High Interest Rate HYIPs – Risk and Returns

Once in a while, some HYIP Administrators come up with this mouth watering offer of huge interest payout in their program. Of course, experience HYIP investors know very well to avoid real daily profit* over 4% daily. However, every now and then, a new HYIP with very well designed website template, original text, SSL encryption, DDOS protection, company registration, prompt online customer services/chat, and other trappings of a good HYIP, offers interest that look fairly ‘reasonable’ say 2.5% – 3.0% daily for 30, 45, 60, 90 days and beyond with or without principal returned.

This often presents a dilemma for most HYIP investors. The challenges here include the fact that the interest offered does not appear way over the roof when compared with those HYIPS with 4.0% real daily* profit and above.  The second challenge is that these HYIP sites may also passed some of the major criteria used in identifying good HYIPs. Under these circumstances, is it advisable to invest in such HYIPs?

While individual HYIP investors will generally have the final say on how they choose their HYIP, the best I can offer is to share my experience. It is instructive to say, I have earned profit with a HYIP that pays 2.5% real daily for 60 days with principal returned. However attempts at reaching similar milestone with HYIPs paying 2.8% and beyond daily for substantial number of days have been met with mixed successes.

My instinct at the moment is to avoid such HYIPs that offer a real daily profit of 2.8% and beyond. The lifespan of such HYIPs are generally less lower than those with lower interest, besides principal is mostly locked in for the duration of the investment, compounding only compounds the risk. If you are tempted to take the bait with such HYIPs, entry, principal recovery, and exit strategy must be diligently planned and adhered to. Again, never trust any HYIP; invest only what you can afford to lose!

*Real Daily Profit refer to the exclusion of principal in profit calculation

Related Topics:

The Best HYIP
Learn winning strategies of HYIP
HYIPs, Pareto's 80/20 Rule, and Portfolio Diversivication
HYIPs and Greed
Why do HYIPs Scam?
InvestForia LTD Scam: A post Mortem
Can you recover lost HYIP fund?

Lessons and Strategies in HYIPs: The Royalty7 HYIP misadventure

Turning a HYIP from gamble to investment is the trick of the game. It's a matter of getting your HYIP tactics right. Don’t get me wrong, every HYIP no matter how long it runs, will surely turn a scam. It just a matter of time. The trick then is determining when to join, how much to part with, and when to exit.

My first HYIP was a disaster. I joined a popular HYIP - Royalty7, which had consistently paid for over 200 days. Unfortunately, Royalty7 scammed a week after I joined, I received a single payment that was just 7% of my initial investment, the rest is still trapped in the program, with mounting pending withdrawals. I have written them off and moved on. But I learned a few lessons from the experience. The lessons gained from this ‘loss’ helped shaped some of the tactics I subsequently adopted.


What did I learn from Royalty7 and what tactics have I adopted?

1. NEVER invest in HYIPs what you cannot afford to lose.
I invested what I felt I could easily write off when I joined Royalty7. Now looking back, I feel vindicated by my decision. While some made huge profit from Royalty7, I lost what I could afford to lose.
My tactics: I NEVER EVER invest what I cannot afford to lose. This remains the golden rule of HYIP


2.All HYIP will crash/scam no matter how long and reliable they pay
It took ‘investors’ of Royal7 about 15 days or thereabout to recover their initial investment, in the 7% Daily for 30% plan. Older investors made a lot of ‘profit’ from Royalty7 while it lasted.
My tactics: Join Early


3.Some HYIPs are profitable
As stated earlier, some investors made a lot of profit from Royalty7 before while it lasted (as at the time of writing this blog, some are still hoping they will be paid). For instance, an investor who invested $25 in ROYAL7 and renews it each time it expires for 150 days, would have made 10 times his initial investment, even without compounding.  Some of these investors may also lose if they stayed too long in one HYIP.
My tactics : Exit early, long term I take daily profit


4.      NEVER put all your money in one HYIP
Royalty7 was my first HYIP, even though I invested what I could afford to lose, it was all in ROYAL7. With the benefit of hindsight, I have realized the naivety of such.
My tactics:I spread the Risk and have diversify my HYIP Portfolio


5. TAKE your profit
Many people tend to focus on the ‘big payday’ check, and forget the basic – capital. When investing in HYIP, be very skeptical. Each day a HYIP lasts is a bonus! Hence, it is wise to always take your income/profit no matter how small. Compounding, as offered by most HYIP might earn you more money, but securing your initial investment (or part of it) is essential if you must succeed in HYIPs
My tactics: I take my profit daily

6. Look before you leap
There are several HYIP monitors out there which shows the status of HYIP; if the HYIP is paying, waiting, having problem, or not paying. Checking out the status monitor should be one of the first step to take when considering the decision invest in HYIP.
My tactics: Look, listen, before you invest.


Those are my current strategy for turning HYIPs from gambling to investment. Do you invest in HYIP? Do you have an experience to share? Please do drop a comment. Those who may want to invest in HYIPs but dont't know where to start may also drop a comment. I will in the next blog show you how and where to begin.

Related Topics:
InvestForia LTD Scam: A post Mortem
Why do HYIPs Scam?
HYIP Monitors Review?
Can you recover lost HYIP fund?
Can HYIP investment be insured?

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
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Learn how to invest in HYIPS
Why do HYIPs Scam?
HYIP Monitors Review?
Can you recover lost HYIP fund?
Can HYIP investment be insured?