How High Yield Investment Programs Work
HYIP stands for high
yield investment program, and this is an investment
scheme designed to deliver vast profits from
investments. It is said to be one of the most
lucrative money-making ventures around, and
investors can make earnings of as much 20 to 2000
percent in interest a month. As is the case with any
speculative venture, the profits an investor can
make are dependent on the risks they make. That is,
the greater the risk, the greater the returns, or
losses for that matter.Most HYIPs do not
disclose to their investors exactly how they invest
the money that they put in. However, in general,
HYIPs engage in capital management which is, simply
put, handling an investor’s total investment, as
well as capital expenditures needed to make the
venture grow. This makes for additional capital
outlay. Examples of modes by which HYIPs exercise
capital management are FOREX trading, stock
exchange, sports betting, metal trading, and the
like.
FOREX stands for
foreign exchange, and it basically involves the
buying and selling of currencies. Among all the
markets in the world, FOREX is said to be the market
with the most volume, with an approximated daily
turnover of over US$ 3.5 trillion. In FOREX, the
base currency against which other currencies are
traded is the US dollar. It is said to be the most
liquid market, which means that an investor can take
out or cash in investments more rapidly and with a
fairer market price compared to other markets. Also,
it is non-monopolistic, mainly because its huge
volume prevents any single entity from controlling
and monopolizing it. Moreover, trading in FOREX
takes place 24 hours a day, 5 days a week, allowing
an investor to benefit from developments worldwide
while the local market sleeps. Because currency
markets are extremely speculative and highly
unpredictable, FOREX and currency markets in general
are an enormously lucrative and attractive
money-making venture. With all that said, a lot of
HYIPs therefore bank on the highly profitable and
money-spinning nature of FOREX to generate
tremendous returns for their investors.
Another means by
which HYIPs invest their investors’ money would be
the stock exchange, or the stock market. It is a
structured and organized market where members trade
securities such as stocks, common stock equivalents
and bonds. Members can act as agents, known as
brokers, or as principals, known as dealers or
traders. There are various ways by which trading in
the stock exchange is carried out. It may be
conducted on a continuous auction basis, or it may
be done through specialists who focus on a
particular stock. Also, it may be carried out
through brokers who buy from and sell to dealers or
traders in specific types of stock.
Sports betting, or
sports gambling, is still another venture which
HYIPs get into to capitalize on and increase yields
for their investors. In sports betting, participants
make a wager based on particular outcomes or
predicted results in sports activities. Wagers are
accepted by so-called bookmakers, or those who
specialize in receiving sports wagers. The specific
mechanics, legality and general acceptance of this
venture differs depending on the country. For
example, in North America, horse racing is generally
the only sport where sports betting is allowed. On
the contrary, in many countries in Europe, sports
betting, although not illegal, is extremely
controlled and regulated.
Metal trading, on the
other hand, simply refers to the gold and silver
markets. Other precious metals exchanged in this
market include platinum and palladium.
HYIPs conduct their
activities and transactions on the internet, through
virtual currencies or e-currencies. These have
allowed HYIPs to conduct business worldwide, and
have made it very convenient for investors to claim
earnings instantly. They also enable HYIPs to accept
large numbers of small investments. Starting
off with an HYIP online is simple,
since all you have to do is register with them and
then deposit some money into your
HYIP
account using the payment processor that they
outline. The profits are paid out to the same
processor to streamline the process.