About High Yield Investment Programs

HYIP which stands for High Yield Investment Program is just what it sounds like, is a type of investment program that yields high return rates ranging from 5% to as much as 250% per month. HYIPs are offering probably the most profitable investments available today, much more than any bank or investment fund. HYIPs claims that they can provide high interest rates by utilized your invested amount in forex, offshore trading, stock exchanges, soccer betting, commodities, etc. Some of them even work out the invested amount in other HYIPs and share the profit with you.

HYIPs can be divided to on-line and off-line investments. Off-line HYIPs are usually not available for common investors, their minimum of deposit is about $100k and more. Therefore, we will direct our interest to online-based investment opportunities. Investors invest in these online-based HYIPs via their websites using e-Currency, such as Liberty Reserve, Perfect Money, Alertpay, etc. The interest will be paid on daily, weekly, bi-weekly, monthly or yearly basis depend on their investment plan into your e-currency account.

Since you don’t have to do any kind of activity to gain the interest, investing in HYIP means a passive income source where you just sit back and waiting the money coming to you. However, this passive income system is associated with a huge range of risks, because most of these HYIPs are short-lived and are just Ponzi schemes. These schemes appear very attractive due to their promise of high interests. Ponzi schemes do not have revenues because the money collected from investors was not really invested. Note that if you invested in these Ponzi schemes there is no way to get back your money once you are scammed. Although this kind of investment is quite risky HYIP programs are getting more participants by the day and every so often another HYIP program is launched. Many investors have succeeded earning fortunes virtually overnight because an experienced HYIP investor can easily spot out bad scam HYIPs. Besides, good HYIPs also exist and may live long enough (for years), those people who began dealing with them from the beginning make huge profits.

Let’s consider an imaginary HYIP that offering the investment plan below:

  • Interest: 1.3% daily for 30 days
  • Min deposit: $10
  • Max deposit: $10000
  • Compounding: Available
  • Principle return: Yes
  • Referral bonus: 3%
  • Withdrawal: Automatic
  • Payment methods: Liberty Reserve & Perfect Money

Let’s say you have invest $100 in this plan, then this particular HYIP will pay you 1.3$ daily for 30 days. In other words, you will be paid total 39$ (net profit) and your 100$ principle return to you once your investment matured. If you choose to compound all the paid interests (reinvest), then you will be paid 147.33$ at the end of the investment term (net profit: $47.33). (Note: You can always use the HYIP calculator to calculate the profit for any investment plan) The minimum and maximum deposit that can be made is $10 and $10000 respectively. The withdrawal system of this HYIP is fully automatic, thus the daily payment is made automatically into your e-Currency account. The e-Currencies accepted are Liberty Reserve and Perfect Money. Besides, you can earn extra profit in the referral system, if somebody invests in this HYIP by following your unique referral URL then you will be given referral commission of 3% calculated on the amount invested by this new member.

Investment is always invariably associated with risks, HYIPs are not exemptions. There are new programs opening everyday but most of them are short-lived and are just Ponzi schemes. The lifespan of HYIP scam/ Ponzi is depending on how long the program is able to seek for new deposits. The moment new deposits stops, the program gone. Therefore your investment is quite vulnerable to getting scammed! However, HYIP can prove to be profitable if invest in it wisely. But be very careful if you’re interested in this type of investing opportunity since it can also lead to big losses. If you are really serious in being involved in a HYIP, you must always be ready to suffer a scam attack and that’s why you are always being advised to not invest more than you cannot afford to lose. Note that you cannot either complain your e-Currency authorities or suit the HYIP owner because your lawyer would charge you more than your invested amount. As a conclusion, investing in HYIP is actually like gambling! You are most likely a gambler instead of a investor. The difference is that if you invest wisely then your chances to profit would be higher.

The Nature Of High Yield Investment Programs (HYIPs)

“What really is an HYIP?”, or “What is an HYIP really like?” How you answer that question can determine how successful you will be in the online world of high yield investing. There are at least six different answers to the question about the true nature of a high yield investment program (HYIP).

1. Investment. After all, HYIP stands for High Yield Investment Program. Yes, but an HYIP is not a real investment, because unlike a true investor, the hyiper rarely knows in what wealth-building instrument his money is.

2. Scam. This is certainly true of some HYIPs, but not all HYIPs are run by geek thieves.

3. Ponzi Scheme. It is estimated that at least 90% of HYIPs are ponzis. In an HYIP ponzi, the operator uses money from previous depositors to pay current or later depositors.

4. Gambling. This is the opinion of those who either despise HYIPs or have lost money to HYIPs. There is some truth to this, but in that sense, hyipers are as much gamblers as day traders.

5. A Money Game. An HYIP is a game in that there are certain rules of the game that can give an informed player the edge, if she will first invest the time to learn before she can earn. But once you learn the basic rules, this money game can be as much fun as it can be lucrative.

6. A Loan Program. That’s what I prefer to call the 10% of HYIPs that are genuine. When you deposit funds into an HYIP, you are in effect lending money to someone, who is promising to pay you interest on your loan. You are the lender or creditor, and the operator of the HYIP is the borrower. This borrower can do whatever he wants with your money. The borrower (HYIP operator) may use your money to trade the stock market, penny stocks, the foreign exchange (forex) market, or even e-currency. The only thing that matters to you is that

(a) the borrower pays you an interest on the principal amount you loaned him

(b) he returns your principal at the end of the term of the loan.

In the lending industry, the likelihood of a borrower repaying you depends on the honesty and financial situation of the borrower. When you lend someone money, there can be no guarantee that you will get repaid. In effect, your deposit to the HYIP is not just a loan, it is an unsecured loan; the borrower puts up no collateral that you can claim and sell if he defaults on the loan. Compared to other lenders, you have another disadvantage in this credit business: there are no collections department, collections company or credit reporting agencies to report the deadbeat to! In fact, most often there is no loan contract between lender (you) and borrower (the HYIP).

Therefore, if you decide to be a hyiper, you must, like your fellow creditors (banks, etc), learn how to write off bad debts (HYIPs that don’t return your funds). Otherwise, you will find yourself ‘closing store’ or calling lawyers. Actually going to court against HYIPs will you cost you more in time, emotional currency, and money than the HYIP game itself. Imagine a bank taking every bad borrower to court!

That’s why it is absolutely crucial for you to find a way to screen each potential borrower (HYIP) as much as a bank, Master Card, Visa, or a store will screen someone who applies for a loan, credit card, or line of credit. Luckily, for those who really want to profit in this arena, there are few tools available online for screening and grading HYIPs to find those honest borrowers.