For a person who is not averse to and on the contrary, enjoys risk taking; aims at making large profits quickly and is very much at ease with online commerce, HYIPs are a readily available answer in the current world. The lure of earning easy money, the excitement and the high popularity of HYIP schemes can however, be offset by the disadvantages of stress and indefiniteness that accompanies them, the lack of fundamental information and the increased dependence on the popularity of the schemes. Similar to Ponzi schemes, HYIPs or High Yielding Investment Programs promise an unrealistically high rate of return on their investments on per day or per month basis. Payments to previous investors are made from subsequent investments made by clients or customers. The spread of internet, electronic money and payment gateways are major reasons for the thriving business of HYIP.
Tips for investment in HYIPs
Investments in HYIP cannot be termed as safe investments by any stretch of imagination. The high profits that one can rake in make its pursuit on par with gaming, gambling or betting. A basic precaution before participating in HYIPs is to bear in mind that it is certainly advantageous to join only new HYIPs that are gaining acceptance and popularity, as the onus to extend the reach of a newly floated scheme and gain credibility by ensuring regular payouts, would rest on the promoters of the HYIP. Popularity ought not to be the only criteria for selection of HYIPs.
Secondly, HYIP operators rarely disclose complete information about their location, management or investment pattern. Not all data, information and statistics that are shared on the HYIP websites are truthful or accurate, further. Often the claims made are misleading and evidently meant only to entice the weak and hasty investor. For instance, schemes that assure that the principal would be returned would be certainly attractive, but are equally unworkable unless the HYIP has proven past credibility.
Therefore, thirdly, it would be advisable, to use HYIP online monitors as decision support systems before making investments in these programs. With a wealth of data on available schemes, the investments and withdrawals from each, their popularity, degree of success or sustenance and their rating, the HYIP monitors are considered a fair indicator of the health of specific schemes, and carry recommendations that could be considered. Herein lies the rub too. Monitors, at times, do seek to increase their popularity by offering referral commissions. This can well be a merely marketing ploy that is indirectly advantageous to the monitor as well as to the HYIP, but is definitely misguiding to the investor. Check out the Best Paying HYIPs here.
Finally, the urge to dabble in such investments should be accompanied by commonsense and any promise of unrealistically high rates of quick returns need to be viewed very speciously.
It is important to bear in mind that HYIPs thrive due to lax fraud laws and the lack of adequate investor protection mechanisms. Cautious and reasonable investment after adequate analysis is therefore called for.