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All transactions of HYIPs are done over the internet. HYIPs utilize a lot of strategizing in order to yield the high interest rates that were promised to the investors. The money is placed on various investments such as capital management, metal trading, sport exchange, sport betting and forex trading. The irony of it is that some HYIPs also place an investment on other HYIPs. HYIPs use E-gold in their transactions because it offers the most convenient payment system. E-gold suits best HYIPs because it has a feature that allows easy withdrawal of money making it a good option for completing online transactions. Moreover, E-gold is accepted all over the globe. Another factor that addresses the need of HYIP investors.
It follows normal logic that you need to invest your money somewhere for it to earn interest. If you just keep your money, then it wouldn’t earn any interest. This is the simple idea behind every HYIP scam. HYIP scams will usually never place the money that they get from investors to investments so it will earn interest.
High yield programs usually involve high risks. HYIPs are not exemptions. Most HYIPs are short-lived and are just Ponzi schemes. Ponzi schems refer to HYIP scams. HYIPs that are short-lived are scams or Ponzi schemes. These schemes appear very attractive because of the promise for high interests. Ponzi schemes do not have revenues because the money collected from investors were not really investments. As mentioned earlier, money not invested will not earn revenue. Investors were paid by money collected from another group of investors who placed their money to generate interest. The lifespan of every Ponzi will deppend on how long the HYIP is able to recruit new investors. The moment new membership stops, the Ponzi dies.
What’s the conclusion?
HYIP can prove to be profitable; however, be very careful if you're interested in this type of investing opportunity. On one end, it can prove to be very lucrative. On the other end, it can lead to big losses.
If you are really serious in being involved in a HYIP, make sure you do your homework well. Conduct a thorough research about the company you are getting involved in. Find out the operations of a HYIP and how your investment will get the promised interest rate so you will not be sorry.