High Yield Investment Programs: risk analysis for HYIP investors

Nowadays hundreds of High Yield Investment Programs or so-called HYIPs work on the Internet. Their popularity is easy to explain. Such projects offer very high or even unrealistic ROI percentages to the target audience. But why all investors in the world do not invest in HYIP?

The fact is that all HYIPs are in fact pyramid schemes. Some HYIPs openly tell their investors that they work on the principle of financial pyramids, when the earnings of some investors are formed at the expense of deposits of other investors.

Some HYIPs pull the wool over investors" eyes, pretending to be serious companies that work with risky assets on the stock exchange, cryptocurrencies, gold, oil, and so on. But that is a lie.

However, all HYIPs have common features. They do not earn real money due to their activity on the market, all payments are formed at the expense of new just-attract investors, and at some point HYIP suddenly stops paying interest and closes. As a result, many investors suffer financial losses and cannot get their deposits back.

In other words, all HYIPs are characterized by an extreme level of risk for investors. 99% of people who invest in such programs lose their investments. Some HYIPs exist for only a few days or even a few hours, and it is very difficult to withdraw your money from such projects.

Why do such projects still exist then? The first reason is the desire of people to make money quickly and easily. They do not want to see that those schemes are scams. The second reason is that novice investors have a low level of financial literacy, and they do not understand how HYIPs actually work. The third reason is that HYIP organizers manipulate investors by promising them guaranteed profits, but these promises are false.

It is almost impossible to bring the organizers of such programs to justice under the law, as they use false information or remain anonymous.

What to do if you want to invest in HYIP? Just don’t do it – it is extremely dangerous for your money. Be prepared for the fact that you will almost certainly lose your money. Do not invest amounts that you cannot afford to lose. Do not invest a lot of money. If you have lost your investment, do not try to compensate for financial losses by investing in other HYIPs. This will lead to even greater monetary losses.

How to choose a HYIP? It is impossible to choose a program that will work stably and pay. Choosing a HYIP is like playing Russian roulette - any project can suddenly close at any time. HYIP reviews and ratings are often biased or paid. The term of work and the interest rate is also not objective indicators. However, statistics show that HYIPs with unrealistically high-interest rates do not work for a long time.