What is an HYIP, and How Does It Work?

What ia Hyip ?

In the following complete HYIP guide, you will learn what precisely an HYIP is, the PROs and CONs of HYIP investments, and what HYIP types exist. Besides that, I will show you the HYIP rules you should follow, how to do due diligence on HYIPs, how to invest and make profits and avoid HYIP scams.

Plenty of work, so we should better start.

1. What is an HYIP, and How Does It Work?

A high-yield investment program, in short, an HYIP, is an investment program without a financial license that promises to the investors high yields exceeding 100% per annum or even more to the investors.
According to SEC’s website, investor.gov, most of these programs are PONZI schemes that you should avoid. That’s because they are using newer investors’ money to pay back older investors and last from several days to several years.
For your financial safety is better to treat these investments as money games with a high risk of losing your funds.

1.1 How do HYIPs work?

The HYIP’s work principle is straightforward. You register in the system and open an account in the international electronic settlements system like Perfect Money, Bitcoin and invest some money into the project. The very next day, as soon as the invested capital starts bringing profit, the mentioned payments will go to your account.
Summarizing the above, we have the following scheme: program leaders collect money from the private investors who do not have enough money to participate in off-line high yield income projects. Then, using their working schemes, they profitably invest it and then share the profits with the investors.
HYIP is one of the most profitable forms of cooperation for investors. Thanks to accumulating the assets, the money that was earlier isolated from any severe economic processes makes profits. The developed schemes enable the HYIP participants to receive the maximally high incomes the private investors cannot reach in any other ways.


Most of the high-yield investing programs (HYIPs) are fraud schemes that promise to provide extraordinary returns on investments exceeding 100%.
Most HYIPs are Ponzi schemes that take money from investors to pay out returns to existing investors.
Warning signs that an HYIP is a scam include guaranteed high returns, fictitious financial tools, extreme secrecy, and claims that investments offer an exclusive opportunity.

2. PROs and CONs of HYIP investments

Now that you know exactly what an HYIP is, let’s analyze the PROs and CONS of investing in HYIPs.
Let’s start with the PROs of investing in HYIPs

HYIP Advantages

A-HYIPs offer higher returns than most other investments;
B-Don’t require any paperwork and verifications;
C-It is easy to invest and withdraw profits;
D-You can make money by referring your peers;

But with all these benefits come with some costs, so let’s take into account the HYIP CONs as well:

HYIP Disadvantages

A-Most HYIPs are simply PONZI schemes;
B-Most HYIPs turn into SCAMs you will lose your money;
C-HYIPs are not regulated or hold any financial licenses;
D-In some countries, HYIP investments are illegal;
E-Most admins do not reveal their identity or use a fake one.

As you could easily find out, there are many disadvantages of investing your money into HYIPs, as is a high chance you will lose most of the capital.
Reading this article further means that you understood and you are comfortable with this possibility.

3. Different TYPES of HYIPs

There are several ways you can use for the classification of HYIPs. The most common ones are by investment term and return rate.
We have the following:

3.1 Short term HYIPS or money games

These HYIPs offer unreal return rates of 5-10% daily or even more and are mostly money games that will run at their best for a couple of weeks but most of the time for way less.
In the picture below, you will see the investment plans of such an HYIP.

I do not recommend investing in short-term HYIPs primarily because of their short life span and because they are designed to get as much money as possible from the investors and then close the shop. However, if you still want to try them, then treat them as money games or playing roulette.

3.2 Medium-term HYIPs

Medium-term HYIPs are programs that offer investors returns of anywhere between 1% to 5% daily. These programs have the chance to last anywhere from several months to a year or more.
I recommend investing in these types of HYIP programs with caution because most of them are simply Ponzi schemes, and the HYIP admins do not make any investments but simply pay old members with funds from new members.

3.3 Long term HYIPs

Any HYIP program that pays its members up to 1% daily has the chance to run for a couple of years if it’s run correctly by the HYIP admin. Also, the admin can invest money in lucrative businesses like Forex, Cryptocurrencies, startup-us, and generate profits.
For instance, such a long-term HYIP, SolidTradeBank, is paying its members already for eight years. You don’t have to take my word; check the thread about this program here on TGF.

Keep in mind that this doesn’t mean that any program with low rates will run for years. Some close way sooner because admins can not generate profits, decide to SCAM, or simply of the lack of investors. According to the interest payment periods, all online HYIPs may be divided into every hour, every day, every week, monthly, or when the deposit expires.

