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Sunday, November 30, 2008

What is HYIP - How does it work?

HYIP – High yield invest program. These programs give high yield for your investments.
The pattern of the program goes like this:
- They have different plans with different interest rates(say 1.5% per day or 2% per day etc.) depending on the amount that you want to deposit.
- They also accept various payment processors such as Liberty Reserve, Altergold, E – gold etc.
- You need to choose the payment processor through which you are going to invest and choose a plan and fill in your details and make the deposit.
- Few sites require you to create and account and make deposits, which will add the interest to your account in the site and you need to cash it out daily.
- The rest of the sites pay the interest directly to the payment processor. These sites will not ask you to create an account but rather give you a reference code through which you can track your deposit.
- Very few sites offer the principal amount back.
- There are daily plans, weekly plans; monthly and yearly plans as well. The longer the period the better the interest rate. This is because the longer they have your deposit the longer they compound it.

HYIP is a highly risk program. Most of the programs turn scam in no time. They claim that they use all this money to invest in various programs like Stock market, Share market, Forex and Real estate business. But not every program invests in programs. Some of them are plainly there to scam the members.
Most of these programs run as Ponzi schemes. The interests they pay to their members are from the deposit that has just been made.
For example: A person invests some money yesterday for a daily interest return. There is another person who invests some more money in the program today, so they will use the amount that has been invested on the today to pay the interests to all the members that have invested on the yesterday. This way they will not be making any profit from the program but are always in a profit as there any new deposits made everyday. Programs running on these scheme will run away with all the money some day, leaving a lot of fresh investors in complete loss.
So be careful in choosing the right program.
Look at how much they are offering. If there interest are too high to believe then don’t invest in there.
To gain more knowledge about the running HYIPs check the HYIP monitors and then invest.
Hope your HYIP venture finds profit ….

5 comments:

  1. With HYIP problem is, that they are short life. Can be few days to few weeks and then they turn out to be scams. Only few are real, and I have found one.

    It have bin on for quite time already, and still paying! Around 5000 active members! It tells You something.

    http://www.elitealliance.net/81C2F886A90

    111% after one week
    125% after 2 weeks
    160% after one month
    260% after 2 month

    I invest in one week, and got paid, there is prof:

    Date: 3/25/2011 3:59 AM
    Batch: 57974396
    From Account: U9522320 (Elite Group)
    Amount: $125.00
    Memo: Withdrawal ID: #6803

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  3. Niche Invest - Invested $500 Return $100,000

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  4. One Hour HYIP - Make 1500% Profit in one Hour
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