Not everyone understands investment, so a lot of people have fallen prey of bad investment and places to grow their money. I am talking about investment losses that could hold promises of up to 1000% but end up to be either scams or places where the money become less profitable. When money is a factor, there are always people who want to have a share or all of this money without working hard for it or putting in any value, so they take other people’s money (this is scam) and there are people who will be willing to grow their money overnight (this is greed). This two things lead too people losing money but one is inflicted while the other is self-inflicted. In this post, I will be looking at a few things that could lead people to losing their money with the aim of investing to make more money.
Pump and dump
Common in cryptocurrency and the stock market, a lot of people believe in signals of pumps and dumps. There is a trick to pump and Dump and this is often carried out by people with influence in the market. They buy a particular amount of a stock or cryptocurrency, then they give signals that the stock or coin will get to a particular amount and will want people to invest in it so as to make profit. If people start to buy the stocks/coin, this people start to sell their own portion, thereby leaving people who invest with the tussle of who sells first when it hits the proposed benchmark. This particular scheme has crippled the finance of a lot of people who thought they could make a whole lot of money before the price went down.
Ponzi Scheme
Ponzi has been existing for a very long time as people are told to invest their money into a scheme that with the aim of getting ridiculously high returns. This schemes do not have an investment bases but promises their victims of a guaranteed interest. At the end, they pay old members with the funds paid by new invitees. If there are people still pumping in money, there will be money shared as the scams make their own money from the share of the money invested by their victims.
Investment Seminar Scam
This is very common as people with little or no money claim to be millionaires and billionaires making money by a particular investment and will be willing to tell people or share their secret, they will be selling a particular course or textbook or they will be doing a paid seminar. People would start paying to know this secret but they end seeing that it isn’t what they bargained for.
In Conclusion
You need to understand that investing requires proper learning and not properly knowing how an investment works can be very detrimental and could lead to loss of money