Internet Investing

There are many options for capital investing. You may put it into a bank, buy stock of some well-known company or buy a piece of art or real estate. However, many potential private investors do not have enough money to make an effective investment: real estate, art and stock of leading corporations are not very easy to afford. Bank interests from moderate sums will be ridiculous.

What shall the private investor do? He/she is isolated from the big game, and small investments do not promise anything but a headache and time waste. Here come HYIP (High Yield Income Programs) to help the prospective investor. Using special Internet services you invest a certain sum of money (entrance limit are very low as a rule) then during the determined term you get an interest from your investment. The interest is paid every day or every week, or monthly. The rates vary from 0.3% up to 3% per day. The investor gets back his/her investment very quickly and then he/she starts getting the pure profit.

Are HYIP profitable? Yes, sure. The private investor has almost no possibility to effectively invest small amount of money and regularly get some good profit out of it. A private person not having enough financial means, reputation, serious business partners, working schemes and contacts is almost completely isolated from serious investment activity and the big game on the stock exchange. By taking part in HYIP the private investor gets a kind of an agent who has the knowledge and possibilities the investor lacks and who makes the investment instead of the private investor.

Is HYIP participation risky? Yes, of course. As any other investment activity the High Yield Income Programs are risky venture. No one will ever guarantee that the money put by HYIP organizers into some project will actually bring the maximum profit. However, the qualified specialists developing the high-yield schemes always reinsure themselves. The part of the means is spent on financial instruments of maximum security that guarantees the investors some minimal safety of their investments.

HYIP

At first we should explain what HYIP is. High yield income programs are not just a network phenomenon. This term refers to any investment bringing income more than the deposit account with the standard rates of 4–5% per year.

There are many off-line HYIP, they are all managed by registered companies and bring stable high income. However, the entrance limit, the minimal investment to participate in the project, as a rule, makes up the sum starting 500000$ and up to tenth millions. Surely, the private investor not having big savings is isolated from participation in the off-line high yield programs.

For ordinary people the only way out is on-line HYIP. On the contrast to off-line programs network high yield income programs, as a rule, are minimally transparent. Often the participants do not know anything about their organizers and do not know the companys legal address. The main income sources for off-line HYIP are the stock market games, real estate trade and FOREX investments. On-line HYIP rarely give true information about its commercial activity that is why the income sources may be very different; it is often impossible to check the information. Often the information is secret not to hide it from the clients but with a view to keep the know-how confidential. The competition at the HYIP market is rather high that is why the company that is able to offer the most rational way of managing the invested assets has more chances to succeed.

In accordance with the interest payment periods all on-line HYIP (further we will call them HYIP) may be divide to every-day, every-week and monthly ones. Every day HYIP make payments of 1–7% per day; every-week — 7–50% per week, and monthly — 20–200% per month.

The HYIPs work principle is very simple. You register in the system and open an account in the international electronic settlements system and invest some money into the project. The very next day as soon as the invested money starts bringing profit, the mentioned payments will go to your account.

Summarizing the abovementioned we have the following scheme: program leaders collect money from the private investors who do not have enough money to participate in off-line high yield income projects. Then, using their working schemes they profitably invest it and then share the part of profits with the investors. Actually HYIP is one of the most profitable forms of mutual cooperation for investors. Thanks to accumulating the assets the money that was earlier isolated from any serious economic processes make profits.

The developed schemes enable the HYIP participants to receive the maximally high incomes the private investors cannot reach by any other ways.

Ponzi

How to avoid a fraud? This problem concerns almost all participants of high yield projects. As the HYIP specifics provides no transparency of economic transactions dishonest dealers organize false projects and make them seem real investment programs and then after they collect money from the clients suddenly stop their activity.

One of the most popular forms of deceit is Ponzi. Ponzi is a classic financial pyramid where the profit is created not due to the effective economic activity but by attracting investments of new project participants. Similar projects are like a snake eating its own tail. Up to some moment it looks stable as the payments are provided with real money invested into the program by new members. However, the impression is false. At some point there comes the stagnation and new members stop joining the project and the pyramid breaks down. However, sometimes the founders do not wait till this phase and get lost with all money they have accumulated. As a rule, clients learn it when they stop getting regular interests on their accounts.

