HYIPs, or High Yield Investment Programs, skyrocketed in popularity with the advent of e-currencies, such as StormPay, e-gold and the like. A significant reason behind such immense popularity is the fact that HYIP organizations offer enticing interest rates of around 1% per day or even more. It is evident that, on an annual basis, the yield far exceeds even the most generous of schemes in the financial markets. Furthermore, it’s easy to get the gist of HYIPs, and they allow investors to invest even a scanty amount upfront.
However, the unusually high yield is a telltale sign that the scheme does have associated risks. In general, as far as investment is concerned, high yield involves high risk. Therefore, a HYIP can be either a lucrative investment option or an outright scam orchestrated by a bunch of swindlers. Several phony HYIP schemes make use of the ponzi or pyramid structure. In such a scenario, new entrants provide the cash to pay existing members. Such fake schemes are bound to fall apart eventually, when there is a dearth of new investors. Thus it is imperative that you distinguish between scams and authentic High Yield Investment Programs.
All HYIPs are not out and out scams. Many legitimate HYIPs offer great returns on even the most diminutive investment. HYIPs are all about astute investment. That is, you must possess an uncanny knack of good judgment. This would enable you to pull out early if the situation gets a bit wobbly, and you presume that the HYIP is likely to fall apart. Nevertheless, as long as you keep getting a decent amount of referrals, the HYIP would typically continue to pay the promised returns.
There are a few guidelines that you may follow when investing in HYIPs. This would ensure that you don’t fall prey to a fake HYIP scam:-
a) Some investors go flat-out and invest a great deal in a particular HYIP. Investing too much too early is not advisable.
b) As such, HYIPs are met with skepticism. It is imperative that you test the withdraw function as soon as possible. This would help build trust in the particular HYIP, and then you could go on investing sizable amounts for a longer duration.
c) A telltale sign of a fake HYIP is when you are unable to attain even your initial investment amount within a reasonable timeframe.
d) Don’t get greedy and invest scads of money in a particular HYIP. Instead, divide your investment funds in an astute fashion, and apply them towards different HYIPs. This would help protect you from bankruptcy, even if one of your HYIPs falls apart.
e) There is no point saving up for that one big withdrawal. It is recommended that you carry out investments with intermittent withdrawals.
f) You must track your returns with discretion. Handling investments in an imprudent fashion could leave you in a hole.
However, after having been involved with various HYIP programs and other schemes that promotes profit growth that seems too good to be true, they all share something in common, which is – All HYIPs are scams.