Ponzi (ponzi scheme) is a fraud activity that the website owner or a person suggests an interest rate to his clients for giving/investing money to him.
And he pays previous clicent’s interest with the money from the new investments. So, there appears a pyramid scheme. When new investments does not come, or when there is more people who want to withdraw than invest, the system collapses. As an inevitable ending, the scammer has to run away with the leftover money.
Warning about Ponzi Schemes:
Try to be cautious for ponzi sites.
Do not invest more than you can afford to lose as they will steal your money one day.
Even so, if you want to invest by knowing that they will scam you, invest early (max 3 days after launch), and cashout early. By doing so, you can make money online from ponzi sites, but still risky.
Low-risk ponzis are safer than the high-risk ponzis as they generate revenue from advertisements, banner sales and etc.
So, you can give them a try with a little more confidence compared to high-risk hyips.
Anyway, be careful and do not invest more than you can afford to lose.
Unknowingly, we may promote ponzis, because the admins of the sites, does not reveal facts, they can be just disguised ponzi schemes. So, you better do your own due diligence before investing into any site.
Watch this video to understand what better what PONZI is:
Here, you can also read what hyip is.
We hope this article helps you understand ponzi schemes.