“What really is an HYIP?”, or “What exactly is trusty Company really like?” The way you answer that question can determine how successful you may be inside the online realm of high yield investing. There are actually a minimum of six different strategies to the question in regards to the true nature of the high yield investment program (HYIP).
1. Investment. In the end, HYIP stands for High Yield Investment Program. Yes, but an HYIP is not an actual investment, because unlike an authentic investor, the hyiper rarely knows in what wealth-building instrument his money is.
2. Scam. This is really true of some HYIPs, although not all HYIPs are run by geek thieves.
3. Ponzi Scheme. It can be estimated that at least 90% of HYIPs are ponzis. Within an HYIP ponzi, the operator uses money from previous depositors to cover current or later depositors.
4. Gaming. This is the opinion of those who either despise HYIPs or have lost money to HYIPs. There may be some truth for this, nevertheless in that sense, hyipers are all the gamers as day traders.
5. A Money Game. An HYIP can be a game in that we now have certain rules of the game that will give an educated player the advantage, if she is going to first invest enough time to learn before she could earn. But once you learn the fundamental rules, these funds game can be as enjoyable as it can be lucrative.
6. A Loan Program. That’s things i would rather call the 10Percent of Instant pay which are genuine. Once you deposit funds into an HYIP, you happen to be in effect lending money to a person, who may be promising to spend you interest on your own loan. You are the lender or creditor, along with the operator from the HYIP may be the borrower. This borrower can do whatever he wants along with your money. The borrower (HYIP operator) could use your hard earned dollars to trade stock market trading, penny stocks, the foreign currency (forex) market, or even e-currency. One and only thing that matters for your needs is the fact that
(a) the borrower pays an interest about the principal amount you loaned him
(b) he returns your principal at the end of the word of the loan.
From the lending industry, the chance of any borrower repaying you depends on the honesty and financial circumstances of the borrower. If you lend someone money, there might be no guarantee you will get repaid. Essentially, your deposit towards the HYIP is not just financing, it is an unsecured loan; the borrower puts up no dexqpky32 that one could claim and then sell if he defaults around the loan. When compared with other lenders, you possess another disadvantage within this credit business: you can find no collections department, collections company or credit reporting agencies to report the deadbeat to! Actually, generally there is no loan contract between lender (you) and borrower (the HYIP).
Therefore, if you want to become a hyiper, you must, much like your fellow creditors (banks, etc), figure out how to write off bad debts (HYIPs that don’t return your funds). Otherwise, you will discover yourself ‘closing store’ or calling lawyers. Actually planning to court against trusty Hour do you want to amount to more with time, emotional currency, and funds than the HYIP game itself. Imagine a bank taking every bad borrower to court!