What does the term « HYIP» mean?
HYIPs position themselves as investment projects that offer everyone the opportunity to make a deposit in the project and quickly increase their capital.
HYIPs, or high-yield investment programs, are the most profitable yet the riskiest form of online investments.
In HYIPs, they offer insane profitability, ranging from 1% to as high as 25% per day. Where does this profit come from? In most cases, these are financial pyramids sustained by the incoming flow of funds from new «investors». HYIPs have very short lifespans, often no more than a year, but typically 1-3 months or even just a couple of weeks.
Modern HYIP investment programs are designed in a way that they accumulate capital through contributions from new project participants. In other words, they are modern financial pyramids. HYIPs pay interest on deposits based on the investment plans established when a participant enters the project.
The peculiar thing is that in such systems, profits are calculated on a daily basis (sometimes hourly, weekly, or monthly). The interest rate can range from 0.5% to 25% per day! The best and safest option is usually 1-3% per day, which amounts to 30-90% per month (more than the annual percentage in a bank). Typically, the minimum investment in an HYIP is around 100 to 1000 rubles.
Putting it all together, one can boldly say that HYIP is a gamble!
There are no guarantees here, and it all depends on your strategy. Monetary losses are inevitable, risks are high, but the potential winnings are substantial.
Types of HYIPs
HYIP projects can be divided into 3 categories based on their lifespan:
Fast HYIP - pays out massive percentages, with a daily return of up to 100%. Operates for a very short period, typically no more than a week. It's advisable to invest not more than $100 in such projects, and if you wish to invest a larger sum, it's better to distribute it across several accounts.
Medium HYIP - has a slightly longer lifespan, usually a little over half a year, with a daily return of 1-3%. It's not recommended to invest more than $1000 in a single account.
Long Term HYIP - this type of HYIP guarantees relative stability. It pays an average of 10-20% per month. Sometimes the managers of such HYIPs attempt to genuinely derive benefits from the funds invested by investors. For example, they invest in PAMM accounts, stocks, various developments, and so on, but these are isolated cases. The lifespan of these HYIPs is quite long, averaging 2-3 years. It's possible to invest substantial amounts in slow HYIPs and feel relatively secure about their preservation.