If you have been contacted to earn money on a daily basis in the cryptocurrency market, then this should raise a red flag. Daily earning scams have been expanding in recent years. The first thing you need to know is that there are no magic solutions to make money. No matter if they tell you they have a “revolutionary” or “secret” method. Just avoid these scams.
This is the reason why we have prepared this cryptopedia guide. We want to make sure you stay far away from daily earning scams. We will share with you all the information you should have about these scams. Moreover, you will know how to recognize them and avoid them.
What are Daily Earning Scams? #
Daily earning scams are fraudulent schemes that attract users by offering them a daily income. Most of the newcomers to the market can think this is part of a revolutionary or unique system. However, this is not the case.
Most of the daily earning scams are simply fraudulent businesses that steal users’ funds by promising them daily rewards. These scams will tell investors they have a unique business model that allows them to reward users with daily dividends.
However, to earn money in the cryptocurrency market (or any other industry), you will have to work hard. There are no magic solutions to earn daily income without working.
How to Recognize these types of Scams? #
There are different ways to recognize daily earning scams. Here we give you a list of things you should take into consideration to recognize these fraudulent scammers:
- These projects offer you highly lucrative daily rewards if you invest money with them
- They usually allow you to have “higher earnings” if you bring new investors
- They will create problems once you want to withdraw your funds
- These scams will always give you another reason not to leave their investment scheme
- Newer users are having issues with withdrawals
- They require you to block your investment for a long period of time
- They push you to buy their own token
- They are considered to be pyramid or ponzi schemes
Of course, there are many other characteristics that would raise red flags as well. For example, these daily earning scams tend to promote their project with massive marketing campaigns. Most of the good projects do not have to promote their businesses with massive ad campaigns.
Moreover, the rewards offered by traditional investment businesses are realistic. Daily earning scams will promise you high rewards through their “innovative” solutions that they have discovered.
Examples #
One of these projects was the so-called BitClub Network. The creators of this project promoted their solution by asking investors money in exchange for shares in crypto mining pools. BitClub Network expanded by requesting users to bring new investors. In this way, they were able to operate for several years in the cryptocurrency market.
The company was then changing its Bitcoin mining figures. This allowed them to attract a larger number of users and show that they were “profitable.” The BitClub Network stopped operating in 2019 when authorities shut down this daily earning scam.