How one can distinguish Ponzi from the real HYIP? There are several signs indirectly indicating the project may be fraudulent. First of all, it is great every-day payments. If you are offered to be paid 40% per day think how the founders are going to provide such profitability. Secondly, it is very big partnership payments. Serious high-yield projects are always open for mutually beneficial cooperation; however, their main goal is to bring profit from effective investing. That is why if you are offered more than 10% for the referrals you ought to think whether the clients are the only source of incomes. And, finally, it is a carelessly designed web-site and the content stolen from other resources. Organizers of Ponzi projects know in advance that the program will get closed in some time that is why they do not pay any attention to creating a functional design and information content.

One more popular fraud forms is the so-called «Golden Games». They are a kind of miniature Ponzi introduced just for a few days or weeks. The only difference from Ponzi projects is that they initially are positioned as financial pyramids.

Users invest money and then, if they manage timely to leave the program they have some profit. If they dont, theyll lose all money invested. There are several versions of the Golden Games but they all end up as who-will-be-on-time game. Surely, programs like this do not have any relation to serious HYIP projects.

Some people eagerly participate in the Golden Games and Ponzi projects. Of course, such projects may quickly bring rather big profits however you should not forget how quickly they can make you lose everything. Moreover, not always the skill to make a decision quickly and calculate the time when you enter and leave the program right can help you in programs like these. Often organizers friends and acquaintances participate in such projects as stool pigeons; surely, only they will get the profit because they have all the information from the inside. The risk level when you participate in such programs is many times higher than in serious HYIP, and the income probability is many times less.

If you reasonably decide to check your chances in Ponzi, remember even if you are lucky, your profit will be created at the expense of other people. Do not forget that the financial pyramids are illegal and their creators get a sever punishment from the law-enforcement.

In case if you select an interesting HYIP project and fear it is a pyramid, carefully study the terms stipulated by the program leaders. Analyze the offer, consider the mentioned numbers with other suspicious features indicated earlier. Start making serious investments only when you make sure that the project is safe: at first invest little. Only then, when you are sure your interests regularly get to your account, invest the rest.

Doubler: making money in the Web

Doubler is a type of investment programs in Internet. They promote themselves as programs enabling their participants to double the invested means during some rather short period of time. Organization and launch of any new doubler program are accompanied with massive advertising campaign that, as a rule, makes it possible to cover and attract a rather wide range of users people who wish to earn quick and easy money.

The basis of the Doublers programs is a game. The Doubler itself is a matrix a field divided into parts with a lattice and having lines and columns. The matrixs columns are fixed, that means the changes in one column do not influence any other columns.

The rules of the game are the following:

In order to become a matrix member you buy yourself a position (place) in any of its columns at your choice. The cost of the position is placed on top of the column, so your place in the matrix depends on the sum you are ready to play with. The selected position in the column is at the same time the place in some line and the players move within the matrix by lines.

In order to win to leave the matrix with your investment doubled you have to be the first in line and the place in your column should be bought by two more participants. Every time two new participants buy a position in some column, the first person in line withdraws from the matrix with the doubled investment and the line is moved so the second person in line becomes the first. To double your investment and leave the matrix the position in this column has to be bought by two more participants. By attracting two new referrals into the program you move step by step to the first position in line and towards your prize.

The risk to lose in the doublers is rather high the program may disappear earlier than the participant is able to take the first position in line. You may pay for the position, stay in line in the matrix and never get any money. Nevertheless, when you buy the position at early stages you have some chances to win and double your investment

Investing in HYIP

How the profit is formed?

Many prospective participants of high yield income projects think about where the organizers take such big money that they can regularly pay very serious interests. Incomes, surely, do not come from nothing. In serious HYIP experiences managers, professionals developing and realizing many high income projects work over the effective investment schemes.

