Hyips - True Design Of High Yield Investment Programs
What's an HYIP? It is a question I seem to get a lot and how you answer that question can establish how successful you'll be in the online world of high yield investing. You will find at least 6 different answers to the question about the true nature of a HYIP also known as high yield investment program. Each response is knowledge and may help any investor with earning income online.
1. A Investment - Considering that, HYIP is short for High Yield Investment Program. Yes, but a yield investment program isn't actually an investment, since the majority of times the firm really isn't investing your money. They are just paying other members with it and holding it for themselves.
2. A Scam -. This is certainly true of some programs, but not all HYIPs are run by scam artists. Some are legit programs that have found a way to make a profit on investments and want to increase their business to encompass a larger investment group.
3. A Ponzi Scheme -. It's estimated that no less than 90% of HYIPs are ponzis. In an online investment ponzi, the operator uses money from previous depositors to payout current or later depositors. It's a tactic that can work if the admin knows how to organize it right, but this doesn't work if too many people want their money at once.
4. A Gamble -. This is actually the opinion of those that either despise HYIPs or have lost money to them. There's some truth to this, but sometimes you do select the right program to invest in and you make money. The issue with high yield investment programs are that they can be online one day and down the next, you simply never know.
5. A Game -. Games are exciting and losing is OK, but when you lose at the online investment game you can lose a great deal. That's why there are specific rules of the game that may give an informed player the edge. If he or she will first invest enough time to learn before he or she can earn. Once you understand the fundamental rules, this investment game is often as much fun as it can be lucrative.
6. Real Investment -. That is what I like to call the 10% of HYIPs which are genuine. Whenever you deposit funds into an program, you are in effect lending money to someone, who's promising to pay you interest on your loan. You are the lender or creditor, and the operator of the program is the borrower.
This borrower can do whatever he wants with your money. The borrower (the operator) may use your money to trade the stock market, penny stocks, or the foreign exchange market. The only thing that matters to you is that, after which the borrower returns your principal at the end of the term along with the promised interest.
The prospect of a borrower repaying you is dependent upon the honesty and financial predicament of the borrower in our case the high yield investment program. Once you lend someone money, there is no guarantee you get repaid. In essence, your deposit to the program is not just a loan, it is really an unsecured loan; the borrower puts up no collateral you could claim and sell if he defaults on the loan.
Therefore, if you decide to invest in HYIPs you must be careful and do your research. Only invest what you can afford to lose and never put all your eggs in one basket.
1. A Investment - Considering that, HYIP is short for High Yield Investment Program. Yes, but a yield investment program isn't actually an investment, since the majority of times the firm really isn't investing your money. They are just paying other members with it and holding it for themselves.
2. A Scam -. This is certainly true of some programs, but not all HYIPs are run by scam artists. Some are legit programs that have found a way to make a profit on investments and want to increase their business to encompass a larger investment group.
3. A Ponzi Scheme -. It's estimated that no less than 90% of HYIPs are ponzis. In an online investment ponzi, the operator uses money from previous depositors to payout current or later depositors. It's a tactic that can work if the admin knows how to organize it right, but this doesn't work if too many people want their money at once.
4. A Gamble -. This is actually the opinion of those that either despise HYIPs or have lost money to them. There's some truth to this, but sometimes you do select the right program to invest in and you make money. The issue with high yield investment programs are that they can be online one day and down the next, you simply never know.
5. A Game -. Games are exciting and losing is OK, but when you lose at the online investment game you can lose a great deal. That's why there are specific rules of the game that may give an informed player the edge. If he or she will first invest enough time to learn before he or she can earn. Once you understand the fundamental rules, this investment game is often as much fun as it can be lucrative.
6. Real Investment -. That is what I like to call the 10% of HYIPs which are genuine. Whenever you deposit funds into an program, you are in effect lending money to someone, who's promising to pay you interest on your loan. You are the lender or creditor, and the operator of the program is the borrower.
This borrower can do whatever he wants with your money. The borrower (the operator) may use your money to trade the stock market, penny stocks, or the foreign exchange market. The only thing that matters to you is that, after which the borrower returns your principal at the end of the term along with the promised interest.
The prospect of a borrower repaying you is dependent upon the honesty and financial predicament of the borrower in our case the high yield investment program. Once you lend someone money, there is no guarantee you get repaid. In essence, your deposit to the program is not just a loan, it is really an unsecured loan; the borrower puts up no collateral you could claim and sell if he defaults on the loan.
Therefore, if you decide to invest in HYIPs you must be careful and do your research. Only invest what you can afford to lose and never put all your eggs in one basket.
