Red Flags You Need To Avoid While InvestingĀ 

Investing your money in any enterprise requires you to stay alert and take precautions from fraudulence. It is very easy to get carried away under the influence of appealing deals that your investment offers. Here are the red flags that you need to look out for while investing so that you do not get cheated out of your hard-earned money or end up with the bad end of a deal. 

  • Avoid Ponzi Schemes- In order to avoid falling prey to ponzi schemes, make sure referrals are available if they add new people. 
  •  Do your research- Oftentimes, article reviews or short youtube videos do not get into the niche of the investment you are making. Going by a poor review can mislead you and cause you trouble down the roads. So read up detailed reviews from multiple sources before investing. 
  • No team- You should probably take caution if there is no legitimate team profile available on social media.
  • Get rich- If your investment promises to make you rich super fast, it should arouse your suspicion. These kinds of appeals are usually meant to attract investors without staying true to what it promises. 
  • Being added to group chats- If you are being added to social media platforms like discord or telegram with a bunch of strangers without your consent, then you should take caution. 
  • Strangers approaching you for investment- If strangers approach you on social media platforms like discord or telegram, you should carefully evaluate the legitimacy of their offer. 
  • Warnings from financial regulators- If financial regulators give warnings on the scheme that you are dealing with, you should probably take their advice and not proceed with it.
  • Unclear terms of agreement- A poorly worded or unspecific terms and regulations should raise your suspicion while investing. 
  • No adjacent legal company- You should not invest in a company that does not have an adjacent legal team to assess the schemes and ensure compliance on both sides. 
  • Negative reviews- If experts like neutral traders, engineers, and academics express doubts and give negative reviews, you should take their advice and not proceed with the investment. 
  • Initial deposit- If your investment requires you to make a deposit in the initial stages, you should be cautious. 
  • Invest money- If the scheme requires you to invest your money in order to get any returns, creating a situation where some amount of your money is always with them, you should be cautious. 

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