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Tips for passive income | Passive income can be dangerous

The Top 6 Reasons “Why Passive Income Can Be Dangerous”

What Is Passive Income?

Passive income is an income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income. Examples of passive income include rental income and any business activities in which the earner does not materially participate.  If you do a search in Google about Passive income, you will get thousands of website which claim that they are provide the best passive income ideas.  Some are real and some are fake, but how to identify and distinguish between real and fake passive income.  Read this entire blog to find out about real and fake passive incomes.

Young people and college students who are bored from their daily routine of their work and life get attracted to free money making ideas and then they get trapped in these false ideas.

Money will not flow if you are relaxing in a beach or holidaying with your family.  You will have to work hard and earn real money.  Here are some of the tips which can be taken into consideration.

Beware of Site Which Claims That There Is No Investment

Earn Daily With Social Media

There are millions of website which states that earning money is possible without any investments.  These websites are very attractive and interactive and people get easily trapped.  For some days and month they will pay some amount of dollars, requesting you to click some of the advertisements and surveys.  They will transfer some amount of money in your bank account in order to gain your trust.  And on one fine day they will send some scheme or process wherein you can double your earned income but for that they will tell and request you to deposit some money.

Once you are done with the deposit they will double your money and will transfer the double amount in the bank account.  Now the actual strategy starts, after a week or month they will again request you to deposit some amount of money and will guarantee you that the amount will be multiplied with 50X.  Once you have deposited the required amount, they will send you a mail or text message stating that due to some technical process issue the amount is not doubled.  In short you have lost a good amount of money which will not be recovered now.

Below are some of my websites whic are free, there are blogs and articles which one can refer for online earning and passive income.

Beware Of Sites, Which Have Bad Reviews

Do your complete homework before accessing a particular website which says that they are best in generating income.  Do a review check for such kind of sites.  90+% of such websites will be fake and many people must have raised concerns.  Website related to Pyramid scheme and network marketing scheme are 100% fake and have really bad reviews.  Pyramid and network marketing scheme cannot be sustained and always collapse eventually.  Such kind of ideas, schemes and website and very active and popular in Asian countries.

Such kind of websites have all bad reviews.

Investment Seminars / Webinars on free income

Investment seminars may also be scams, because the only people making money are those who are presenting the seminars. Most seminars promote ‘get rich quick’ schemes, which rarely work for the masses. To get rich, you need a great idea, a great strategy, adequate working capital and disciplined execution of the strategy. Common sense says [that] if the idea was that great, they would not be sharing it with you.  Seminars are not replaced with webinars, these webinars are paid webinars where one has to invest at least $5 of $10 to register.

Binary Option Trading

Binary options are sort of a wager where investors bet on the performance of an underlying asset, often a currency, stock index, or share, usually in a short period of time—sometimes minutes or even seconds. When that period is up, the investor receives a predetermined payout or loses their wager.

Binary options scams do not target one particular type of investor. In most cases, people find what seems like a great way to make money without stopping to consider if what they are investing in is fraudulent.

A large number of these scams begin online where fraudulent binary option websites purport to offer legitimate investments. The trading activity and investment returns investors see on these sites are not real.

Binary options are usually advertised through websites and social media posts. Often the ads will say how easy and profitable it is to trade these products or point to how new binary options are in the investment industry.

Investors typically create an account, deposit money, and begin trading binary options in a matter of hours. All trades are rigged and investors soon find that they are unable to withdraw deposited money or any purported profits. The fraudsters running the scam eventually shut down the website and take all of the investors’ money. In some cases, credit card and banking information is stolen, which can result in even bigger losses for investors.

As is the case with most frauds, the chances of recovering lost funds are low.

Watch out for one or more of these common characteristics.

  • Websites or mobile apps saying you can earn money quickly with binary options trading.
  • Advertisements to engage in offshore options trades.
  • Claims that the options are low-risk and provide high returns in a short time period.
  • Marketing the so-called investments as offshore and tax-free.
  • Free money and other incentives to open a new account.
  • Pressure to register now and take advantage of an exclusive opportunity.

Well, there are some good, real and legit binary option trading platform on which you can rely, one of them is Olymp Trade.

Olymp Trade

ponzi schmes and income

Made famous in the United States by Charles Ponzi, these scams promise high returns on investments. Each participant is encouraged to bring in new investors, but there is no actual investment. Investors’ money is used to pay out returns to those drawn into the scheme to create the appearance of a profitable investment. The only people who make money are the scam artists who skim money from the scheme.

How Does a Ponzi scheme Work?

Ponzi schemes require a constant inflow of new investors’ money or they collapse. Even though the original investors sometimes see returns, they usually do not get all of their money back.

Promoters often encourage original investors to “roll over” or reinvest their funds in the scheme. To get people reinvesting or to help with the word-of-mouth promotion of the scheme, the fraudsters pay a return to early investors from deposits made by later investors. Fraud artists may also create fake statements to show investors how their funds are growing at a phenomenal rate.

Sometimes Ponzi scheme operators spend money on administering the scheme and paying out investors, but the majority of investors’ money is stolen or squandered.

Watch out for one or more of these common characteristics.

  • Talk about pooling your money with other investors.
  • People touting complicated, secret investments that have some kind of exclusivity to them.
  • Individuals selling investment products who are not registered to trade securities or other investment products.

Statements and contracts not associated with a registered firm, or documentation that looks like it could be a forgery.

Watch out for real estate income

What is a Real Estate Scheme?

Real estate schemes are sold as short-term loans to buyers, construction loans to companies, or even as shares in a building that will earn income and pay it out to investors. Scam artists offer high, guaranteed rates of return to investors seeking steady income from a tangible asset like real estate.

How does it Work?

While many people buy real estate as a personal investment or a place to live, sometimes real estate is sold as a security. These situations involve a sale where the purchaser does not own or live on the property, but may earn a return through the efforts of another party in connection with the property.

Illegitimate schemes are often promoted through aggressive advertising (advertisements disguised as news articles) with promises of big profits for investors in only a few years. Investors contribute to a pool of funds that is used, ostensibly, to buy and hold property. Often, investors are charged high fees and are offered little in terms of details or disclosure of risks.

In illegitimate schemes, the property value is sometimes inflated to attract investors; other times there is no property at all. As with many other schemes, communication dwindles or ceases all together once you invest.

Watch out for one or more of these common characteristics.

  • Promises to “get rich quick” or live your dream retirement with passive income from real estate.
  • Lack of documentation or disclosure regarding a real estate investment or loan.
  • A company or investment that does not have a prospectus that is filed with a securities regulator.

Promoters who are not registered with a securities regulator.