“What really is an HYIP?”, or “Precisely what is Hour Money really like?” How you answer that question can see how successful you will certainly be from the online arena of high yield investing. You can find at least six different solutions to the question concerning the true nature of a high yield investment program (HYIP).
1. Investment. In fact, HYIP means High Yield Investment Program. Yes, but an HYIP is just not a genuine investment, because unlike a real investor, the hyiper rarely knows in what wealth-building instrument his funds are.
2. Scam. This is certainly true of some HYIPs, but not all HYIPs are run by geek thieves.
3. Ponzi Scheme. It is estimated that at least 90% of HYIPs are ponzis. In a HYIP ponzi, the operator uses money from previous depositors to pay current or later depositors.
4. Gaming. Here is the opinion of those people who either despise HYIPs or have lost money to HYIPs. There exists some truth for this, however in that sense, hyipers are just as much gamers as day traders.
5. A Money Game. An HYIP is really a game in that we now have certain rules from the game that can give an educated player the edge, if she is going to first invest some time to learn before she can earn. But once you understand the basic rules, these funds game is often as enjoyable as it can be lucrative.
6. Financing Program. That’s what I want to call the tenPercent of worth in trust that are genuine. If you deposit funds into an HYIP, you might be essentially lending money to someone, who is promising to cover you interest on your loan. You happen to be lender or creditor, and the operator in the HYIP is the borrower. This borrower can perform whatever he wants along with your money. The borrower (HYIP operator) might use your cash to trade stock market trading, penny stocks, the foreign currency (forex) market, and even e-currency. The sole thing that matters for your needs is that
(a) the borrower pays you an interest about the principal amount you loaned him
(b) he returns your principal at the end of the expression of the loan.
Within the lending industry, the chance of your borrower repaying you is dependent upon the honesty and financial predicament in the borrower. When you lend someone money, there can be no guarantee that you will get repaid. In effect, your deposit on the HYIP is not just that loan, it is really an unsecured loan; the borrower puts up no dexqpkyy32 that one could claim and sell if he defaults around the loan. When compared with other lenders, you may have another disadvantage with this credit business: you can find no collections department, collections company or credit reporting agencies to report the deadbeat to! The truth is, most often there is no loan contract between lender (you) and borrower (the HYIP).
Therefore, if you want to be considered a hyiper, you should, much like your fellow creditors (banks, etc), discover ways to write off bad debts (HYIPs that don’t return your funds). Otherwise, there are actually yourself ‘closing store’ or calling lawyers. Actually likely to court against trusty Hour will you amount to more in time, emotional currency, and funds compared to the HYIP game itself. Imagine a bank taking every bad borrower to court!