HYIPs: concept, types, specifics of investing in cryptocurrencies

 HYIP is a highly profitable investment project. The specific term is consonant with the common lexeme hype, which means “artificially created excitement”, “sudden popularity”. If you take a closer look at the existing HYIP programs, you can draw an unexpected conclusion: they combine the semantics of both words.


HYIPs: concept, types, specifics of investing in cryptocurrencies


What is HYIP and is it possible to make money on it

Hype is an analogue of a pyramid scheme, whose participants receive super profits at the expense of newcomers who joined the project after them. The minimum investment amount is usually small, the interest rate is either fixed or floating. Investments bring good returns as long as money flows into the structure regularly.


Most projects of this type are created by scammers. Most often, they operate under a false name or are covered by a license from legal financial institutions. The HYIP creator can stop paying at any time and disappear. Interest, as a rule, is regularly charged only for the first time, in order to interest potential investors and prove the "reliability" of the fund.


Types of HYIPs

The life of the project depends on the declared level of profitability.

Programs are:


  • Highly profitable - depositors are charged from 5 to 50% in excess of the deposit daily. Such HYIPs live no more than a week, the risk of losing your capital is maximum;
  • average income - bring up to 3% per day. They can function successfully for 6-9 months;
  • low-income - participants receive up to 1% profit or even less. These HYIPs are relatively stable, some of them last for years.

Bitcoin HYIPs: A Promising Model or Another Scam?

Funds created for operations with cryptocurrencies are somewhat different from classic HYIPs, but there is something in common: depositors part with money at their own peril and risk, thousands of programs are closed on the very first day, only a few pass the test of time.

If you believe the statistics, the typical investor of the classic HYIP, having lost money once, no longer participates in such adventures. Bitcoin HYIPs attract young people with their novelty, participants are gambling and, in the wake of the popularity of digital currencies, are ready to trust savings to dubious structures again and again, thus encouraging the activities of scammers.

How to choose a suitable HYIP project:

  • look for additional information about him on the Internet;
  • examine the conditions. Space profitability guarantees are a sign of a bubble.

Entering HYIP is one way to try your luck. Given the wide range of fluctuations in the value of cryptocurrencies, there is a chance to get rich in a matter of days, but the likelihood of losing everything is much higher.

Do you participate or have taken part in HYIP? Share your story of good luck or disappointment.

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