Which HYIP systems are legitimate
HYIP: You absolutely have to avoid these!
HYIP are a way to earn money that is widely advertised on the internet. Proponents say that High Yield Investment Program have existed for more than 20 years and have significant advantages especially in the high return are to be searched for. Critics openly speak of Scam, some programs are even prosecuted. In the following article, therefore, we shall take a closer look at what such HYIPs are, whether they are any good and what risks they entail. Furthermore, only here is a list of high investment yield programs and revshares that you should absolutely avoid, including testimonials!
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What is actually meant by HYIP?
“High-yield investment program” - that sounds very professional, sometimes reminiscent of lucrative funds or particularly sophisticated ways to invest your money. In practice the name is quite misleading, because HYIPs don't have much in common with an investment in the classic sense. The greatest bridge to traditional investments could still be built because the providers of such programs promise returns - sometimes per day, week or, more traditionally, per month. It is not a legitimate way of investing money, if only because these programs are clearly identified as one Pyramid scheme To be defined. It is therefore not impossible to make money from it, but everyone should be aware that they are part of a pyramid scheme. In the English language this is called the “ponzi scheme”.
HYIPs are based on the model that “pioneers” in this system earn money by adding more and more people to such a program and investing in it. Returns can only be distributed at all, if a constant influx of further “investors” is ensured. This “business model” has not only existed since the Internet and also apart from the web. Due to the structure of this model alone, it must be clearly stated that the vast majority of all “investors” lose money with it and not win. In practice, if at all, only about 10 percent of all those involved make a profit - but it is no different, especially on the stock market or in securities trading in general. True to such a pyramid scheme, however, it is above all the people at the top who earn a lot. The yields get narrower and narrower down to total losses.
An overview of the more popular programs from the HYIP category
There are innumerable numbers of HYIPs. Many of them only for a short time before the operators pull the ripcord again and the program disappears from the market. Others have existed for a few months or even for years, although this is rarely the case. Therefore a comprehensive overview of all HYIPs is difficult, because the market landscape changes almost daily, but at least weekly. In addition, it is entirely conceivable that a program has changed over time. Perhaps it started out as a particularly dubious representative, but is now working with somewhat more realistic promises. Sometimes the opposite is also the case and the platform initially stood out as a good representative, but nevertheless disappeared again within a short time.
In the following section, you should therefore an overview of the more popular programs to be delivered. You can incorporate this into your decision. At least the same representatives serve as an example of how fast this industry is and that even very large programs are disappearing from the market in no time at all.
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How do HYIP work?
Pyramid schemes have been around since the beginning of the 20th century. In the meantime, however, it is much easier to set up these, because the Internet can attract new participants around the globe, while digital payment options make money transactions much easier. In addition, the Backers better cover up, sometimes sit in more or less lawless states and generally avoid giving too much information about oneself. After all, it is you who pull up the associated website for these HYIPs. The website is almost always that Basic structure, on the one hand it should advertise the “program” and on the other hand it should be used for acquisition.
Concise for the content There are big promises on a website like this, especially in terms of the return on investment. It is not uncommon for returns of around one percent per day to be promised, which is a three-digit figure per year alone Return would sum up. These are values with reputable investment programs absolutely unreachable especially if they are to be achieved over the long term. Also significant is the fact that it is usually not discussed in more detail where the profits come from. There are no transparent overviews, mostly exist not even real, tangible products. There is usually no information about the “company headquarters” of such a provider or its structure in general.
Instead it will trusts a lot in advertising and acquisition, both from the backers and the individual “investors” in these programs. Especially the social media are used intensively for this. Here you can see supposedly successful investors who want to show other people how to make a lot of money as quickly as possible. Sometimes people even brag about luxury and their own lifestyle in order to create the impression that this investment could change the life of the individual in the long term. The Financial Industry Regulatory Authority (FINRA) warned that the people behind such HYIPs are experts in social networking and self-marketing. If the necessary basic knowledge about investments, capital investments and monetary transactions is missing, such programs could therefore be misunderstood as a legitimate way of making money.
