HYIP Introduction - What is a HYIP?

HYIP stands for the initials of "High Yield Investment Program". As the name itself we can clearly see that it is related to investment programs that offer unusually high returns or interests. At the same time, they are also High Risk programs involved in volatile markets, FOREX, or other investments that can have huge profits and huge losses. The huge profit comes from the markets themselves as well as the so-called "traders" managing the funds personal decisions. The bad parth, though, is that the money is not likely to be protected in any way, so the losses may be huge also.

"Then is just high-risk investment, right?" - No, it's not. When refering to HYIP we usually refer to online based traders/businesses that usually work with digital money and claim to be working mainly on the FOREX market. That's because due to the huge amount of scams everywhere, real and serious traders usually droped out using this name for their programs, as it usually is associated with scams.

"So HYIP means scam?" - No, it doesn't. It means what it means, but internet culture has made the meaning slightly different.

"Ok, then, what would in real life HYIP turn to be?" - HYIP is a High Profit Returns kind of program, usually internet based, that works with e-currencies such as Liberty Reserve, E-Gold and so on, and that offer around 1% to 2% interest rate on a daily basis. These so-called "companies" may work with real traders in the FOREX market or sometimes are just individuals managing the funds themselves, but in most cases they are not regulated in any legislation regarding trading activies and are usually created around special legislations such as Panama.

"Should I invest in a HYIP?" - That's your decision to make! HYIP are easy to deal with because it doesn't require a lot of money to get started (which you would need for a real trader to deal with you), and you can see profits right away, but on the other hand, it still an internet-based business and may disappear all from a sudden.

We'll keep on going into detail in our next posts, until then, see ya!

Interesting links:
HYIP in Wikipedia