Along with the "traditional" areas for investment like stocks or government bonds, there are much more risky assets on the market, including high risky ones. Why are they so popular if they are risky? Because of high percentage of potential profit. However, according to the statistics, mostly all investors in high risky assets lose their money.
The reasons for losing money are well-known – from high volatility or sudden depreciation of assets to fraudulent activities and termination of payments, which is typical for HYIP.
Common features of high risk assets:
1. The risk of losing your money with such investments is close to 100%.
2. Such assets are almost impossible to analyze or predict.
3. Many risky assets are highly volatile.
4. There are a lot of scammers who promise guaranteed profits and constant payments.
5. Many risky investments play on the psychology of inexperienced investors being financial pyramids.
Things to Remember When Investing in High Risk Assets
Risky investments, especially just-appeared cryptocurrencies and HYIPs, have their own target audience. They are inexperienced investors who are looking for maximum profit in the shortest possible time. Any investor with experience will tell you that such risky projects most often lead to monetary losses and have nothing with ROI or profit
If you are going to invest large sums of money in such project, you may find yourself in a situation similar to a driver, who recently crashed his Lamborghini in Moscow - he lost tens of thousands of dollars in a split second.
Never invest in pyramid schemes and HYIPs for profit. Do not try to outplay the organizers - the experience of millions of people before you prove that this is impossible to do.
Do not try to analyze the market for HYIP investments and unknown cryptocurrencies. They defy fundamental or technical analysis. Most often, they work on the principle of pyramid schemes and are organized by scammers.
If you do decide to invest in risky assets, set aside capital that you can afford to lose. Don't invest a lot and diversify your risks. If you lose some of your investment, do not try to get it back by investing in other similar projects.
If you are interested in profit and not playing “investment Russian roulette” with high risk, we recommend considering alternative investment directions with relative predictability, the ability to manage risk and capital - from defensive investments in blue chips to medium-term investments in exchange-traded assets or stocks.