So the main sources of incomes in High Yield Income Programs are the following:
Investments in FOREX market.
Trading of stock of different companies on international stock exchanges.
Participation in different commercial sweepstakes.
Investing into high-yield business
Import and export of scarce goods.

That means, actually by accumulating money of the participants, the programs leaders use them as their floating assets. Then by investing in high-yield projects and actively using the off-shore status they create the profit not subject to taxation. As the result there are sums enough to support the HYIP activity and to pay charges to the investors, as well as to further expansion of the program.

People distant from complex economic processes may think it is unreal that over a month the amount of the investment may double or even triple. An experienced investor always may predict which investment will bring profit and which will not. Having wide knowledge and serious experience he/she is able to easily make profit from price fluctuations to some goods.

Many investors have made huge fortunes on the currencies rate fluctuations. Trader who knows the specifics of currency market over just few hours may double the invested capital. For example, trader has 100$ and he/she is going to speculate for Euro fall and long for Dollar. Trader takes 9900$ no-interest credit and sales 10000. Then he/she buys Euro at the rate 0.9755 and in a few hours resells it at the rate 0.9845. Then he/she pays off 9900 to the broker and the pure profit of the investor is 90$. So the deposit increases 90% less than in 24 hours.

Surely, for an inexperienced investor an attempt to play for currency rates fluctuations may result in financial crash. Instead of prospected profit he/she will bear significant damage. Actually, the role of all high yield income programs is to create some initial fund of money from investors contributions and then using various economic schemes to distribute it among profitable projects. Within HYIP there is no industrial processes, projects managers do not just manage your capital but help you to multiply it. HYIP is an agent between a private investor who does not have possibilities and knowledge to effectively play on the market fluctuations and high yield economic formations.

Of course, besides for the currency rate play there are many other effective methods to invest money, for example, buying securities of organizations which work well in the developing countries. Such financial instruments are risky but the risk is compensated by their high profitability. Besides the HYIP leaders prefer to reinsure and place the part of the invested funds into securities of the highly reliable companies.

Good HYIP will never lie to its clients because high yield income programs are an ideal example of mutually beneficial cooperation. By effective management of the investors capital the program organizers get enough income to pay interests to the investors and have profit on their own.

The rate of capital circulation, for example, on FOREX significantly increases the circulation rate during regular business activity. In 24 hours one can perform several high-yield transactions providing every-day or every-week payments.

However, you should not forget that the majority of projects organizers prefer keep information about their income sources secret, fearing unfair competition. That is why often the high yield income programs are not absolutely transparent. However, it does not influence the regularity of payment and programs trustworthiness. High Yield Income Programs leaders knowledge well the fact that the effectiveness of mutually beneficially cooperation are not likely to risk their investors trust.

Risks

For a private investor almost all options for risk-free investing are closed. That means, if someone wants to invest money and soon get high incomes from the investment, he/she will risk anyway. You can, of course, deposit your money with a bank, but the private investor rarely has enough initial capital to make a fortune out of the bank interests. That is why the only way out is to invest your money into high yield risky projects.

You should always be careful about the programs connected with risk. First of all you should do your best not to engage into false project or financial pyramid. You have to carefully study all program features and only after that start investing.

The situation gets more complicated because even the trustworthy projects fail sometimes. It happens, for example, when program leaders did not manage to promote their program right or played fair on the currency market risking all their funds.

There is a number of rules and peculiarities by studying which the private investor gets the possibility to minimize the risk. Let us consider them in more detail.

The nature of the high yield income programs is such that almost all of them terminate their activity someday. Pyramids programs fail losing all clients investments, serious HYIP paying off to their investors come to an end. Surely, all honest projects are developed in a very accurate manner and designed for a maximally long functioning term. But often the closure is connected with the objective economic reasons that are very hard to eliminate.

A standard living cycle of high yield income projects comprises four stages: pay-back period, period of growth, period of saturation and descent period. Here they are in detail.

Pay-back period is the birth of the project. The creators of any HYIP invest some money into it. First of all, they are needed for creating a well-functioning and nice web-site, for content development, registration in paid rating systems and for advertisement. It all costs money and as the project does not bring any profit yet the period is always loss-making. One cannot assess the reliability of the project during this period; however, there may be some indirect signs that the project is a fraud. For example, when the web-site is hosted free of charge and all content is stolen from some other web-site, it is intended to collect money and close itself.

