As the cryptocurrencies boom, there are so many businesses that are springing up; some are very good while others are fake and scammy. It is, therefore, very important to read a lot, inquire a lot, and think carefully before making any investment in these ventures.

Most of these cryptocurrency opportunities come with the referral component. If you bring in new members, you are rewarded. There are many types of referral rewards. Businesses that exploit the referral concept are usually known as Network Marketing businesses simply because they use the networks to spread out. If the rewards involve several levels, then they are called Multi-level marketing (MLM) businesses.

There are so many traditional MLM businesses out there. Some successful examples include Amway, NuSkin, Rain International etc. People who are involved in MLM schemes follow them religiously and ardently defend their chosen companies.

If you just follow their persuasive talks, without finding out more information about the companies yourself, you may end up regretting. Members of an MLM company will usually say only good things about their company.

Now, here is my advice. Before you join a crytocurrency based network marketing or MLM business, please make sure that you ascertain the following issues:

  1. Establish the legitimacy of the company: Inquire, read and get user experiences from many people. Not all that glitters is gold. In the cryptocurrency world, there used to be some companies which initially looked awesome but they disappeared without trace in no time and some people, as we speak, have lost some money.
  2. Establish if the company would help someone make profits without referrals: Find out if the company is still valuable if one does not refer people to it. If the answer is NO, then please run away from such a venture. There are so many MLM schemes which are not valuable by themselves. It is the referral system, that is a money engine. If you dont refer anyone to the system, you benefit almost nothing financially, materially, or even healthwise. Once you start making referrals, you start getting money from the money that is paid in by the referrals. There are many intiatives like that out there not just in the cryptocurrency world, but even in traditional businesses. I wont give examples here for obvious reasons.
  3. Invest smaller amounts that you won’t cry for should something go wrong: The cryptocurrency world is full of risks, volatility and dynamism. We are all amazed at the rise of Bitcoin from US$1000 to almost US$20000 in a space of 12 months. The truth is that market forces that have propelled Bitcoin to such levels can also propel it in the opposite direction very easily. This is a technology era; it is also possible for a completely new technology to come on the scene and replace Bitcoin even as you, yourself, are still heavily engrossed in a Bitcoin based business venture. I, therefore, generally advise people not to invest huge sums of money in a cryptocurrency business. In my case, I limit my investment in cryptocurrency business ventures to 10 percent of my savings.
  4. Spread your money and invest in several places to mitigate the effects of risks: This is in line with the famous Ecclessiates 11:1-2, which reads: Invest your money in foreign trade, and one of these days you will make a profit.Put your investments in several places—many places even—because you never know what kind of bad luck you are going to have in this world. If you do not read the Bible, this is your chance to open the Holy Book and learn something. You will surely like it. In my case, I have three crytocurrency related business ventures now. God willing, I may increase to five.
  5. If you start making some serious money from cryptocurrency ventures, make withdrawals and invest in other assets such as real estate, farming, stocks etc. This diversification is good for you going into the future. Do not be carried away. There is still danger that you might lose everything.