How to distinguish HYIP from venture capital project or management company

отличие хайпа

HYIP is a financial pyramid disguised as a real investment venture project (only venture projects at the initial stage can indeed be a yield of about 10% per month). And if investing in HYIP is not something supernatural (a kind of gambling opportunities to a good profit), their disguise as real projects is impeding those who really get ready for venture investment.

Analyzing investments in HYIP projects, I came across an interesting website, the legend of which states that the company works since 2010 and earns sublease of residential and non-residential real estate in China. Fluent test of the site gave no results — it didn’t look like a pyramid project, the reviews about the company were positive. And I even almost believed it, until on one forum I was told they even have no licenses for such operations there. Oh, and wanted to believe in the return of 6% per month.

Venture startups also have their own websites, but unlike a HYIP they perform real activities and generate real profit. And if a HYIP a few months will become bankrupt, then venture project can turn into a serious company.

The difference of HYIP from other projects

The difference of HYIP from investment companies of asset management or venture projects:

  1. Profitability

HYIP with the aim to seduce the customer (greed clouds the mind) offers a stable income, for example, 10% per month. Venture project cannot guarantee a stable flow of profit, as it depends on market conditions, demand, etc. And if in the past the project has generated the same yield (according to organizers), this should raise suspicion.

The difference of the HYIP is in the fact that even Forex trading can not be profitable every day. HYIPs offer stable accrual income every day.

  • Tip: check the profitability of the project for past periods.

what is HYIP

  1. Documents

The owner of the project, attracting investment, will always be ready to provide scans of registration documents, certificates etc. Company will have a physical address, banking details. HYIPs are mainly working through electronic wallets. And if we are talking about the trust companies, the adding of funds is performed through the Bank after signing the contract.

  • Tip: do not invest via e-wallets, invest only after signing the contract.
  1. The presence of different enticing promotions.

Affiliate programs, promotions, bonuses for deposits have no relations to asset management (as they are served HYIPs). Venture projects exclude such things.

  • Tip: avoid projects where the affiliate programs provide 20% of profit or more. The company’s asset management attract customers income from management, but not promotions or bonuses.

And a few tips on how to recognize the HYIP project:

  • Forex is closed on weekends (OTC market). If during the weekend you will be credited interest (provided that the project has attracted money supposedly for currency trading),

  • search for venture projects on crowdfunding platforms, the company’s asset management in financial ratings. There are special sites where you can find monitoring of HYIP of project. If you found in the rankings of those sites the project you are interested in, the investment should be abandoned;

  • asset management and venture investment amount starts with 3 zeros. If the project proposes to invest 50-100 dollars – it is a HYIP (not to be confused with binary options or brokers! Unlike HYIP that in the first case, the profit depends only on you, the second you are already a guaranteed promise a fixed percentage).

Modern HYIPs try to mask as real projects. The main difference of HYIP from actual companies I have described, but once again I focus attention: do not hurry to part with money — spend time on a complete search of project information on the Internet and believe me, the time will be well spent!

About the author

JOIN THE DISCUSSION

seventeen + four =