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Wednesday, August 5, 2009

What is a HYIP?

What is HYIP? HYIP or High Yield Investment Program is a type of investment program that promises high return on investments. In this program, investors entrust their money on an operator, who then uses the money to invest or finance other business schemes. The profit generated by the operator are shared among the investors in a form of high interest. The principal remains with the operator for reinvestment, it will remain with the operator until such time it is withdrawn by the investor.

A high-yield investment program (HYIP) in analogy is like lending your money to someone who you believe is capable of managing it. When it yields, you get a large share of the profit.

Most people believe that HYIP is a type of Ponzi scheme, which is an investment scam that promises an unsustainably high return on investment by paying previous investors with the money invested by newcomers. Some argue, however, that not all HYIPs are scam, and that there are actually sustainable HYIPs that exist.

HYIP operators generally set up a website offering an investment program with high returns as high as 45% per month or 6% a day. Most HYIPs, however, are scam. They pay at first then gradually delays payments until they don't pay at all. Most HYIP scammers discloses little or no detail about the underlying management, location, or other aspects of how money is to be invested because no money is actually invested. They often use vague explanations, asserting little more than that they do different types of trading on various stock markets or exchanges to generate the returns they purport. Furthermore, fraud artists seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs.

Online HYIPs generally uses electronic money systems to receive and send out funds. They are more accessible to operators than traditional merchant accounts.

Note that HYIP is the most effective high income generating program that exists in the Internet today, however, it has never been considered as the best or the wisest method of making money online. Maybe, that is due to the fact that the program involves high risks. You can get high returns, but you will be staking your money on a program that has no certainty.


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  2. I don`t agree about what you sad about HYIP being a best a most effective way to generate income. Actualy I don`t trust all these HYIP and investment companies.

    I have a bid different explanation about what is HYIP and I will post it on my blog soon

    PTC Spot

  3. "HYIP is the most effective high income generating program that exists in the Internet today, however, it has never been considered as the best or the wisest method of making money online."

    HYIP yields more income compared to other money making platforms, but it also involves high risk. Note that real banks won't even dare offer such very high interest rates, and you know why? Because they know it's very unstable.

  4. Make money from hyips with no risk,only paying hyips recommended
    HYIP(High Yield Investment Program) is a investment program that anyone can join online and deposit fund, in return the member will earn high interest in short period of time. There are tons of HYIPs on the Internet and most of them are closely monitored by HYIP rating sites and HYIP forums.
    You can find HYIPs from those HYIP rating and monitor sites. makecurrencyonline.com
    and hyipfunding.com are the best hyip rating and monitor sites. They provide a long list of HYIPs with latest comments, rating and payment status on each HYIP. If you plan to join HYIPs, invest only the amount you afford to lose because your principle and profit aren’t guaranteed. Also you will need an Liberty reserve a/c to deposit fund and receive interest & return. What is the Liberty Reserve?
    Below are steps that can help you get started to invest in HYIP:
    Step 1
    Open an Liberty reserve a/c at http://www.libertyreserve.com You will find detailed
    instructions on how to fund your Liberty reserve a/c from libertyreserve.com
    Step 2
    Visit makecurrencyonline.com and hyipfunding.com and find the HYIPs that interest you. Read the comments and ratings of each HYIP to make sure they are paying to members before you deposit fund to the HYIPs programs you selected. To lower your risk you must diversify your investments into several HYIPs (you may start off with HYIPs).
    Step 3
    Just waiting your payment from your deposited hyips. If a HYIP's website down, there could be 2 possiblility:
    1) They are experiencing technical, IT problems or security issues which wil be back online later usually.
    2) They have closed down and you lose money or you still earn some money overall.
    Again high return means high risk. So only invest the amount you afford to lose.
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