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HYIP: Investment Strategies

As investors get more and more experience in the risky yet lucrative HYIP arena, they start developing their own investment strategies which enable them to succeed and keep deriving profits instead of losing their hard-earned money. While there can hardly be any universal strategy for all cases, there are certainly quite a few patterns to be followed.

First of all, one has to determine the type of program he or she is dealing with, and act in correspondence to its nature. In fact all HYIPs (with the rare exeption) are no more than pyramid schemes, where old members are being paid their interest from the deposits of new investors. Unless the program you are considering is a real business, here are the factors you should build your investment strategy upon:

Frequency of payouts

Check out whether your interest payouts are to be made on a daily, weekly, or monthly basis. Ironically, you’ve got a way off better chance if they are made daily – with every day of the program’s existence, your chances to be in profit with it increase. It is a common misconception that if a program is paying monthly, it is more stable and be involved in some actual trading. In fact the only factor of stability for most HYIP is the influx of new funds into the program: as long as the money keeps coming in, the interest is being paid, but once this stream exhausts, the program closes and you are not likely to see neither any further interest payouts nor the money you have deposited.

Interest rates

Quite many people let their greed take over them and jump onto programs offering untold returns. Very soon they find themselves cheated: as a rule, such programs do not last for more than a week. It is a common opinion that anything offering over 3% a day will not be around for long and is to “go south” within the matter of days. Furthermore, even those programs offering from 1% to 2% on a daily basis are pyramids too, which, however, can last up to a year or even more in some rare cases. Another aspect is the interest rate being either fixed or variable. Our past experience shows that those programs offering variable interest rates are more likely to be involved in some actual trading than the ones with fixed rates – real brokers can always determine an approximate percentage of the profits they can generate – however, it differs every day, and none of them can say for sure how much money exactly he will make on a particular date.

Age of a program

Most HYIP programs state in their disclaimers that “past performance is never a guarantee of successful future performance”. Normally, such a notice is a clear sign of a program being a ponzi, attempting to avoid liability for its upcoming closure. In contrast to the public opinion, our experience indicates that investors are more likely to profit from new HYIP than from those which have been around for quite a while, since the influx of funds into new programs is much higher than the one of the old ones.

Program status.

It is quite apparent that private programs, which do not rely on the number of new members and their deposits, are much safer in comparison with public investment opportunities, open to anyone. Nonetheless, many programs are attempting to fake their “private” status. For instance, if you see someone posting about a “top-secret private investment opportunity” on a public message board, do not trust this person – it is most likely a scammer trying to pull some money out of you by luring you into his fake “private” program. Alternatively, do not trust e-mails or private messages containing information of this sort, which have been sent to you by strangers.

Internal accounts

Some programs offer their clients internal accounts on their websites where you have to submit a withdrawal request for the money to be sent to your e-currency account. Others make direct payouts to e-currency, with no system of internal accounts being implemented. From the first glance the second option might look to be better than the first one, but according to our practical experience all the solid investment programs have the internal accounts and a withdraw function.

Minimum and maximum

Numerous HYIP have their minimums set up to as low as $1. Always ask yourself: what can a program do with this kind of money on stock or currency markets? Even if it had thousands of investors, the costs of accounting all these deposits would not be justified by the profit generated from them. Programs involved in some real business do not accept deposits which are less than $50 (at least). As for the maximum, we do not recommend you to invest large amounts of money with any HYIP programs – no matter how promising they look. A hundred bucks per program will be more than enough in most cases.

Considering an HYIP program of any sort, you should always perceive it as a potential scam, unless you have a solid proof of the opposite. Being cautious will provide you with a good sense of HYIP arena and enable you to benefit from HYIP instead of HYIP benefiting from you. Prior to making a deposit, you should clearly realize what you’re doing and be aware of all possible risks involved.