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As a result, inexperienced investors need to comprehend the chosen investment vehicle. To gain riches quickly and effortlessly, avoid becoming greedy. This increases your risk of falling victim to Ponzi schemes or money game fraud.
Money Game: What is it?
A money game is an activity that involves quickly and without exchanging double your money. Despite typically utilizing an alibi, this technique involves stealing money from new players who join the money game group in order to trade certain products.
The monies that new members provide will help existing members. If new members are successful in persuading others to join and pay dues, they will profit in the meanwhile. The most disadvantageous participants in this plan are new ones.
This approach is considered to be unlawful. Money games are even more detrimental than the MLM business . The money game does not care about anything besides enticing new members, if MLM still takes into account the productivity of the trades conducted by its participants.
Ponzi Scheme is another name for a money game. Ponzi schemes are frequently run with the promise of an investment. Not from the outcomes of stock trading, but from the investment funds offered by new members, an investor will profit from the money invested. In other words, only one member can transfer money to another.
What are the characteristics of the Money Game ?
The fact that capital and profit are not calculated in the money game is essentially what sets it apart from traditional trade. In fact, money game organizations occasionally seem to be only interested in making money by stealing money from new members. In addition, the following are some of the characteristics of the money game :
• Profits Come from Downlines
• The Structure is Triangular
• How it Works Focuses on Increasing the Number of Members
• Using the Name of a Successful Figure as a Motivator
1. Profits Come from Downlines
Since there are no increasing finances, winnings in money games cannot really be referred to as winnings. Only the transfer of monies from new to old members is advantageous. If any product is used, it is just as camouflage, and in most cases, the earnings do not correspond to the cost of the carried good.
2. The Structure is Triangular
Money games also employ a triangle construction pattern, much like MLM. In other words, one party is superior than the other two. Later, in order to make money, the subordinate party must establish its own "triangle." The early end of the triangle can therefore monopolize earnings.
3. How it Works Focuses on Increasing the Number of Members
The money game doesn't care about how many products are sold or whether a profit or loss was made if you use a certain product as an excuse to ask you to sign up as a trading member. No matter how many things are sold, it has no bearing on the member's earnings.
The initial investment made by new members serves as the sole indicator of profit. The senior members will receive a portion of the funds. As a result, the goods that money games use as camouflage are typically not available on the market, allowing for a price that is engineered to match the cost of membership.
4. Using the Name of a Successful Figure as a Motivator
In a unique way, money games usually elevate or produce certain successful people. Members of money games will be inspired by this persona to continue recruiting new players. His success story also became the key recruiting tool for new members.
One illustration of a money game
Money games are typically conducted covertly or without being stated openly. The game of money has a certain business profile and employs a pyramid scheme. One mode that is frequently employed to mask real money games is the one listed below.
• Deposit Trading Money
Deposit Trading Money
As more people gain knowledge of online money management, the phrase "trading" is becoming more and more common. However, players of money games frequently take advantage of this gap. The money game played under the cover of trading capital investment is one of the situations that frequently happens.
Investors will be separated into a number of membership levels in this money game business masquerade, all of which must deposit capital dollars. Every investor will be eligible to level up with a higher profit rate if they successfully recruit new investors to submit cash. Actually, the profit comes from the distribution of money that new investors have invested, not from trading.
How to Prevent the Money Game?
Money games can target anyone, but they typically aim at those with less experience in the realm of investing. Use the strategies listed below to stay clear of the money game's covert tactics.
• Stay away from financial management organizations with a hazy structure.
• Avoid being duped by high profits.
• Increase Knowledge of the Best Investment.
• Always look at the selected fund management instrument's history.
1. Stay away from financial management organizations with a hazy structure
Make sure the collective's history and organization are understood before you join one if you do. Naturally, a description of the structure must include names and positions in addition to being followed by verifiable proof of the outcomes. The public must be able to easily understand and recognize the fund management institution's or collective's portfolio.
Checking which parties are working with the fund management agency is preferable to listening to the testimonies of those who assert to have made a profit. The parties that operate with the institution are more trustworthy the more reputable they are.
2. Avoid being duped by high profits
The danger of loss is always quite great when investing in items with a very high potential for profit. A fund management strategy needs to be reevaluated if it offers the allure of great profit potential without the risk of loss. Money games typically make enticing promises of huge gains without risk of loss.
Everyone needs to be aware of their individual risk level. Select a security with a medium or conservative risk profile if you prefer to avoid excessive risks in order to keep your invested money relatively secure. On the other hand, if you only dare to take minor risks, you will have to wait patiently for significant profits.
3. Increase Knowledge of the Best Investment
Don't be afraid to thoroughly investigate the institution providing the investment instrument in order to acquire funds. This does not imply that you lack experience, but caution must be exercised still.
You must have accurate knowledge about how money is handled, who handles it, and how earnings are distributed if you want to be a successful investor. Be unwilling if you are tempted to "get it right" without understanding how money works.
Some investing tools, like mutual funds, do offer Investment Manager services that take the place of investors' responsibilities, leaving investors with just reports. The report nonetheless describes how the processing of the money flow is carried out. In this manner, the fund's owner is nonetheless aware of the funds' intended use and level of profit.
4. Always look at the selected fund management instrument's history.
When managing money, take sure to consider the institution's reputation before using the instrument. It is preferable for beginners to select a long-established provider of investment instruments. Money games typically don't survive very long because there are always issues with the branch's newer members or those at the bottom.