Ask any person what methods of investment he knows. “Currency, gold, deposits, securities, investment funds, coins, real estate” — most likely, that’s all you hear in response. Someone adds cryptocurrency, antiques. “And would you invest money in MMM?” — ask ahead and get a puzzled look from him. Logically, who would agree to invest money in a pyramid scheme, knowing that sooner or later it will go bankrupt? But not so easy, because investing in HYIP projects can generate up to 300% profit!
Investments in HYIP projects
HYIP (High Yield Investment Program) is an investment Fund based on the principle of the pyramid. HYIP is a classic pyramid scheme, often not having a physical representation and is an Internet-project.
HYIPs definitely have their own legend: the story of the creation of the project, the purpose of raising funds, the rationale for the generation of profits, etc. Some legends look very convincing, but, alas, it is only a way to attract customers — in fact, HYIP pays profit to its members at the expense of new deposits. Some activities can be carried out, but it would be good if it will bring any profit.
Obvious signs of a HYIP:
- high returns without explaining how the profit will be generated;
- having a generous affiliate program;
- no contract and the physical representation;
- promised minimal risk by the organizers;
- the ability to recharge via anonymous unknown exchangers.
Sooner or later the money for the payments will be missed and then there is “fraudulent” bankruptcy of a financial pyramid. Of course, the project is struggling to pull his end, introducing aggressive advertising campaign, conduct updates, etc., but the end is always the same — the website stops working, the payments stop.
Recently (mid August) the mass media trumpeted a new project — cryptocurrency E-Dinar. It was painted so convincingly that I already believed in the new crypto-currencies, able to compete with bitcoin. And the media was quite authoritative. But on closer examination it turned out that the project has existed since 2015, ensuring its investors of 20% per month for “just”. In June it started to receive negative feedback about the delay of payments, and bitcoin has begun to decline exchangers. The organizers were not confused, and in August they made a “restart” of the project. True, lumpy. The coin which costed $ 1200 after 3 weeks was worth $ 200. I wonder where are those numbers?
The example above is an example of the HYIP. But it is necessary to give due — investing in HYIP for the first 3-4 months really brought 240% per annum.
The types of HYIPs:
low-income. Investments in HYIP projects will bring less than 10% a month. The lower the yield, the longer the duration of the project, though not the fact. Skam of low-income HYIP can occur in 1-1,5 years and a few months (depends on the greed of the organizers);
average income. Can bring 10-50% per month, the highest number of HYIPs fall into this group;
high-yield. The so-called “Fast”, offer more than 50% in a month and remind game of chance with the principle of “Who had time to bring the money.” There are a few days or weeks. Often the first can take the money, if at all possible.
Another gradation ratio of the HYIP:
HYIPs with a legend. The organizers are doing everything to mask the pyramid under the venture project. The venture is also able to bring a lot of money, and the trader does not fully know where he invests, being convinced that he invests money in the real project;
no legends. Investments in HYIP projects is known to be unprofitable, than their creators warn about;
economic games. To participate, you need to make a contribution. The creators convince that there are no losers in the game, but then where is the money for the payments?
To create a HYIP you do not need a lot of time and money. Most of these projects (thousands of them) are created by one or more persons on the basis of cheap scripts. The main problem lies in attracting customers but in most cases affiliate program deals with this. After you create the project of the order on a series of articles in the media, create groups in social networks, write posts in blogs and forums.
Can you call investing in HYIP projects a Scam? You may be loyal to such investments, but only under the condition that the investor understand and adequately assess associated risks. But if there is a legend trying to lure customers and distort investment – it can be called fraud. Look at the Twitter feed or blog on HYIP — about 10-15 projects are created daily, which is a clear sign of the popularity.
Investments in HYIP projects — this is an even bigger risk than venture capital, but investments should bring not only profit but also pleasure. And it is precisely the pleasure of excitement, finding the best projects and still gained profit make HYIPs attractive tool for professional traders.
More detailed about how to choose a HYIP-project (to choose 10-15 best projects from more than 300 is not so simple), will be explained in the next article, but the general principle is the following:
yield of 10-20% per month;
project must exist 1-4 weeks and be promoted. Investing in new HYIP project can get lost at the very beginning, weak project will not attract investors;
read the blogs, pages, video channels, where details the benefits of a HYIP are described;
check HYIPs on special resources. For example, when checking the website “edinar” one of these resources clearly said “doesn’t pay”.
We have to admit that a professional minority earns on HYIPs by an inexperienced most, but in Forex and in binary options the situation is similar. However, there is a risk free form of income — referral. However, how to attract clients of a financial pyramid — a rhetorical question.
Summary. HYIP is not good, not bad. It’s just another investment tool with a professional approach able to make a profit. A balanced approach, a thorough analysis of the project, regular monitoring of project fast withdrawal of profits, all of which can bring 100-300% per annum.