Money Game: Characteristics, Risks, How to Avoid It, and Its Differences

Money Game is a pyramid scheme dressed up as an investment platform. For more details about this money game, you can read the following article. In addition, you can follow GIC Instagram account for information about promos at GIC!

Money Game Is

Most fraudulent investments rely on ponzi schemes/money games. Those who are involved in this circle of demons prioritize the recruitment of new members to cover the investment of old members who have already registered. This activity is called a money game. From the beginning, individuals who offer products and services with ponzi/money game schemes may have intended to steal and deceive. Similar to money games, individuals will tempt victims with great profits if they want to invest their money and recruit new members. Roughly speaking, Money Game is a pyramid scheme dressed up as an investment platform. They sound like, look like, working with legitimate investment companies but are actually just scamming people to get their money. They do this by selling their services and then leaving customers empty-handed. There is a good reason why people fall into the trap of lucrative money game companies. They offer what appears to be a real return on investment, and in the current shaky economic climate, many of us may fall prey to their schemes. So, here's how to tell when a company is a legitimate investment platform, and when it isn't.

What is the Difference Between Money Game and Trading

Trading is the act of buying and selling securities. All investors trade, because they need to buy and sell their investments. But for investors, trading is a rare transaction, and they get more value from finding a good opportunity, buying it cheaply, and selling it at a much higher price in the future. But traders are not investors. Traders look to take advantage of short-term price differences in the market. In general, they don't take much risk on every trade, so they don't make much profit on every trade either. Traders act quickly. They see what the market is telling them and then respond. They know that many of their trades will not be successful, but as long as more than half of them are successful, they will be fine. They don't do a lot of in-depth research on the securities they trade, but they know normal price patterns and volumes well enough that they can recognize potential profit opportunities. Trading keeps the market efficient because it creates short-term supply and demand that eliminates small price differences. It also creates a lot of pressure for traders, who have to react here and now. Traders give up the luxury of time in exchange for quick profits. Speculation is related to trading that often involves short-term transactions. Speculators take risks, assuming a much larger than expected return, and many of the how-if possible must be met in order for the transaction to pay off. Many speculators hedge their risk with other securities, such as options or futures. [caption id="attachment_19754" align="aligncenter" width="1024"] Money Game at a Glance[/caption]

Money Game is nothing more than luck

Meanwhile, money games are just scams that invite others by promising a large commission. Whereas Trading will not promise a commission. You can earn commissions if you have a good trading plan. People like to gamble because they like to hope that, if they are lucky, their return will be as great as their possible losses. Some gamblers believe that the odds can be beaten, but they are wrong. They were excited about the potential for big wins and were stuck in the glitz of the casino, and soon the odds worked and drained their bets.

Features of Money Game

Here are the characteristics of Money Game itself. These characteristics are:

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• Fraud is always the same, that is, taking money from the victim for goods or services that they do not intend to give them.
• Often, these schemes falsely promise interest rates, returns or profits that are much higher than the returns offered by licensed financial institutions for their deposits to attract potential victims.
• Most schemes have no intention of keeping their promises. They seek to lure new victims, so that they can use the 'new' money received to pay back the previous depositor.

Money Game Risks

Here are some risks of the money game itself. These risks are:

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• Every investor is knowledgeable about the risks in investing. There is always a risk of loss in an investment, the level of risk depends on the rate of return; The higher the rate of return, the greater the risk in the investment. So, one should be suspicious if one offers a high rate of return without risk.
• The value of the investment is unstable. So, if a company provides stable and consistent returns then one should consider it suspicious.
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• Fraudulent schemes such as ponzi/money game schemes are usually not registered with the SEC or other state regulators and also the people who work for the company do not have the necessary licenses to work.
• The working methodology of ponzi/money game schemes is usually kept secret and does not provide complete information about how they provide a high rate of return.
• Investors usually experience delays in receiving payments because payments depend on new investors. Previous investors are also advised to invest their money again to get a high rate of return.

How to Avoid Money Games

Remember, if it sounds too good to be true, it probably is. There are many scams related to money game schemes, also known as 'Quick Rich Schemes', that target the public. Always be reminded that you should only place deposits and invest in parties that have permission from the authorities so that you are protected by banking and securities laws. If in doubt, ask the relevant regulator, the Securities Commission or other relevant authorities about the licensing status of local and foreign companies before depositing money or making any investment decisions. To avoid this, you can trade with GIC, which is the first peer to peer platform in Indonesia. This means that every transaction will be carried out transparently through the market maker and the trader himself. To trade at GIC, you can register first with a capital starting from 150,000 Rupiah. At GIC, you can also enjoy all available trading features ranging from GIC Trade, GIC Signal, GIC Bridge, GIC Affiliate, GIC Verse, GIC Social Trade, and GIC Academy. Trade now and take advantage of all the features of GIC!