by Ajibola Aries
The presentation you are about to read is based on a frank, informed opinion and experience and is meant chiefly for beginners and novices in the HYIP 'industry'.
As you read this, you should know that the HYIP industry is dynamic and some rules may change with new developments.
This article is not meant to be taken as a formal academic material on the subject, or as a document to be copied or used to formally disseminate knowledge on the subject.
This presentation is not a representation of the views of any authority, enterprise or organisation in the HYIP world and is meant for your personal information and benefit only.
Ajibola Aries DOES NOT claim to be an expert or authority in the HYIP subject.
CAUTION: I have since discontinued all kinds of patronage and monitoring of High Yield Investment Programs (HYIPs). The following write-up is merely a reflection of the views held by me duroing the time I used to patronise them.
I would personally NEVER encourage anyone to invest in any HYIP
To read my updated write-up on HYIPS, you may want to read THE TRUTH ABOUT HYIPs.
WHAT YOU NEED TO KNOW ABOUT HYIPs
HYIP means High Yield Investment Program. This is one of the ways of making legitimate money on the internet, as opposed to the trend of internet frauds of various types. With HYIP, it is expected that your money works for you; you don't work for money. This thread will seek to enlighten novices with basic knowledge about HYIPs.
Basically, HYIPs investment entails an individual, group of persons or corporate body investing some amounts of money in a commercial website. The arrangement is usually supposed to be that the owners or admin of the site would do some trade with the money, either in forex, petroleum, agriculture, sports betting or some other enterprise. However, in practice and as experience has shown in the HYIP industry, in very significant numbers of cases the usually faceless owners of the HYIPs don't engage in the trade(s) they profess to engage in. Whatever is done with the invested money is more often than not held in secrecy. The crux of the matter is that it is the profit from this said trade that is then shared, as dividends or 'interest' between the owners of the HYIP site and the investors; each investor being paid in proportion to his/her investment. The payments may be on hourly, daily, weekly or monthly basis; in most cases individual HYIPs make provision for all or most of these, and an investor could choose which plan to invest into. In some cases, the payments are fixed; in some others they are variable.
HYIPs usually pay investors through a number of e-currencies such as Perfect Money, Payza, Egopay, SolidTrustPay, Strictpay, Webmoney, Bank Wire mode of payment, etc. Thus, a person who wants to invest in HYIPs must of necessity have at least either one of Solid Trust Pay, Egopay, Perfect Money, Bitcoins, Payza, Webmoney, or Bank Wire mode of payment.
It needs to be pointed out at this point, that HYIPs are unregulated online entities and are usually not accountable to, or recognised by governments.
This places HYIPs in positions where, strictly speaking they are not legally constituted in any country, and as such individuals who invest in them are usually warned that they do so at their own risk, as, in reality it is not much different from gambling.
HOW YOU MAKE YOUR PHYSICAL CASH
Have it in mind that the money we are talking about here is virtual money; money that is not physical; which only exists in the form of figures that you see on your computer screen, but which, however, has the capacity to be converted to physical cash.
Other terms used for virtual currency are e-currency or digital currency. Some people even call it 'webmoney'.
Question may now arise as to how you can convert it to physical cash, like the local money that could be spent in your locality or which you can hold in the pocket. This section will address that.
Once you have registered your digital currency account and you have invested your money into a given HYIP, whichever HYIP you sign up to will be paying your profits into your online account whenever you request for withdrawal of your profits.
You may now ask: how does this translate to physical cash in your bank account?
There are two ways that this happens:
- SELLING TO INDIVIDUALS: There are many people out there who want to buy digital currencies. By the time you have been doing HYIP for about a month, you would have known about forums in which you meet so many of such individuals from your country and even within your own locality. The simple thing is that when you want to cash your money, those who want to buy digital currencies from you will pay its physical cash equivalent into your bank account and you will then send the ecurrency to their own online account over the Internet. One of the advantages of selling to individuals is that you could set your own price at which to sell to them; this way, you dictate what money comes into your account, and naturally, you would be expected to be smart enough to sell at a price that is favourable to you. On the other hand, individual buyers are not consistent – sometimes you might not see an individual buyer for days or even for weeks, and so, you need an alternative buyer.
- SELLING TO E-CURRENCY EXCHANGERS: E-currency exchangers are organisations or commercial outfits that buy and sell digital currencies like Solid Trust Pay, PerfectMoney, Bitcoin, Webmoney, etc. In almost every country there are digital currency exchangers and they normally have physical offices that you can visit. However, it is mainly over the internet that you will do transactions with them. In Nigeria, there were no fewer than 15 exchangers at the last count. There are at least three in Lagos alone. You can sell your digital currencies to them - and they are ALWAYS READY TO BUY because that is what keeps them in business. The process of selling to them is just by you notifying them over the internet (on their website) of your intention to sell to them and then you fill a form on their website through which you will specify relevant information and post to their own digital currency account, the specific amount of your own digital currency you want to sell to them. In return, they will pay the physical cash equivalent into your own bank account, usually within 24 hours. Just as earlier mentioned, a major advantage of exchangers is that they are always there to buy your E-currency from you. So if you urgently need to sell and individual buyers are not available at the moment, you can always quickly sell to exchangers. On the other hand, while you have the power to set your selling price to individuals, you cannot set price for exchangers – they usually have fixed prices at which they buy and sell and the prices at which they buy tends to be lower than the price at which individuals buy.
