HYIP Risks RSS - comments

HYIP Investment involves a great deal of risk. Absolutely no HYIP can guarantee any profits and if it does, don’t believe it, the program is most certanly a scam. Investing in HYIPs you risk to lose your money every day – when a program closes it happens suddenly, at the moment when most investors don’t expect it (though experienced HYIP traders usually know when they should take the money out the program, before it closes).

If you’ve decided to invest in HYIPs, you should be ready for that kind of risk, but the risk here well worth the prize. You cannot expect to make any substantial return if you are not prepared to accept a certain amount of risk. Your gain is usually proportional to the risk – you can either earn very high daily interest with enormous amount of risk, or make the same interest but every month with a considerable risk level.

Estimating risk may be a difficult challenge mostly because finding the real information about the program is not easy, you can’t completely trust anyone when dealing with HYIPs. But certain point should be considered, for example, new HYIPs present much higher risk than those that have already proven their long term intentions by at least a year of positive payout history.

HYIP administrators should also explain how they intend to generate the quoted returns, unwillingness to disclose such information by the program owners doesn’t add to the program’s good reputation. Beware of any program that refuses to provide information about its investing strategy.

When you know where the program is investing to gain high returns, you may use the knowledge to estimate potential risks by defining how real certain interest can be in the given market. For example a program trading at FOREX can hardly generate 5% daily, while 5-15% monthly can be achieved by an experienced trader with a reasonable amount of risk.

Another important factor in estimating a program’s risk is an average lifetime of similar program. For expamle a program paying 3-4% daily, using a professional unique design and well advertised can last at least for several months, so it can still be safe to invest in it during its first or second month, but investing after the program has been online for over 3-4 months may be very dangerous. Nevertheless, programs paying around 1% daily may last for much longer time, even for several years.

Referral comissions and payment processors fees are also very important. Program paying very high referral comissions is not likely to run for a long time. All serious programs also have reasonable minimum investment thresholds (of around $50) and payment fees (up to 5%).

Program website, which is updated frequently indicates a more professional attitude. Frequency of admin updates is usually proportional to the interest paid to members – programs paying high interest may provide their members updates several times a week, while others, paying lower returns may only update their members once a month.

Your experience is vital to estimate the risks involved in HYIP investing, after considering all the above points your intuition may play a key role in deciding whether to invest in certain program, or not.


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