As obvious from its name,it is an investment programme where you get high returns(higher than your local bank accounts offer).High yield is attatched with high RISK also.These are usually online programmes which claim to process your invested amount in forex,offshore trading,commodities,etc and give away a portion of their profit as a high interest to its investors.Some of the HYIP programmes even work out the invested amount in other HYIP programmes and share the profit with you.
These are basically online programmes(websites) and they may provide a postal contact address where their office is located.
You invest in these HYIP online through their websites with e-currency.
HYIPs pay back interest to you on a daily/weekly/monthly basis as per their policies for a specific time period into your ecurrency account
You don’t have to do any kind of activity in return of interest money from them.Thus investing in HYIP means a passive income source where you just invest and sit back & relax while extra money is flowing to you.
It sounds quite very attractive!But there’s the caution:
This passive income system is associated with a huge range of risks,because maximum of these programs are just scams which collect hyip investment from visitors and then close down their HYIP programme,and there is no profitable way to get back your money once you are scammed.
But when you have become an experienced investor,you can easily spot out bad scam HYIPs.Good HYIPs also exist and you may even make profit with scam HYIPs by intelligent investing.
Let me give an example of imaginary HYIP-
3% daily for 50 days
Referral bonus-5% on all 1st level referral investments
Payment- paid daily,automatic
This imaginary HYIP is explained below:
And supposing you invest 50$, then this patricular HYIP will pay 1.5$ daily for 50 days(or in other words you will get 75$ after 50 days)The minimum & maximum deposit that can be made is 5$ and 5000$ respectively.This HYIP has automatic payouts,so you will get paid daily automatically in e-currency account without requesting for your payouts.The e-currencies accepted are egold and stormpay only.And you will get a referral benefit of 5% on your referred investors.In referral system,after joining the particular HYIP you will be given a unique referral url.If somebody else invests in this HYIP by following your special referral url then the HYIP will give you a gift of 5% on the amount invested by this new member.So this is an extra profit that you get in addition to your regular interests.