A High Yield Investment Program (HYIP) is a type of Ponzi scheme, which covers all projects, online and offline organizations that are utilized to contribute money to get a higher yield than you would ordinarily get at a bank. HYIP owners usually claim to get their better than expected profits for stock market by placing bets on games occasions or by taking part in different online ventures.
HYIPs basically take the investments of their members and invest them as a whole into more standard investments, including stocks, high yield bonds, foreign exchange trading (FOREX) or other programs. It works practically like a loan to the creator of the HYIP in which they pay you back with the benefits that they gain on your money, kind of like interest on your principle.
The primary difference of HYIP from other kinds of investment monitor high income and short turnover period. There are numerous HYIP with different speculation plans.
Fundamentally all HYIP can be divided into two groups.
Long Term HYIP
Short Term HYIP
Long term HYIP is the projects calculating 0.01% to 5.00% daily. Any project giving 5.00% or more can be considered short term.
It is a fraudulent investment operation (fake speculation operation) where the operator, an individual or organization, pays returns to its financial specialists from new capital paid to the operators by new investors, rather than from profit earned through goodness sources.
Investment Funds – It works practically like banks. You invest some amount of one of the plans and get a daily/weekly/monthly interest credited to your account balance depending on the plan’s rates.
Autosurfs – It requires you to visit some of their promoter’s websites to earn the daily ROI and you might not get paid if you don’t.
Both types of online HYIPs accept very low investments of $1 – $50 which is conceivable with the utilization of electronic monetary standards. The most essential electronic currency in the world of HYIPs is Liberty Reserve. If you want to start investing you will have to open an account with them.