With the ongoing coronavirus pandemic, the way we spend our everyday lives has changed. Quarantine protocols have been implemented in the Philippines—people, schools, and businesses have all been affected. The pandemic has left millions of Filipinos with no choice but to find other means of earning money. While jobs are scarce, online investments have sprung up almost everywhere. 

Online investments have become a cradle for get-rich-quick schemes. Cryptocurrencies are one type of online investment that has become especially prominent. Hundreds of platforms have flooded the market, and it can be overwhelming to determine whether or not they are valid. Certain red flags can quickly highlight risky investments. These are not necessarily indicators that a platform or a company is a scam, but they should make you question how viable a particular investment is.

Here are some of the red flags you should be wary about:

"Guaranteed" high returns attached to a minimal risk investment

When an investment guarantee returns--especially high returns--on the money you'll put in, you need to run away as far as you can. One of the basic tenets of investing is that the higher the potential return, the greater the risk. There are no guarantees when it comes to investing. The only constant in any investment is risk. If all investments had minimal risks, we'd all be rich by now.

Overselling with complicated jargon and opaque pitches

There is no such thing as fast money. If the promises are too good to be true, it's time for you to walk away. Apart from that, some online investments use complicated jargon that most of the population doesn't know about. Investors that are new to the crypto space may assume that if something sounds complex, it's a revolutionary idea. These two do not equate. When an investment is being oversold, there's a possibility that it's trying to overcompensate for something that it's lacking.

Asking you to invite investors to earn more money

Remember, an investment should only include you, the asset you bought, and the platform you are using to grow your money. If the investment platform requires you to bring in more people to enjoy the returns of your own investment and earn more money, it's time for you to start questioning whether you're investing or buying a slot in a multi-level marketing scheme.

Unregistered investment platforms

As a potential investor, you must do your due diligence. Check the legitimacy of the company you're investing in. Does it have a license to operate? You can always check the SEC and see if the company is legitimate. Even if it's an online investment, it still needs to have all the necessary papers to operate. If a company is not registered, investors won't have the government's support if something goes wrong with their investments.

No information about the people involved in the company

Apart from knowing the legitimacy of the company, another thing you should check is the people behind the company. Do real people own it? Do they have digital footprints? If not, then it says something.  You need to do background checks on the people involved in the company you'll be investing in to make sure that they are not engaged in any fraudulent activity. This will tell you whether or not your money would be in good hands.

Please keep these red flags in mind when deciding to invest online. As an investor, you have to ask questions about the investment, the company, and the platform you'll be getting yourself into. Be sure to research every investment opportunity thoroughly before you invest, because it's your hard-earned money. During these tough times, it is crucial to always be vigilant.

(Kim is a freelance content and technical writer who is passionate about the environment. A writer by day and a reader at night, she takes pleasure in acquiring new knowledge. She’s an experienced researcher and advertising executive. In an alternate universe, she is a professional model.)