Wednesday, November 5, 2008

What is HYIP?

Hyip is just an abbreviation for


High


Yield


Investment


Program
 
Online HYIP's are a completely different thing to offline HYIP's.


Online HYIP's are programs which accumulate money and put investments into high profitable projects. The majority of those programs do not inform their clients about the way they use money as it is considered to be their trade secret, but there are also those that inform their clients about the basic sources of their incomes, and, as a rule, it is a game at the stock exchange FOREX.



Despite the big risk to lose money the world of online investments is constantly growing. It has become possible due to modern communications which allow you to use time and financial streams effectively. They allow everyone to earn money at any time, sitting at home in front of your computer and all you need is the access to the Internet.
 
 
Online HYIP's can be divided into 3 different categories; Dailies, weeklies and monthlies. This basically refers to when you will receive your payments. In general, variable weekly or monthly returns are the safest to invest in.
 
The term HYIP is an umbrella-term which incorporates any investment opportunity that gives a return on the initial investment of between 4-5% per year. The way in which they work is fairly simple. The money from everyone who invests is collected together and the site organizers then use it to invest in more traditional areas. In effect, they are investing in the programs which require a large sum of money to begin and can afford to do so by combining everyone's small individual investments.



HYIPs which are not Internet based work on the same principles as online ones, only their starting investments can range from a minimum of $500,00 up to millions of dollars. For the private investor, or an individual just wishing to supplement their income, this is not a realistic sum to have available for investment and so offline HYIPs are not feasible options.


For the normal private investor, Internet based HYIPs are the only possible solution to the investment quandary. However, these programs are often cloaked in secrecy and so can seem like a dangerous investment to make. In contrast to the offline programs, you will often find that you are unable to gain any information regarding the investment types that are made on your behalf. Corporate information of the website, such as the registered address or background information pertaining to the site organizers, is often not available for viewing. This is not usually done for the sole purpose of hiding information from the investors, but more to prevent people from using the knowledge of the site organizers to create their own online HYIP. But on this site you will be able to get all this hidden facts which will aid your knowledge and help you in your making deposit and then catching the profit.

Online HYIPs may pay interest daily, weekly or monthly. The typical return rates on these are generally between 0.7-7% for daily paid, 7-50% for weekly paid and 20-200% for monthly paid.
 
These schemes work by investing the money from a number of private investors and then sharing a portion of the profits back with the investors. It gives the investor the high returns that would not normally be possible given the low amount of money that is available for investment. There is still an element of risk involved - no investment can ever guarantee to make a profit as the market changes continually. There are also fraudulent people who set up HYIP sites, wait for people to invest and then run off with your money.
This makes it vitally important to choose your program wisely.
 

HYIP can be a great way to experience success in investing.
HYIP,can be quite risky but if it’s done properly it can be quite lucrative. Because there is the chance to earn a substantial amount of money, there are also a lot of scams associated with it. You can take some great steps to protect yourself, and your investments ahead of time to avoid getting involved in the wrong HYIP programs.
Those who are well intentioned will be straightforward, knowledgeable, and will have nothing to hide or copy from others. So, go ahead and invest in HYIP, just be smart to make sure you are investing in a real opportunity.

1 comment:

Anonymous said...

Very informative! thanks.