How to Know If A HYIP Is a Scam
- Author Reuben Dsouza
- Published September 26, 2006
- Word count 525
High yield investment programs are becoming popular, as they allow anyone to invest at a level where they are comfortable. However, when anything that involves money becomes popular, it’s a sure bet that someone will figure out how to get money from it by scamming others. Because of this it pays to keep your eyes open when your begin investing.
Like any other stock, try to get as much information as you can before you invest. The more information you can get, the more likely you can make an informed decision. At the same time, be wary of too much information; the more glowing references that an HYIP has, the more likely it is to be a scam (after all, not everyone will like a given HYIP).
You also need to find HYIP monitors that you can trust. They may not always be accurate, so make sure that you have several. The idea is that each monitor will give you different information about the same HYIP, and that difference in perspective may show you either directly or indirectly something that may feel wrong, and stop you from investing in an HYIP that may be a scam.
Pay attention to HYIP ratings. Monitors keep track of HYIP investments, and report on how they do. An HYIP that almost no one has heard about doing well should be a cause for concern, as it is obviously inflating its performance, and that’s usually a sure sign of a scam. Another sign of a scam is an HYIP that performs too well or strange; basically, if it’s too good to be true, it usually is.
A quick note of why strange behavior should be a warning sign: Most scammers know that most people will avoid anything that looks too good to be true. Because of this, they try to set up an HYIP that acts natural. However, they’ll tend to overcompensate how the HYIP is doing, making valleys go too low while keeping the crests plateau. However, some investors like that in an HYIP, as if they can time it right they can make quite a bit from it, so the standard investors avoid it, and the players try to take advantage, allowing the scam to work anyway. It’s just better to avoid a strangely behaving HYIP in the first place.
Be advised that some scammers take advantage of the hazy nature of HYIP’s. Most European and American institutions try to avoid investments that make too much money too quick; the best way to avoid a scam is to simply put yourself in a position where being scammed is simply not possible. This means that a number of HYIP’s originate from places you don’t want to deal with under normal circumstances; that’s not a warning sign in and of itself. However, not disclosing that or not mentioning anything specific is.
Just remember to go into any situation wary and make them prove themselves to you; if they challenge you to prove yourself, then it’s usually a bad situation just waiting to happen so decline their challenge and go elsewhere.
I am a webmaster of a HYIP Monitor. Visit one of the fastest growing ones at http://Hyip-Status.com!
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