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Thursday, July 12, 2012

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?

Wednesday, July 11, 2012

Which HYIP is the best or good for you?

This, perhaps, is a million dollar question. I doubt if anyone who can answer this question confidently, as there are many shapes, shades and sizes of HYIPs out there. Many more springing up every day. However, there are key indicators to look out for when selecting a High Yield Investment Program (HYIP) to invest in. Some of these key indicators include:

Registered Company
Most HYIPs are run by group of private individuals who are not subject to any form of regulation. However, there are HYIPs sites which are hosted by registered companies. A quick search in online company search sites like Dun & Bradstreet can give you an idea or two about the validity of claims of company registration. Look out for phone numbers, and existence of country or regional representatives.

Program Website Design
Does the website hosting the HYIP look professional enough? Or is it hurriedly put in place? The odds are, if the site is not professional, ditto for the administrators, and indeed the service. Sites hurriedly put in place, with less than professional feel, most often than not scams quicker than professional looking ones. Read through the company profile, mission, and FAQ page for professionalism, paying attention also language and construct.

Look out for identity assurance 'stamp' from reputable companies, the Secure Socket Layer (SSL) for date security and encryption, DDOS (Distributed Denial of Service) protection, etc.The more expensive the set-up the less likely of it scamming too soon.

User support and Interface
What kind of user support is available on the site? Does the HYIP have an online 24/7 chat/enquiry support? Is a personnel assigned the responsibility of responding to enquiry on the system? In case of offline support system, are email messages responded to in timely manner? How helpful and professional do you rate the responses you received?

How much is spent advertising the HYIP?
A HYIP that engages in expensive and extensive advertisements most often tend to be relatively stable. Perhaps, because it will take a longer time to recoup the money spent in advertising, or maybe because the owners are serious about their business.

There are many things to look out for in a HYIP, the above been just a few of them. However, a HYIP may have all the above features, yet scams sooner than you could recoup your initial investment, hence while investing in HYIP can be very rewarding, NEVER invest any money you cannot afford to lose - that is the GOLDEN RULE in HYIPs. In the next blog, I will take you through some of the plans and strategies I have mapped out to help me reap rewards from HYIPs. See you there...

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?