“What happens to be an HYIP?”, or “Exactly what is Hour Money really love?” How you answer that question can figure out how successful you will end up inside the online realm of high yield investing. There are no less than six different solutions to the question concerning the true nature of any high yield investment program (HYIP).
1. Investment. In the end, HYIP means High Yield Investment Program. Yes, but an HYIP is not really a true investment, because unlike a real investor, the hyiper rarely knows in doing what wealth-building instrument his funds are.
2. Scam. This is really true of some HYIPs, yet not all HYIPs are run by geek thieves.
3. Ponzi Scheme. It can be estimated that at the very least 90% of HYIPs are ponzis. In an HYIP ponzi, the operator uses money from previous depositors to pay current or later depositors.
4. Gaming. Here is the opinion of those that either despise HYIPs or have lost money to HYIPs. There may be some truth for this, however in that sense, hyipers are the maximum amount of gamers as day traders.
5. A Money Game. An HYIP is actually a game in that there are certain rules of your game that could give an educated player the edge, if she will first invest time to understand before she will earn. But once you learn the standard rules, this money game could be as much fun as it could be lucrative.
6. That Loan Program. That’s a few things i would rather call the 10% of Instant pay which are genuine. If you deposit funds into an HYIP, you might be essentially lending money to a person, who seems to be promising to pay you interest on your loan. You are the lender or creditor, along with the operator in the HYIP is the borrower. This borrower are capable of doing whatever he wants along with your money. The borrower (HYIP operator) might use your money to trade the stock market, penny stocks, the forex (forex) market, as well as e-currency. One and only thing that matters for you is that
(a) the borrower pays an interest about the principal amount you loaned him
(b) he returns your principal after the expression of your loan.
From the lending industry, the likelihood of a borrower repaying you depends on the honesty and financial predicament of your borrower. Whenever you lend someone money, there might be no guarantee that you receive repaid. In effect, your deposit for the HYIP is not only a loan, it is an unsecured loan; the borrower puts up no dexqpkyy32 that you could claim and then sell if he defaults on the loan. In comparison with other lenders, you have another disadvantage in this credit business: there are actually no collections department, collections company or credit reporting agencies to report the deadbeat to! In reality, in most cases there is not any loan contract between lender (you) and borrower (the HYIP).
Therefore, if you want to be described as a hyiper, you have to, just like your fellow creditors (banks, etc), figure out how to write off bad debts (HYIPs that don’t return your funds). Otherwise, you will discover yourself ‘closing store’ or calling lawyers. Actually likely to court against trusty Hour will you cost more soon enough, emotional currency, and money compared to HYIP game itself. Imagine a bank taking every bad borrower to court!