PAMM or HYIPs, maximum profit or a trap for the gullible
Almost every trader, and even the average person, sooner or later thinks about creating a comfortable future, one where they won't have to work hard or live on pennies in retirement.
Great investment gurus always recommend saving and scaling your money, placing the accumulated sum in a safe deposit box at the bank. To a certain extent, they're right, because if you deposit money in a safe deposit box every month for 20 years, then, mathematically, compound interest will do its job and allow you to grow your capital in retirement.
Unfortunately, however, the economic models of the post-Soviet countries in which we live do not allow us to be confident about the future. Every month, we hear on television how yet another bank has closed, and its owner, having taken tens of millions of dollars from hundreds of defrauded depositors, fled to the Bahamas.
Naturally, law enforcement is looking for him and may put him in jail, but you'll never get your money. Thus, the recommendations of foreign gurus and wealthy individuals are simply not compatible with the economic models we live in. They are being replaced by even riskier online investing methods that can offer high returns with incredible risks.
There are two popular projects on the Internet in which almost every beginning Internet investor usually invests: HYIPs and PAMMs.
What is Hype?
If you've ever been interested in investing, you've likely stumbled across colorful websites filled with advertisements that essentially urge you to invest a certain amount and then receive a predetermined percentage of profit after a certain period of time. These hype projects almost always promise enormous returns, ranging from a percentage per day of the deposited amount to 50% or even 100%.
Despite the site's administration's attempts to portray the money as being invested in stock exchanges, poker, and real estate, in reality, no business can provide such returns. Thus, any HYIP operates on a pyramid principle, with each new participant paying interest to the previous one. Thus, as long as the HYIP attracts new clients, it exists. If the HYIP accumulates a huge amount of money from investors and can't keep up with the new clients' earnings, it closes down and disappears with all the money.
Investing in hype projects carries a 100% risk of losing funds, and the probability of gaining nothing is quite high. You might ask, then, why are entire websites, monitoring tools, and so on created about hype investing? The fact is, some people manage to make money by investing in the early days of a project, so the lingering impression remains that there's money to be made. Also, don't forget about the affiliate program, which brings in handsome profits for webmasters from defrauded investors.
The essence of the PAMM system
PAMM systems are specialized services that act as a link between investors and traders. Initially, these services were developed for traders themselves, as they helped them find investors and eliminate the mistrust that would exist if they cooperated directly. As more and more traders became involved in these services, investors now have enormous opportunities to earn money by investing in different people, their strategies, and styles.
If in Hype projects you have absolutely no idea where your money goes, then investing in PAMM A trader can't withdraw your money, only a portion of the profits. You also know exactly what you're doing, and if you're skilled at trading, you can easily switch roles and try to withdraw investor funds yourself. However, as with HYIPs, you're not guaranteed against losing either a significant portion of your investment or the entire investment, as traders are just ordinary people and prone to error.
When it comes to profit, no manager can guarantee you a specific percentage, but it can typically range from 3 to 100 percent, or even more if you invest in an aggressive manager.
PAMM or HYIPs
Unfortunately, both HYIPs and PAMMs are very high-risk investment methods. However, if we consider the transparency of how your funds are used and the guaranteed payout service, PAMMs are transparent services that guarantee payments to their clients. Regarding HYIPs, unfortunately, these services are a trap for gullible people who fall for flashy advertising.
Therefore, if you decide to take a risk and feel like an investor in a PAMM system of various Forex brokers are a great solution, but in no case HYIPs (it’s easier to take the money to a casino, since at least there you’ll get to enjoy the game).
