HYIP - What is a HYIP?
High Yield Investment Program,
is a service that will build an astronomical return on an investment, but at the risk of costing nearly everything.
A hyip initiative runs largely like this:
Lots of investors put a minimum amount in the program to be traded generally in
and/or other ways of triggering an astronomical return on investment.
The administrators of the service trade the whole or a portion of this money every day and build a certain earning on that, and they keep a certain amount of this income for themselves.
The rest of the revenue is either reinvested to be traded again the next day providing the original amount invested or withdrawn by the investors. This earning is mostly about 1%/day. So it is a mutually beneficial scheme for anyone involved. That is the theory.
In practice, there is an above average risk faced due to these unusual factors.
Because individual's cash is typically traded on the web, it is fairly easy for somebody to open a website and pretend to be a qualified trader. And when they have enough money for themselves, they shut down the site and run away with your money.
Unfortunately, more than 99% of the hyip programs on the net are just that.
Another risk is that even if the administrators do trade your money, it does not mean that they are professionals. They can just just recently be amateurs that will lose your money, continuing to investing with all the best intentions of the world, and have to shut down anyway. In fact, even if companies are true professionals, they are at the mercy of the changes of the economy and can still lose your cash if they have bad luck.
So the trick is obviously to find sites on the net that are true hyip programs, and are operated by true talented traders so can work out for a while. And furthermore, never invest all your income in only one place. In this way, you reduce the gamble as much as possible.
Always be conservative in making an investment in
and good advice is to never invest more than you can afford to lose.