HYIP is short for "High Yield Investment Program". A high-yield investment program (HYIP) is a one type of Ponzi scheme, which is an investment scam that promises an unsustainably high return on investment by paying previous investors with the money invested by newcomers.
But that doesn't necessarily mean that it's a safe and solid investment. Look to HYIPs as more like gambling than an investment, and only use money that you can afford to lose. HYIPs basically take the investments of their members and invest them as a whole into more standard investments, including stocks, high yield bonds, foreign exchange trading (FOREX), or other programs. It works almost like a loan to the creator of the HYIP in which they pay you back with the profits that they gain on your money, kind of like interest on your principle.
Those HYIPs that are not ponzi schemes are frequently outright scams. Investors not only are never paid any interest yield, they also never see their original investment in the HYIP again either. If the returns sound too good to be true, the HYIP is likely too good to be true. Claims of secret banking systems and alternative financial networks are simply false. In fact, the problem became common enough to cause the Federal Bureau of Investigation (FBI) to issue warnings about being taken in by the claims made in these fraudulent programs. You are probably best off if you heed their warnings.
For Example, Some website may offer you 30% Daily 4 Days. If you invest 10$, you will receive 3$ Daily for 4 Days. Overall you will get 12$. The profit is 12$-10$ = 2$
But that doesn't necessarily mean that it's a safe and solid investment. Look to HYIPs as more like gambling than an investment, and only use money that you can afford to lose. HYIPs basically take the investments of their members and invest them as a whole into more standard investments, including stocks, high yield bonds, foreign exchange trading (FOREX), or other programs. It works almost like a loan to the creator of the HYIP in which they pay you back with the profits that they gain on your money, kind of like interest on your principle.
Those HYIPs that are not ponzi schemes are frequently outright scams. Investors not only are never paid any interest yield, they also never see their original investment in the HYIP again either. If the returns sound too good to be true, the HYIP is likely too good to be true. Claims of secret banking systems and alternative financial networks are simply false. In fact, the problem became common enough to cause the Federal Bureau of Investigation (FBI) to issue warnings about being taken in by the claims made in these fraudulent programs. You are probably best off if you heed their warnings.
For Example, Some website may offer you 30% Daily 4 Days. If you invest 10$, you will receive 3$ Daily for 4 Days. Overall you will get 12$. The profit is 12$-10$ = 2$
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