We’ll start off with the bad news: 2020 was rough and dangerous for investors, but 2021 is not looking better – and some may even say it is looking worse. Aside from the fact that the online scammers are ever evolving and improving their methods, the circumstances of the current year are going to make them double their efforts.
However, with a bit of vigilance, you can avoid becoming the prey for these predators, trying to get you to invest your money in all types of online trading scams. Let’s take a look at some of the stories that they’re going to try and sell you this year. Of course, not all online brokers are crooks and there are many advantages to investing online. That’s why it is important to spot the ones who are not to be trusted. Becoming familiar with the lies they tell is a good start in that direction.
“2021 is a good time for investing in…”
What they say: One of the most common methods that scamming brokers use to get you to open your wallet is empty promises. That’s why they are going to try and pinpoint you in the direction of a certain market, asset, trend, etc. These promises are usually going to be accompanied by words like ‘solid’, ‘long-term’, ‘positive projections’, and so on.
The truth: Nobody really knows what a good investment in 2021 is. The reason is simple: Nobody knows how markets are going to act this month, due to the inability of nations to plan ahead financially, let alone this year. That’s why when someone talks with complete certainty about a projection that is investment-related, you should be very doubtful because there’s a chance they’re just trying to take your money.
“2021 is the year to invest in crypto”
What they say: True, cryptocurrency has been flourishing since last year, mainly due to the fact that investors were and are still afraid to put their money anywhere else. That’s why we are witnessing an impressive rise in Bitcoin’s value. It’s not only about Bitcoin, though, as many altcoins (a common name for all crypto coins other than Bitcoin) have also been performing impressively. Don’t be surprised, thus, if a broker pressures you into investing in cryptocurrency and dropping all sorts of names you may not be familiar with.
The truth: A wise investment cannot be based on the past solely. Performance of a certain asset, especially of a cryptocurrency, is one reason to invest in it, but you must also keep the future in mind. If you don’t have any reason to believe that a certain crypto coin’s value is going to rise in the future, there’s no reason to put money on it just because it rose in the past.
“This is fast money in 2021”
What they say: The use of the term ‘fast money’ in online trading and investment is, sadly, very common. A broker might call you up and present you with a certain asset deemed valuable. The broker may even talk about the conditions being very favorable, projections being very optimistic, and experts being very reassuring. They’ll probably even tell you that ‘there’s no time to waste’.
The truth: Anyone with even the smallest bit of experience in investing can tell you that there’s no such thing as fast money in this world. Profitable investments are usually those that come with long-term thinking. True, some people have managed to make a lot of money in a short period of time, but that is usually a result of luck. More common is fast money lost, rather than profited, due to bad investing advice given by crooks.
“2021 will be the year America shines”
What they say: A lot is going to change, now that the American administration has changed hands. Joe Biden seems very determined to undo almost everything Donald Trump had done in his four-year cadency. With the United States being the superpower that it is, naturally a lot of the focus is going to be on its economy. That’s why you shouldn’t be surprised if a broker tries to get you to invest in American stocks and indices, or in the American Dollar.
The truth: Whatever change President Biden is going to bring, it’s probably going to take a while for it to show, so there’s a low chance that markets are really going to feel it in 2021. Moreover, Donald Trump has done many things to improve the American economy, so Biden’s actions might even cause regression. All in all, there’s no way to really determine any kind of positive immediate effect Biden may have on the American market, and anyone who tells you otherwise is probably being dishonest with you.