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RE: How to Spot An Obvious Ponzi Scheme

in #bitcoin7 years ago

Thanks for the warning; resteemed.

I got burned by a small-scale Ponzi that was uncannily similar: the guy running it promised 1% per day derived form "trading profits." He was damn slick in that he sent out a 'bonus' on the day a closely-watched cryptocurency leapt up.

That 'bonus' is what hooked me. It never occurred to be that a Ponzi operator would be that slick.

Was I gullible....

As a backup help, here's some losses-won advice: if you end up buying into a crypto that promises high income, watch its price closely. As soon as it drops below "par" (the offering price), get the hell out. It's on its way to zero.

Under no circumstances buy more if you see it trading at a discount below its offering price. A discount in this type of "security" is not a buying opportunity; it's a red flag.

This advice covers any income security, Ponzi or not. An income-type crypto can be honest yet still fall apart. (Another lesson I had to learn the hard way.)

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It was an expensive lesson in crypto that many of us had. I know many of us who have had that lesson. I lost a bitcoin in 2012 investing it in a dice website that ran off. Failing, but learning, is the key to long term success.