Binary Options
When investing in binary options, the investor assumes the role of a fortune-teller. The fluctuations in asset values occur constantly, and transactions happen quickly. If the price is predicted correctly, which is quite challenging, the investments yield profits. Otherwise, financial losses are inevitable.
The illusory returns from trading binary options can mislead traders. It is impossible to outsmart the computer broker with whom the trading occurs. The profit percentage from a successful trade is negligible compared to the potential loss of the entire invested amount in the event of an incorrect prediction.
Forex
At first glance, the seemingly profitable scheme of earning from currency exchange rate differences is a great way to lose money. Without experience and significant capital, one should not invest in Forex market instruments. Trading is reserved for professionals with substantial account balances that enable maneuverability.
A novice investor must consider that besides official companies with licenses, there are many "illegitimate" operations. Traders on such platforms naively believe they are trading on an exchange. In reality, they are engaged with illegal companies that never incur losses.
Cryptocurrencies
The temptation of quick profits from Bitcoin's rise is great. However, investors should refrain from rushing into investments in the leading cryptocurrency market, especially if they lack experience with digital currencies. Experts' opinions are mixed. No one provides accurate forecasts about the future rise or fall of BTC's value.
The value of cryptocurrencies directly depends on demand. It is uncertain what may affect demand at any given moment. The risk of investing in Bitcoin in 2021/2022 is also tied to legislative issues, the loyalty of which to potential stability threats is difficult to predict.
Bank Deposits
A conservative investment method is not suitable for growing funds. Banks can hold money, but they do not generate significant earnings from interest on deposits. Due to inflation, the level equivalent to the interest rates on deposits means that investments will not yield dividends; at best, there will be minimal profits.
The bankruptcy of banks is an undeniable risk for investors. Although the law provides for compensation payments, recovering the full amount is often not possible. The insured deposit amount is returned in order of priority. One should not invest in assets that do not generate financial growth.
High-Yield Investment Programs (HYIPs)
Financial pyramids, which are what HYIPs effectively are, offer high and quick returns on investments. Earnings can be made in the initial stage when there is a significant influx of new money. To attract investors, partnership programs with generous rewards are utilized.
"No matter how long the rope twists, the end is sure to come." This well-known saying accurately reflects the outcome for participants in HYIP projects. In the absence of fresh financial "support," the structure of the financial pyramid collapses, and investors cease to receive payouts. The return of invested funds becomes impossible.
What not to invest in during 2021/2022 is ultimately up to the investor's discretion. Minimizing risks to achieve guaranteed returns is the goal of those who do not wish to watch their money lying "dead weight."
