The habit of investing money is becoming more and more popular by the year. Most people want to earn money passively and it can’t hurt to have multiple streams of income. These days, you can invest your money within minutes from your home or wherever you are on your mobile device.
There are many options available and many platforms to consider when making investment decisions. There are long and short term investments, low and high risk ones and it’s a great idea to know how much risk you can tolerate when considering an investment opportunity.
As there are genuine investment opportunities, there are also many fake ones. It’s very important to be able to smell a scam as quickly as possible to avoid losing your hard-earned money.
How can you tell that an investment opportunity is fake and you should run the other way?
There are signs, or as I like to call them, red flags to keep an eye out for when investing money. If you notice any of these signs, you should take a closer, critical look and consider taking your business elsewhere.
Here are some of these investment red flags to avoid when you’re ready to invest money:
1. High yield with zero risk: Promising unbelievably high returns on an investment that has no risk at all is a very common red flag in investment. Investment scams prey on your unwillingness to risk losing money and promise too-good-to-be-true results. Generally, the higher the risk involved in investment, the greater the reward. If you’re unsure of the details of the investment, ask questions about how your money will be used to bring in returns. If you are unsatisfied with the response, save yourself the tears and keep your money.
2. Sketchy track records: Many of these investment scams have no solid record of their activities for however long they have been in business. They may have grand claims of making millionaires out of people who didn’t have two coins to rub together the previous day, but there is no real record to back their testimonials. Most times, these so-called millionaires are not even real people. Some of these investments are not even registered with the appropriate bodies and they are unable to give precise details about the venture your money will be invested in. They just approach unsuspecting individuals with half-baked promises and hope people are fooled by the castles they build in the air.
3. They’re in a hurry to receive your money: Usually, when you’re not allowed time to think properly about decisions that concern your money, there’s a big chance that something’s rotten in Denmark. That just means something isn’t quite right. Deciding on an investment plan takes time and you need to take all the time you need to do your research and think over it properly. If you’re being pressured or rushed, you’re probably about to be scammed.
No one deserves to be duped out of their hard-earned money. Before you give your money out, be sure that the opportunity is genuine. Take your time, ask questions and do research so that you don’t fall victim to scammers who promise you “something hooge” in an unreasonable amount of time. Check out this article on improving your financial literacy to improve your chances of protecting yourself.
If you’re looking for a genuine investment platform with amazing returns, you’re on the right page. Crowdyvest is a savings and investment platform and we’re all about finding smarter ways to get your money to work for you. Crowdyvest connects you with impact-driven opportunities with good returns and you never have to worry about being scammed.
Download Crowdyvest app and start saving and investing your money today!