High-Yield Investment is becoming more and more popular among ordinary people. Not so long since the main interest in this sphere of profits was proved mainly by professionals financial specialists. Today, however, the situation in the field of investment has changed are many different areas designed for users without special training.
HYIP (High-Yield Investment Program) is a project that promises high returns on investment deposits. As a rule, payments to the first participants are taking from the contributions of the new participants. It makes HYIP projects related to pyramids and Ponzi schemes.
To date, HYIP projects presented in large numbers on online expanses. There are low-interest platforms, the monthly yield of which does not exceed 20%, and high-interest platforms offering their user's favorable conditions on the deposits with a rate of over 60% a month. With all that, even the most low-interest HYIP projects operate under the tariff plans characterized by much greater profitability than alternative offers from banking organizations. That is the simple reason why high-yield investment programs have become an interest of several users.
Today, to achieve positive financial results in the HYIP sphere, investors need to consider many factors that affect the stability of the profitable platform.
First of all, beginner investors:
Introduction to High-Yield investments
The HYIP concept has received popularity in Internet space moderately recently. Various web projects developing in this direction offer their users highly profitable earnings with the funds invested.
All of them, as a rule, have a beautifully designed site, describing in detail the official form of activity, at the expense of which there is an increase in investor money. Often, such projects specialize in the supply of natural resources, betting, the securities market, the sale of expensive equipment, and much more.
Of course, above activities none is carried, only the redistribution of profits takes place. A beginning investor must first understand that any investment project is a Ponzi scheme upgraded version. It means that all the profit percent paid in the project is taken entirely from the contributions of new users. Easily put, to fulfill obligations to the first investor, the platform management needs to withdraw some money from the second investor's deposit, duties to the second investor fulfilled at the expense of the third investor, and so on. These events chain care as long as the volume of incoming funds allows to repay debts to users.
As a rule, a beginning investor thinks seriously about the participation advisability in projects because their activities incredibly high financial risks, which are often impossible to manage.
For this purpose, methodological guidelines have formulated, combining background information related to the diversification of financial risks. What methods of risk management are used today by experienced investors, which we will talk about a little later. For a start, we need to consider the variety of HYIP platforms and the criteria of their estimation.
HYIP projects types and their features
Today's HYIP investment according to one general scheme, which can represent several stages:
All HYIP projects divided according to main criteria:
Understanding the above investment aspects activities will allow a beginning investor competently approach the earning process organization. It is possible to allocate HYIP projects evaluation factors:
To receive profit from participation in this or that project only if all factors evaluation taken correctly. Otherwise, there is a losing invested fund high probability. To minimize risks necessary to use effective ways to diversify them. Risk diversification is an integral part of the work of any experienced investor.
Monitoring services are websites whose organizers constantly collect statistical information about the high-yield program's performance. Monitors aggregate a lot of information describing in detail the HYIP profitability level, the opening date, the earned funds withdrawal conditions, and much more. In addition, these statistical and analytical services produce an online tracking solvency HYIP projects status feature that allows you to protect novice investors from a knowingly failed investment idea.
Payout plans analysis
Payout rates competent assessment will help to avoid possible financial losses. Of course, to assess with high accuracy, the available rate parameters are unlikely to succeed. In this case, it is worth performing another analysis type to compare the rates of successful platforms with the values of the rates assessed site. You should regularly monitor HYIP projects used before.
Advertising campaign evaluation.
The administration's approach to promoting it plays an important role. From the point of view of an advertising campaign, it is possible to allocate some valuable recommendations. First, many experienced investors strongly recommend avoiding so-called social projects - platforms promoted only using free mailing lists and advertising in social networks. Such projects stop working during the first days of their operation because the inflow of new investors usually ends at the stage of the first payments.
Secondly, it is worth bypassing the projects whose administrators decide did not to join monitoring services. Such projects not only quickly lose the growth of user activity but also do not provide any statistical data.
Thirdly, projects whose managers limit the promotion of their sites to one wave of advertising. This approach usually causes a sharp decline in investor activity, which leads to rapid project closure.