Although these circumstances sound the alarm bells, they do not mean, conversely, that HYIPs cannot make any money at all. There are definitely people who have even specialized in such HYIPs and earn money with them, at least for a short time. It is your approach, in such pyramid schemes if possible invest earlyto get a good position in the “food chain”. The aim is always that such a high-yield investment program generates a return during the active growth, while then paying off before the whole system collapses - as it will always happen sooner or later in a pyramid scheme no new “investors” can be found to distribute the returns of the existing “investors”.
What are the advantages of HYIP?
The advantages are as always with pyramid schemes very manageable. Theoretically and practically it is quite possible to generate a return with it. If you are one of the pioneers or have even started your own “program”, such returns can be relatively high. So it is first of all possible to earn a substantial sum of money in a short period of time. Furthermore, returns can still be earned if you at least get involved in such a program early on. Another advantage is the relatively low cost. All the necessary work can be done conveniently from your desk or from anywhere with a laptop. Thanks to digital payment transactions, all necessary money transfers are processed quickly and securely. Those who want to anonymize themselves also have the opportunity to do so with various programs or through the use of digital currencies.
Very active and committed members earn money because they recruit a lot of new members. Since there is no actual trading in the stock and money markets, no technology or products are being developed, and no real service is generally offered, each model is based solely on recruiting new members. For this, the providers of the programs provide high commissions in prospect. This is intended to give each individual member an incentive to get involved in this program and to attract new people to keep them alive as long as possible. So more capital flows into the system, part of which is paid out to the existing members and especially the operators and advertisers.
What are the risks of HYIP?
The risks clearly outweigh the benefits. Total losses can never be completely ruled out, as with any variant of an investment. So you should be aware that you may never see the money you invested again. Furthermore, such programs collapse completely within a very short time. Anyone who has not got their money to safety in time must also expect losses - both monetary and the sheer loss of the time and work invested. In addition, the approach involved in these programs always involves a wealth of risks. The people behind it are usually unknown, and such programs are usually completely inaccessible from a legal point of view. So you shouldn't be under the illusion that you could do something from a legal perspective. Even if you are right, the management stays behind these programs legally inviolableif they are clever.
Further risks arise with regard to legality. Pyramid schemes in every form exist in Germany as well as in a large number of other western countries illegal. You must therefore be aware that you are not making any legal investments with HYIPs and that the possible profits are also not legal money. It is possible to rely on the fact that this fact was completely unknown to you, which is quite possible in practice. If at all, mostly only the masterminds behind these programs are followed, but not individual members who “fell for it”. The situation changes, of course, if you want to open and operate such programs yourself. This is strongly discouraged as it is definitely illegal and can result in large fines and imprisonment.
With regard to the risks, it must once again be mentioned very clearly that HYIPs are absolutely illegal! Behind the impressive name there is nothing more than a pyramid scheme, which does not generate any real returns, but only uses funds from new members to Bogus returns to pay off. In general, such programs are only possible in practice because the operators either appear completely anonymously or simply sit in countries where the German constitutional state cannot reach them. The operators do not prosecute these countries because HYIPs are considered legal here. So programs are not identified as fraud.
A further risk arises from the total loss, even if one puts the legality of such systems in the background. In order to understand total losses in a pyramid scheme, you have to look again at how it works. Although the returns are financed through the capital of new members, this does not mean that all paid-in capital is actually distributed again. In reality it looks like the HYIPs will run for as long as possible. During this time, many new members join, creating ample capital. At some point it will end and the stream of new “investors” will end. Alternatively, it is conceivable that the operators simply draw a line under the program. Practice shows that such sites and programs then suddenly disappear and the whole piled up Capital is pocketed by the operators. All others will then receive a total loss, provided that their own money and winnings have not been paid out on time. Such a total loss is still provoked when many members want to have large sums paid out in a short period of time.
What tips should one follow when choosing HYIP?
