and defraud people, there is no guarantee that the system will not close tomorrow even if it has been paying regularly for two years.
A recommendation before ending the article
Now, if we take into account all that we said, let us give a recommendation to our users who want to evaluate the crypto investment. Never lend your cryptocurrencies, do not trust sites that promise 10% daily astronomical income, do not consider sites that claim to bring profit and have a beautiful design as a reliable company. Remember, crypto transfers occur anonymously and irreversibly. If you do not want to lose your money, stay away from such systems.
