What is HYIP?

[Martin]

HYIP is basically a program where the objective is to accumulate money or capital.In return, the program of these promises 'Investors' or fix a certain return on their money in the program.

Most if not all HYIP are processed on the Internet are not regulated, and I doubt that it will ever be resolved. The interesting part is that, it seems that the HYIP community or investors themselves are indirectly regulate the industry.
Even if they can not comply with the industry, they select community,inform and be informed about the programs that are good and which are not.

Some veterans offers monitoring sites to help regulate these programs that are currently on the Internet,informing the masses what programs are paying and which do not pay or how programs perform with some indications posted on the monitoring sites.

HYIP was held, branded and said to be one of the scams ponzi and pyramid schemes. But still, even HYIP continue to attract a large number of new investors, while retaining some veterans investors.That's what makes it an interesting industry.

The way they make money

As stated, HYIP are created to accumulate capital from the masses to engage in a business Idea. Most of the time, if you take out the ponzi factor, this programs claim they make money on the following:
• Forex trading
• Stocks and Commodities
• Internet businesses
• Sports betting

So, the real question is whether it is possible? Again, taking the ponzi distance factor,seems possible.
Live forex trading is an example, because that's what the majority of the programs pretend to do in order to generate profits. This programs pretend that they can make x amount of money by months using their strategy. If this happens, according to the system, it would be wise for the user to make money as well.

In FOREX or financial institutions there is something called margin financing. Margin financing offers investors a way to use a small sum of money to control a large sum of money in the market. Example, by investing in foreign currencies, with a $1.000 deposit margin investors can control as much as $100.000 worth of foreign currency.

So how can they make money from that margin financing?!
Take the example of an investor that purchase 100.000 EURO to the EUR / USD exchange rate of 1.18. Meaning, he is controlling $118000 with only $1000 security/margin deposits.After some time, the exchange rate between the 'EUR / USD is 1.2500. If the Investor sell his holding, it means that he should return $125000. Thus, the difference is $7000 will be pocketed by investor.
It's almost 600% back!So now, let's take a step further, if the investors have $100000 margin deposits, investors could effectively control a whooping $10000000 value foreign exchange!
So how this is going to get investors to $100000?Yes, you are right… through OPM or Other People's Money. If the owners can find other investors to put their money to get this Owners can get a higher margin he or she actually could more control and equity $7000 profit from the example above can be effectively $70000 or $700000 depending on the amount pooled.So what do you think each member must receive? Say 1 percent daily?This is a great idea, right?

The point of failure

Let's assume that these programs are legitimate, and they are actually making money by forex, or any business strategy. They fail because the forex system or strategy or another business strategy for stocks, online investments or betting sport is not a system to teach or assist the Program owner processing of a large amount of money. Be sure that it is an excellent way to earn money for a self-sufficient, but a strategy and the system that are available has not been written or developed to create a program to manage huge amount of money.

Well, I do not think the system owner originally planned that when he created the system or strategy. So when an idea is rather high, or when the money put into a program is too high it will sure get out of hand,like Charles Ponzi they will have to use fresh money from the former members again. Another term that is used in the accounting world is ‘Managing Cash flow’
Thus, the programs collapse, even legitimate those if there is one.

All HYIPs are SCAM?!

Well, you guess is as good as mine, but the feelings in this industry are saying that 99% or even 99.9% of all HYIP if these are scams the program claims to make money from trading the forex, betting systems, commercial enterprise.

Humans are simple. When they lose money, they will begin to shout and scream.Plaindre, labeling everything that is losing money as fraud, ponzi,Pyramidales and any other name names because that can be think, even though the subject fault Point could be or might be valid.

Once that is losing money HYIP, the man would naturally cry and begin to label HYIP a scam.Firstly HYIP is done over the Internet. Being anonymous is what the Internet offers. It is quick and relatively cheap to set up a site and start luring ignorant users to the party with their money. Another reason HYIP was stigmatized as a scam because you can not check where this program is to verify the claim or that the program claims to be gain or arising from its revenue. If we can not verify that it is legitimate, we assume the obvious that this is a scam. So HYIP are guilty of fraud until proven innocent, or rather proved it's paying it's members.Another reason for HYIP to be labeled as scam is because most of all don't stay online for a very long time. Some program collapse if first week after the launch or after 3 to 4 years of operation.

http://www.moneymakerhot.com/HYIPs/What_is_HYIP.html

[MyInvestmentSupportTeam]

But doesn't it seem to you that if investing on-line was only cheat and nothing else, there wouldn't be so much talk about nothing? Probably then there are some people who manage to make money on this. But the point is, naturally, what company you deal with. May be here you can find the answer.

Liza
My-Investment.com Support Team

[Emma Reyes]

I also believe that it's possible to make business via investing on-line. Not always, of course, but you should simply look for it.

[blueGold]

I did not quite get what you are saying, is this way of doing business new?