General Information: Advantages HYIP

How to avoid a fraud? This problem concerns almost all participants of high yield projects. As the HYIP specifics provides no transparency of economic transactions dishonest dealers organize false projects and make them seem real investment programs and then after they collect money from the clients suddenly stop their activity.

One of the most popular forms of deceit is Ponzi. Ponzi is a classic financial pyramid where the profit is created not due to the effective economic activity but by attracting investments of new project participants. Similar projects are like a snake eating its own tail. Up to some moment it looks stable as the payments are provided with real money invested into the program by new members. However, the impression is false. At some point there comes the stagnation and new members stop joining the project and the pyramid breaks down. However, sometimes the founders do not wait till this phase and get lost with all money they have accumulated. As a rule, clients learn it when they stop getting regular interests on their accounts.

How one can distinguish Ponzi from the real HYIP? There are several signs indirectly indicating the project may be fraudulent. First of all, it is great every-day payments. If you are offered to be paid 40% per day think how the founders are going to provide such profitability. Secondly, it is very big partnership payments. Serious high-yield projects are always open for mutually beneficial cooperation; however, their main goal is to bring profit from effective investing. That is why if you are offered more than 10% for the referrals you ought to think whether the clients are the only source of incomes. And, finally, it is a carelessly designed web-site and the content stolen from other resources. Organizers of Ponzi projects know in advance that the program will get closed in some time that is why they do not pay any attention to creating a functional design and information content.

One more popular fraud forms is the so-called “Golden Games”. They are a kind of miniature Ponzi introduced just for a few days or weeks. The only difference from Ponzi projects is that they initially are positioned as financial pyramids.

Users invest money and then, if they manage timely to leave the program they have some profit. If they don’t, they’ll lose all money invested. There are several versions of the Golden Games but they all end up as ‘who-will-be-on-time’ game. Surely, programs like this do not have any relation to serious HYIP projects.

Some people eagerly participate in the Golden Games and Ponzi projects. Of course, such projects may quickly bring rather big profits however you should not forget how quickly they can make you lose everything. Moreover, not always the skill to make a decision quickly and calculate the time when you enter and leave the program right can help you in programs like these. Often organizer’s friends and acquaintances participate in such projects as stool pigeons; surely, only they will get the profit because they have all the information from the inside.

The risk level when you participate in such programs is many times higher than in serious HYIP, and the income probability is many times less.

If you reasonably decide to check your chances in Ponzi, remember even if you are lucky, your profit will be created at the expense of other people. Do not forget that the financial pyramids are illegal and their creators get a sever punishment from the law-enforcement.

In case if you select an interesting HYIP project and fear it is a pyramid, carefully study the terms stipulated by the program leaders. Analyze the offer, consider the mentioned numbers with other ‘suspicious’ features indicated earlier. Start making serious investments only when you make sure that the project is safe: at first invest little. Only then, when you are sure your interests regularly get to your account, invest the rest.

General Information: HYIP

At first we should explain what HYIP is. High yield income programs are not just a network phenomenon. This term refers to any investment bringing income more than the deposit account with the standard rates of 4-5% per year.

There are many off-line HYIP, they are all managed by registered companies and bring stable high income. However, the entrance limit, the minimal investment to participate in the project, as a rule, makes up the sum starting 500000$ and up to tenth millions. Surely, the private investor not having big savings is isolated from participation in the off-line high yield programs.

For ordinary people the only way out is on-line HYIP. On the contrast to off-line programs network high yield income programs, as a rule, are minimally transparent. Often the participants do not know anything about their organizers and do not know the company’s legal address. The main income sources for off-line HYIP are the stock market games, real estate trade and FOREX investments. On-line HYIP rarely give true information about its commercial activity that is why the income sources may be very different; it is often impossible to check the information. Often the information is secret not to hide it from the clients but with a view to keep the know-how confidential. The competition at the HYIP market is rather high that is why the company that is able to offer the most rational way of managing the invested assets has more chances to succeed.

A technology for making profits of our company is very close to the methods used by the most successful off-line HYIP. The part of money is invested into highly reliable financial instruments by that we insure our investors from any losses. Other parts are spent on risky securities through which we create the profits.

In accordance with the interest payment periods all on-line HYIP (further we will call them HYIP) may be divide to every-day, every-week and monthly ones. Every day HYIP make payments of 1-7% per day; every-week – 7-50% per week, and monthly – 20-200% per month.The HYIP’s work principle is very simple. You register in the system and open an account in the international electronic settlements system and invest some money into the project. The very next day as soon as the invested money starts bringing profit, the mentioned payments will go to your account.

Summarizing the abovementioned we have the following scheme: program leaders collect money from the private investors who do not have enough money to participate in off-line high yield income projects. Then, using their working schemes they profitably invest it and then share the part of profits with the investors. Actually HYIP is one of the most profitable forms of mutual cooperation for investors. Thanks to accumulating the assets the money that was earlier isolated from any serious economic processes make profits.

The developed schemes enable the HYIP participants to receive the maximally high incomes the private investors cannot reach by any other ways.

HYIP

HYIP stands for High Yield Investment Program

HYIPs gained popularity when e-currencies such as e-Gold , StormPay and others were introduced. HYIPs allow investors to invest even in a very small quantity, making the program very popular and easy to follow. An example of HYIP is Autosurfing websites.

As with other investments, high gain means high risk. Many HYIP programs were proven to be scams. Most of the scam HYIPs use the ponzi or pyramid scheme, in which new investors provide the cash to pay existing investors. The process continues as long as new investors are found, explaining why even fraudulent funds are able to provide the promised payouts initially.
HYIP schemes are frequently advertised in spam, since people are rewarded for providing referrals of new customers

Interest Rate

Most HYIP companies offer an attractive interest rate of about 1% per day or more. When annualized, it is clear that this yield far exceeds even the most generous yields available in the financial markets (through legitimate bonds). This unusually high yield should tip off investors that there are serious risks involved. Any HYIP scheme that does not acknowledge the risk, or claims to guarantee repayment of principal, is likely a scam.