WHAT IS HYIP

HYIP stands for High-Yield Investment Program. Most HYIPs are a scam and need to be avoided as best possible. The way this works is that they advertise high returns to lure in new investors. They then take the money they receive from new investors to pay out old investors. This cycle continues on and on until there’s no one new joining the HYIP and the whole scheme collapses. HYIPs are also known as prime bank scams as they often claim to trade prime bank financial instruments which don’t even exist.

HYIP IN CRYPTOCURRENCY

While HYIP occurs in trading involving any type of financial instrument, they are especially unique in the crypto world. HYIP often disguises itself as a mining pool in the crypto industry. The way this works is that they advertise themselves as requiring investors to put money towards a mining program that will yield them high returns. They claim that they’ll pay out the mining rewards to their members. In reality, they pay out the old members using the money received from new members and the cycle continues until it collapses.

Some of HYIP projects

HOW TO SPOT A HYIP SCAM

HYIP often targets new and gullible investors who are unaware that this is a Ponzi scheme. Therefore, it is crucial to know what you’re getting yourself into when investing in an HYIP. While some HYIPs are legit, the majority of them are Ponzi schemes. Therefore, you should know how to spot an HYIP scam. Here are the top ways of doing so:

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PROMISING HIGH RETURNS

One of the biggest giveaways that you’re about to invest in an HYIP scam is that they’re going to advertise themselves as a program that will promise over 100% return on your investment. The reality is that no one can promise anything. If someone is promising you a certain amount of return, it is definitely a scam and you shouldn’t fall for it. Most legit HYIPs advertise a more realistic return on investment that definitely never crosses the 50% mark.

Repowe.com Scam. Investors could not withdraw their money

LACK OF TRANSPARENCY

Most HYIPs that are scams don’t reveal much information about their business model or how they plan on getting you your returns. They don’t even show any records or regulations that prove that they’re legitimate in what they do. This is a huge scam. A legit HYIP would have all this information presented publicly on their website for any investor to read. It can be really impossible to expect someone to invest with you if you don’t provide them with any data.

ASK QUESTIONS

One of the best ways to find out if an HYIP is legit or a scam is by asking a ton of questions. If you feel like the program is not answering your queries properly or that they’re beating around the bush, they’re very likely to be scammers. A legit HYIP would answer all your questions with professionalism and they would even be ready to provide any documents as proof if needed.

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