There is consequently no discussion that HYIPs are fraudulent systems that are not designed to last. If you still want to invest in it, you should at least be offered helpful tips at this point. The "investment" in such HYIPs should be more or less than one Form of gambling be understood. Maybe you are not even interested in raking in the big bucks, sometimes you are just looking for the risk and want some adrenaline, as is normal in gambling. If you say goodbye to the idea of making a serious investment in HYIPs, it helps quite simply as a Thrill and watch gambling. You may win, but you may also lose your money. Sometimes you can move the probabilities a little in your own direction through clever decisions, but complete control cannot be achieved with such pyramid schemes anyway - which is also not possible with machines, roulette and co.
If you want to invest in HYIPs despite the many risks, it is best to follow these tips:
- In no case should you invest more money than you are willing to lose. So if you want to invest 100 or even 1,000 euros, make sure beforehand that the possible total loss of this sum does not hurt you or put you in financial difficulties.
- Find out exactly what you're doing about the HYIPs you plan to invest in. As already mentioned at the beginning, the masterminds usually stay in the background and appear in a completely anonymous form. Information in the imprint is also not necessarily trustworthy, just like information in the domain. It is quite possible that straw men are used here. The company address could sometimes just be a mailbox. When obtaining the necessary information about a program, it is therefore much more important to deal with the program itself and not with information that can be falsified anyway.
The previous runtime of the programs is particularly relevant. Investing in HYIPs that have only been in operation for a short time can enable higher returns, but the operators could also soon be out of the woods with the money. You should also find out if some of the HYIPs you are considering are not already classified as scams. This is done by independent parties, especially when withdrawals are refused. On a site like “allhyipmonitors.com” you can use an independently managed list for your own assessment. Among other things, it lists how long programs have existed and whether payments are conscientiously carried out.
- Check the websites very carefully. Especially dubious and “shaky” HYIPs usually have just as bad and “cheap” implemented websites. If some graphics, links or other references do not work, you cannot, conversely, assume that the HYIP is actually being operated conscientiously. Bad websites are mostly a sign of a short-lived system in which operators only want to “shop” for a short time and then immediately disappear again - with the capital of the members that have been collected so far and before they can make a payment.
- You should pull the money you have invested out of the system as quickly as possible. This ensures that if the system breaks down, you at least have not actually lost any money. You should never put in additional money before you have at least got your original stake "back in the coffers". Once you've got at least the original investment back, you can be far more relaxed about a possible closure of the system. All you then connect with it is an additional return.
- You should never invest your own additional money before you have received your first investment back in full, as described in point 4. The providers speculate that new members will deposit more money as soon as possible. It is usually the case that the first small deposit sometimes generates a good return. After that, many members are tempted to pay more money into these systems. But this is exactly where the mistake lies.
- Do not be blinded by completely unrealistic returns! Systems that work with “2,000 percent return on the day” or similar abstract values do nothing more than catch farmers. Instead, orient yourself to the systems whose advertised returns could come at least halfway close to reality. An advertised return of 1 to 5 percent per day is still unrealistic and dubious, but at least the operators have given it some thought. Experience in dealing with such HYIPs shows that these moderate variants usually exist over a longer period of time.
- Try to spread your capital as widely as possible. This rule applies to HYIPs as well as to classic investments. The underlying idea is easy to explain: A large spread can minimize the risk of a total loss. If one program is closed, there are ideally other programs running, the return on which can compensate for the loss of the other HYIP. A diversification therefore always makes sense, no matter how much money you want to deposit or how good a program is supposed to be.
- Also keep accounts of deposits and withdrawals. So you always have an overview and always know exactly what income you are recording and when you have got back the original investment. Finally, it is crucial that you only take into account the money that has already landed in your account. As long as the money at the HYIPs is only managed digitally, it is far from your money. Problems with payouts are not necessarily uncommon. Only what has already appeared as an amount on your real account is booked under income.
