What is HYIP ?

HYIP, which stands for High Yield Investment Program is just what it sounds like, a program offering a high yield investment. HYIP's are offering probably the most profitable investments available today. Interest rates of up to 100% a monthis not uncommon. In general the interest rates are ranging anywhere between 5 – 250% a month.

HYIP's are using different investment strategies. Some invest in stocks, others in property. There are even HYIPs investing in other HYIPs. Probably there are also programs that are not investing at all. These belong to the scammers. You’ll read more about unserious HYIPs further down this text.

Most HYIP's use different e-currencies as their way of accepting funds from members. E-gold is undoubtedly the most commonly used one hence the many program names containing “Gold” or “E-gold”. E-currencies makes instant and secure money transfers possible online and have very much paved the way for HYIP's.

The phenomenon of Hyips is growing bigger and bigger on the internet today. Every day new programs are being launched. Lots of people are earning fortunes investing in these programs.

Sounds too good to be true?

Well, while the statements above are not lies, they don’t give you the whole picture. Many program owners are scammers. Their only will is to run with your money. There are more scams out there than serious long term programs.Over the years large amounts of people have lost their money as a result of being involved in High Yield Investment Programs.

Given the fact that the HYIP industry is a very risky one, most people are very hesitant when it comes to investing in HYIP's – which is legitimate. However, not being aware of the risks is the main reason why people are losing their money. There is a great number of cases where people have thought they’ve found an incredible opportunity and gladly invested their entire fortune. When the programs later went out of business, the consequences have been devastating.

Although there are unserious players in all markets, the HYIP arena seem to have more of them than many other industries. The reason for this is the big amounts of money involved and the fact that it’s pretty easy to steal money on the net.

Taking both the negative and positive aspects of High Yield Investments into consideration, the conclusion is; If done right, High Yield Investments can be extremely lucrative.

This is where we come into play. We are constantly studying and researching the market. We are also investing in a number of HYIP's to be able to analyze them and keep track of their payments.

Risks of online investments

First and foremost you must understand that the reward is directly proportionate to the risk. That is what speculation is all about; you cannot expect to make a substantial return if you are not prepared to accept a certain amount of risk. Any experienced financial speculator will tell you that successful speculation involves being able to quantify risk. The amount of risk attached to any particular HYIP, is for the most part, unquantifiable.
Many of the genuine small Internet based HYIP's are considered high risk, as they are not particularly well thought out programs, often with no sound methodology from which to generate returns. They receive thousands of small deposits from participants, which only adds to the problem. The larger specialist programs, many of which are not plugged on the Internet, can be much safer in many respects, as they are usually run by professional traders who know how to generate returns using sound trading methods. They keep a low profile due to the risk of interference by some authorities, but this does not mean that they are not genuine investment programs.

There is yet another type of HYIP trading program which allows you to set up your own offshore company and a bank account, the funds are then traded through this account, but the program administrator and/or trader never has any kind of access to your funds, he/she only has the authority to place the trades on the account. This method of funding is without a doubt the safest that is available to the HYIP investor. The only risk is that which is attached to the trading method used to generate the returns, although most professional traders will operate with specific risk parameters in mind.

The program administrators should also be forthcoming about how they intend to generate the quoted returns. You should be extremely wary dealing with any HYIP that refuses to disclose details about their system, after all they are asking you to show good faith in them by investing your hard earned money, so they should at least be willing to tell you how they intend to generate the quoted returns. Once you know how a program works, you are in a much better position to be able to assess the viability of that program. For example there is one HYIP that claims very high returns from investing in domain names. This type of HYIP might have been feasible a few years ago, but is highly unlikely to be profitable these days. There have been many high profile court rulings against domain name speculators over the last few years, and registering domain names is hardly an area that requires specialist knowledge and expertise.

As a rule the larger the sum of the investment the safer the program is likely to be, assuming that you are afforded adequate capital security. The frauds are usually the ones that request small investments and membership fees, as well as offering referral fee arrangements. Programs operating in this manner can draw in a greater number of participants in a short time before shutting down. The larger programs tend to be much more professional, with their focus on making steady returns for investors and taking a small part of those returns as their profit. Most of the larger programs also appear to understand the need for frequent client communications, which is often an area of complaint amongst many of the smaller HYIP's. Usually your only source of regular information is the HYIP website (assuming they have one), and in many cases these websites are not updated as frequently as they should be.

http://www.worldhyip.com
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