Growth period is the beginning of projects functioning. During this period the investors appear who try to attract additional clients with a view to get the referral payments. At some moment the project comes over the point of self-sufficiency and starts bringing the real profit. The project success at the stage depends on the scope of methods applied for attracting the clients. A direct sign that the organizers plan to further support the program are the various strategic actions such as extra money to the account of everyone who register in the project, for example.

Period of saturation is the most stable period in HYIP functioning. During this time the investment flow has stable growth, the program brings maximal profit and clients receive their interests regularly.

Descent period is a determining stage for further programs life. It is characterized by the fact that the users lose their interest to the project, the flow of new investments fall and the program ends its development. All false projects terminate their activity few days after they enter the descent period, they dont pay to their clients and disappear with no trace. Creators of trustworthy programs undertake measures trying to bring their projects out of the stagnation.

Once you analyze the HYIP actions during the descent period, you can make a conclusion about the perspectives of investing into the project. If the program has passed the crisis situation, continues to work and bring profits to its investors, you can be sure in the project: it is a serious business undertaking aimed at mutually beneficial cooperation. You can learn that the project enters its descent period by analyzing its advertising dynamics. As soon as the users interest starts decreasing, the project organizers develop a demonstrative agitation: they write letters to the programs participants, register in new catalogues, post messages on forums and guest books.

Of course, the investor shall do his/her best to find out the perspectives of the project before it reaches the crisis point. The successful end of the descent period may become a signal for those who wants to join the program at its new stage. What about those who plan to participate in the program from the very start? Those investors shall make a detailed analysis of the selected HYIP in the very beginning and invest their money only after they are sure of the program reliability.

Making the First Investment

So you have done the research needed, made a provisional assessment of the projects reliability and are ready to invest your money. But before you invest your savings into a selected HYIP think whether you are ready to risk your capital. Will you regret the choice you made? Would it be better to spend the money on buying something good for your household? As weve mentioned before all high yield income programs are connected with a fair amount of risk and even once youve made a detailed analysis of the project you are interested in there are no guarantees that the program is reliable.

Remember the major rule in regard to HYIP: never invest all your money into one project. Develop your investment scheme for several reliable high-yield projects at the same time. Even the most serious project can unexpectedly close, not mentioning the multiple pyramids there are. Always keep an ace in the hole. Even if one of the projects gets closed youll have three or four other programs the profit from which may compensate the lost financial means and even bring profit.

By participating in several programs at the same time you actually insure yourself from losing money. It is very hard to imagine all programs analysis of which has shown the seriousness of the organizers intentions will get closed. When making your investment consider the fact the program may fail and invest in such a way that if it fails you get your income anyway. Try to minimize the risk.

In the most thorough programs the interests are sent to your account opened in an electronic payment system every 24 hours. Besides, reliable projects, as a rule, try to make an automatic reinvestment that significantly increases your profit.

It is very simple to count your provisional incomes. For example, youve invested some sum under 2% into an investment project for 365 days. That means, that not making any reinvestment you will have your money back in 55 days and since then you will earn profit. So when the term ends your income will be 720%. If you divide your capital into several parts and every part will be invested into different high yield income program, even in the event the half of the programs will fail or turn out to be fraud you will get profit anyway.

Remember to reinsure yourself in any case, even if you are 99% sure in the project. Even if you are promised the whole mountains of gold, even if all your friends and acquaintances recommend investing the maximum into the program — divide your capital into parts anyway and invest into different programs. Even the most honest HYIP when it does not overcome a crisis stage may fall down.

There is one more rule any beginning investor shall follow: never risk the money you are afraid to lose.

Continuing Your Investment Campaign

One more important rule for private investor says: do not invest the earned capitals into the same program. Every day for the project is a new step to its inevitable closure. As we have said before even the most reliable projects will sooner or later end their activity. When a resource of the high yield income programs exhausts, it gets closed. Constant expansion of the project is impossible. It is an axiom. That is why try to invest the earned money as effectively as possible.

