The term HYIP should not be confused with the buzzword "hype" and used to define the engagement of a phenomenon or persona. We are talking about investment activities. However, investing in HYIP projects is quite risky. There is constant controversy surrounding them. Some manage to cheat the system and make good money. At the same time, others lose their investment and blame the scammers, whose promises many people trust.
What are HYIP projects?
HYIP is an abbreviation for High Yield Investment Program. The term means high-yield investment project. In most such projects, money not invested anywhere. Only some investors receive their income. Payouts made from new deposits. These programs based on a "Ponzi scheme". It was he who first organized a pyramid scheme almost 100 years ago.
Scheme of work:
- A firm (project) opened.
- Money accepted at a high rate of interest.
- The first depositors paid the promised interest. Sources of payments are the money of new participants.
- HYIP is closed. Usually, the activity stopped as soon as there is not enough money to pay out the interest to the first participants of the project.
Despite the lack of defined activities, HYIPs have become widespread. Even knowing the nature of such projects, the number of people who want to get rich quick does not decrease.
Structure of HYIP
How to detect the best deals? First of all, you need to understand their structure. General rules for making financial cases:
- Legend. It refers to the history of the project creation, the description of the investment HYIP company. Usually, a beautiful story is created, which has no real significance. That attracts as many depositors as possible. It is hard to check the truthfulness of the story. It is possible to determine solvency by monitoring the offers.
- Referral program. A distinctive feature of HYIPs is an affiliate or referral program. Each user receives a unique link upon registration, which attract new clients. New participants become referrals, and the sponsor takes remuneration. Projects which pay real money offer two types of referral programs, payments paid from deposits or income.
- Economic games. Many HYIP projects offered different games. Users offered to pay a small entry fee for the right to participate in the game, the winnings paid in real money. Such entertainment used to attract new participants.
Types of HYIP projects
HYIP projects distinguished according to their life span:
- Fast. Revenues reach 50% per day. Such projects burn out quickly.
- Medium duration. Revenues reach 3% per day, with a life span of 6 to 12 months. Investments are less risky. The main thing is to get your money before the bubble bursts.
- Long-term HYIP projects. They yield no more than 15% per month, payout periods measured in weeks. Such undertakings can function for years.
All HYIP programs divided according to the level of profitability. The riskiness of the investment and the percentage of remuneration received depend on this parameter. Types of projects:
- High yields (fast). They offer more than 60% profit per month. They considered being very risky, lifetime- from a few hours to a week. Participation in fasts is recommended only to experienced players.
- Medium Income. The yield of projects ranges from 15% to 60% per month. The competent presentation of information can attract investors. The life span is 6-12 months.
- Low yields. Income does not exceed 15% per month. Dividends paid weekly. These types of ventures have been around for years.
- Hourly. Interest accrues every hour. Immediate or instant withdrawals made here.
Although low-margin ventures may exist for several years, the level of ultimate returns will not be greater than in fast-growth risks. It is appropriate to use risk diversification, which involves adding several new projects to your investment portfolio that pay.
Methods of interest accrual
Another way of grading HYIPs is to divide them according to how they accrue profit. There are five types in total:
- Payouts at the end. The money is paid back at the end of an agreed period.
- Daily accruals. Interest on the amount invested accrued daily and the deposit amount repaid at the end of its term.
- Cumulative. Work on a piggy bank principle. During the existence of the deposit, interest accrued. Money can withdraw at any time.
- Perpetual. Income paid out throughout the life of the case.
- Investment return with interest. Profit payment includes a particular part of the deposit amount.
Division of projects by the method of income payment:
- Manual. It is considered the most reliable way. The investor applies to the withdrawal of money, which is processed manually by the administration of the resource. The processing time is about three days.
- Instant. Instant withdrawal method. It is suitable for people who not used to waiting.
- Automatic. In the personal office, you need to create an application with details of the payment system where the withdrawal made. The removal takes place within a day.
How to earn on HYIPs
Investing in HYIP is successful if you follow some rules:
- You don't have to risk your last funds (taken against the security of the property or on credit).
- You must keep track of the situation to withdraw money in time.
- Control your emotions (greed, fear, excitement).
- It is better to divide the money for investment into portions and invest it in various HYIP projects.
- It is necessary to study offers and choose worthy HYIP.
It is worth choosing the best HYIP. Signs of fraud:
- Excessively high percentages of income.
- Administrators did not tell their names or how to make money. The only argument is the exorbitant profit percentage.
- There is no proper registration of transactions with money (deposits). The principle of operation is to enter money into the system, withdraw profit. It is unrealistic to prove the transfer receipt of funds to specific individuals.
How much can I earn on such a project? Usually, nobody talks about it. People gave promises, which are far from reality. But even this does not stop the investors.
How to choose a reliable HYIP?
Recommendations when choosing a way to make money:
- It should exist for quite a long time and have a definite scheme. The mean factor is technical support, which can provide comprehensive answers to investors' questions.
- A good HYIP favours large deposits, but small amounts are also allowed.
- The site should not have overlapping rate plans. For example, one is $1-100, the other $50-500.
- The company must have project reality proof (photo of office, license, and statistics of deals).
- The project website has a licensed script and a unique design.
- The remuneration should not exceed 15%. Super profits are fraught with the rapid influx of new clients and quick closure.
- Gradual attainment of popularity.
- Company presence in other countries.
Pros and cons of HYIP
- Investing in HYIP projects is available to everyone. All you need to choose a fund and periodically take profit.
- High returns. Profits of 10%-15% a year provided even by low-income investment HYIP.
- The investor must have time to withdraw his money from the project before it locks. It is not easy to choose when to make a withdrawal.
- You can use paid or free HYIP script for the project. However, poor management or a low investment plan can ruin things.