Scams and get-rich-quick schemes are nothing new in the world of cryptocurrencies.
In the past few months, there has been a notable increase in so-called Bitcoin HYIPs.
A high-yield investment program is a very common scam, especially on the internet. Below are a few tips to easily snuff out such Bitcoin HYIPs and avoid dealing with financial losses because of those fraudulent offerings.
High Investment Returns Don’t Exist
One of the main reasons why Bitcoin HYIPs are so popular is because of the projected returns on investment. While good money can be made with cryptocurrencies at any given time, one has to keep in mind those profits are never guaranteed.
Any company or service provider claiming otherwise is most likely running an HYIP or some other form of dodgy investment project. There can never be guaranteed high investment returns, or even daily guaranteed returns when dealing with volatile cryptocurrency markets.
Unlicensed Companies (With a fake Company Registration Number)
Some enthusiasts may have noted there has been a vast increase in the number of potential Bitcoin investment companies. Rest assured over 90% of these companies are unlicensed or unregistered, which means they are not even allowed to offer such products or services at this time. Moreover, any user defrauded by such companies will struggle to get their money back if something were to go awry, which will happen sooner or later.
Potential investors should not be fooled by companies which boast a company registration number. It is pretty common for Bitcoin HYIPs to list a UK-based company registration number. That is primarily because obtaining such a number is cheap, easy, fast, and can be done online.
Simply because such a number is displayed on a website does not mean users are dealing with a genuine investment firm. Steering away from such companies is usually the most advisable course of action.
Unsolicited Offers via Email or Social Media
A lot of the Bitcoin HYIPs in existence today tend to reach new customers through aggressive marketing tactics. Whether it is via unsolicited emails or by spamming users on social media, these companies do not shy away from going overboard.
After all, a Bitcoin HYIP is only sustainable as long as fresh capital is injected into these scams. If that is not the case, the project will run out of steam very quickly. Ignoring unsolicited offers is always the advisable course of action, as strangers on the Internet should never be trusted.
Pressuring Investors to “BUY NOW”
As one would expect from aggressively advertising Bitcoin HYPs, they will coax as many people into investing “NOW” or miss out on this golden opportunity. FOMO is a very real thing in the cryptocurrency industry, and HYIP scammers know that all too well.
As such, they will try to play people’s heart stringers and force them to invest at rates which are simply too good to be true. Cryptocurrency investments will always be accessible, and there is no genuine pressure to buy something today, as tomorrow or next week will still present its own opportunity regardless.
Ignore the Fancy Jargon
One of the more interesting developments in the world of Bitcoin HYIPs is how more and more projects start to use fancy jargon. This is done in an effort to goad as many investors into contributing money over time.
While that is not necessarily a bad thing, many people have no idea about cryptocurrencies or blockchain projects in the first place. They will only know a handful of words associated with either industry and fall for these cheap tactics as a result. Doing a bit of minor research can usually help people tell the difference between fake and genuine investment offerings.