Things you should know about HYIPs

An HYIP (High Yield Investment Program) is an investment program that offers high returns with a corresponding high level of risk. Contrary to common types of investments, HYIPs can easily give you 100% return in less than a year. Some programs even offer the same return after a month, some after a week, and some offer 100% return even just after some hours.

It is possible to generate such earnings if you know how to play the HYIP game well. In order to do so, you need to equip yourself with the basic knowledge about surviving in the HYIP arena. Below are some things you should know before making that first step into the HYIP world.

1. High Yield means High Risk. Most people are aware only of the "High Yield" part of HYIPs, but as we all know, return is proportional to risk. Simply stated: the higher the return, the higher the risk. In HYIP, be prepared to lose everything.

2. Invest only what you can afford to lose. Since you can lose everything in HYIP, do not ever, ever, ever (have we pointed that out clearly?) invest any amount you are not prepared to lose. One actually "gambles" rather than "invests" in HYIPs. In the same way that you won't go to a casino or bet on the lottery with all your money, do not "gamble" in HYIPs with the money for your house rent, child's allowance, or groceries. Gamble only an amount you won't cry over if you lose it.

3. 99% of HYIPs are scams. Don't easily invest on the first HYIP you see online. Conduct research (DD or Due Diligence in HYIP jargon), search for online reviews, and ask those who have already invested in the program. What hurts the most is investing in an HYIP that will run away with your money the next day. That usually happens if you don't do research first.

4. Diversify. Put your money in a group of investment programs, preferably with varying degrees of risk and return. The idea is for you not to "put all the eggs in one basket." That is, even if one of your programs fail, you still have some fallback, can still reinvest, and perhaps recoup the losses through the other programs.

5. Take out your principal as soon as possible. Don't be greedy, take out your principal investment as soon as you recoup it (take some profits with you) and re-invest only the profits earned if you still want to invest in the same program. That way, even if the HYIP you are in folds up, you'd walk away as a winner.

6. Protect yourself online. As most HYIP transactions are conducted online, you are prone to viruses, trojans, hacking, phishing, etc. Protect yourself by using multiple passwords, using different login names, installing a virus scanning software and firewall, and regularly checking your PC for updates and patches. The worst thing that could happen to you is to receive a $5,000 deposit in your e-currency account, only to find it inaccessible because it has been hacked!

7. Do not always trust forums and rating sites. Some, if not most, forums and rating sites are either the owners themselves of the scam HYIPs or paid by the owners to advertise the program. Check for objective comments and reviews of programs that interest you in different forums and rating sites. Try to find and stick to a forum or rating site whose members are credible, have integrity, and have built good reputation for themselves.

8. Do not just sit down and wait. Unlike investing in stocks, t-bills, or mutual funds, investing in HYIPs require some amount of attention since you need to regularly check on the progress of your investment and the status of the program you are in. If you invest in a program and come back after 1 year, don't be surprised to find the program gone! There's a big chance the program's admin has ran away with your money!

9. Ask questions and learn. You simply can't succeed in HYIP if you do it alone. Learn from the experts and veterans. Ask questions.

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