Topic: How can I spot Ponzi schemes? - page 2. (Read 2301 times)

well it does not always hurt people because the early investors sometimes make some money out of it, but all in all it is a bad thing and if something sounds too good to be true then it is most probably just a ponzi.

How to Spot obvious Scams in Crypto - https://steemit.com/scam/@ash/how-to-spot-obvious-scams-in-crypto

Well my own method of identifying ponzi scheme is to google search and check reviews of that particular site, their ROI is another factor to be considered, high rate of ROI is clue and indicator of the scheme not lasting.

Well , that's a nice question for a newbie like you here. So you may not be a victim by the Ponzi scheme. It is a kind of business or coins who give any promises  big in return in your small capital in a quick period of time only. And the profit always comes from the capitalist. then in the long run they will runaway.

Apparently that's one of the hardest thing for other people to believe. There's no safe opportunity in this world. Every investment have its risk and the more risk an investment has, the more profits it can give you. Ponzi site has overused the words: "safe", "legit", "lifetime", and "investment". Those are total opposites of what they actually offer..

It's not legit since they don't even have any proof as to how do they multiply money in such short period of time. It's not a lifetime opportunity because they only run for a couple of months and run away when they think the time is right. And of course it's not safe since it's a total scam.

ponzi scheme is a thing that hurt many people. ponzi characteristic feature is that you promised to get huge profits. when you are only required to save capital there. that is the hallmark of Ponzi. we must be able to distinguish what is a ponzi and which are not. benefit from an investment of only about 5%. and Ponzi promised more than it.

This is the simplest thing to answer. Just ask yourself one simple question, this thing this people or site is offering, in a sane society, is it even possible and if not bolt but if you are still not convinced, just go type in Google xxxx review and be watchful of the date of the review you are reading and from there you can make a decision whether to part with your money or not. Furthermore, if you do decide to move forward, just know that you have 99% chance that your money is not coming back...

I guess, It isn't hard to spot or determine if a certain website is a scam such as cloud mining services etc. once you notice that they are offering a high return or ROI then they are surely is that is the very first sign that a site is a ponzi schemes . and some of them are offering a free capital to start in order to try their fake investment system which they think that can convince people to input more amount .

We need to be prepared for outside ponzi schemes too. Most of the ponzis, I do see are being advertised through faucets like freebitco.in and in some famous crypto news sites. We cannot find these site's admin on this forum.

Best practice must be we need to look for their source of income. If it is legit, then we can work with them. If they just circulation people's money then we must stay away.

Many of the schemes were announced in the forum itself. All must you need to do is check the op trust and feedback who creates the concern thread. Schemes such doubling, over earnings, high payment campaigns, cloud mining and etc. I hope most of the people have crossed across these kind of schemes at once atleast.

There is no safe investment at all even in real life

But some investments can be considered as fairly safe.
For example casinos that are a bit old and powerful seem like fairly safe.

There is no safe or legit investment opportunity online, think about it why would the people capable of earning profit want to share their profit with people like us? they are not idiots but they think we are that's why they offer these cloud mining or profitable investment opportunities.

That is a very good topic to talk with about spotting pozi schemes, and I say its very easy to know which you could really observe it in mining sites who offers investments to you. Their ways is very aggressive to get any investments coming from you, and they even more particular on the big profit offers and most of the ideas were very promising. I would highly suggest to make ghost investments to them and yet the real score results to ponzi schemes.

I agree with you. The easiest way to spot a Ponzi schemes whose owners intends to scam you is by the sugarcoated juicy offers. Of course, It's very likely that We all like such offers so we tend to fall prey to scams.




I agree with you to some extent. particularly MLM schemes are not entirely ponzi schemes (To some extent) because they make It clear that Earnings come from referrals.

Hey, new comer, you can figure it out when you can see a good and big offer to you. And mostly they use flowering words to gather people and scam them. In bitcoin there are a lot of ponzi schemes around, just open your eyes widely to see it and make some background check.

    First off, If the company is any way trying to sell you "Powers" or "Hash Rates" or "Ghz" or lineal feet of extension cords, I would be willing to bet the farm that they are a Ponzi.

    Now, having said that. I was very interested in these Ponzis in my BTC infancy and, much like yourself OP, started a thread about the ethics of investing into a suspected Ponzi just to snag a profit and get the hell out quicker than Nestle. I see nothing wrong with it as long as you don't risk more than you are comfortable losing and don't fall into the trap of watching your numbers grow on one of their "live" profit tickers that are constantly growing so that when you want to withdraw your Bitcoin, you may have second thoughts. If it is constantly on the rise, why pull it out now? Tomorrow it will be 25% larger. Well tomorrow it will probably be gone! Don't be drawn to the growing numbers, they are the siren song of your doom. I tried a few of these myself and I never lost any money doing so. I guess I was lucky. Invest in cloud mining at your own risk. If you do, get in, get out, be happy with a small profit because that is all you will make. If you make anything at all. I am sure the know-it-alls here are going to tear my answer apart but that is ok. I'm used to it. We all have our different approaches to this life thing.
Good luck on your Bitcoin Journey. Try Bitcoin affiliation, It's worked out for me. Send me a P.M. if you are interested in some affiliate marketing tips.

Constant 20% guaranteed gains during the duration of the investment is very hard to achieve, but no impossible considering volatility of cryptos.
But we need to remember that company offering you investing option needs to earn as well.  For you to receive 20% their profits have to be much higher than that 20%.

I am talking here about "cloud mining ponzies" only and I am listing below a few red flags you should NOT ignore for your own safety.

1. Offering free MH/s KH/s or GH/s usually 10,15 or 20 is the numbers to attract users.
2. You cannot withdraw if you don't deposit at least once in the site (this void the free hashes given)
3. Offering to pay you from 5 to 25% referral commission for every person you bring in under your name.
4. Not showing, pool data, mining hardware, (pictures can be faked ) not showing video of them filming during operation.
5. Having fictive numbers and address on a certain country which 99.99% of the cases is a line that transfers you somewhere else.
6. Claiming to have different data centers for mining in different continents and refusing anyone who wants to pay a visit to them.

If you follow this 6 red flags you will never be burned from cloud mining scams ever again.

that is quite easy. If they offer you a interest about more than 10% a month without doing anything, they are truly ponzi scheme. However, please learn how to distinguish the casino invesetment and Ponzi. Moreover, in ponzi, they always offer interest and in some way, they promise never let you lose your money while you can lose you money in casino

My suggestion is to check the sites traffic if its getting lots of visits.
And also check it's ranking through it's alexa there are pretty good sites out there that you can search for this.

Do check for bad reviews cause sometimes people does some reviews in cloud mining sites.
Identify the domain or hosting of the site do some background check like domaon name, ip owner information and bunch of other stuff.

Actually you dont need to invest to those cloud mining sites cause you'll only lose profit instead gaining from it. You can earn a good amount of money here just by doing some signature campaign