How does the Hyip Investment Program work?

What Is a HYIP? My Experience with This Kind of Online Business

Recently, I have received e-mail from my readers asking for the authentication of various companies that offer easy and effortless earnings through an investment capital appreciation system. The majority of inquiries from my readers are regarding the so-called HYIP programs. These typically require a financial investment for a period of time, after which you simply “reap your rewards.” I have outlined my experience with this type of business in this article. I also offer advice on what to be aware of, if you decide to invest in an HYIPs as well as several HYIP monitors.


What Is a HYIP?

HYIP is the acronym for High Yield Investment Program which promises an excellent growth of the invested funds. The growth rate is sometimes so high, that it could be regarded with some suspicion and skepticism.

A short-term HYIP promises to increase the deposit by up to a few percents in a single day; while a long-term HYIP calculates a gain of approximately twenty percent for a two-week scheme.


Virtually all “business” models of a HYIP are based on the Ponzi scheme. In other words, it is a pyramid/airplane game where only the founder, or the initial investors, earn money, and they are generally well aware of it. They know these investment programs very well; i.e., when to invest, when to withdraw money from the system and ultimately disappear.


HYIPs are almost always fraudulent investment programs, mainly offered over the Internet. They offer unusually high/excessive profits to their investors.


How Does a HYIP Work?

New investors who join a HYIP program are basically paying out investors, who have been registered under the scheme for a longer period of time.

The system itself does not actually generate any profit, as the owner of HYIP does not invest the new partners’ deposits, nor is there any actual product that would generate money. This sets it apart from the legitimate multi-level-marketing (MLM) alternative.

In other words, HYIP is basically just a redistribution of money between its users, the investors.


Eventually, the HYIP scheme will bottom out when the flood of new investors dries up and there isn’t enough money to go around. At that point, the schemes unravel. They are therefore only available for a short time at the end of which they generally face bankruptcy. The people who invested their money could attempt to contact the originator of the program for years, in an attempt to get justice; this is always extremely difficult, if not impossible.


Some HIYP sites may be illegal depending on your country’s laws. The owners of such systems could be prosecuted for fraud.


Fraudulent HYIP offering excessively high capital appreciation.


The Pros and Cons of a HYIP – Can You Actually Earn Anything?

Although reading the above may not be very encouraging, it does not automatically mean that profits cannot be realized on a HYIP. It is all a matter of timing.

The generally observed rule is, invest only what one can afford to lose in any given project. It would be foolish to invest more than one is prepared to lose.


The cons to bear in mind are quite obvious:

  • In the vast majority of cases, it is not possible to insure funds deposited as the investment is speculative.
  • Information about the project founders is not readily available.
  • In general, the higher the promised rewards, the higher the risk.
  • It is important to note that most HYIP programs use an internet wallet (Payza, PerfectMoney, Skrill etc.) and will not deal with the traditional bank accounts.
  • Paypal is also not available to use as the payment method,
  • The HYIP promotion is sometimes possible exclusively through email spam, pop-ups, etc., which makes one question the credibility of the offer.


Are there any pros?

Yes, of course, there are. With good timing, one can expect some remarkable profits.  However, one must act quickly and have a short-term plan. Once the money has been invested, the larger part of the deposit should be repaid with interest and leave everything else to fate.


My Rules When Investing in a HYIP

I have some experience with this form of online income. After the PTC (Pay To Click) experience, HYIP systems were my second “stop” where I tried to earn some money. Some schemes ended before I was able to withdraw any earnings, while others are still going but not paying any revenue.


Based on my personal experience, I have decided to highlight several observations on what to avoid when investing in HYIP schemes. Although, it would be wiser to avoid these programs altogether.


1. Select the Area Where the HYIP Schemes Are Already Working

There are areas that carry lower risks and then those where it is not worth investing your money at all. Investing in Adshare, Revshare and similar systems will certainly not be the best idea. However, in the case of Forex or Poker, you can expect the HYIP scheme lasts longer than usual.

