We made it to Wildcard Weekend and today we are going over some warnings and looking out for signs of scams (thus the homage to Lost In Space). In today's world of racial tension and pandemic, there are more things out there than those to be warned about. Unfortunately, any time you are dealing with other people, especially when those people are unseen, there is a certain nefarious element that will try to take your hard-earned cash from you and provide nothing but heartache in return.
Today, I want to touch on a couple of the ones I see A LOT. That is not to say that all of these programs are scams, but I have taken my lumps with a couple and I have not found any legitimate ones yet. The first type are what I call the false exchangers. Just like when you go to a foreign country and have to exchange some of your local currency into currency that can be used in the place you have travelled to, there are companies online that will exchange cryptocurrencies. An just like with local exchangers, the exchange rate fluctuates not only frequently, but even between exchangers. In the online world, these false exchangers make big promises about how much money you can make based on the differences between these crypto exchanges. They tout ways of making $450, $500, up to $750 or more per day trading crypto back and forth between BTC (bitcoin) and ETH (ethereum). The way they explain the program, you purchase a decent amount of BTC (usually around $50 worth) and exchange it for ETH through the first exchanger. Then you exchange the ETH back the BTC through the second exchanger and make a profit based on the different exchange rates between the two. Almost all of them use Changelly (a legitimate crypto exchanger) for the second exchanger to transfer the money back from ETH to BTC. However, they all use a different first company to exchange from BTC to ETH. The reason is that the first company is bogus and you are just sending your BTC into the scammers account when they have no intention of sending you any ETH in return. And with the nature of cryptocurrency, there is no way to get that money back. Here are a couple of example pages to you can be aware of what they look like:
Don't even think twice about how much money you might be able to make with one of these programs. It's all about how much money they can convince you to send to them as a free gift. Consider yourself warned.
The other type of program has a hint of truth to it and the program creators might even have a desire for people to make money with their system (emphasis on the word MIGHT). I call these the doubler whammy. The way these programs work is that they convince people to invest in their program with a promise of doubling, tripling, or more their money in a very short time. The problem is, the only money coming in is what the people are investing, so the ones that get in first, get their payday and recruit other people with stories of the money they made or reinvest a larger amount wanting a larger payday. While behind the scenes, the program owner is taking a portion of each investment and them using the rest of it to pay the people that got in earlier. Many times, they say they are using the investment in the crypto trading market to generate their income. Unfortunately, it is just not possible to sustain that large of a return in that short a time on a regular basis when you are doing any kind of trading (see the exchanger process above). As you can imagine, there is not enough money coming in to sustain this process for long and it all comes crashing down like a house of cards. At that point, the program owner walks away with whatever cash that is left (plus what they skimmed off the top to start with) and the investors are left holding the bag. Here is an example of a doubler site:
So, that is my warning about sites that I would recommend that you avoid like the plague. I hope this was informational and beneficial for you. Tomorrow, I will take a break and Monday I will introduce a miner that I am using that is a set it and forget it (until you get ready to cash out).
Until next time...keep earning,
Garrey C. Dunn, Jr.
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