“What is really an HYIP?”, or “What is trusty Company like?” How you answer that question can determine how successful you will end up in the online realm of high yield investing. You can find a minimum of six different strategies to the question about the true nature of your high yield investment program (HYIP).
1. Investment. After all, HYIP is short for High Yield Investment Program. Yes, but an HYIP is not an actual investment, because unlike a real investor, the hyiper rarely knows in doing what wealth-building instrument his money is.
2. Scam. This is certainly true of some HYIPs, yet not all HYIPs are run by geek thieves.
3. Ponzi Scheme. It can be estimated that at least 90% of HYIPs are ponzis. In a HYIP ponzi, the operator uses money from previous depositors to pay current or later depositors.
4. Gaming. Here is the opinion of those that either despise HYIPs or have lost money to HYIPs. There may be some truth to this, nevertheless in that sense, hyipers are the maximum amount of gamers as day traders.
5. A Money Game. An HYIP is a game in that there are certain rules in the game that will give an educated player the advantage, if she is going to first invest some time to learn before she could earn. But once you discover the basic rules, these funds game may be as much fun as it can be lucrative.
6. A Loan Program. That’s what I choose to call the 10% of trust hourly that are genuine. Whenever you deposit funds into an HYIP, you are essentially lending money to someone, that is promising to pay for you interest on your loan. You happen to be lender or creditor, and the operator from the HYIP may be the borrower. This borrower are capable of doing whatever he wants along with your money. The borrower (HYIP operator) may use your hard earned money to trade stock market trading, penny stocks, the foreign exchange (forex) market, or perhaps e-currency. The sole thing that matters to you is the fact
(a) the borrower pays you an interest about the principal amount you loaned him
(b) he returns your principal following the phrase of your loan.
From the lending industry, the chance of the borrower repaying you depends on the honesty and financial situation of your borrower. When you lend someone money, there might be no guarantee you will get repaid. Essentially, your deposit on the HYIP is not just a loan, it is really an unsecured loan; the borrower puts up no dexqpkyy32 that you could claim and sell if he defaults in the loan. Compared to other lenders, you might have another disadvantage in this credit business: you will find no collections department, collections company or credit rating agencies to report the deadbeat to! In reality, most often there is not any loan contract between lender (you) and borrower (the HYIP).
Therefore, if you choose to become a hyiper, you need to, such as your fellow creditors (banks, etc), learn to write off bad debts (HYIPs that don’t return your funds). Otherwise, you will discover yourself ‘closing store’ or calling lawyers. Actually likely to court against trusty Hour would you like to cost more over time, emotional currency, and funds compared to HYIP game itself. Imagine a bank taking every bad borrower to court!