To get a Successful investing it requires a shrewd understanding of markets, a knowledge and understanding of the field in which you are investing, the financial climate surrounding the industry, and other relevant factors pertaining to a particular investment. Investment fraud is one of the most common forms of fraud because it is a nebulous area to begin with.
It is quite common for fraudsters to attempt to solicit investments from the unwary, claiming incredible returns in very short time frames.
The three main signs of fraudulent investment that can be applied only on classic business:
High returns in short time.
If an investment is presented as an opportunity to triple your money inside a year or similar such glib claims, it is likely to be fraudulent in classic business.
With the term of classic business I m meaning stock trade and all field related to the non technology trade. For the last 10 years technology has jumped up by the internet revolution.
For example people that purchased shares from well known big company like google,amazon,apple…..and the list go on, are now in big profit . This has no comparison with the cryptocurrency profit.
From 2011 our marked was gifted a new technology named blockchain that held to the born of bitcoin and a lots of other cryptocurrency. Profit gained in this field was a record, as bitcoin price have jumped from some hundred of dollars to thousand in very short time. This can never mean that all investors that entered this field are now in big profit with no lost.
From our view, being investor this mean that you are accepting that fact of gain and the lost of found in the same time. This we name it the main market rules “someone lose and others gains”. Everything flows from one pocket to another.
Today theirs a large advertising campaign against the crypto currency and the investment in this field, but let’s remember the collapse of the gold market on September 24, 1869 and in October 25, 1929 there was a catastrophic event, which forever brought this day into the history of mankind, giving it the name “Black Friday”. It was then in the city of New York began a stock market panic. Its cause was a sharp collapse in prices on the stock market, as a result of which the world economic crisis began, lasting until 1933.
We listed this, to demonstrate that the old business is not too safe for investors as many thought or pretend. Many of us remember 2008 crisis and big lost. All this happened before cryptocurrency.
Fraudsters always appeal to the mark’s sense of greed, and will do their best to impress upon them how lucky they are to be offered such a special opportunity.
No risk.
Fraudsters will almost always claim that an investment is a ’sure thing’ with very low risk. In reality, the higher the possible returns, the higher the risk. a High returns with low risk is a pipe dream.
Limited Time Offer.
Because the fraudster wants your money, and wants it now, they will not want you to go away and research the offer, nor will they want you to think about it. If this ‘excellent investment opportunity’ requires you to invest in short order (quite often then and there), then the savvy investor walks away.
What the fraudster is trying to do is first appeal to your greed, then reassures you that it is perfectly safe, then when you are hyped up and excited about the deal, get you to commit right away. The fraudster takes your money and is gone before you even realize that you’ve been had.
So in resume of this we can say that before entering in any investment opportunity or project you must calculate the risk and be familiar with the filed that you plan to enter.
Never made any decision operating on your feeling and emotions.