The online payment systems mentioned above, have other uses apart from being converted to physical cash. You can use them to buy goods online, buy certain subscriptions, process certain registrations as well as for use in other trades.
THE RULES OF HYIPs
If you want to get involved in HYIPs, take note of the following:
1. While it is true that HYIP is a way of making money online, most HYIPs are turn out to fraudulent. Online income programs that are genuine are few and far in-between. Ability to identify credible ones is very crucial.
2. Just like other enterprises, HYIPs could be risky. You have to accept that an average investor is prone to being scammed. Most of those who have made big money from HYIPs today have been scammed at one time or the other. Those who are afraid of taking risks should stear clear of this enterprise.
3. Don't invest more than you can afford to lose.
4. Don't rely on only one HYIP; diversify your investments. If you have a big money that you want to invest, it is better for you to split it into different smaller portions and then invest these smaller portions into reliable HYIPs so that you don’t suffer a complete loss if one of them goes scam. No matter how reliable any HYIP looks, don’t put all your investment money into it. On the other hand, while it is advisable to diversify, it is better for you to put your money in only two or three apparently RELIABLE HYIPs than to put your money in five, six or seven HYIPs which are unreliable. Thus if you must diversify, diversify with wisdom.
5. As much as possible, login to your accounts in your chosen HYIP through encrypted channels. There are many softwares that encrypt data and most of these softwares are available free on the internet. The use of encryption reduces the danger of your account being observed or hacked by third parties.
6. Avoid assessing your account through cybercafe computers; many now have different types of 'keyloggers' and softwares that store your login information which may compromise your privacy. It's better you use your own computer or that of a person you really trust.
IDENTIFYING FAKE HYIPs (OR SCAMS)
Just like other investments, investments in HYIPs is risky. The HYIP world is risky as much as it is promising. There are more fake HYIPs than there are good ones. In practical terms the vast majority of programs called HYIPs are scams. In this section we are going to discuss the fake ones; we will focus for now on the fake ones because the ability to identify and stear clear of them is perhaps the best starting point for any beginner. However, let it be emphasised here that this emphasis on fake ones should not be taken as a tacit disapproval of HYIPs. If you want to go into the HYIP industry, you should know that you are taking a very big risk. And when we talk about risk in the HYIP industry, it is not about the legality or legitimacy of what you want to dabble into, but about the money that you stand to lose if you are unlucky...
There is a popular impression that once a site is just out to take and make away with your investment, it is a scam. However, this is just to say a small part of the truth and an oversimplification of what constitutes a fake HYIP. The definition of a fake HYIP goes beyond that. Of course, the main thing about fake HYIPs is that they lure people to invest with them and then later make away with the money, but there is another category of HYIPs that we have now categorised as 'fake', and I am later going to give reasons to justify this classification. This second category (Category B) are those HYIPs whose owners have genuine intention (such as those few cases whereby the admin actually uses the money for something real, such as a farm), but whose websites eventually disappear with people's investments due to fatal technical or system failure. Such investments are usually never refunded. Thus, for the purpose of analysis, we are now going to talk about Category A fake HYIPs, which consists of sites set up with intention to scam people, and Category B fake HYIPs, which are unreliable, though set up with good intention. We are currently focusing on Category B, because more people are now falling into them, and people need to be alerted.
An example was the defunct Imoneyreserve, supposedly set up by a Cassie Johnson. It gained wide patronage and was paying everybody as and when due. Its customer relations was excellent and in most cases, the said Cassie Johnson herself attended to clients. However, today Imoneyreserve is no more. Why? In December 2009, it reportedly came under a DDOS attack. For some days what was appearing on the screen in place of the website was ‘We are doing server work.’ After about two weeks, what replaced it was the usual DDOS protection website. Before this time, it was apparent that Imoneyreserve managers were trying to rectify the problem themselves but it might have gotten got out of hand. So far nothing has been heard again about Imoneyreserve. People lost thousands of dollars of investments.
Why did we categorise Imoneyreserve as a Category B fake HYIP? Because there is circumstancial evidence that there was a DDOS attack and I did my own follow up on the issue and was never able to see any proof that its owners set out in the first place to scam people. (Please note that Imoneyreserve was NEVER listed as a scam in the comprehensive scam list of Goldpoll). But the fact that they never returned investors’ money remained an indictment on them – and this is part of what it takes for any venture to be called a scam.
