So, you decided to give it a try and invest in HYIP (high yield investment program). You understood the potential risk involved in HYIPs and decided to take calculated risks.
Do you know the risks involved and decided to invest in a specific program? How do You start?
To invest in any HYIP, you have to open an e-currency account using a service such as Bitcoin or Perfect Money. To fund your Bitcoin wallet, you have to send money to an independent exchanger providing your Bitcoin wallet details. To send money to the exchanger, you can use bank wire transfer, online payment systems, Western Union, Moneygram.
Say you want to invest $100 in a HYIP using Western Union via Bitcoin:
- You send $100 via Western Union to an independent exchanger, and you provide your Bitcoin wallet.
- The exchanger, upon receiving your $100, funds your Bitcoin wallet.
- Once you have the money in your e-currency account, you go ahead and invest in your desired HYIP program.
In the HYIP world you can find several ways to name things, usually companies use those of most impact to make things appear more intresting compared to what they really are.
Basically, there are 3 ways of make investments.
- Capital locked for a fixed time. Interests are paid daily or weekly and principal returned on end that can be reinvested or withdrawn. For example your principal is locked for 180 days. The investment profit is 0.7% daily and after 6 months, the principal is returned and made available to investor. You can withdraw or reinvest for more 180 days. This method is really simple to understand. I can say that this is the way everybody thinks when speaking of investments.
- Capital locked for a fixed time. Interests are paid daily or weekly and principal automatically returned on the end. Companies operating this way can perform their job only if they use e-currency, like Perfect Money or Bitcoin. For example a HYIP could offer a 1.2% daily interest for 30 working days. You cannot reinvest interests, just withdraw, and approx 42 calendar days, your principal is returned. This method is called: Principal Back. Quite easy to understand, just pay attention if interest are deposited every day (calendar) or just during working days.
- Capital locked for a fixed time. Interests are paid daily or weekly and principal is not returned. This is the case of those HYIP that pay interests for the whole duration of the investment but principal is not returned because included in daily interests. This system is called: Principal Included. Your interests are equal to interests paid less principal.
I do prefer the first two methods, maybe type 2 are really the best investment types because you can reduce the risk time of your investment. Personally I think the third method is not quite easy to understand for everybody.
It becomes obvious now, that when you analyze an HYIP offer, it’s important to understand if your investment will be Principal Back or Principal Included. The difference between the two methods could change enormously. Whichever of the investment types you’ll decide to use, remember to evaluate the risks and keep in mind the HYIP basic rules.