In the last year or two MLM (Multi Level Marketing) has tried to connect it's self with Crypto currencies .
Why?
First we need to look at the two different structures to understand why.
MLM (Multi Level Marketing)
So first lets start with MLM (Multi Level Marketing) as it name suggest it's marketing on multi levels, so how it works is the company should have a product to sell, you pay a fee to be able to sell that product, which gets you a certain amount of product and a certain level in the company which allocates how much commission you will earn on so many levels deep.
Each company has different levels and compensation plans, so for example lets say 5 levels deep, so on your first level that's who you bring into the company that purchases a pack you might get 30% then on your second level (which is who your first level brings in) you might get 10% and so and so with everyone getting a percentage that brings people in to the company, and if they are active each month by purchasing more products etc.
To receive commissions you need to be active to continuously earn a commission you need to have brought people into the company that have purchased a pack and are buying products each month, and you are also purchasing products each month.
The company's need to be registered and have a company number to operate and be legal, which can be found online by looking at which country it is registered in and find a company register log for that country and type in the number where it will tell you if the company has been registered or is insolvent if the number doesn't exist it means the company has not been registered.
A lot of MLMer's first questions are how long has the company been around, if it's less than 2 year's most will not touch it, as the first two years are the testing times for most company's weather they will sink or swim.
With a lot of the MLM leaders there have been stories floating about, that they get payouts for the ones that can bring in the most members, can't say if that is true or not as I'm not an MLM leader.
Crypto Currencies
With Crypto Currencies it is really a totally different ball game and each and every currency does their thing a bit different.
But most of the currencies are little community's working together because they believe in the project, which you either support by purchasing the currency (coin/token) where you can trade it on many different exchanges, or you can hold it.
Some coins/wallets may have staking rewards where you can hold your coins in a certain wallet and earn a certain percentage of interest for your support of holding the coin.
If you hold on an exchange you wont receive the interest but if you buy and sell at the right times you may earn depending if you sell for more than you paid.
Evening out the playing field - for each coin the developers can choose if they want a preminded coin (already mined coin that the developers give out or sell or a mix of both then when they are all disrupted they can only be purchased off the market where the seller and the purchases decided how much they are worth , can't remember the name of this one - but when at the same time the mining starts so everyone has a fair chance of getting some and the developers need to mine also at the same time to receive some of their coin but it gives an even distribution to those following the project. There is also where developers mine a few days a head of making it public also.
With Bitcoin (BTC) being the main Crypto Currency done on the Blockchain where transactions are anonymous and transparent, where you can only see the wallet addresses not the name of who owns that wallet.
Crypto Currency is not centralized it is decentralized meaning no one owns it everyone that has the coin owns their coins and is a supporter of that coin or community.
You don't need to bring others in to earn or trade, you can decide how you would like to earn like trading stocks.
The Why?
With many MLM's their are many illegal MLM's that don't have products, and the money goes to paying recruiters, alot have been trying to collide MLM and Crypto together so they have a product, but say they are doing their own coin and blockchain but don't have either or are asking people to pay for trading platforms that can be downloaded for free, so the money can go to recruiters on the different levels for bringing people in.
They use that their company's are registered in either Malaysia, China, Dubai and some other country's where it is actually illegal to do MLM's in these country's and if caught by the authority's for running or even bringing people into MLM's you can also get locked up.
The same did used to go for Crypto Currency also, for just owning it, or you weren't able to purchase, but now most Country's you can, but always check and find out.
With Crypto there is more of a community feel, more information out their on the projects available with easy access to the information for everyone to find out what they are getting into before getting in and making their own decisions.
Once you learn where to find the information it can take about 5 mins to have your information to make your decision, with also most coins/tokens using social media to communicate normally Twitter, Slack, Bitcoin Talk and a few others.
You can also reach out to the Devs to chat with them and find out more information also.
As in MLM, there are Crypto Currencies that arn't real projects also, or they are real projects and they run out of money, time or support to finish them so the Dev's leave, sometimes someone within the community might take over the project as the believe init and want to keep the coin alive.
In anything you enter if you are going to put money in, always never put in what you can't afford to lose.
What happen's when MLM and Crypto get collided together?
Normally tears and wasted money please correct me if I'm wrong but over the last 2 years anything that has said they where an MLM and Crypto together has lead to some people getting arrested, loads of money being lost.
MLM and Crypto just don't work together and they don't need to!
Why don't MLM and Crypto don't need to work together?
Again if my option is wrong Please let me know.
Why do you need to give profits to levels above when you can go straight and buy BTC yourself the first crypto currency which already has a working blockchain which most of the Alt coins run on or off, or you can join a Crypto Vault or Pool where you can put money in and others grow it and look after it that will trade on your behalf, with this find people that know what they are doing and that don't do risky trades and that arn't offering more than 10 -20% profit on your return.
Why? because otherwise it's just not responsible to offer that as you can never offer 100% in anything or high returns as you don't know what the market is going to do.
There is a ton of information out there on what to do and platforms that make Crypto easy, but it's alway buyer beware and do your research.
Remember what goes up goes down and what goes down goes up - but that doesn't mean it will go back up or down to where you brought for.
Ask your self these questions if your in MLM?
How many times has my leader come to me with a new opportunity?
How much money have I made or lost following these people?
How much have the people that I've brought in made or lost, and their down-line?
Can I recruit people can my down-line recruit?
Does your up-line give you people so you can earn commissions, do you do this for your down-line?
Do you get the help and answers when you ask or have the information ready available to look up?
Would you like to learn how earn by yourself with out relying on a up-line or down-line?
Hard truths about Crypto, you should take into account before starting?
Are you going to buy BTC and just sit on it and trade on the highs and lows of BTC?
Are you going to enter Alt coins?
With Alt coins - Are you going to hold, want quick return, pump and dump?
Crypto for me is about backing coins and community's that will make a difference in the world and help many many people and they are moving forward as they say they are.
Pumping and Dumping is kinda frowned upon in Crypto - what's your view on this?
If your wanting to get rich over night then Crypto is not for you!
It's a volatile sector that can have big rewards if you sell and buy at the right time, but always go back and put in orders to buy to support the coin that you just got the big rewards from, they maybe low orders but it's still support and take some cake when you can so you take back what you spent in the coin so you can keep rolling, and you have profit of coins for a rainy day!
Picture sources - Thanks Pixabay! Bitcoin pic Business Man Arrows
Used them to make one pic with adding text.
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