What is HYIP?

• Posted by Markus Leader December 13, 2020 Filed in Business 237 views
  click to rate

  For a novice trader who is just getting to know the world of trading, everything seems interesting and not so complicated. But, we hasten to upset those who were already ready to plunge into trading with their heads, without having learned absolutely about all the intricacies of this area. The world of finance is more like an arena of battles, where everyone is for himself.

  Every time you choose a broker without knowing many subtleties, you run the risk of falling into the hands of scammers. One example of deception is a HYIP project.

  What is HYIP?

  In English, the word "HYIP" is an abbreviation for HYIP. Translated as a highly profitable investment project. From the first time it sounds promising, but you should not pay attention to this, because you can translate it even easier - a pyramid.

  All these programs work according to a scheme invented back in 1920 by Charles Ponzi. In simple words, Ponzi decided that all the profits would be received by the creator of the pyramid, and each subsequent participant - a percentage of attracting new investors. The duration of this process depends on how long it will take to replenish the HYIP with money. That is, as long as people are ready to invest, the program works. As soon as the administrator realizes that the receipt of funds is decreasing, he closes the site with all the money that was in the account at that moment. The creator of the pyramid takes the entire amount that remains.

  Features of modern HYIP projects

  Of course, everyone knows that pyramids, so-called HYIP projects as on https://www.hyipexplorer.com, are scammers. Only now, in offline mode it was not so difficult to punish the guilty creator, which cannot be said about the online pyramids. Fraud schemes constantly respond to changes in legislation and quickly adapt to them. Another difficulty is that on the Internet you can not give your real name and hide your face, which plays into the hands of scammers.

  The organizers of the pyramids are very competent in their business, that no law can be applied to them. This is the negative side of HYIP projects.

  But there are also advantages. Investors' profit, at a certain level of preparation, can reach 50% of the invested amount. With the right approach and competent drawing up of an investment portfolio, there is an opportunity to make good money on these systems. Of course, this is associated with great risks, because there is always the possibility that the creator will close the site, and the investor will lose everything.

  Principles of Success in the HYIP Industry

  Of course, HYIP projects are a risky way to make money, especially for people far from investing. But there are always people who are ready to take risks and take part in the pyramid. There are some tips for them that will help them not to lose all their money at once.

  1. Diversification of funds. If you simultaneously invest equal amounts in several projects, then the loss of money in one HYIP will not be able to hit the investment portfolio hard.
  2. Chatting. You should never neglect talking with other investors. Most often, they can help you make the right choice. Knowing English, you need to look closely at foreign chats and admins, because they are always of much better quality.
  3. Minimization of losses. It is best to withdraw money as soon as you have reached the available withdrawal amount.
  4. More attention. Take a closer look at those projects in which you are already involved. During high activity, you need to think about whether the HYIP will continue to work or is going to close.

  Varieties of HYIPs

  Projects can be divided according to the degree of profitability, because investors are most interested in profit. There are 3 types of HYIP projects:

  1. Low income. The longest-lived projects can last 3 years or more. Most often, you can earn a maximum of 15% of your investment per month. They are somewhat similar to projects with trust asset management.
  2. Medium income. Such projects can boast of a yield of up to 50% per month. Moreover, it is much more risky to work with them than with low-income ones. Most often, these HYIPs do not stay on the market for more than a year and no one can predict when the closing time comes.
  3. Highly profitable. The most disadvantageous projects for investors. They promise incredible profitability up to 8% per day. They work, however, for a maximum of several weeks. And they close at the most unexpected moment. At the same time, no one usually manages to withdraw the profit.

  Characteristic features of HYIP projects

  In order to understand exactly that we are talking about a fraudulent organization, you need to know that there are several signs by which this can be accurately determined:

  1. Risk denial and emphasis on high returns.
  2. Imposing beliefs.
  3. Lack of details of the organization and contact information for communication.
  4. Excessive blurring of concepts and explanations.
  5. Obsessive calls and promises.
  6. Lack of licenses.

  If at least one of these signs is found in a company that offers investment services, it is necessary to refuse further cooperation with it.

  Conclusion

  HYIP projects are scams in most cases. The pyramid, which is supported by the constant flow of funds from attracting new investors. As soon as the cash flow dries up, the project is closed.