4. The Live Cycle of an HYIP

The standard living cycle for high-yield income projects includes four stages: the starting period, growth, saturation, and then the descent period.

These are the details:

4.1 The starting period

The starting period is simple the birth of the project. HYIP admins invest their own money in creating the project. First of all, money is needed for creating a well-functioning and attractive website and investment platform for content development, registration into paid HYIP monitors, and ordering ads in HYIP communities like TopGoldForum. All of this costs money, and the project is not yet profitable.
In this period, you can not assess the reliability of the project. However, it may be possible to detect indirect indicators that the project might be a fraud. If the website uses a cheap and/or unlicensed HYIP script, it is hosted on a free hosting company, and the content is taken from another website. These are all clear signs that you may deal with a SCAM project, and you should avoid it.

4.2 The growth period

This is the start of the project’s operation. The investors try to attract more clients to receive referral payments. The project reaches the point where it is self-sufficient and begins to bring in real profits.
This stage is crucial for the success of the project. It all depends on how many clients are attracted. The various strategic actions, such as additional money for everyone who registers, indicate that organizers support the program more.

4.3 The time of saturation.

This is the best HYIP operating model. This period has seen steady growth in the investment flow, maximum profit, and clients receiving their interest regularly.

4.4 The descent period

This is the most important stage in a program’s development. This stage is marked by users losing interest in the program, new investments fall, and the program ceases development. False projects cease activity after the end of the descent period. They don’t pay clients and vanish without a trace.
Trustworthy HYIP administrators take steps to lift their projects from the stalemate. Analyzing the actions of HYIPs during the downturn period will help you determine the investment prospects for the project.

5. How to evaluate an HYIP

Before you invest money in any project you got an interest in, you need to analyze every aspect of the program.

a-Amount of regular money payments.
b-Investment limits.
c-Specifics of the activity.
d-Trustworthiness to program organizers.
e-The Website.
f-Contract information.
g-Opinions on specialized forums and social media
h-Position in rating sites.
i-Independent research.

Let us consider in detail every item.

5.1. The interest they are offering

First of all, you need to evaluate the interest from the investment capital to be paid by the administrator’s projects. The main thing is not to get caught by promises. If the program promises you every day doubling of the invested sum, be sure, it is a fraud. The average amount of payments under serious HYIP makes up under 1% per day. There may be insignificant deviations. But 7-10% per day with almost no doubt indicates that the program is a Ponzi scheme and the money will be paid to the investor at the expense of new members.
The statistics show that the most serious high-yield income projects guarantee monthly payments in the amount of 10-30%. Besides that, the numbers may vary depending on the specifics of the activity. Another aspect is the investment limits.

5.2. Investment limits.

They are the limits for minimal and maximal amounts of investments.
It may seem the minimal bottom and no maximum for investing demonstrate the program’s openness and its desire to cooperate with the clients who have different financial abilities. However, as the practice shows, serious investment projects always determine the minimum and maximum investment.
If there are no investment limits, you should think about if not the admin is willing to get as much money as possible as fast as possible and when a large amount is invested in closing the program and disappear.
The statistics show that the most serious high yield income programs establish the minimal limit of $25 and strictly limit the maximum.
For instance, a long-lasting program has a minimum investment amount of $25 and a max of $10K.
Instead, a dogy program has a min amount of only $20 but a maximum investment cap of 5 million dollars.
If you have experience with money management, you know that managing a couple of hundred thousand is totally different than managing several million. It’s useless to say that I would stay away from the last HYIP.

5.3 The money-making activity

Almost every HYIP says about what form of economic activity will create the profit—some of the most common: cryptocurrency trading, forex trading, business investments, money lending.
The admins of serious programs, surely, are not eager to open all details of their activity. Many dishonest dealers in the world of online HYIP are always ready to bite from somebody else’s pie. However, there are general schemes for all serious programs. The Ponzi creators rarely develop complex schemes because they won’t use them anyway.

5.4. Trustworthiness to program organizers.

Another aspect is the trust in project organizers. Most HYIP admins register companies, rent virtual offices, or post insurances for millions of dollars. Unfortunately, most of these are not true.
Don’t get me wrong, the companies those companies are registered and are active; however, these are registered with dodgy documents. Also, keep in mind that in most jurisdictions, to run an HYIP, you need a financial license, so a registered company without a financial license is almost useless.
So stay away from HYIP programs that have registered companies behind but don’t have financial licenses. Recently an HYIP project even hired a paid actor to act as the admin.
Stick with HYIP admins who seem to know the industry, share details about their activities in HYIP forums or on telegram groups, and don’t raise red flags.