As a rule, disregard of this rule is the reason for financial loses. Many private investors get greedy and once they receive some incomes they invest it again and again. And they do it till the project spends all its capabilities. As the result the investor loses; it would be good if he manages to turn his initial investment back. Distributing the incomes among new programs is the most effective way to minimize the risk.

Study the new programs, hold their detailed analysis, select the most prospective and honest ones and then invest the parts of your gained profits into them. In case your initial program closes you will always have the investments in other programs and you will be able to turn the invested money back and gain profit. The investors desire to follow the old path and receive the profit in one project can be understood but it does not correspond with the economic reality. The project that sooner or later will get closed inevitably comes to an end someday. You have to do everything possible that the termination of the program brings you minimum damage.

There is no sense to turn to HYIP to those private investors who wish to get rich at no risk. High yield incomes are always connected with high risk. High yield income programs participants cannot avoid the risk, it is impossible. They shall try at their best to minimize the risk. You can minimize it only by investing your capitals into different projects.

Invest into different projects and distribute the gained profits among new programs, even when you start working with this HYIP. There is no sense for the beginners to risk all their capitals. Many programs have a fixed entrance minimum limited up to 1$, 10$ or 100$. At first understand the functioning of the high yield income programs by playing small. And only when you feel yourself comfortable in the HYIP world and learn how to invest and reinvest money right, you can start playing big.

Remember, nothing venture nothing have. However, do not forget that if you risk recklessly you can be left with nothing. Follow all private investors rules and youll succeed. A reasonable risk is the foundation for survival in the changeable and unpredictable High Yield Income Programs universe.

Golden Rules

There are several Golden Rules every participant of high yield income program shall follow. Disregard of these rules may lead to the fact that instead of the expected incomes the investor loses all his/her savings and turns out to be in debt. The Golden Rules are not just made up; they have been developed during years of participation in HYIP and are tested by the most effective method of trial and errors. Observing the Golden Rules you get a possibility to minimize the risks, maximize your profit and avoid fraud to the extent possible.

The first rule says: never waist more money than you can afford. Remember, there is sense to invest only extra money you usually spent on luxury items into high yield income projects only. Never risk the money you usually spent on first priority goods. It is very unwise to invest money into HYIP that are to pay your hosing bills. High Yield Income Projects are always risky and it is dangerous to risk the money you need to support yourself.

The second Golden Rule: dont be greedy. Do not allow the greediness to blind you. Even if you regularly get the programs earnings during several months it is not the reason to mortgage your house or take a credit under unbearable interest. No one can guarantee that the project well-functioning today will not be closed tomorrow. You may find yourself with nothing if you spent your money recklessly.

Do not believe the huge interest. As a rule, they show that the project is false or is a kind of pyramid. Remember, 30–50% of monthly income is a rather adequate percentage. If you are promised to be paid more than 200% of your investment, you can be sure it is fraud.

The third Golden Rule: never deal with spam. Even if the program provides huge referral payments never try to attract additional users via spam. It can only damage you and your project.

The fourth Golden Rule: keep your password information secret. The most frequent mistake of an investor-beginner is the use of one and the same password for different HYIP. So you give the offenders a possibility to get access to confidential information. It is even worse, when you use the same password in high yield projects and electronic payment systems. The offenders always collect passwords being registered in the users projects. After that they try to access electronic purses using them.

Creating your password think about making it hard to trace. Use the passwords containing several words containing symbols of different registers and numbers.

Finally, the fifth Rule: always analyze in detail the project you are interested in. Only by studying all aspects of the projects activity, by checking all information and analyzing additional information you may create a provisional conclusion: whether it is a fraud or honest business. If you miss the analysis stage and recklessly invest your money in the first project you got interested in, in the event it gets suddenly closed you would blame only yourself.

Do not disregard any of these rules. Only by observing them you may effectively minimize the risks. The investment market does not tolerate the investors who act blindly, try to play not following the simplest rules.