HYIPs or High Yield Investment Programs are usually schemes that offer extremely high rates of returns to investors.
For example, a program could offer an astounding rate of 120% return of an investors's deposit in 1 day. Other programs could offer investors around 2% daily return of their deposit for 100 days, thus offering a 100% interest after 100 days.
HYIPs are High Risk programs and one should understand that HYIPs do not last for a long time (some even last for around 3 days or less).
HYIPs usually depend on new investors' money to pay out current members who deposited earlier.
People should only put out money they can afford lose. In other words one should not treat HYIPs as a serious investment vehicle.
The process of a typical HYIP would be:
1) An investor deposits in a program plan offered by the HYIP.
2) They come back the next day or a couple of days to withdraw the earnings.
3) They continue to come back and withdraw the remaining earnings for a fixed number of days.
Let's say an HYIP offers 50% return (of a deposit) daily for 3 days - the investor would come back and forth and go to his member account to withdraw the daily earnings, in this case 50% of his deposited amount, for 3 days. Thus, giving him a total interest of 50% in just 3 days.
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An HYIP would have program plans stated like that on the left. Usually there would be around more than 1 plan.
For example, a site could have plans that promises a return of 115% in one day! That means the amount an investor deposits would yield an interest of 15% net profit the next day.
Another example would be "60% daily for 2 days".
It means that on day one, the investor would get 60% of his deposited amount.Then on day 2 he would get another 60% of his initial deposited amount, thereby giving the investor a total return of 120% in just 2 days.
HYIP plans could vary from being able to withdraw returns daily, to having to withdraw them after x number of days.
The program term could range as short as 1 day, to as long as 365 days.
In this arena, experienced investors or "players" do not deposit on plan options where minmium deposits are like "$500-$1000" or such.
Sites only put these numbers to attract investors.
Players only deposit as little as a $1 or two and spread them out in different HYIPs.
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Also, a typical HYIP site would claim that "they are a group of forex traders", or such. That they are "skilled" in what they do and they are there to help you achieve your financial goals."
You shouldn't believe any of this claims(or it's up to you). You'll notice that different HYIPs have more or less the same descriptions or claims.
Usually these programs use the same script or website templates for these kind of programs and they just fail edit the pre-made description of the site.
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HYIPs would require investors to make some deposit amount. Usually the minimum would be $1, and could be processed via an e-currency like e-gold.
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HYIPs would depend on incoming deposits of new "investors" and that when the ratio between the "Total Deposits" and "Total Withdrawals" become narrower, they'll notice that the program will cease paying its members and withdrawal requests would go into a "Pending status" for a longer time period.
Members wouldn't know what really is going on, rather they just hope that the site is just experiencing some technical issues and would get back on track soon. However, most HYIPs won't inform their members of what's going on with their site.
These are signals that the HYIP has no more funds to pay out it's members and would soon close down or would turn into what is called scam.
This is not unusual because HYIPs don't really have any legitimate sources of income aside from depending on other members' deposits. Some would play these games by depositing early(Get in and Get out) and withdrawing profits as soon as possible.
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Some people are experienced in this field and that they continue to invest in these programs because they "win". Sometimes these "investors" are not really called investors, rather they are called "players" because it would be obvious that HYIPs offer ridiculously high returns and that it would be a game of "who makes a deposit first and withdraws the profits". To those who "lose" they would usually just find other means of earning online.
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