HYIPs, also known as High Yield Investment Programs are investment opportunities which offer high returns on investments. They are involved in a very high-risk ventures such as Forex trading, Sports betting, gambling, etc.
These kinds of investment opportunities do not have a guarantee on the return of investment which makes HYIPs a very high-risk investment ventures in nature.
How an HYIP usually operates?
HYIPs are Ponzi schemes and are bound to fail sooner or later. The lifespan of an HYIP is unpredictable, but generally most go down in a short space of time. HYIPs can last for only a few days while some may last for even a year. Some HYIP admins have the intention of creating an HYIP website, run online for a few days then disappear after they have gotten enough deposits.
It is important to be aware of these facts so you’ll be able to play in HYIPs wisely. At the same time you should be able to identify these scammers properly so that you will be able to stay away from them.
Important tips to implement in dealing with HYIPs
1. Learn the nature of HYIP before making an investment.
Most HYIP investors lose money because most of them invest at once without learning first the trade. They are attracted to invest large amount as they see the big profits they will earn from an investment. Like in any other business, before you start investing, you must know and ask yourself, why HYIPs offer too high profits for your investment. How could they survive providing high returns? This is one tactic of scammers, offering high returns to attract many investors.
2. Make a thorough investigation before making any investment decisions.
If you came across a certain HYIP that you want to invest in, research and analyze as much information as possible before making any investment. Verify the validity of a certain program. Check the Whois data at www.whois.com to get the detailed information about a particular business. Verify also with government institutions if they are legitimate companies. For example, for UK Companies, you can verify at wck2.companieshouse.gov.uk. But be careful also, even though it is registered, there are some companies that turned to be a scam if they already attained the targeted amount.
Make the optional research before investing your money. The first step you must make is to find out the most profitable and stable programs that could bring a nice return on your investment.
- Make research on a popular search engine like Google.
- You can research also the status of HYIPs in Forums like Money Maker Group at www.moneymakergroup.com. Here you can check the status of each HYIPs as you can read posts of some HYIP investors if a certain HYIP is good or a scam.
- Don’t depend your research on a single forum.
- Monitoring sites are another place where you can make your research. But be careful as some monitoring sites are being paid by some HYIP programs to give a positive feedback.
- Do not depend on a single monitoring site.
- HYIP admins treat monitoring sites very well. Therefore, if you see paying status on monitoring site, it does not mean, the HYIP is paying all investors. Some HYIPs are paying profits for investments of monitoring sites but not for the investors. This is to maintain their reputation as a paying HYIP – keeps investors flowing in but in actual fact investors are not being paid.
- Read all rating given by the investors on the program you are making research.
3. Diversify your Investment Across Several HYIPs.
Do not put all your eggs in one basket. You should know that HYIPs are a very high-risk investment programs which carry a calculated risk. It is important to work hard on how to minimize the risks associated with HYIPs.
Diversification helps you to manage your investment wisely by spreading your portfolio over different programs. Make your investment proportional to the credibility of each program. Do not over invest and focus on an overall plan of your investment.
4. Take strong measures to protect your account safe.
There’s a possibility that your account could be hacked. So in order to protect the money generated from your investment, it is necessary to take strong measures. Use anti-virus software, a firewall, and anti-spyware to help keep your computer safe and secure. You should always set up your computer operating system and Web browser software properly and update them regularly. At the same time, you should use strong passwords or strong authentication technology to help protect your personal information. Don’t click on attachments on e-mails as this often use people into giving up personal information.
5. Get your principal as quickly as possible.
One of the greatest problems in HYIPs is that it is impossible to predict the lifespan of a particular HYIP. Thus, it is important to take some mechanisms to make your investment safe. One way of doing this is to properly use different compounding options.
You should know how to compound for a particular HYIP at different times. You should get your principal as fast as possible, that is, set the compounding option to 0% until you have coped up with your initial investment. Then after, start compounding depending on the status of the HYIP. You should usually withdraw 50% of the profit by setting the compounding option to 50% after you regained your initial investment.
6. Keep on watching for red flags.
Watch for important information about particular HYIP indications of potential problems or red flags, clues that an HYIP may be heading for trouble. One sign is that their website is down for maintenance, sometimes making revisions to the program offering a much higher profit. Withdraw all your profits as this is a sign that they’re going to scam.
You should be able to identify what a healthy HYIP looks like, how Ponzi looks like, how they behave and what tricks HYIP scammers use to cheat investors.
7. Invest only amount you can afford to lose.
You should understand that high yield investment programs are risky. Therefore, you should always be ready to accept any loss. Invest an amount which you feel is not too much and not causing any pain on yourself. But, learn from your mistakes.
8. Work consistently.
To achieve your goals, you need to have self-discipline to work everyday with all the energy you possess. You consistently work to get a consistent result.
9. Never invest in short-term HYIP.
If you want to make a profit, mid-term to long-term HYIPs are usually the better option. The best investment plan is one that allows you to withdraw your interest on a daily basis. Alternatively choose a plan that allows you to withdraw your initial investment at any given time.
Try to avoid HYIP sites that allow instant withdrawals, though this is not a strict rule. Some investors can panic and then everyone starts withdrawing money thus causing the HYIP to collapse. On the plus side, if an HYIP stops automatic withdrawals, it could be a sign of a pending scam or a confirmed scam.
10. You should never quit.
You should know that HYIPs always carry risks and work hard to avoid these risks. When things go wrong, don’t give up, keep on working hard and consistently and finally you will succeed. You should understand that there is no magic bullet that will make you rich overnight without much effort. Always be patient to see the results.
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If you had experienced joining HYIPs and want to share to others, feel free to comment below.
Thanks for reading.