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 The principal remains with the operator for reinvestment, it will remain with the operator until such time it is withdrawn by the investor.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.