The Nature Of High Yield Investment Programs (HYIPs)

The Nature Of High Yield Investment Programs (HYIPs)
By M. G. Matally

"What really is an HYIP?", or "What is an HYIP really like?" How you answer that question can determine how successful you will be in the online world of high yield investing. There are at least six different answers to the question about the true nature of a high yield investment program (HYIP).

1. Investment. After all, HYIP stands for High Yield Investment Program. Yes, but an HYIP is not a real investment, because unlike a true investor, the hyiper rarely knows in what wealth-building instrument his money is.

2. Scam. This is certainly true of some HYIPs, but not all HYIPs are run by geek thieves.

3. Ponzi Scheme. It is estimated that at least 90% of HYIPs are ponzis. In an HYIP ponzi, the operator uses money from previous depositors to pay current or later depositors.

4. Gambling. This is the opinion of those who either despise HYIPs or have lost money to HYIPs. There is some truth to this, but in that sense, hyipers are as much gamblers as day traders.

5. A Money Game. An HYIP is a game in that there are certain rules of the game that can give an informed player the edge, if she will first invest the time to learn before she can earn. But once you learn the basic rules, this money game can be as much fun as it can be lucrative.

6. A Loan Program. That's what I prefer to call the 10% of HYIPs that are genuine. When you deposit funds into an HYIP, you are in effect lending money to someone, who is promising to pay you interest on your loan. You are the lender or creditor, and the operator of the HYIP is the borrower.

This borrower can do whatever he wants with your money. The borrower (HYIP operator) may use your money to trade the stock market, penny stocks, the foreign exchange (forex) market, or even e-currency. The only thing that matters to you is that

(a) the borrower pays you an interest on the principal amount you loaned him

(b) he returns your principal at the end of the term of the loan.

In the lending industry, the likelihood of a borrower repaying you depends on the honesty and financial situation of the borrower. When you lend someone money, there can be no guarantee that you will get repaid. In effect, your deposit to the HYIP is not just a loan, it is an unsecured loan; the borrower puts up no collateral that you can claim and sell if he defaults on the loan.

Compared to other lenders, you have another disadvantage in this credit business: there are no collections department, collections company or credit reporting agencies to report the deadbeat to! In fact, most often there is no loan contract between lender (you) and borrower (the HYIP).

Therefore, if you decide to be a hyiper, you must, like your fellow creditors (banks, etc), learn how to write off bad debts (HYIPs that don't return your funds). Otherwise, you will find yourself 'closing store' or calling lawyers.

Actually going to court against HYIPs will you cost you more in time, emotional currency, and money than the HYIP game itself. Imagine a bank taking every bad borrower to court!

That's why it is absolutely crucial for you to find a way to screen each potential borrower (HYIP) as much as a bank, Master Card, Visa, or a store will screen someone who applies for a loan, credit card, or line of credit.

Luckily, for those who really want to profit in this arena, there are few tools available online for screening and grading HYIPs to find those honest borrowers.

http://mogama.com Article Source: http://EzineArticles.com/?expert=M._G._Matally

The Nature Of High Yield Investment Programs (HYIPs)
By M. G. Matally

Stop Losing Money on Scams, Earn with Real HYIPs

Stop Losing Money on Scams, Earn with Real HYIPs
By Michael Goldman

If you are reading this article the chances are that you have already tried to invest in HYIPs (High Yield Investing Programs usually pay you around 1%-6% daily of your investment) and eventually lost some money.

Everyone loses money when investing in HYIP for the first time, but should it be that way? Can you earn money with HYIPs?

I've been investing in HYIPs for over 2 years and at first, of course, I lost a lot of money too, but I didn't give up and started to learn HYIPs, to find out how they work.

I was learning to find the Real HYIP programs, to choose the right ones, whose, which will pay me. During that time I absorbed all the information I could find on HYIPs and also my investing experience and I was a good student.

In fact only few months later I was an expert in HYIP investing, now I can predict with a high degree of certainty which High Yield Investing Program will last enough to let me earn and which will not.

So, yes, I earn money by playing HYIPs! Of course, as no one is perfect, I also lose sometimes, but my gains are bigger and much more often. I split my investments between few good programs, I don't invest much in any of them, but I invest mostly in more reliable programs. I choose all programs I invest in very wisely and perform my own due diligence on each one of them.

How you can earn with HYIPs? Here are few simple, yet most valuable, guidelines for you to help make money with HYIPs:

1. First You need to understand the risks. The first gold rule of online investment is "don't invest more than you can afford to lose". Be prepared to make mistakes and learn from them.

2. Don't think HYIP investment will solve all you financial problems, pay all your debts first. Don't think of HYIP investing as a job, but merely a second income.

3. Study HYIPs. Join the 3 biggest HYIP forums: TalkGold.com, GoldenTalk.com and HYIPDiscussion.com. Forums usually are the best source of reliable information directly from other investors, like you. Pay more attention to posts made by more experienced members - they know what they are talking about. Never spam forums - don't post any referral links in your posts unless the forum rules allow that.

You will only be banned for spamming.
Read HYIP articles and reviews, don't trust much to HYIP monitoring and rating sites.
Pay more attention to HYIP articles, they are written by senior investors and reflect thwir experience.

4. Always perform your own due diligence before investing in a HYIP. This game is cruel and you can't trust anybody, but yourself. To find information about HYIP program owners use whois.sc. Search in google for " scam" - look for negative posts, beacause people usually post if they get scammed.

5. Try to invest more in Real HYIPs. While over 99% of all HYIPs are ponzi schemes (don't get it wrong - you can earn with ponzies too, but the risk is much higher), there are few real trading programs.

Real HYIPs invest your money in FOREX, offshore trading or commodities and their daily or monthly interest is usually low, near 1% daily or less. Real HYIPs usually have unique site design, disclosed information about authors and good payout history.

Current best HYIP is FeederFund, you won't find any single post in a forum, claiming FeederFund is a scam.

6. Use smart investing strategy. Best strategy is to split your investments as much as possible. Invest most of your money in Real HYIPs with low interest and high credibility.

7. The second gold rule of HYIP investing is "If something seems to good to be true, it usually is". Don't trust to programs promising extremely high returns and referral comissions. Stick to the most reliable programs and you will succeed!

I believe in your success, now it's your time to belive in yourself and stop losing money on scams.
Learn and Earn!

Michael Goldman is a top expert and consaltant in HYIP investments. He opertates few sites that provide reliable free information about HYIPs: HYIP Articles and Reviews [http://hyip.mikeinvest.com] and Best HYIP

Article Source: http://EzineArticles.com/?expert=Michael_Goldman

Stop Losing Money on Scams, Earn with Real HYIPs
By Michael Goldman