The negative sides of HYIPs
A new kind of investment is HYIPs. Based on this, you need to know what experts attribute to this method of investing.
Venture capital enterprises. They represent investments that may be lost in connection with a research type of activity.
The financial pyramids. This fund does not deal with investments, but works on the principle of redistributing the contributions of participants in the investment process.
Fraudulent forms of online earnings.
Thus, under the sign of HYIP, any of the projects listed above can be hidden. But at the same time, the essence of the earnings themselves remains the same: the investor receives a high income for the fact that he is at great risk of losing his invested financial resources. It is a mistake to assume that all HYIPs are fraudulent schemes, although the likelihood of such an outcome cannot be ruled out. So, a person can invest his financial resources in a promising project, or a business idea. Such projects promise to bring high income in the future.
But venture capital firms are quite risky. Their danger lies in the fact that ideas and promising directions will be useless for the market. And if the project fails, the investor will face the fact that he will lose his money. Similarly, you can lose money thoughtlessly by investing in a fraudulent fund. But if the investment period is chosen successfully, then a person will be able to get back his contribution, in addition, and interest on it until the period when the fund collapses.
The only thing that can be said about HYIP projects is both in terms of profit and risk. Do not have illusions about a long-term and stable cooperation with such a project. In practice, HYIPs can be earned from one to two times, but there is no hope of making high profits for several years.
There are HYIPs in which you can not invest money, because in their formation they were conceived as fraudulent. The actions of the administrator of such a project are already known. Investor is invited to make a contribution. Then he receives reports, but the time comes for payment of money, and the fund unexpectedly closes. The idea here is the most banal and dishonest: to collect money from investors and run away with them.
A similar project is difficult, but can be calculated by what is on its website. Typically, this is a cheap web resource with meaningless content and a faceless design.