- Find out about feedback from other users. Many of the “investors” in HYIPs know full well that these are pyramid schemes. That is why there are numerous forums or comment columns in which the supposed seriousness and profitability of individual programs are debated. You should therefore inform yourself regularly about what a program is currently delivering and which programs may be about to take off. A lively exchange of views can help to identify and interpret the first warning signals. Ideally, there might even be a small community with other HYIP investors. In this way you could always inform each other and benefit collectively, while the knowledge of the other members further minimizes the risk of total loss.
- Realize that the chance of losing is many times higher than the chance of making a profit. In this way you can prevent disappointments and do not succumb to the illusion that you have made a real stroke of luck with a certain program. If it works and you get a return, that's fine, but that shouldn't be the basic setting at first. Mentally it is more important that you prepare accordingly for the worst situation, namely total loss. This way you can keep a cool head and are not led to other, overzealous decisions.
With these rules of the game, HYIPs are still a pyramid scheme and their operation still illegal in Germany. They are still not a serious form of investment and the promised, particularly high returns are to be viewed across the board as empty advertising promises. After all, with these rules you at least reduce your own risk somewhat, whereby a total loss can never be completely avoided, but the probability is reduced. At this point it must be said again that an “investment” in such HYIPs should be viewed more as a game of chance, but not as a serious and high-quality investment.
Why are relatively many people still investing in HYIP?
From the facts known so far from this article it is clear that these are pyramid schemes and that they are also on extremely shaky legs. However, HYIPs would not spring up like mushrooms if they could not still find many members and “investors”. In fact, the reality is that many people choose to invest. A distinction is made, however, between the motivation and the know-how behind it: Some people are quite clear in what you "invest" here and that none of this is an actual investment. Others, on the other hand, are naive and actually think they are getting one here "Money printing machine"that nobody or hardly anyone has discovered before.
Regardless of the motives behind such an investment, the rush for these HYIPs is still high. However, this article should help you to assess your chances of a return more realistically than the operators often promise. Under no circumstances let yourself be dazzled by daring promises and returns “to the moon”. Instead, try to view HYIPs as a game of chance or accept that there is most likely no return. If you get + -0 out of this, you should be happy in many situations. Better still if at least one little extra income or a small amount of pocket money is obtained. Everything else is just window dressing in 99 percent of all cases.
Conclusion: HYIPs are pyramid schemes!
HYIPs are alleged “high-yield investment programs”, but in reality they have nothing to do with traditional investments or serious business. It is a matter of clear pyramid schemes, the operators of which have to reckon with high prison sentences if they can be legally prosecuted. A return can be achieved with these programs, but usually not in the amount that the operators promise. If you want to invest, you have to deal intensively with the myriad of programs on the market and should be capital always as wide as possible sprinkle, without that additional money is paid into the systems before money that has already been invested has not been saved again.
None of the systems actually sells products, services or creates added value. It's all about it, to attract new members and thus new capital to distribute parts of it to existing members and advertisers. As a rule, HYIPs end with the complete closure of the program, either because the judiciary has put a stop to it or because the operators have withdrawn with the money. Until then, you should withdraw as much money as possible from the system and make sure that it has actually been paid out to your own account. Furthermore, on such pages personal information or confidential data is never transmitted, especially not account information, PINs, or credit card numbers. These could be misused after the operator went underground.
Finally, if you want to invest in the HYIPs, you should make absolutely sure that you have the above 10 rules obey. These 10 tips and tricks will not protect you from a total loss and they also do not promise you a high return. All these 10 tips do is that the risk of choosing a particularly bad and dubious HYIP is reduced, which automatically increases the chance of a return. At this point it should also be said that you should not believe anyone who has discovered a supposedly “surefire” formula for investing in HYIPs. Such a formula does not exist, mostly it concerns people who either operate HYIPs themselves or are active as shareholders in such. You are also trying to do business in your own pocket. If you follow these 10 rules above and make it clear to yourself that it is primarily a form of gambling, you can be a little more relaxed about the HYIPs. In any case, they are a machine for printing money under no circumstances.
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