From the very difficult time since the great recession in 2009 that has hit several continents around the globe; many people have become weary of the ups and downs of finances. Pushing limits to the very core of disposition. Being skeptical is one of the first attitudes that people naturally feel because they have to be on guard all the time when it comes to money. With the growing number of scammers, finding the real deal seems very hard these days when finding out whom to entrust your money with.
However, no matter how hard times can be, there are always ways to figure out how to let your money grow. It takes a lot of time and analysis to figure out which is the right type of investment for you.
Then came the sudden hype for HYIP which stands for High-Yield Investment program. So what exactly is HYIP and how safe is it anyway?
From the name itself “HIGH YIELD”, we might already know what this type of investment means. It sure is very enticing to hear that there is a kind of investment that returns money big time. So far, according to various sources, interest rates from this investment program range from 5 to 250% a month. This percentage already draws attention because if you would compare to banks and other types of investment companies, there’s only a little percentage of return annually.
The high return of investment is usually involved in managing capital through different channels like stock exchange, Forex trading, metal trading, sports betting and a lot more. Unstable markets such as these mentioned above are considered “high-risk” investment programs because although it can give you huge profits, there is also a possibility of huge losses. While the huge interest rate returns seems really attractive, the negative side to this type usually is not being protected from the losses because the traders are the one managing the funds and it’s up to their decision how they upturn the money.
This is one of the reasons why people perceive HYIP as a Ponzi scheme. Ponzi scheme being defined as a fraudulent type of venture promising big return of investment works by inviting new investors and paying earlier investors with money just invested. All the procedure is usually done over the internet, the investment returns expected ranges from 45% a month or 6% per day which is usually higher and one may say that it is really an eye-catching figure to start with. The website however, does not indicate any information regarding their location, core management and other characteristics of how money is being invested.
Many people say that HYIP is a type of Ponzi scheme masking it with a different name to lure investors who already were scammed before while investing with Ponzi. While there are similarities in how they operate, just like they are both internet-based and works through e-currencies like E-Gold or Liberty Reserve, it is rather difficult to tell which one is real and not.
HYIP operates and carry their actions through internet also and accepts $10 or less as initial investment at the same time promises high returns. HYIP usually targets small investments.
According to www.hyipexplorer.com, Ponzi only poses as a fake HYIP. It persuades new members to invest huge amount of money. When new members invest, the Ponzi scheme works in a classic pyramid wherein the more members at the bottom make the one up there richer by every investment. Once these members realize what they’ve invested in, it is already too late to turn back and take what they’ve gave in. The one who started this type of investment is the one who usually is richer than the others beneath him. When all the investors go because they don’t get what’s promised, the pyramid falls down leaving all the money collected behind.
These counterfeit HYIPs more often than not present themselves as established and genuine investment programs. And because there are big time investors involved, one would not think that these programs are just scams. A number of HYIPs have integrated other countries with lenient scam laws to secure exemption from investor laws.
More often than not, any type of investment exposes anyone to great risks. No matter how risky HYIP is, the opportunity to make money in a fast and easy way often reduces the fear of investing. The question in every investment is how do you choose or pick the right one that is both suitable to your financial capacity. When you see a possible investment and know enough that the risk is worth taking then the subsequent step to take is finding a dependable HYIP.
There is a website that monitors HYIPs and has in fact lists of all HYIPs online. There you can find comprehensive information about each and every program available and up to date investment status. It is proper to determine whether your chosen HYIP makes selective payment and checkout and visit HYIP forums for payout reports. The good thing is, with HYIP monitor you can see the number of days the site is running which gives you an outlook if you could have higher chances of earning a profit. Through this monitoring websites, you will be able to learn about payout proofs, scam reports and the most reliable investors so far.
When investing, always keep in mind and make it a priority to be paid back with your primary principal first. This way you do not have to worry in case the admin shuts down the site and take off, you have already secured your principal investment should the admin run away.
With the right kind of high yield investment program, this prospect can convey huge amount of profits. Bottom line is, not just with HYIP but any kind of investment, it is wise and appropriate to do background check before investing. Look at all the sides and possibilities and most importantly, the risk involved in investing. After all, it is the opportunity for your money to grow or go to waste.