PAMM or HYIPs, maximum profit or a trap for the gullible
Almost every trader, and even an ordinary person, sooner or later thinks about creating a comfortable existence in the future, in which he does not have to work hard or live on pennies in retirement.
Great investment gurus always recommend saving and debugging money, while putting the accumulated amount into a deposit box in a bank. To a certain extent, they are right, because if you put money into a deposit box every month for 20 years, then from a mathematical point of view, compound interest will do its job and allow you to increase your capital in old age.
However, unfortunately, the economic models of the post-Soviet countries in which we live do not allow us to be confident in the future. Every month on TV you can hear how yet another bank has closed, and its owner, taking tens of millions of dollars from hundreds of defrauded depositors, has flown to the Bahamas.
Naturally, law enforcement agencies are looking for him and may put him in jail, but you won’t get any money. Thus, the recommendations of foreign gurus and rich people are simply not comparable to the economic models in which we live. They are being replaced by even more risky methods of investing via the Internet, which can provide high returns with incredible risks.
There are two popular projects on the Internet in which, as a rule, almost every novice Internet investor invests, namely HYIPs or Pammas.
What is Hype?
If you were interested in investing topics, you have repeatedly found yourself on colorful websites that contain advertising, the essence of which is that you invest a certain amount, and after a while receive a predetermined percentage of profit. A HYIP project almost always promises huge profits, ranging from a percentage per day of the deposit amount, ending with 50 and even 100 percent.
Despite the fact that the site administration is trying to show that money is invested in the stock exchange, poker and real estate, in fact, none of the types of business can provide such profitability. Thus, any HYIP works on the principle of a pyramid, namely, each new participant pays interest to the previous one. Thus, as long as Hype attracts new customers, it will continue to exist. If a HYIP collects a huge amount of money from investors and cannot cope with the accruals for new clients, it closes and disappears with all the money.
Investing in HYIP projects is obviously a 100 percent risk of losing funds, and the probability of getting nothing is quite high. You’ll probably ask, why then are entire websites, monitorings, and so on created about HYIP investing? The fact is that some people manage to make money by investing in the first days of a project’s life, so there remains a residual impression that they can make money from it. Also, do not forget about the affiliate program, which brings good profits to webmasters for defrauded investors.
The essence of the PAMM system
The PAMM system is a special service that serves as a link between an investor and a trader. Initially, this service was invented for the traders themselves, since it was these services that helped find an investor, as well as eliminate the fact of mistrust that exists if cooperation took place directly. With the involvement of an increasing number of traders in these services, investors have enormous opportunities to earn money by investing in different people, their strategies and styles.
If in HYIP projects you have absolutely no idea where your money is going, then when investing in PAMM the trader cannot withdraw your money, but only part of what he earned from it. You also know exactly the type of activity, and if you know how to trade, you can easily switch roles and try to get investor money yourself. However, as in the case of HYIPs, you are not insured against losing either a huge part of the investment or the entire investment, since traders are ordinary people and they tend to make mistakes.
If we talk about profit, then in fact no manager can guarantee you a clear percentage, however, as a rule, it can range from 3 to 100 percent, or even more if investing in an aggressive manager.
PAMM or HYIPs
Unfortunately, both HYIPs and PAMs are very high-risk investment methods. However, if you look at the transparency of using your funds and the service for guaranteeing payments of what you earn, then PAMS are transparent services that guarantee payments to their clients. If we talk about HYIPs, then, unfortunately, these services are a trap for gullible people who fall for flashy advertising.
Therefore, if you decide to take the risk of feeling like an investor in the PAMM system of various forex brokers are an excellent solution, but in no case HYIPs (it’s easier to take the money to the casino, because there you will at least enjoy the game).