Perhaps you have ever seen is the so-called bitcoin high yield investment programs — HYIP. They usually promise high profit from your bitcoins in the short term. Most often it is the suggestion from people who claim that they present themselves to invest in such a program. Should we trust them? We offer to your attention translation of the article, Andrew Tank, a contributor of the online publication usethebitcoin.com.
Let’s see what bitcoin HYIP and in fact can they be considered a legitimate way of investing in cryptocurrency.
What is HYIP
HYIP is an “investment programs with high income”, which exist for a long time and are not new in the world of bitcoin and cryptocurrency.
In fact, HYIP is a Ponzi scheme, or what we used to call a pyramid. It is associated with the disbursement of new investors earlier. As a result, some do receive income, if included in such a scheme early enough. However, it is a very unstable model, because as soon as the new investors cease to bring in funds, cash flow is interrupted, and many are left with nothing.
To generate high returns, HYIP frequently invest customers ‘ money in companies with high level of risk. It could be stocks or bonds intraday trading or sports betting. The same can go for the bitcoin HYIP using as an investment tool, bitcoin or other cryptocurrencies.
One of the most common options bitcoin HYIP — investing it in mining pools. The idea in investing in cryptocurrency mining and the remuneration, however, is often of real companies with working equipment you can stumble upon a pyramid.
The legal bitcoinHYIP?
In each case you should analyze what is bitcoin HYIP. But keep in mind that the majority of them scams. Around cryptocurrency in General, curls are many scams and schemes “quick money” become a great tool.
Of course, there are programs with real investment plan, for example in the same mining. To distinguish legitimate at first glance from a pure HYIP Scam is not so easy. It should also be noted that any bitcoin HYIP depends on the stability of the cryptocurrency market. If investing in crypto currencies is the risk that investing in HYIP is doubly dangerous. Risk is only the money that you are willing to lose.
How to find a “good” HYIP?
In any investment in crypto-currencies, it is important to conduct thorough research. In the case of HYIP, it is critically important. If you do not exercise due diligence, you can become a victim of fraud or simply ill-conceived program.
Find maximum information about the company before investing in it. Fraudsters is not difficult to make a website that looks convincing and contains a fake positive reviews. If you can’t find independent information elsewhere, be extremely careful. Pay attention to the warning signs on the website of the company. Errors, inconsistent information, or anything that looks “fast” and “cheap” should cause you concern.
Scammers often promise extremely attractive incomes that are too good to be true. They hope that the promise of big, fast, risk-free income allowed people dust in the eyes and encourage them to invest without proper verification of facts. Be wary of bold assertions. If the scheme promises a profit of five, ten or more percent a day, it is unlikely that it is legitimate. If the HYIP program is genuine, it will offer realistic income and negotiate risks. Legitimate enterprise, most likely, will not promise profit than 1% on the day.
You can also pay attention to how people, HYIP advertise, do it through emails or social networks. If they claim that they got great profit and that you too can do this, beware. Do not believe a word and do your research before making an investment decision. Get away from those who are evading a direct answer if you asked a specific question.
As the old saying goes, if something sounds too good to be true, then it is wrong. Be wary of schemes that promise huge profits in a short period of time, since in any case we are talking about a greater risk.
If you are going to invest in HYIP, be sure to examining the issue. If you hope to double your money in a month, please note that with the same speed you can lose everything.