Thus, even if a HYIP is 'genuine' (that is, was not set up deliberately to scam people), it could still be classified as 'fake' or ‘scam’ in as much as it lacks the capability to sustain itself and protect people's investments.
Some people have the impression that if a website is paying, then it means that it is genuine. That is also a half truth. Of course, one of the ways to judge whether a site is genuine or not is that it pays – and that it keeps paying, but people should know that fake HYIPs also pay for some time in order to gain people's confidence. But while paying, they smartly ensure that the rate and the volume at which people invest in them surpasses the rate at which they pay profits. They maintain the equation like this until they have already made their gains more than their payments and then they either stop paying or disappear altogether.
There is also the strategy of SELECTIVE SCAMMING (its other variant called SELECTIVE PAYMENTS). This happens when a HYIP keeps paying some people while it deliberately withholds payment to a few persons. Fake HYIPs that do this do so in instances where they have observed a few individuals investing exceptionally large sums of money which is so large as to be more than the aggregate of the other (vast majority) investors whose individual investments are smaller. In this instance, such HYIP continues to have PAYING status in mornitors because the majority of people keep reporting that they are paying. They also have this habit of paying mornitors so that they will not be blacklisted. Meanwhile more investors keep investing. By the time it becomes obvious to mornitors that they are fake, such HYIPs simply pull the plug and the game is over.
So, how does one identify a fake HYIP site or scam?
There are some things to look out for in order to have an idea of a HYIP website that is fake or unreliable. Some of them are these:
1. The HYIP makes a promise of very big interest or profit, say 150% in one day. Such big figures are usually to entice people. Paying investors very high ROI (return on investment) is simply not sustainable. 'Good' HYIPs most ofetn offer much lower interest, say 1% , 1.1%, 1.2%, 2% or thereabout. This does not however mean that all HYIPs that offer 'sustainable' interest levels are relaible. Meanwhile, you should note that as the Hyip industry evolves, many scams have also learnt to lower their Roi in order to appear sustainable.
(2.) No contact number or email address or proof of geographical location of offices. At the same time, you should note that many scams have also started displaying phone numbers, email and geographical/office addresses which are usually found to be fake upon investigation. Many do so by stating addresses in remote regions with the hope that people will hardly bother to find out.
(3.) They don’t or hardly reply when you ask them questions about their genuineness or any other question(s). Once you observe that an HYIP does not reply enquiries, it is enough reason for you to avoid it because it means that they don’t have a good customer care service, and the quality of customer care service is a standard yardstick for judging how reliable any enterprise is. Specifically, if a HYIP does not reply messages, it also means that if you put your money into it and you have problem while dealing with them, the odds are that you will not be attended to.
(4.) No proof or evidence of DDOS protection. This means that the site is vulnerable to attack.
(5) Within a few days after you have registered in it, you receive unsolicited emails from unknown persons who advertise other HYIPs, usually by giving you 'proofs' of payment. If you just registered in any HYIP programme and you receive this kind of email soon afterwards, it means that the programme you registered in has gone behind your back to give out your email address and other data. Such is against privacy laws. Yet this is one of the strategies of scams; they often operate as closely knit syndicates. A typical scam website will give the email addresses of its members to the owners of other related fake websites and so the victims are enticed to see other scams as alternatives. This is one of the things that keep the scams alive. So, if you just registered in a HYIP and you receive such unsolicited email(s) some days or hours later, there is every likelihood that the first one is a scam. However, this can get confusing if you have registered in more than one HYIP at around the same time.
I will also add this caution: try as much as possible not to be carried away by adverts that talk about 'NEW!' Hyips. The fact that something is new does not mean that it is going to be better than those ones you already know. In fact, the main problem with new HYIPs is that a new HYIP has NOT BEEN TESTED. There have been many new HYIPs that just disappear after only 10 or 20 days. It is better for you to go for those ones that have been running efficiently for months or years. If you must go for a new HYIP, start by testing the waters with a small money, say $20, $30 or $50 - depending on your financial power.
Also, before joining an HYIP, look for its ratings in mornitors. You should also go to forums to see the opinions that people give about them. All these are important demands of Due Diligence which a prospective investor must meet.
Of course, what is listed above is not an exhaustive list of the features of fake HYIPs.
I will list more characteristics of fake HYIPs as time goes on.
However if a HYIP shows up to two or more of any of these characteristics, please RUN WITHOUT LOOKING BACK!
Yet the good news is that there are a number of HYIPs which, in our judgement, can be considered reliable and stable, based on their past performance up to the present.
Some are listed (please note the ones with PAYING status) on this website under our Cash Arena Online Investments Catalogue along with their basic facts and figures as well as their current state of performance.
For more information on HYIPs, you may contact: firstname.lastname@example.org
Ajibola Aries has many years of experience in high yield investments and has made several contributions to different forums on related issues.
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