HYIP getting started guide
Welcome to our "HYIP getting started guide". We have here some basic information about HYIP and how they work. Before you start with any investing in these programs make sure you read up on it. Dont fall for all the good looking numbers out there like 250% in 1 day! Because there are a lot of scams around. Most of the HYIP sites are scam sites. So you can ask yourself so why bother? Well because with some good tools and reading you can know the scams before you join. And there are programs that are returning some amazing profits.
What does HYIP stands for?
HYIP stands for "HIGH YIELD INVESTMENT PROGRAMS" The downside of the HYIP is that it is high risk! These programs offer anywhere for 1% a day to 300% a month. However th higher the interest, the more risk is involved. This is one of the rules you can live by:
HYIP, Higher interest rates mean higher risk!
HYIP's are the best investments available at the moment to grow your money. These programs are not for the persons, who want "garantees" and "certainties", because from time to time you will hit a scam and loose your money. However you can improve your odds with HYIP's by informing yourself and doing some basic check ups. This will uncover at lest 90% of all the scams. There are some good scammers around who have all there Due Diligence perfectly faked. There are many places where you can get good information. We would advice you to joins some forums and groups. For e.g. the yahoo investment group is an excellent starting point to get feeling what is going on in this world of HYIP's. They have a scam list and are talking about the latest programs.
What does HYIP companies do?
Most of the HYIP programs are not really revealing how they are making he money. Some say by FOREX trading (Foreign currency exchange) , stock trading, gold trading etc. Some of these programs go private after a while. This can be for several reasons. The amount of money that they have to handle goes above what they can handle, the amount of users gets to large, they are sick of all the posts in the public forums (often there are several guys who dont understand the business and spoil it for everyone, by going private they most of the time ask you to sign a non-disclosure agreement)
Are HYIP legal?
Yes, HYIP,s are leag. At least the ones that really do what they say and pay out their investors The earning you make with HYIP are considered income. Depending on which country you are you have to fill taxes on them. It is advisable to contact a local Tax advisor.
HYIP and fraud?
Yes, like said before the majority of the programs are scams and frauds. Most of the time these scammers will pay you once or a few times, when you think you are comfortable with them, because you getting paid, you feel that you can "risk" to put in some larger amounts. That is mostly when the scam/fraud hits. After this period of being comfortable with the HYIP, they will just disappear. The higher the payout the shorter the period they exists. Most of the time you know a program is for real after they are around at least 3-6 month (but that is not a garantee, there are programs that just disappeared after 1-2 years of existance).The best way to protect yourself agains losing everything is invest in multiple programs, which is called: dIversify!
Spread your risk by diversifing your investment in multiple HYIP's