Brief explanation of pyramid schemes and the most common crypto scams.

Let's start from the beginning, do you know what is a Ponzi scheme?

It is a pyramidal scheme where it is promised that every user gains money if they spend money in the pyramid and if they invite someone else who spends money, and then this other person will have to invite another person who spend money in the scheme and so on.

It is easy to understand that this pyramid sooner or later will be unsustainable.

The scam is in the fact that the last users who joined the piramyd who didn't invite another person in the scheme, will loose all the moeny that they invested.

So yeh actually you can gain from this schemes... If you have no fear of tricking other people into the scam and basically getting their money.

These schemes are so common because:

-They are very easy to make;

-They are viral.

This kind of scams have always existed but after that people started thinking that cryptos are a good tool not to be trackable (which is not true) they exploded on the internet.

Do you wanna find one?

Search on any search engine that you use "Dogecoin Cloud Mining".

You will probably find a webside who:

-Gives you free "mining power"

-Invite you to invite more users in the website to get more "mining power"

-Gives you the more "mining power" the more you spend in the website

-Has a growing number, you will always find a number that once you open the page will start growing, seems like dumbs like to see growing numbers.

Of course if a website has all this features it is a scam.

Does it mean that all the cloud mining is a scam? Of course not, but it is a good "mask" for these kind of pyramids.

As long as new people keep coming they keep receiving and sending payments so that people can give a proof that the website is "real".

Then, when the amount of people joining the scheme daily decreases, they close the website and leave with your money.

Another mask that they can use is the doubler.

They send double the amount of coins to anyone who send them funds, for a short period of time, then they leave with the money.

Another kind of scam, which is not a scheme, are the cryptocoins generators.

They will often be a website who claims to generate large amounts of coins in a short time.

They will ask you to pay a "miners fee" to get the coins, but of course you will not get anything.

Lately all these scams moved from the internet to Telegram.

There are dozens of telegram bots who use these schemes.

Be aware of your money and their worth.