Most often HYIPs create a beautiful fictional legend in which the process of making a profit is described. The legend is designed to disguise the true source of receiving funds – deposits from pyramid members. Of course, the investors experienced in such projects are perfectly aware of this and use the legend as an evaluation criterion for the quality of HYIPs.
The legend is designed to disguise the true source of receiving funds – deposits from pyramid members. Of course, the investors experienced in such projects are perfectly aware of this and use the legend as an evaluation criterion for the quality of HYIPs.
But newcomers may well be deceived with high interest and forget about caution, which can lead to tragic consequences.
This article will be focused on high-interest HYIPs with “guaranteed” yield of 30% – 100% per month, which in 99.9% cases represents nothing more than a pyramid scheme. Most often such programs create a beautiful fictional legend in which the process of making a profit is described.
I have been investing in such programs since the end of 2011. first deposits were partially or completely lost as a result of scams (end of payments). Only in the second half of 2012, profits were greater than losses. I can identify three types of high-interest HYIPs:
- Honest Pyramid
This HYIP is different in that the webmaster initially informs potential investors that the project is a pyramid, and its lifespan is finite.
- Conventionally “Honest” HYIP
In this case the site administrator hides behind the legend, but tends to operate for long and honestly makes payments as long as inflow of deposits exceeds the outflow.
- HYIP – scam
Such kind of programs are created solely to extremely quickly gather money from first investors. Payments are either not made at all or not very long period of time.
It is quite comfortable to use the former two in work. Their activity is subject to certain laws. The lifespan of pyramids undergoes several stages.
Using certain precautions and following a few rules, which I will discuss below, it is possible to make money on the Honest and Conventionally “Honest” HYIPs.
The third type is the most dangerous. Such projects are unfortunately quite common. The biggest difficulty for HYIP investors is to identify such programs and stay away from them. As a rule, these HYIPs may have a “convincing” legend and a quality website, but be a trap even for an experienced investor.
Continue to the Part 2