“What is really an HYIP?”, or “What exactly is Hour Money really like?” The way you answer that question can see how successful you will end up in the online field of high yield investing. You can find a minimum of six different strategies to the question in regards to the true nature of your high yield investment program (HYIP).
1. Investment. In fact, HYIP stands for High Yield Investment Program. Yes, but an HYIP will not be a true investment, because unlike a real investor, the hyiper rarely knows as to what wealth-building instrument his funds are.
2. Scam. This is really true of some HYIPs, however, not all HYIPs are run by geek thieves.
3. Ponzi Scheme. It is actually estimated that no less than 90% of HYIPs are ponzis. In a HYIP ponzi, the operator uses money from previous depositors to pay for current or later depositors.
4. Gaming. This is actually the opinion of those that either despise HYIPs or have lost money to HYIPs. There is certainly some truth for this, nevertheless in that sense, hyipers are just as much gamers as day traders.
5. A Money Game. An HYIP is a game in that we now have certain rules in the game that could give an informed player the advantage, if she is going to first invest some time to learn before she will earn. But once you discover the basic rules, these funds game is often as much fun as it could be lucrative.
6. Financing Program. That’s what I choose to call the 10Percent of Instant pay that happen to be genuine. When you deposit funds into an HYIP, you might be essentially lending money to someone, who seems to be promising to spend you interest on your loan. You are the lender or creditor, and the operator of the HYIP is the borrower. This borrower is capable of doing whatever he wants with your money. The borrower (HYIP operator) may use your cash to trade stocks and shares, penny stocks, the foreign exchange (forex) market, or perhaps e-currency. One and only thing that matters for your needs is
(a) the borrower pays an interest in the principal amount you loaned him
(b) he returns your principal at the end of the word from the loan.
In the lending industry, the chance of the borrower repaying you is dependent upon the honesty and finances in the borrower. When you lend someone money, there could be no guarantee you will get repaid. In place, your deposit on the HYIP is not just financing, it is an unsecured loan; the borrower puts up no dexqpkyy32 that you can claim and then sell if he defaults on the loan. When compared with other lenders, you may have another disadvantage in this particular credit business: you will find no collections department, collections company or credit rating agencies to report the deadbeat to! Actually, most often there is absolutely no loan contract between lender (you) and borrower (the HYIP).
Therefore, if you decide to be considered a hyiper, you must, like your fellow creditors (banks, etc), learn how to write off bad debts (HYIPs that don’t return your funds). Otherwise, you can find yourself ‘closing store’ or calling lawyers. Actually likely to court against hour fast pay would you like to cost you more with time, emotional currency, and cash compared to HYIP game itself. Imagine a bank taking every bad borrower to court!