What is a HYIP? It stands for High Yield Investment Program. They became very popular in the last 2-3 years. What they offer is a much more higher return on investment (ROI) than banks or other well known opportunities do.

The first important thing for you to know about these programs is that most of them (popularly said 99%) are Ponzi schemes. This means that while they pay out to their investors they pay from the new investors money. This is like when a snake begins to eat himself from his tale. It works for a while but sooner or later when there will be no more fresh investors, or the program reaches it's desired profit it stoppes paying and the admin(s) suddenly disappear.

For example:

Joe invests $100 on monday to a program that offers 300% ROI in one week. Paul and Patricia invests $200-200 in the same program on Wednesday and Thursday. Now there is exactly $500 in this HYIP. From this amount our Joe will be paid on the next monday. He tells all of his friends and relatives to invest in this program because it will make them rich! Because of Joe's "work" lots of people invests on monday and on tuesday but somehow the program disappear on wednesday without any prior notice. Paul and Patricia will be...lets say unhappy.

So who made profit here?

1. Joe who got in early
2. The admin of the Ponzi

Of course this scheme is illegal but it is very hard to catch someone on the Internet, especially if the money which was lost, is not worth the investigation.

What I would like to say with this is that there is a big risk involved in all online investment programs! That risk cannot be made totally disappear. The only thing you can do with it is to accept that it is there and minimize it as much as possible. This will be done through proper investigation and risk management.

Luckily nowdays there are much more reliable programs, but they are still hard to find. These are mostly private programs where you can register only by invitation from another member. I will write about these programs in a whole article soon!

There are other investment opportunities too. I call them active investment opps. because they require you to learn some skills and experience to make money. Just a few of them: FOREX, COMEX, BET ON MARKETS, ALLSPORTSMARKET.

First time when I found a HYIP I began to think about how can it be possible to make that great profit without anyone on the world knowing about it? This is the question you should always ask from yourself when you find a new opportunity. There is a rule in the online community which is:

If something is too good to be true it is probably not true.

In my opinion this sentence can easily mislead anyone. Let me tell you why! Because it depends on what are your expectations, what you think and on your experience and previous knowledge. For example if your dream is to work from home and build wealth, that can be done! It is possible. But a program which offers 200% or more ROI/day is surely a Ponzi. So I would like to ask you to always think and decide on your own. Create a vision and make it happen no matter what! Do not listen to these skeptical and negative guys out there!

To give you hope I tell you that there are legal ways to make much more greater profit through Online Investments than a bank can ever offer. I will dedicate a whole article series to these opportunities. Just to name a few: FOREX, Sports Arbitrage, Online Stock Investments, Bank Debenture Trading, COMEX.

If done properly, online investments can be highly profitable! So lazy people, just like myself, should definitely read my following articles!

I hope you enjoyed reading!