Hyip Monitoring » Hyip Scam

HYIP means scam, that is the thought most of us have. We may have heard of HYIP's and perhaps think that they are all scams. Well if that is the case you are about 95% right. Most of them are scams, but there are a few that are genuine. However as they are high yield, that also means that they are going to be high risk. Never ever invest in any kind of HYIP unless you are prepared to lose all your money. However they can be an extremely valuable source of income if you are careful.

Why are most HYIP's a scam? The simple answer is greed. Everyone wants as much money as they can get as quickly as possible without having to do anything and this is what the scammers rely on. They want your money, and they are very clever at persuading you to part with it.

Many of these HYIPs are what are called Pozis. That means that they take money from people, and then use the money they take from the next people to pay the first ones and so on. So the people who join in the first place actually make money as long as they keep taking it out as often as they can. But unfortunately after a few months, or even a year the operators of the scam then close the site down, and vanish with the money that has been collected. Clues to these kinds of sites are very high returns very quickly. Almost impossible returns in a very short time. A high referral rate, because they want to encourage as many people as possible to join. I personally try to avoid these, not only because of the high risk, but because in the end I am contributing to other peoples losses.

What about the ones that are genuine? If you have ever tried trading commodities, or the Forex, you will know it is possible to earn massive amounts of money. A few years ago I spent $300 on two Coffee options and nothing happened, but after 3 months I suddenly found that I had made nearly £24,000 in a month. I do not want to go into how this works as it would fill a book, but I tell you to show you that it is possible to earn rapidly. However it is also possible to lose even more rapidly. So the genuine programs use these and other methods of investing and they are using your money to invest, so if they lose it they have lost nothing. They also then share the profits, and spread them out to give sometimes very large daily or monthly interest rates. Here is where we can start to get problems, because of inherent greed, we may be tempted to go for the largest interest rates, and suddenly we find ourselves involved in a scam.

So if you are considering investing some money, look out for the huge promises, from sites that have not been around for a long time, and try to find the ones that have a reasonable return, and have been in existence for a year or more.

How can I find out this information? Due diligence is vital, and it can be very difficult to get sufficient information to be sure you are onto a good thing. In any form of investing you can earn and lose a lot of money, but if you want an easy way to invest, spend time first learning to minimize the risk, then if you want to make a healthy living, you cannot do better than try a HYIP.

Chris Puddy has been using the Internet since 1995, and in that time has looked at many aspects of the web. One of his earliest attractions was HYIP's and he managed to earn some money, but also lost it very quickly again. He has now learnt how to invest in these programs more safely, and is sharing this information from his new website. http://www.safehyipinvesting.com

Source: www.articlesbase.com