Want to get rich quick? You’re not alone! Many people are lured by the prospect of making a fortune in a short period of time and then enjoying the luxuries that come with money a nice house, fancy cars, an extravagant lifestyle, and so on.
1) Finding legitimate investment opportunities
If you’re looking for a good place to invest your hard-earned money, you have options: You can choose your bank, a financial adviser, or even an online brokerage. But how do you decide where to put your trust and how much money is safe in those investments?
The Securities and Exchange Commission (SEC) advises investors with common sense tips. Specifically, they encourage investors to learn about an investment before they commit their money—be informed!
2) Knowing the risk involved
The world of cryptocurrency and stock markets can be a goldmine for some, and a graveyard for others. There are so many variables involved that it’s difficult to know whether you’re about to hit an open-field run, or fall face-first into an ocean of sharks.
3) Security, Insurances, and Cryptocurrency Wallets
Cryptocurrency doesn’t exist in your physical wallet, and that’s both a good thing and a bad thing. For example, it may not be stolen out of your back pocket like your physical cash can.
However, it is possible for someone else to hack into your virtual wallet, and steal those funds if you don’t take precautions. Ensure that any exchange you use has security on par with any real-world bank before sending them any money you’d be shocked at how many people have been victimized by hackers who are experts at working around even advanced security systems.
And never forget about keeping backup copies of anything worth spending time and effort on; it could save you from disaster one day.
4) Getting into investments without investing much money
Simply put, scams. There are dozens of sites out there trying to prey on people looking for easy money—and one of those could be you. The good news is that it’s easy to set up a website with WordPress, but if you haven’t figured out what value your site will add and why people should be interested in visiting it, then you might want to think twice about publishing content on a daily basis.
The same goes for spamming forums and social media with ads for your upcoming cryptocurrency guide. If people don’t trust what you have to say already, they won’t trust anything else you publish online.
5) Understanding Bitcoin, Ethereum, IOTA, Ripple, etc.
That’s a lot of new terms and concepts to wrap your head around. One way we tackle these things is by writing an outline, just like students do when they’re doing research papers. It forces you to be specific and consider both what needs to be included (and why) as well as possible holes or gaps in your logic.
From there, we can either revise our outline into a formal business plan or just dive right into writing once we feel confident enough about how we see everything fitting together.
6) Watch out for Fake Coins/Alts!
Crypto and stocks are two hot topics in today’s media. Cryptocurrency has become a popular choice for investors looking to take a risk, but that doesn’t mean it’s necessarily safe. We hear stories every day about new companies and websites launching within days of each other, all vying for their piece of that digital pie.
It can be overwhelming trying to stay on top of which ones are legit, so let us help you figure out how to decide if something is safe: look at who they partner with, who’s running things, and where they call home (the U.S.)
7) Market Manipulation through FUD and Pumping & Dumping
Manipulating markets through fake news, intentional releases of bad news, and other methods are known as fear, uncertainty, and doubt is a form of manipulation that often goes unpunished.
Legally speaking, it’s difficult to prove beyond a reasonable doubt that any illegal activity occurred. However, there are ways you can protect yourself from market manipulation. If you see suspicious activity on your own investments or someone offering advice to buy or sell take action immediately by getting in touch with an organization like FINRA or the SEC.
If there is sufficient proof of illegal trading activity you may be able to recoup losses without a lawyer if filed promptly.
8) Steer clear of Cyber Scams/Phishing Attempts
As bitcoin and other cryptocurrencies become more popular, scammers are targeting new investors. Phishing attacks sending fake emails that appear to be from a business you trust are on the rise.
Don’t click on links from senders you don’t recognize; instead, go directly to a company’s website and search for information about how it protects your privacy.
9) Ignore News Articles
The market for Initial Coin Offerings (ICOs) is becoming increasingly popular as a way to raise money quickly and easily, but many of these ICOs are scams. Instead of investing your money in an ICO, check out our guide on how and where you can buy cryptocurrencies.
The good news is that it’s much easier now than it was a few years ago you can buy coins with your debit card at reputable exchanges like Coinbase. When you have enough practice making trades and purchasing coins, you may want to invest more heavily into other types of crypto, such as Ethereum.
Whatever form of digital currency investment interests you most, make sure that you do your research before giving away any money!
10) Be aware of ICO scams
Initial coin offerings are a hot topic in investing. Unfortunately, they’re also an increasingly common target for scammers. If you do invest, look for companies that have a real plan and have already implemented it, even if it’s not perfect (because there is no such thing as a perfect plan).
Also, stay away from any investment where you can’t see how your money is actually being used—you should understand how your investment will earn returns. And make sure to research any company before deciding to invest; don’t let anyone talk you into making an uninformed decision.