Are There Legitimate HYIPs?
HYIP is an acronym that stands for High Yield Investment Program, which are business platforms that operate through a vaguely defined investment platform that provide upwards of 1 % returns per day (3779 % annual percentage yield). These business programs generally function by paying previously existing HYIP investors with the money earned from newly initiated affiliates. Given this fact, most HYIPs are considered to be ponzi schemes, almost without fail which begs a very important question: are there any legitimate HYIPs out there to get involved in or are they all frauds and scams?
In short, the answer is “sometimes”. This is not to say that actual, real investments can’t occasionally produce the same amount of investment return, they can (though this is very, very rare, it is merely that such outfits would not present themselves as anything as vague and nebulous as a HYIP but would instead present themselves as whatever they actually were (so, for instance, a real estate investment firm would tell you that they were a real estate investment firm whereas a HYIP would generally not and would instead use esoteric and obfuscatory terms).
With this knowledge in mind another question comes to mind: how can one determine whether or not a site is legitimate or a HYIP? The first thing that should be said is that, thankfully, most HYIP outfits announce themselves as such, so picking them out of the litter, as it were, should not be particularly hard. But you can also use legitimate monitoring sites like HYIP to check. Even if you are duped into investing into a non-legit HYIP it will not take particularly long for the new initiate to figure out they have been scammed since more ponzi scheme operating of the high investment model are so unstable that they typically last only around a little over sixth months, if that. Yet by the time that occurs the new investors will get burned and will lose ALL of their money so it is important to try and sniff such schemers out BEFORE investing at all by using the monitor mentioned above.
If you’ve crossed upon a business outfit that is claiming to be a HYIP and you think they just might be legitimate there are a couple of easy and useful ways to check. The first way is look at their business accreditation certificate. Any competent HYIP scammer will have a certificate but they typically have the same kind of generic, cheap and ultimately meaningless, UK purchased credentials which can be picked out due to the crest which features a lion and a unicorn clutch a emblazoned royal crest, if you see this “certificate” then watch out. Also be sure to check that the organization has a actual address, but do not just stop there, check to make sure that there actually is a organization at the given location – so for example, if there is a HYIP that says it is located in 5555 Tuscon, AZ, then it is wise to check Google Maps and call around the local area to ensure that the business is legitimate.