5.5 Investment Website

Another important aspect that matters a lot in the success of an HYIP program is the investment website. Analyze the content, the investment platform, the hosting company, and the overall look (design, creatives). Stay away from HYIPs that use not licensed or PIRATED HYIP scripts, copied content, and/or designs.
All these show the administrators are not serious about the program and did not spend any money themselves.
On the other hand, if the HYIP uses a custom script, has an app attached, and has good content in multiple languages, then the admins have long-term plans for the program.

5.6 Contact information

Just as I’ve warned before is very common in the HYIP world for admins to hide or use fake information like fake or shelf companies or fake contact details. As a rule here, it’s better if an admin does not disclose his location or company rather than using fake or shelf details. In the conditions of today’s business, it is rather reasonable and cannot be considered a direct sign of fraud.

5.7 Opinions on specialized forums and social media

HYIP admins who communicate on forums, social media apps, live chat, and social media should receive trust points. Thanks to HYIP communities like Top Gold Forum, you can reveal serious weaknesses in the HYIP you got interested in and learn the opinions of the investors who have already participated in the program. HYIP forums are a rather good source of the newest and impartial information, and you should not disregard it.

5.8 HYIP Monitors and Blogs

After analyzing information on HYIP monitoring sites like HYIPExplorer, Instant-Monitor.com you may learn whether the program pays interest at that moment and how long the program exists.
However, this information is less valuable than the information from forums because there are no guarantees the project that successfully pays interests today will pay them tomorrow. Finally, there is a possibility to check the HYIP by independent organizations.

5.9 Payment systems

Nowadays, most HYIPs use cryptocurrencies like Bitcoin, ETH, LTC as their main way of investing and withdrawing profits. Keep in mind that these payment systems are nonrefundable and anonymous. Besides that, most of the HYIPs also take payments by Perfect Money. If an HYIP program accepts payments via wire or bank transfer, these are good signs because they passed the KYC verification of a bank or a financial institution.

5.10 Any innovations

From experience, I tell you that if an HYIP has a unique investment plan or special features, they have a chance to distinguish themselves from the community and succeed.
Keep in mind that none of the abovementioned aspects can guarantee that the project is false or reliable. Only by studying them all can you make an adequate evaluation.

6. Ten Golden Rules of Investing in HYIPs

There are several Golden rules every participant in high yield investment programs shall follow. Disregard these rules may lead to the fact that instead of the expected incomes, the investor loses all their savings and turns out to be in debt.
The Golden rules are not just made up; they have been developed during years of participation in HYIP and are tested by the most effective trial and error method.
Following the Golden rules, you get a possibility to minimize the risks, maximize your profit and avoid fraud to the extent possible.

1. Don’t invest what you cannot afford to lose.

This is the most important rule. There is a sense only to invest the extra money you usually spent on luxury items into high-yield income projects. Never risk the money you usually spent on first-priority goods.
It is very unwise to invest money into HYIP that are to pay your housing bills. High Yield Income Projects are always risky, and it is dangerous to risk the money you need to support yourself.
No matter how much research and “due diligence” you do on a program, some will disappear for any reason. Your money goes with them when they vanish.

2. Don’t get greedy.

Don’t let greediness blind you. Even if the program pays you income for several months, this is no reason to mortgage your home or take credit at unbearable interest.
No one can guarantee that the project will continue to function as it does today. If you spend recklessly, not only will you lose your earnings, but you could end up largely in debt.

3. As soon as possible, get your initial investment out of the program.

The money you have invested is pure profit, so it won’t hurt as much if it goes away. You can also use your original investment capital for new programs. It will be tempting to ignore this rule if a program is doing well. I’m sure. It has cost me a lot of money. You won’t regret following this rule.

4. Always analyze in detail the project you are interested in.

Only by studying all aspects of the project’s activity, checking all information, and analyzing additional information may you have a complete overview of the project and its estimated life span.
Don’t get fooled by video presentations, company registrations in various locations, or huge advertising budgets. HYIP owners are very creative nowadays and will use money from previous programs to launch attractive programs.
If you miss the analysis stage and recklessly invest your money in the first project you got interested in, in the event it gets suddenly closed. You would blame only yourself.

5. Diversify your investment.

It would be best if you aimed to invest between 5-10% in each program. This is not an easy goal, but it is the most secure. Finding enough long-lasting, stable, and paying programs to invest in is the toughest part.

6. Start by investing the minimum amount.

Programs have a minimum investment requirement. Stick with it, and you will only be able to roll back your profits once your initial investment has been returned.

