Cryptocurrencies and Online Income

Screenshot 2018-11-29 at 16.01.05Thinking of doing some alternative investing? Many people still ask should they be buying Bitcoin and will it ever see the growth that it had in 2017? Bitcoin is the crypto-currency that determines the price of every other crypto-currency. No matter what crypto you own, the dollar price is first the governed by the dollar / bitcoin price ($ – BTC) and then the price of any other crypto is determined. Should the price of Bitcoin go up, there is a good likelihood that the price of your cryptocurrency will also go up, and should the price of Bitcoin drop then so will the price of your currency.

Alternative investments which offer you any more than the banks offer are always medium to high risk. They are similar to gambling and while some may enjoy this, these investments are risky. With this in mind I have put together some guidelines to help you to determine just how risky the system is that you are thinking of investing in.

What monthly ROI does the company offer? The higher the return, the higher the risk. It is virtually impossible to make fantastic profits every month. Therefore a company offering 10% should theoretically be more sustainable than a company offering 15 – 25%.

Does the company have a clear marketing and compensation plan? Is the plan simple to understand and are your questions answered clearly? You should be 100% satisfied that all your questions have been answered before giving a cent away.

If the company has a Multi Level Marketing option, only join if it has a straightforward binary compensation plan. Without a binary compensation plan, you can be sure that the compensation for leaders is far greater than for any of the members in the company. This is the main reason why many product marketing companies (the traditional network marketing companies) are accused of being a scam. They may be 100% registered and legitimate, but the entire compensation plan is mostly to benefit the top leaders. It is not a new concept – the rich always get richer, but you want to find a company that is not adding to the riches of the rich. You should be rewarded for the work you do.

Payments and Withdrawals – Is the information given very clear, for example how you can join and more importantly how you can withdraw your earnings? The only alternative currency that you should consider is Bitcoin (and perhaps the other top 5 cryptos if you know what they are) If the company has their own exclusive coin or currency, enter at your own peril.

These are the RED Flags you should be aware of, so if any company or system has these things happen, it is probably a good idea to avoid them, or consider investing half of what you planned to do, until you know exactly how the company functions.

  • FREE MONEY – Significant discounts of more than 5% should be avoided. When companies give away packages or offer you free packages, these are warning signs that the company is failing.
  • SYSTEM UPGRADES – Whenever a company says they are busy with a system upgrade it is a big red flag. We live in the age of technology, and all upgrades should be possible to be implemented in the background with very little downtime to the actual system. Most good systems will run 99% of the time and you may never notice even a major upgrade.
  • CHANGES TO THE COMPENSATION PLAN – The chances are that if the company had to change the compensation plan, they did not plan properly from the start and there is a good chance that they did not budget correctly either. Alternatively they could just be greedy, like many companies that offer sales incentives until they realise what the sales people are actually earning, then the goalposts get moved.
  • CHANGES TO THE WITHDRAWAL TIMEFRAMES – Some companies allow you to make withdrawals daily, others weekly and others monthly. Also take note of the time from withdrawal to payout (what is the norm?) Should this change in any way, understand that there are problems and that no matter what they say, the end is near.
  • NAME CHANGES – Changes in the company name or management changes should be communicated immediately with a transparent explanation.
  • OWNERSHIP – Can you clearly identify the owners of the company, are they who they say they are and do they maintain a presence on social media?

Remember : All these systems are risky and you should never invest more money than you can afford to lose. They make these things as attractive as possible to entice you to join and they appeal to your sense of greed, so be careful and try to earn your capital back and draw it out as soon as you can so that thereafter you can use the system’s money, and thereby minimise your risk.

If there is anything I may have overlooked that can help others navigate around this please comment in the space below.

Advertisements

About RichSimmondsZA

Father | Professional Speaker | Top 50 International & Forbes Top 10 African Social Influencer | RuleBreaker and ChangeMaker | Author 5 Night Plan & MugAndTweet Books
This entry was posted in Social Finance and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s