Ndubuisi 'Andy' Egwim warns that offers seeming too good to be true usually are. In a Ponzi scheme, early investors get paid from new recruits' money, not real returns, until it collapses and most people lose everything.
You need to be extra vigilant about scams and schemes. They are not really investment if something feels too good to be true and doesn't follow basic investment principles. Example is Ponzi schemes. If you already have all those type of risk then you need to flee as much as possible. People lose money in legitimate investment when they don't manage their risk well and even when their risk is well. But if you go into a Ponzi scheme or a scam you're more likely to lose much more than you can even think about or manage. No matter how well they are dressed up as investment schemes avoid them you can lose everything. Now entering a Ponzi scheme is like going into a mixed martial arts fight UFC with a ferocious opponent who is not afraid to cheat but wait for it one hand your hand is tied behind and you've also got like a blindfold so you might win by some miracle but it's stacked against you. Chances are you won't.
