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Investing - The Downside of HYIP

By Michael Russell 


Investing online can truly be a devastating business. One of the most popular investments, which most are familiar with, would be HYIP. To those who are unfamiliar with HYIP, it stands for High Yield Investment Program. These programs are generally not legitimate and are considered scams. In fact, the FBI states that HYIP are illegal activities and are always on the look out for them, continuously trying to stop the website owners who are technically criminals as they just run away with your hard-earned money.

HYIP usually are funded with e-currency like Paypal, Moneybooker, Stormpay etc; however, the most frequently demanded currency would be E-gold. E-currency is money except it's from a bank online, but yes it is your real money. Basically, they ask you to invest a certain amount from a day to a couple of months for a specified amount in return, also known as interest. They usually promise that you'll earn a couple of percent a day - which is better than what your bank has to offer. Or you can compound the interest into your account principle and generally receive a larger sum at the end. Some programs say they'll pay you double to quadruple the amount you put in the next day. However, once your money goes into these investments, you are very lucky to have it returned to you.

HYIP are high-risk investments that basically can only operate when more and more members add their money in; however, at the end, they always end up closing down and you'll get nothing in return - NOTHING. Worst yet, there is absolutely no way to get your money back. However, you may want to go to different HYIP monitoring websites and scam websites and post messages to say that the website is a fraud and trashing it. Basically, that's all you can do.

Yes, some do strike it rich and earn a lot, but ALWAYS the members at the end of the chain lose everything. For those who strike it rich and tell their friends, chances are, their friends and families won't earn a lot, or even anything. What happens if the program closes down on them and you referred them? You'd be the one they'd hold responsible, as the owner would mysteriously disappear. This could result in you losing the trust of your family members and friends.

Some like these sorts of activities as you can receive a high return and take it as gambling. Yes, HYIP IS gambling. It's like walking up to a blackjack table and dealing a hand; however, sometimes, you don't even get that round dealt as the casino worker stands up, takes your money and walks away.

You should bear in mind that it is illegal. Even if you make a lot, your e-currency account and your bank account could be closed down. As well, you could be in trouble with the FBI and police for even getting involved with such activities.

Thus, HYIP aren't only a gamble with your money, it's even a gamble which you would be held liable for even participating in and you would be putting your bank accounts at risk. If you refer others, which would help you earn more, you could damage relationships. Tell me, would you say it's worth it?

Michael Russell
Your Independent guide to Investing

Article Source: EzineArticles.com - Michael_Russell

Michael Russell - EzineArticles Expert Author










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