The occurrence of HYIPs is somewhat new, but have gained popularity at a rapid rate. They have become one of the biggest opportunities to make a lot of money fast, but also one of the internet's biggest scams in recent years. They have made a lot of people rich, but have also made a lot of people lose their money. Should you get in on this phenomenon? This article is a reference to aid you in the decision.
What is a HYIP?: HYIP stands for High Yield Investment Program. HYIPs are investment programs normally offered on the internet. They typically accept investments of $100 or less while promising high returns. Interest rates of up to 100% a month is not uncommon. In general the interest rates are ranging anywhere between 5 250% a month. Most only accept payments through e-currency programs such as e-gold because this allows them to accept numerous donations from anywhere in the world.
Where does the money come from?: There are hundreds of different investment strategies used by HYIPs. Some invest in stocks, others in property. There are even HYIPs investing in other HYIPs. Scam HYIPs are Ponzi schemes, in which new investors provide the money to pay a profit to existing investors, which they could then withdraw leaving nothing to pay the new investor. This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme.
Is it legal?: Some might consider investing in a HYIP gambling. Gambling online is of questionable legal status in the U.S. and other countries, however, the odds of winning cannot be determined, as one cannot know whether one is playing early enough to win money. Thus, it is unlike other forms of gambling, where a player has an equal chance of winning no matter when a ticket is bought, or where the odds of the game are known. In addition, the promise to pay out a percentage of deposits is not a legally binding contract or regulated by a government agency.
Is it worth the risk?: This is a tough question. It really depends. These programs are extremely high risk. There are more scams out there than serious long term programs. Over the years large amounts of people have lost their money as a result of being involved in High Yield Investment Programs. However, if you are aware of the risks, really research the program, and never invest more money than you are willing to lose the payoff could be huge.
Copyright 2006 Timothy Rohrer
Timothy Rohrer is an established author and home business owner. To learn more about a profitable home business, visit http://www.profitmasterworld.com
Preston Teeth Whitening85913
Architect Drawings97679
Article Diabetes69815
Hot Tub Plans Build66402
Inexpensive Airfare31101
Ontario Car Insurance Quotebmvznlaqhl
Car Insurance Brokers41329
Sport Car Insurance19415
Discount Mexico Airfare78454
New Architect29796
Desert Landscaping Rock44519
Free On Line Diabetes Courses76546
Singapore Airline Airfare41869
Wedding Picture Frame81804
Portable Hot Tub For Three14540
Diabetes Testing Supplies39773
Colonial New York Architect86777
Consumer Report Teeth Whitening19558
Chicago Wedding Reception50068
Diabetes Medication70161
Airfare Sale99061
Wedding Accessorydgudbhslwy
Airfare To Dominican Republic36044
Low Cost Car Insurance Uk8056
Canadian Airfare64371
Traditional Wedding Anniversary Gift3
Car Insurance Kentucky Lead20932
Chief Architect Wainscot87797
Designer Wedding Dressjhrrey
Cakes Wedding56781
Tuesday, February 10, 2009
Subscribe to:
Posts (Atom)