Recently, I have been joining HYIPs that involve cryptocurrencies for some short term gains. HYIP or High yield investment programs/platforms are most likely Ponzi schemes and would eventually exit in to a scam. A friend once referred me to join such programs(Auroramine and Bitpetite) and got in on its middle stages. Luckily I was able to break-even on my investments before it closed. I consider such programs as having lifespans and it would be beneficial if you take this into consideration.
Here are some reminders before investing in such platforms:
- Never invest what you cant afford to lose. Quite plainly stated, don't bet the house or the rent money for some easy bucks, because it might bite you back.
- Treat it as gone when you invest, cause its basically a gamble. Very similar to the first reminder, that when you invest in HYIPs, there is no guarantee it will last. Your money, in this case is basically gone.
- It is very high risk.
There are ways to actually minimize your losses in joining such platforms. The factors I am going to discuss, again does not guarantee that you will safely gain profits with no losses. Now, on to the factors you must consider before joining a HYIP:
- Always take in to consideration how long the site has been running. In HYIPs, the philosophy is to get in and get out fast as you can. Stay away from sites that have already run for months as they may exit anytime soon.
- Do not be greedy, make a plan and stick to it. If you join HYIPs, consider having a basic plan on how much you are going to invest and the amount of profits you plan to receive.
- Always consider to recoup your investments first. This way, any profit gained may become free investments and you would not lose sleep on losses.
- Take note of the interest rates. Sites that offer higher interest rates have a higher chance of exiting early, rather than those who offer lower rates. For example:
A site which offers:
150% rate daily may only last for 2 or 3 days or less
10%-15% rate daily may last for 7-15 days more or less
5%-9% rate daily may last for 30 days more or less
3%-5% rate daily may last for 2 months more or less
However, some investment sites that offer 1%-3% may last longer, and I call these sites sustainable HYIPs. - Always withdraw daily if such option is available. Do not let them decide when to withdraw. Control your investments.
- Join their facebook pages to be updated. In this way, you can be updated and red flag signals by monitoring the community and the comment section.
- If you ever try to refer your friends, explain to them how HYIP works. Dont just explain the gains and profits but tell them the risk as well. If you dont, you might have more enemies that friends sooner or later.
Finally, to reiterate what I have just said earlier, DO NOT INVEST WHAT YOU CANNOT AFFORD TO LOSE. In my next column, I will be discussing how you can spot if a site or a platform is a HYIP or not. Ciao :)