7. Do not believe the huge interest.

As a rule, they show that the project is false or is a kind of pyramid. Remember, 30-50% of monthly income is an adequate percentage. If you are promised to be paid more than 200% of your investment, you can be sure it is fraud.
Programs that promise incredible returns in a short time frame should be avoided. If a program promises more than 40-50% return on investment per month, it will likely be discontinued.

8. Try to enter an HYIP early

The earlier you go in, the better your chances of making money. In this sphere, first come, first served. If you enter projects half a year later, you can lose out on the steepest HYIPs.
But there is no need to cling to the starting date either – you have much more chance to earn in quality, checked HYIP-ancient than in the newbie that was started yesterday and is just getting on its feet.

9. Your password information must be kept secret

The investor-beginner mistake is using the same password for multiple HYIPs.This gives the potential for criminals to gain access to your confidential information. Even worse is when the password you use in high-yield electronic payment systems and projects has the same password.
They will always keep passwords that have been registered in users’ projects. They then attempt to use them to access electronic purses. When creating your password, think about making it difficult to track. Use passwords Multiple words that contain symbols from different registers or numbers.

10. Learn from your experience

and move on if (or should I say, when) you are scammed. Although not a bad option, you can notify the authorities if you feel it is necessary. However, I have never heard anyone succeed in this. It is important to determine if you violated any of the rules or exposed capital unnecessarily.
These “rules” and tips may prove to be useful. These are the rules I follow and have seen a significant decrease when I lose money. My greatest losses in HYIP were actually when I started and didn’t understand the rules. Now, I make a profit.

7. How to invest in HYIPs

Now that you know what an HYIP is, how to make due diligence and the golden rules of HYIP, it’s time to make your 1st investment.

7.1 Register and fund a payment method

Before investing in any high yield investment program, you need to have the funds in a payment system like Perfect Money, Bitcoin, etc. As I’ve previously said, most of the HYIPs now use Perfect Money, and you can quickly get an account here. Besides PM, most of the HYIPs also accept cryptocurrencies like Bitcoin, Ethereum, LiteCoin, etc.
I recommend you choose the payment methods that have the lower fees. I use Perfect Money and Litecoin for HYIP investments. If you need to transfer funds from one payment method to another, you should use a cryptocurrency service. Check our approved list of cryptocurrency exchanges.

7.2 Where to find HYIPs

There are several places where you can find HYIPs, but HYIP forums and HYIP monitors are the most common ones. I recommend you to start with HYIP forums like our HYIP community because most of the new HYIPs are posted there in a matter of hours. I will tell you a little bit later why.
Several HYIP monitors where you can scan for HYIPs: HYIP Explorer, Instant-Monitor.com, List4HYIP.com.
When you scan for HYIPs, do the due diligence process I’ve shown you at step 5 of this HYIP complete guide

7.3 How to register an account in an HYIP

Now that you selected an HYIP and passed your verification process, it’s time to register an account. Most of the projects have similar navigation and interface and do not require a lot of personal information from the new user. But there are exceptions, registration in which will take a lot of time.
After you register and confirm your account, log in and make sure you set up all the security measures like 2FA, withdraw password, etc., to keep your account in good shape and avoid any hacking.

7.4 Make a deposit

After you ensured your account is secure is time to make your first deposit and start earning money. The process of depositing funds is straightforward. Most HYIPs have calculators that will tell you exactly how much money you will receive.
Before investing, double-check everything, including payment terms, deposit and withdrawal fees,
After you enter the amount of investing and select the gateway, you will be redirected to the payment gateway to complete the payment. After that, you will be redirected back to the program, and you should be able to see your deposit in the program.

7.5 Withdraw profit

You should ensure that you have set up your payment accounts in the program to withdraw your funds. Double-check that these are correct and active. As I’ve said, payments using Perfect Money or cryptocurrencies are irreversible. If you added a wrong account and the admin sent the funds, those are lost.
There are several ways HYIPs will pay you. Some will allow automatic withdrawals, and you will receive the funds instantly after request, while others process those manually, and it may take a day or two until you receive the funds.
If you have not received the payment in the given timeframe, you should contact the admin or check the HYIP forums. If the program is marked as SCAM, you lost your money, and you should move on. Also, if no one marked the program as SCAM and you have not received your payment, you should warn the community.

8. Conclusion

Congratulations on making it to the end. Now you know what an HYIP is, where you can find good-paying HYIPs, how to spot real opportunities from SCAMS and how to invest and make money with HYIPs.

You Might Also Like

Leave a Reply