HYIP stands for high yield investment program. Making it simpler, HYIP is high yield investments. The main difference of HYIP from other kinds of investment is high income and short turnover period. There are many HYIP with various investment plans. Basically all HYIP can be divided into two groups. Long-term and short-term HYIP. Long-term HYIP are the projects calculating 0.01% to 5.00% daily. Any project giving 5.00% or more can be considered short-term.
Nearly all HYIP work as the Ponzi scheme, meaning they are all pyramids. More often HYIP is closed when the payment amount reaches 85% of the entire amount. The more interest rate is, the shorter the term of HYIP run is. The average "lifetime" term of long-term HYIP is about 1 year. The short-term HYIPs "lifetime" cannot be defined. Every HYIP has its own lifetime. It's hard to predict the end. That is why short-term HYIP are considered to have higher risk degree than long-term ones.
Where and when did HYIP originate? Many men - many minds! Initial reason was simple enough - professional traders on FOREX, able to make high profit within a very short time. However some professionals of the kind simply don't have the initial capital to start with. You just imagine a person with a great experience and desire to multiply assets o nthe stock-exchange, though there's no money for starting it. This person thinks of an online project (HYIP) with the purpose of attracting starting capital on the terms mutually profitable both HYIP customers and admin. In case the person is is a professional indeed, he is supposed to get large profit and customers will benefit as well.
The fraudsters are always close to HYIPs. They are called scammers. There's lots of things for them to do inside this niche. You possibly know why... What can be easier than stealing some money, pretending you are a professional FOREX trader? The problem is really actual, especially for the newbie investors, willing to multiply funds in a fast way and fall into every single attractive fund.
The HYIP nature is that nearly all the time they are closing in some point of the life cycle. Naturally, one of the main principles of participating in this kind of programs is to join early and leave soon, once you are able to gain your principal.The faster you regain your funds and the higher income rate is, more often the shorter fund lifetime is. Nevertheless, many of these programs are well-thought and developed for working as long as possible. According to the stats, average HYIP lifetime is 6-12 months (meaning it's a professional long-term HYIP), there can be old-timers as well. At the same time one can hardly find any HYIP that last more than 4 years. The lifetime totally depends on on the program interests. There are also HYIPs aimed at fast return. These are mostly short-term ones and more often it's hard enough to get the income declared after joining them. I.e. they are absolute scams, but, if you are lucky you can earn some money with them as well.
By Jack Taylor,