Recognizing scams can be easy or hard but learn to recognize them.

Even if your lightly invested into cryptocurrency you've probably heard of Bitconnect, the lending/investment platform that promised 1-2% returns everyday, and offer affiliate bonuses. Just a couple of days ago Bitconnect failed and the price of Bitconnect crashed from $300 to $4 in 24 hours. Bitconnect was a ponzi/pyramid scheme that relied on incoming money to run their platform. If you don't know what a ponzi is, a ponzi is a scheme to take incoming loans to pay out to older loans and to keep going they need a daily income of money to pay everyone out. It was also a pyramid scheme because when you recruit someone through your referral link, and they made a loan, you got a certain percentage of whatever the person you recruited loaned, and the person that recruited you would get a certain percentage of that, and so on and so forth.

To recognize these schemes just take a look at what they offer. Bitconnect PROMISED 1-2% of earnings a day on your loan and up to a 7% affiliate bonus every time someone loaned to Bitconnect under your affiliate link. So say my friend under made a $1000 loan, I would get $70. Sounds off right? The key factors in recognizing this type of scheme was the word PROMISED, the 1-2% of earnings a day on your loan, which means you would quadruple your initial investment in one year. Also the affiliate bonuses. No legitimate investment platform has affiliate bonuses that move in a pyramid like that.

Davorcoin

Another one is Davorcoin where it pretty much a copy of Bitconnect, but with a bit more spice! It is picking up speed due to the Bitconnect liars Trevon James and Craig Grant. It offers the same parameters of interest as Bitconnect and is a definite scam.

Other ones include Ethconnect, Lendconnect, Neoconnect, etc. Anything with connect in it is probably a scam.

So good luck in navigating the crazy world of cryptocurrency and don't get sucked into high returns!