In one of our previous articles we discussed to some extent some of the many benefits of HYIP investment. In this article we’ll be looking at the dangers of HYIP Investment. We’ll discus about how investors can loose lots of money and why you should not invest in any HYIP business or investment.
DANGERS OF HYIP INVESTMENT
1. Short Term Investment: This is true about HYIP investment. They are designed to last just for few days, weeks or in most cases months. Unlike traditional investments, HYIP have no laid out strategy for the future hence there is high possibility of new investors losing their investments.
2. Unrealistic Returns: The goals of HYIP is always to make people rich. This is an unrealistic goal as everyone can not be rich. Due to this unrealistic goal, HYIP always offers huge returns of investment that attracts more and more people without having thble structure to pay its investors.
3. HYIP are Ponzi: No one can take away the fact that most HYIP systems runs as ponzi schemes. This is one of the dangers of HYIP Investment that should not be ignored. HYIP investments are build in such a way that to continue running they use investment of new investors to pay old investors and the circle continues until there is a deadlock.
4. Usually Set Up By Fraudsters: No good business man would set up a HYIP investment. HYIP is mostly associated with fraudsters that do not have anything of real value to offer. For example, some companies sell shares to attract investors but HYIP have nothing for sale they just offer you high returns and that is it.
The dangers of HYIP Investment can not be overly emphasized. While you can think of hundreds of reasons to invest in HYIP there are also thousands of reasons why you should not. But the simple truth is, if you play the HYIP game properly you stand a better chance of gaining more than losing. Feel free to ignore the dangers of HYIP Investment and tap into its many programs online but note that doing that is at personal risk.