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10 ways how you can detect a ponzi scheme or a scam

World of Bitcoin or cryptocurrencies is dangerous, but at the same time offers many benefits.

How may a ponzi scheme work in the cryptocurrency market?

The answer is simple. Bitcoin offers anonymous transferes, anonymous users can get bitcoin money from all over the world and use it for many purposes- such as sell them to get fiat currency such as USD or EUR.

So why many thieves make ponzi sites that offer many benefits, for example Multilevel marketings, great income, because they take your bitcoin and simply disappear without a trace. Other like traditional bankings can track down all bank activities, unlike bitcoin they can see where money goes but have no clue who is holding this money, if you use it in a secret way.

So... we suggest you to follow these steps how to detect that the offer you receive is not a ponzi scheme or a scheme that wants to just trick you and get your bitcoins.

1. Does the offeror accept VISA or MAESTRO card? Because if he doesn’t, then there is a high chance that it is a simple individual that can be you or me that has just a bitcoin wallet and takes your income. If the offeror has VISA or MAESTRO payment systems then they are assigned to a bank, and assigned to an individual and a company. Therefore it is a lower risk of ponzi scheme. But keep in mind that popular and professional ponzi schemes have their banking services in offshore companies and support risk payment solutions. Find out these steps, and make sure what is the merchant account for this offeror, is it an Offshore, or is it an EU based bank merchant account. You can do this by following the payment solution they offer and check on which pages or services you are redirected to.

2. Check out the domain name. Is the domain name a valid .com .eu .net .org domain? Domain names like .cc etc. are offshore located outside the EU/US just because the local governments cannot cancel their accounts or ban their servers on a local domain register. Use whois to find out more information about the service provider.

3. In the cryptocurrency world anyone can make a coin, and keep in mind, many ponzi schemes offer the way that you can receive income. If you are offered that you will be paid with another cryptocurrency coin which has a high value, check out the history of that coin, check out if it is available in many exchanges. Check out how many trades and how active is the trading bid wall... In other words, check out whether that coin is actively used or is a passive coin that the value of it is being determined by the own issuer site. Because crypto values can be easily manipulated by demand and offer. If there are only two traders in a market they can sell the coin to each other in a price that they wish it can be any number from 1 - infinity. But if there are millions of users, the price is being determined by people themselves. Also keep in mind that there are hundreds of bot activities in each exchange, therefore these numbers can be inflated by simulating bot activities. IF you are offered to receive income with BTC and you do receive the BTC in your outer wallet, it is more safer, and if you are offered and do receive FIAT currency in your bank account, then this offeror is much safer.


4. Determine whether the offeror provides a service. Because in simple law... If you earn money where is it coming from?

Traditional systems offer the ability to exchange service or goods. But Ponzi schemes or scams, mostly claim to grant that you will receive income based on some activity, and mostly its by inviting people. Which is not bad at all most large  companies do that, but does this scheme offer a product or a service? Or it just offers a discount coupon, or a illusion of a valued token that nobody needs? IF its a service, or a product, or a system that helps others in serving people this can be understood as a safe company, but if its a fake claims to products that nobody needs, then consider avoiding such projects because most of them are built upon ponzi schemes to gain money.

Most ponzi creators have succeeded a little in one scheme and they tend to create more and more other schemes, aiming for bigger success... To me, I just don't understand the reason to do so...

0              0           0          0          Posted 2 Years ago

10 ways how you can detect a ponzi scheme or a scam

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