HYIP Risks and Rewards

After the recent Bitconnect scam, one of epic proportions, larger than the Bernie Madoff scandal, it’s important for people to understand the totality of risk high yield investment programs (HYIP) have and what we can do about it.

These programs are extremely attractive to new people in the cryptocurrency space. They offer the appearance of stability, and with all the real life testimonies of people going from broke to millionaire, they are enticing to say the least. I’m optimistic that there will be a revolution in finance for people with HYIP in the future. Just because so many have been scams in the past, if not all of them, it doesn’t mean that one won’t work in the future.

It is true that some seasoned traders also play with HYIP programs because there are strategies to minimize risk. IF any program is a success for long enough, they can create compounding residual income growth while at the same time providing payments with daily withdrawals that can intelligently be invested in new token asset offerings.

For those that don’t know how they work, people loan money, say $100, and they get paid back an average of 1% per day for 300 days. This is a pretty common scenario. They offer a unique token which you purchase from them, you loan back to them and they pay you back with interest. You can then convert that token back to Bitcoin and walk away with a profit. You can take all your money or you can invest some back into the program, enabling the production of compounding interest. When the loan payments are paid back daily, once a minimum loan amount is provided, suggesting there is longevity in their program, you will make massive gains as 1% of a loan can add an additional 0.1% daily onto the principle loan repayment balances daily.

The math behind compounding interest is beautiful. It can be made through your own trading but loan programs are for people that don’t have the time or energy to participate in learning complex risk analysis. Trading doesn’t have to be a practice for the elite alone. The idea that a company would be created to help small investors earn profits by giving them leverage on their trades is a concept of caring, a concept of bringing people up, a solution to help low income people in particular have a chance at long term financial success.

The truth is however that you give them all your money, and trust, for essentially what would be worthless tokens with no value other than being used for their investment. When they take away the loan program, as so many have in the past, the token loses all value and people see $1000 turn to $1 in 24 hours with nothing they can do about it.

I feel that It is our duty, our honor, our privilege to help those in need of real crypto investment education. Even when Bitcoin is in a long correction period, HYIPs offer rewards regardless, and when Bitcoin is going up in value, they pay back even greater. They do suggest safety from loss but most are actually very anonymous and dangerous because their founders have crafty ways of hiding their identities and getting away with scams.

They say it’s in the “spirit” of Satoshi Nakamoto but I’m not biased. I don’t agree. Satoshi would have automated them, he wouldn’t have let them have ownership by a few people putting them in a position to actually run a ponzi scheme under the guise of a robot arbitration investment.

I am making a choice to be part of the game changing revolution in the cryptocurrency space by applying myself to support AI deep learning for customized trading arbitration. A legitimate sustaining HYIP is possible, and when it happens, it will transform lives worldwide, drawing far greater FIAT into the crypto-space. There is also a method of diversification management when enough funding is available for an individual to trade between arbitration pools and minimize risks.

I wouldn’t jump to say just because there have been so many scams in the past, that all HYIPs are going to be scams in the future. Imagine if the lending program website and payment distribution itself was transparency in operation, truly autonomous ownership like bitcoin and decentralized AI deep learning would assist in the trading binary pairs and provide insight for people to so they can learn how to navigate successful arbitration programs themselves. AI applied to independently owned trading robots can create massive opportunity for people.

What if diversification in the programs and conservative limits on reinvesting so you’re insured by taking daily withdrawals. You would create both compounding interest at a moderate rate which can still be very profitable while it creating greater residual income daily.

Trading robots are becoming more and more popular. It is true that you must have a concept for trading before using one, but AI can predict changes in markets and automate the entire process themselves before we know it. This seems to easy, and a natural evolution of common trading robots. It’s seems too good to be true, but the fact is, a successfully created AI HYIP will be available in the very near future, in fact, some are already in production.

Until one is produced that meets a satisfactory level of transparency, I personally will not invest in any more beyond the few I’m currently exploring unless they are so successful that I can’t ignore their truth.

I do recognize that there is just too much risk and I would rather invest $100 in a new altcoin with long term potential and a new HYIP program now. I’m already in a few so I will work with them the smartest way possible but yes, until a new version is out that is legitimate in public view, where even real traders are hired to manage people’s money like a hedge fund.

I have given my unbiased opinion. I lost money and I don’t want you to lose yours. I’m merely knee deep in them already and I don’t care to pull out of the few that are paying. I’ll just withdraw daily until they fold, but I will play longer because the amount of daily withdrawal increases the more I reinvest and it’s nice to see residual income.

Regardless, here are the warnings which are considerable reasons why to be cautious of investing more than you can afford to loose.

This is not investment advice. You could lose everything if an anonymous company disappears with your money. Only invest at your own risk. Don’t take my advice for it, do your own research and make your own opinion.

If you are currently using one or more, the ideas I have to minimize risk may be helpful.

The way I invest is to put a small amount in and my goal is to remove it as soon as it’s paid back without reinvesting at all until then, this way, once I have my initial investment back, all profits I withdrawal is the “houses money.”

Once re-invested, I will take 1/2 of the money received and withdrawn it, out of the other half, I will hold some for the immediate ability to sell them at a profit as the value goes up, the rest will be reinvested for compounding interest on my daily withdrawals.

With daly withdrawals I will invest in enticing token asset offerings and my long term altcoins of choice. If some cross my path that come across as more valuable than the ones I currently have, I may invest in new ones as well, but again, only with the houses money.

Using these strategies, I feel I’m limiting risk and the fact is that I have seen more gains than losses even though it’s risky.

What are your thoughts?

Are you completely against all loan programs?

Have you had success from them?

What I’m really interested is in teaching people how to use robot trading platforms and to know successful trading methods myself. It’s all in due time. I’m planning to learn day trading strategies and robot trading anyway. When the robot trading info is more available to the public, when it can be articulated in a way that’s easier for new people to understand, that information can really spur massive investment into cryptocurrencies and help all of our long term investments.

Do you have a robot trading program that you use successfully?

Share your ideas and Steemit posts on this topic in the comments.

Thanks for reading!

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