How To Play The HYIP Game
by Mark Flavin
High Yield Investment Programs, or HYIPs, are online investment opportunities that yield high profit, but always at the cost of great risks. With HYIPs, you'll be given the chance to invest a relatively large amount of money, with the promise that your investment will return with substantial profit at a very short period of time.
Why are HYIPs considered high risk investments, then?
It's because the very promise of profitable ROI is often broken. With all the anonymity present on the internet, it's easy to pull off a scam. Of course, a little due diligence will help you avoid the fraudulent offers, but the profit promised by HYIPs is often too big to ignore.
Take for example a recent HYIP that asked investors to send an amount of eGold value to a certain account, with the promise that the same value will be returned, plus 50%, after ten days. You won't have to do anything. All you have to do is to send over an amount of eGold value, with a minimum of $5 and a maximum of $5,000, and wait for 10 days, and you'll receive 150% of the value you forked over.
For four months, that HYIP program flourished. It kept its promise. People got paid magnificent amounts, which prompted them to reinvest their money to earn more profit. Suffice to say, that HYIP instantly became the talk of the online investment community.
However, the program stopped paying last May, citing the need to weed out fraudulent transactions, and a lot of investors were left in the dark. Veteran HYIP players however knew the truth: that it was a scam from the get go, albeit, a scam that allowed them to earn while it lasted.
And this is the reason why HYIPs are pretty difficult to resist. They allow you to earn for a certain period of time, and such earnings is too big to ignore. The percentage involved is unheard of in other circles. But of course, such will only be good while it lasts.
HYIPs, love them or hate them, are here to stay because there are dedicated groups of people who wish to capitalize on them, at least, while they're still operational. That being said, it'll be a game of minimizing the risks, regardless of how unavoidable they are.
Here are some tips on how to play he HYIP game:
* Invest only what you can afford to lose. This is the NUMBER ONE rule. Do not pin all your hopes on an HYIP program. It's not a stable investment, as you stand to lose everything in one fell swoop. Use only the amount of money that you can afford to lose, otherwise, your entire budget will be screwed when bad times befall you.
* Take off your money as soon as possible. With HYIPs, you'll have to draw money from your own account, at least initially. For example, you're asked to invest $100 for a $150 return after ten days. This means that in 20 days, if you'd reinvest the first amount you'll receive, you'd have a profit of $100. Immediately take off the $100 you invested and play with your profit instead. This way, you'll only lose what you have already earned, and you won't have to risk what you worked hard for in other avenues.
* Study the system behind the HYIP. Is it credible? Does it have a great management team? And most importantly, is the program itself sustainable. Most HYIPs do not play with any assets. As such, they're just playing with the investments they're receiving. Eventually, with all the profit margins they will be feeding, they'll reach a breaking point. The trick is in finding an HYIP with a formidable plan, or at the very least, with real assets to back it up.