HYIPs, high yield investment programs, is an investment program/scheme that is designed to offer HIGH RETURNS to its investors in least amount of time. HYIPs is considered to be one of the most profitable money making ventures available for everyone, including both first-time investors and industry veterans. Investors can earn anywhere between 5-200% interest of their initial investment every month.
As with any other speculative (risky) businesses, all these profits that an investor make is most dependent on the risks they are willing to make. In other words, higher the risks, higher the returns or losses.
HOW do HYIPs invest your hard-earned money?
Most HYIPs do NOT go in-detail on how they invest their investor’s money. But in general, all HYIPs are involved in capital management, which is all about managing investment amount as well as capital expenditures that are needed to make the business thrive.
HYIPs manage investor’s capital through various modes, including FOREX trading, sports betting, sports betting, stock exchange, metal trading among others.
Forex trading involves buying and selling of currencies (foreign exchange).
With over $1.5 trillion daily turn over, FOREX is considered to have the most volume among all other types of markets.
In FOREX, US dollar is used as the base currency against which other currencies are traded. Moreover, investors can cash in and withdraw their investments in less time and with fairer market price than any other market, which makes it the most liquid market.
FOREX trading is non-monopolistic, meaning no single entity has the ability to control and monopolize because of its HUGE volume.
Not to mention, FOREX trading runs 24 hours a day, 5 days a week, letting investors invest any time and reaping great returns from the worldwide developments while local market is sleeping.
Just as with other types of investment, currency markets are highly speculative and unpredictable, which also means higher returns/losses. That is one of the reasons why FOREX and currency market in general is considered to be such a lucrative money making venture for may investors.
Many HYIPs you see in the market exploit this highly profit and money making nature of FOREX to generate maximum yield for their investors.
Besides FOREX trading, most HYIPs invest their investor’s hard earned money through STOCK exchange/market.
STOCK market may seem a viable option for many newbie investors as it is more structured as well as organized market, which basically means lower risks for investors.
Members trade in stocks, common stocks, and bonds.
In STOCK exchange, members trade as agents/brokers or as principals/traders/dealers.
There are different ways you can carry out stock exchange trading. One of the ways is to trade stocks on a auction basis. Secondly, you could hire a stock expert who specialize in a particular stock. Thirdly, you could get help from stock brokers who buy and sell stocks to dealers and traders in a particular stock type.
- #3: SPORTS betting/gambling:
Many HYIPs also invest their investor’s money into sports betting/gambling market to yield higher returns for their members. In sports gambling, members make earnings from a predicted result/ outcomes.
The legality, acceptance, and the mechanics of sports gambling differs from country to country. In North America, for example, the only sports that is allowed betting is horse racing.
On the other hand, in many European countries, sports betting is strictly monitored and regulated, although it’s not considered to be illegal there.
In Metal trading, precious metals such as gold and silver are traded. In addition to gold and silver, palladium and platinum are also traded.
- #5: Virtual Currencies, or e-Currencies.
HYIPs also trade using e-currencies or virtual currencies through the Internet. In fact, many investors from around the world have been able to participate in online HYIPs and are making instant earnings. In addition to accepting large amount of investors, online HYIPs also accepts small investments, making it extremely easy and less risky for beginner investors who will be able to test the waters before diving in this speculative market.
Besides capital management, HYIPs also offer commissions to members who are able to bring more customers (investors) to participate in the scheme.
That is why many critics have linked HYIPs to Ponzi schemes, where money gathered from new investors are used to pay profits made by current investors. In this sense, Ponzi schemes or any thing similar to pyramid schemes are considered to be illegal.
In spite of what the critics say, many experts believe HYIPs are not Ponzi schemes. Investors need to be careful about where they invest their money. Without due diligence from the investor’s side, they could easily get scammed.
Read our blog to learn more HYIP tips and tricks.
- See more at: http://sharehyip.com/article/1018
