HYIPs are bad! Unless you know how to deal with them. HYIP stands for High Yield Investment Program. HYIPs offer profit opportunities of up to 3% a day. And that should already ring a bell. How much interest is your bank paying today? There are hardly any places in the world where banks pay double digit YEARLY interest rates. Well, probably in Russia or CIS where the currency is pretty volatile. European interest rates on deposits are close to zero. They might even turn negative one day.
But HYIPs pay 3% a day which is 1080% a year. This is 100 times more than any bank would pay on a deposit.
This is how HYIPs are classified by many experts:
SLOW: >15% monthly profit
MID: 16% to 60% monthly profit
FAST: >61% monthly profit
Have you ever seen a real business that makes 60% a month? Well, one of the most successful investors in the world, Warren Buffet, claims to earn 20% a month in average.
Long story short: HYIPs are no real businesses! Many times their websites would have great designs and great marketing stories. They would pretend to be investing in highly profitable business areas like real time bidding (like BeonPush), real estate (like Questra) or crypto currencies. The most creative idea I’ve seen came from larawith.me. They claim to carefully analyze the HYIP industry and choose the right portfolio for their customers. So they basically pretend to be selling some sort of HYIP fonds.
HYIPs are Ponzi schemes. In that scheme the returns to its investors will be paid from new capital paid to the operators by new investors. That means that a constant inflow of investors is needed to keep the project alive. That’s why HYIP admins have to have big advertising budgets. The number of new investors has to grow constantly, so have the advertising efforts.
HYIP admins pay HYIP monitors to promote their projects. Those HYIP monitors pretend to be experts and pretend to know which projects are safe and which are not. But they are part of the scheme. The better you pay them, the higher your project will be in the listing.
A HYIP can close its business anytime. The creative ones would claim they were hacked. Others would just shut down their site. Some would keep the site online and have investors make deposit in a scam (closed HYIP).
Who is investing in HYIPs? Well, people that get excited about fast money. Many of them are aware of the risk though. Sadly, many aren’t. They trust the fancy website designs and the fake certificates of legal businesses.
People from the West don’t get excited about fast money on HYIPs that much. Probably because they have decent jobs that allow them to have a decent living standard. The majority of HYIP investors is from Eastern Europa, Middle and Far East. Just check larawith.me on similarweb.com and look at traffic by country. The top 3 would be Russia, Ukraine and Taiwan.
Whenever you decide to invest in HYIPs, please remember: Never invest money in HYIPs you cannot afford losing!