The Best between Liberty Reserve and AlertPay … and why ?

What would happen if Alert Pay would not just freeze a few HYIP admins’ accounts, but block every single one of them and if Liberty Reserve would shut down forever ?  This article does more than just compare using AlertPay or LibertyReserve with HYIPs  :

Forget about the whole HYIP industry crashing even if all the most popular programs would stop paying next month. Investors will always be on the look out for new promising HYIPs . As long as you’ll be able to trade your national currency for a user-friendly e-currency, like AlertPay or Libertyreserve, the HYIP market will continue to grow in popularity.

• Why AlertPay would block every accounts of every HYIP websites ?

AlertPay should block every HYIP account or block none of them. Since the last couple months, I could verify that Alertpay froze the funds of a few highly popular HYIPs. Of course, these HYIPs had thousands of members’ shiny $$$ in their AP reserve account. Alert Pay never delivered the money back to investors and kept it for itself. Frustration solves nothing, right ? Especially when you think of some AlertPay operators running with such big bonus pay-checks ! Let’s go with 40,000$ for a conservative figure. Pure corruption…
Now imagine how many HYIP-related transactions LR and AP process each day. Imagine how much money these two companies earn from these underground investment activities ! Impossible to have the numbers but we’re reaching the millions in yearly income.
For me, that’s enough to justify why AlertPay will continue doing business with their high yield investment clients (as long as accepting HYIP websites will  not be proven an illegal practice by the canadian jurisdictions Alertpay has to comply with ). You got that, right ?

Apparently, Liberty Reserve could care less about jurisdictions and governments.

Honestly, All these legal issues around e-currencies versus HYIPs versus private investors interest me a lot. The only official record so far concerns the e-gold issue of 2007-2008 .  Regulations or no regulations ? That is the question… How would it affect the ” free ” HYIP market as we all know it? It’s illegal to run a Ponzi while it’s legal to invest in one, provided you didn’t know it was a Ponzi in the first place. Now, how to be 100% sure about that ? Is it illegal to try your luck ? Where to draw the line ?
Furthermore, how could a government stop you from investing in HYIPs using the anonymity offered by Liberty Reserve, an offshore company registered in Costa Rica.  Personally, I tend to assume that the US authorities can do what they want to so if they want LR down, I guess they’ll just shut it down. The HYIP market drags too much attention and deals with too much money for not being monitored by authorities.
Still, this huge cash-flow seems quite hard to track mainly because HYIP investors don’t mind to throw their money at any fake company without proper verification, only caring about the promised daily payouts. How can you catch the guy running a HYIP ? From the information they give to verify their e-currency account at AlertPay or with popular exchangers. However, only governments can ask for this kind of confidential information with the proper motives, like getting the list of the most active e-currency accounts to dismantle a money laundering scheme. Still, you have the independent scammers  grabing their piece of the pie too !
Or maybe you should get a job at AlertPay and spy their data? Maybe your friend at e-cardone , wm-center , goldexpay or xchanger could break his clause of confidentiality for a couple pint of beer at the next football game ? Long lives the Internet!

• Liberty Reserve versus AlertPay

I prefer working with both because it allows me to take advantage of their respective qualities and to diversify my income sources. When Liberty Reserve went down earlier this year, I still had money rolling in my AlertPay account. For the sake of comparison, let’s assume you want to invest 1000$ in HYIPs and that you’re not sure whether to use AP or LR . This example also includes the fee linked to getting your principal back from your paying HYIPs.
Liberty Reserve option :

1. Find an exchanger agent ( click here ). Make sure it deals with your national currency if you don’t have USD.
2. Pay around 5% fee ( varies from exchangers ) to convert your 1000$ into Liberty Reserve ( that would be 50$ in our case )
3. Pay the 1% fee to receive money at LR 2,99$  ( so that would be 2,99$ for us )
4. Free to invest in your selected HYIPs
5. Pay 1% on every cash-out you get from your paying HYIPs ( let’s  approximate to 10$  since you reached the profit zone )
6. Pay around 6% to convert your LR back to your national currency. ( 60$ )
7. You spent around 125$ in fees
8. Time for transactions will usually be less than 48 hours, rarely a week.

AlertPay option:

1. Free and easy to fund your account with by bank transfer. Other options available too.
2. Pay 2,5% currency conversion fee if your banking account is not in USD ( that’s about 25$ )
3. Free to invest in your HYIPs
4. Pay 2,5%  on every cash-out requests from your HYIP ( that’s about 25$  if you get your whole 1000$ back )
5. Also pay 0,25$ one time fee on every payout you receive. It takes about three months to reach the profit zone with a long term HYIP. Being calm conservative, you’ll make 1 withdrawal requests per week from each of your 7 selected HYIPs, so that would cost you ( 0,25$* 1 cashout per week*4,34weeks*3 months*7 HYIPs ) = 23$
6. Pay 2,5% fee to convert your 1000$ USD back into your national e-currency ( about 25$ )
7. Withdraw your AlertPay balance to your banking account (let’s say 0,50$ by bank transfer )
8. AlertPay earned 96$  if you don’t use USD in your everyday life
9. You paid 49$ if you have a USD  banking account
10. Be careful because if you withdraw your profit every business day and that you spread your 1000$ into 7 HYIPs the 0,25$ one time fee could hurt you badly : ( 0,25$*21 business day cashouts * 3 months* 7 HYIPs ) = 110$ fee !!! instead of just 23 $ .

Draw your own conclusion. I know people who will never use AlertPay again likes others praising only for it
Apart of the fees, AlertPay as the advantage to be more straight-forward than Liberty Reserve since no third party ( exchanger ) is involved in the process. From experience, I must underline that most exchangers make it easy to get things going so in the end, this argument doesn’t really hold the road in my opinion. It doesn’t take more time and/or effor to buy Liberty Reserve than to buy Alertpay.

For a HYIP investor, the two main differences between AlertPay and LibertyReserve are the AP transaction dispute and the freedom LR provides.

Indeed, if you have some Liberty Reserve you can participate in any HYIP out there ; not if you only have Alertpay. Furthermore, dozens of privatehyipblog.com readers have been refunded by AlertPay after filing a transaction dispute against a quick HYIP scam.  All transactions are final at Liberty Reserve so if you lose money in the form of LR, impossible to get it back.
Just don’t assume AlertPay will refund your money just because you filed a dispute as it doesn’t work in most HYIP cases. Also, if several AlertPay investors panic  because their cherished  HYIP goes down for a few hours ( even for legitimate reasons like a DDOS attack ) , issuing a massive load of transaction dispute against that HYIP account have good chances to block it from further use. In most case, this will  lead to the premature closing of any successful venture mainly because around 50% of HYIP investors use AlertPay. That’s a big deficit to recover in any budget ! Liberty Reserve don’t block or freeze funds as far as I know.
To conclude, the HYIP industry deeply depends on e-currencies. Since e-gold and e-bullion went down, Liberty Reserve and Alertpay stand as the two giants.Now,  can you name in which other online spheres AlertPay operates ? What about Liberty Reserve? Just to get the discussion going about how well they would survive without their HYIP-related revenues …
The next article will be an update about the FOREX trading tool I’m following since late 2010 called Trend Trimmer. I think their free-trial is a great way to learn how to trade FOREX, hand-ons with the beast. Because it’s always better to learn by ourself! Also, I invested 250$ in Arbs and 100$ in Global Commerce on October 18th.
Stay tuned !
Frank