Sometimes the founders will claim that the money will be used to start a short-term loan system, or for investment sports betting, etc. The stories could vary and some are almost hard to believe. The author of the fraudulent mechanism is not interested in the clients’ investments growth, they are only interested in getting as much money as possible and then they tend to disappear quietly.


2. Thoroughly Check the Website through which You Wish to Invest Money

I recommend using so-called HYIP Monitors. These are specially designed websites that usually run on a script indicating an up to date status of an investment program. The HYIP Monitor helps with the updates of projects and contains references from real clients which could assist in making a decision to participate, or walk away.


There are many websites offering HYIP programs monitoring. In this article, I will talk about several such systems, the ones mentioned are widely known and are perhaps most trustworthy. You can see the list of these monitoring websites below.

I wish to point out, that even these HYIP monitoring sites are not always 100% trusted, and I would always recommend that you conduct your own research. Type the name of your HYIP program accompanied by the keyword scam or fraud and you are sure to find a lot of useful information about that particular project.


Here is the list of most trusted HYIP monitoring websites:



Alternatively, check out the website I am sure this website is familiar to most of you, all you do is enter the keywords (e.g. the name of the particular HYIP system) into the search field within the website and await your results.


3. Do Not Fully Rely on the Websites as They Are Often Purpose-built

Should you invest in recycling plastic waste or cryptocurrency? The founder of the scheme can often prepare a project that looks completely trustworthy at first glance, but very often, your money actually goes somewhere else and not as indicated.

Try to select projects by focusing on the facts presented and not on the great financial opportunity.


4. Daily Profit

This is important. Never leave your money in a scheme that promises a return of 110% payable after thirty days. Ideally, find a company that repays money every day. This decreases your risk of loss. Further, the program should have the option of a compound interest and a principal return of your investment. If the scheme does not offer these, I recommend that you do not invest.


5. Invest Less Money

Only a fool invests all their savings in the HYIP system. Never invest more than you can afford to lose, or more than you have already earned on the Internet.


6. Be Prepared for Disappointment 

Things don’t always work out. Sadly, people often invest and subsequently lose large amounts of money. Which is why, I recommend that you stick to my rules, invest smaller amounts in better-looking projects.


7. Which HYIP Sites Should Be Avoided?

First impressions count; if the website looks as if it was designed by an amateur high school student, I would definitely recommend staying well away. If the founder didn’t bother to invest in a properly presented website to make the product marketable, it could indicate that they are likely going to disappear within a few days.

Be alert – Are investments only conducted through cryptocurrencies? One of the reasons for this may be because these new payment systems are often difficult if not impossible to trace, should there be an investigation. Technically speaking, it is practically impossible (for now) to persecute the founder of a HYIP.

Also, avoid taking part in the HYIP programs, where the affiliate commission is over 50%, of course, the risk of fraud tends to grow with the promised percentage rate of earnings.


You could be interested in:
The basic characteristic of a  Ponzi scheme – this article talks about what all the above-mentioned online frauds have in common. It should shed some light on how every Ponzi scheme works, from start to finish.



If you have decided to invest in a HYIP, choose carefully because approximately 95% of these schemes are scams. They collect your money and, at the best moment, they disappear.

Of course, it is also important to take into account how long the HYIP program lasts. Some programs last only a few days, whilst others could last a few months or years. So, before you invest your money, I strongly recommend conducting a search for information on the Internet.


I would certainly not recommend investing in the first HYIP system that you come across. I would also recommend that you avoid any and all such schemes that promise astronomical earnings.


You could be interested in:
7 Methods to Recognize a Credible Investment Company from a Financial Game – in this article you can read about 7 basic differences between credible investment opportunities and pyramid/financial games.


Have not found what you were looking for in the review? Then try to check out also the discussion forum. You may find some interesting information on this topic.

If you already have some experience with a HYIP, share it and write to the discussion. 


Did you find this article informative and the information useful? If so, please share it with your friends. If you are interested in finding out more about online earnings, I would definitely recommend joining my Facebook group, where I regularly post reviews about various work opportunities from home, doing business via the Internet and making money online. Click on “Like” and in notifications set “receive all posts.“ Do you prefer tweeting? Then follow me on Twitter.



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