Have you been surfing the web typing in the search term “What is a HYIP program”? Well, then you have found your no-nonsense answer here. Plain and simple, it means it is a scam! Sure you can make money from them sometimes… and for a short time…
However, they are still scams and will crash sooner or later.
Let me explain why in this short post so we can stop this bullshit and shut up everyone trying to promote them once and for all.
What is a HYIP program – How They Work
Ok, first of all, what does HYIP stand for? It stands for “High Yield Investing Programs” and are mainly targeting people looking for investment opportunities.
They often come out as something solid and stable when they, in fact, are the absolute opposite.
How they work:
The money that new “investors” or (more correct) victims put into it is the same money that the older Investors cash out (if they don´t reinvest their earnings).
However, this only works for as long as there is more money coming in than goes out from the “big money pool” and you can not know for how long the program will work…
One thing that ALL HYIP (scams) got in common is that they are unsustainable as they are always offering to high return rates on your investment.
Hyip also goes under another name… Ponzi scheme…
What Does Ponzi Scheme Mean – How It Works
Ponzi schemes are just as HYIP´s primarily attracting people who are looking to make great investments as they come out as that (most times).
What Ponzi (Ponzi scheme) is all about is that you (the victim) are getting a proposal to invest your money into a “program” or something like that with a promise of very high returns.
The return rates are often very high (unrealistic) and there is a good reason for that.
The money the (scam) scheme is paying back to it´s “investors” is the new money coming in from the new victims to the scheme… That is exactly how it works.
So, the conclusion is that the scheme can make you money (especially if you get in early) but the whole structure is doomed to crash as the high return rates will eventually dry out the “pool of money” and there will not be enough money to pay anyone in the end… This can go fast or it can go super fast…
One thing is for sure, it WILL happen and when it does the owner (most times some mysterious guy) will take the money that is left of the program and make a runner.
You and the other members of the scheme will be robbed on all the money that you have put into it and there will be no way of getting it back.
So why the h**l are you willing to take that risk when you never know when this will occur!??
Ok, I know it can be tempting of course and most times they come out as something legit and “bulletproof” that guarantees your earnings…
Bitcoin HYIPs and Ponzi’s…
They are also literally EVERYWHERE online, very commonly in the form of “bitcoin investing opportunities” but they are all the same HYIPs and Ponzi’s…
If you want to invest into bitcoins then at least do it with something that has been proven 100% legit. The absolute best place I can recommend if you want that is Local BitCoins.
Click here to come to the official site of Local BitCoins<==
The HYIPs and Ponzis are everywhere
Trust me I know how tempting it can be, I have fallen victim for them myself earlier.
The one I fell victim to was Forex Paradise, it made me (and others) money for some time as it gained a lot of new members…
but eventually… The site stopped paying out and now the site doesn´t even exist…
Did any of us get our money back? No, of course not.
Some other examples of FAKE investment companies
To see examples of other Ponzi schemes here you got 3 classic ones that I reviewed recently:
Some examples of REAL investment companies
If you want to see an example of REAL safe and solid investing sites instead then I have picked some of the most well-known and trusted ones on a page on this website that has reviewed hundreds of both legit and sadly most scams, however, the list consists of the best rated and trusted sites you can find online, of both legit investments (and very good info) in Real Estate, Precious Metals, Trading, Bitcoins, etc.
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If you want to invest:
I mean, what do you want to do? Do you want to learn how to promote stuff online or do you want to invest? If you want to invest, at least go with something that is REAL, right?
Hope this short post was helpful and now you should have a crystal clear understanding of what an HYIP program is and also what a Ponzi scheme is and what it means.
If you have been part of one please share your experience in the comment section below as it can help others to avoid falling victim to them. Also if you got any questions about this post I will be more than happy to answer them below!
I wish you success!
John
Founder of: Start Make Stop Waste
Amen, brother. I think almost everyone here has been the victim of such scams at one time or other. I was involved in several real estate investment schemes before I wised up. But experience is a great teacher and you get knocked around a bit before you get to the point where enough. A lot of scams started out as tv infomercials before they tried their hand at online mainstreaming. But a scam is a scam, and the more educated you become the more one can side step the get rich quick programs.
Yes, it happens to most of us. Happy to hear you have had enough of it.
/Thanks for your comment
I have heard of HYIP but have never been a part of one. It’s the High Yield part that excites investors, I guess. They are drawn into the myth of making more money with their investments. Maybe sometimes you can, I don’t know.
I prefer to hit bunt singles and play it safe. Would you ever recommend a small portion of your savings to invest here? or just never at all?
Thanks for this, I understand HYIPs a lot better now.
Yes, it is probably the high yield part that lures people into it. Yes you can sometimes, as long as there are more Money comming in than going out they work…
I would NOT recommend investing into HYIPs and Ponzi schemes NO.
Personally I am done with that, if I want to gamble with my money for the thrill of making a quick win I much rather go the casino to be honest.
The only investments I am into right now are gold, silver, platinum or paladium as I believe those are the smartes ones to make right now.
Great post.
There are so many of these investment scammy sites out there offering people riches. Its easy to see why so many people automatically assume that online opportunity = scam. For newbies entering this arena I am convinced that your post will prove to be a valuable asset and save them time, frustration and money. What a great contribution to the wider community. Well done.
Thank you! Really appreciate that and I hope the same as you
/Best regards