HYIP - An Investment or a Gamble?

"HYIPs are scams, and Ponzi schemes" is usually the first reaction of most neutrals and skeptics when posed this question. In over 90% of the times they are right. Most long lasting and seemingly stable HYIPs eventually go bust. The cyberspace is indeed replete with many 'good' HYIPs that have eventually turned sour. However, some of these HYIPs ran long enough for some of the investors to recoup their initial investment. Unfortunately many will also lose the money they invested in HYIP when the inevitable happen.

Now the answer to the question: "Is HYIP is an investment or a gamble?" depends largely on the psychology, motive, and strategy of the individual HYIP investors. Bearing in mind that all HYIP will eventually scam (or so I believe), the onus lies on the HYIP investors to align his/her entry and exit strategy with this inevitability. So in essence, while most HYIPs will eventually go bad, your approach, manner and investments strategy will determine if you will profit or lose, and by how much.

Armed with this and other information, and of course some funds I can afford to lose, I have formulated a plan to make my HYIP adventure a profitable one. In the next blog, I will be sharing some of these strategies with you.

Related Topic
Learn winning strategies of HYIP
Learn how to invest in HYIPS
Learn how to spot a good HYIP
How to secure your HYIP earnings
Why do HYIPs Scam?
HYIP Monitors Review?

What is HYIP?

Defining or explaining what HYIP is, depends on where you stand on the global HYIP debate. Let's look at these two attempts at defining of HYIP:

Wikipedia defines HYIP as:

A high-yield investment program (or programme), HYIP, is a type of Ponzi scheme, which is an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors.
According to WiseGeek.com,

HYIP stands for High Yield Investment Program and is a way for people to invest money into high yield, high risk markets who couldn't normally do so on their own, usually because they lack the initial investment funds. A HYIP pools money from investors together and uses the funds to invest in these markets; investors receive a portion of the return on their investments over a pre-designated amount of time. Most HYIPs pay interest daily, weekly, or monthly over the Internet. While some HYIPs are valid investment tools, a majority are actually one form of a ponzi scheme.

These definations are enough to discourage the faint of heart from parting with their hard earned money. But HYIPs have come to stay, and might stay for a long time. And, perhaps, drawing encouragement from the last sentence of WiseGeek definition - while some HYIPs are valid investment tools, a majority are actually one form of a ponzi scheme, the not-so-faint-of-heart might want to take another look at HYIPs with the view of taking informed position. That is my intention - to attempt to separate the wheat from the chaff, and enjoin the wheat before it get bad.

Investing in HYIPS is not for the faint of heart, and should NEVER be attempted with money you cannot afford to lose. So how do you separate the wheat from the chaff? How do you determine a good HYIP? My next blog will attempt to answer these questions.


Related Topics
Learn how to spot a good HYIP
Learn winning strategies of HYIP
Learn how to invest in HYIPS
Why do HYIPs Scam?
HYIP Monitors Review?
Can you recover lost HYIP fund?
Can HYIP investment be insured?