INTRODUCTION TO HYIPS

HYIP stands for High Yield Investment Program. While a HYIP may sound

enticing, you should be careful; many HYIPs are little more than thinly

disguised

ponzi schemes.

A ponzi scheme is a system by which investors are lured to invest in a

program

by promises of very high returns on the investment. Early investors are

paid

using the money that later investors invest in the scheme. Things go

well until

new investors stop joining the system and the money runs out.

If the HYIP you are considering is not registered, you should not

invest. Other questions to ask yourself include, whether the claims to good to

be true and howthe people running the program generate the high yield

returns that you are being promised. You should be careful of the claims

people make regardingsome secret network or principle that allows them to

make excessive returns. If the proponents of the HYIP cannot or will not

explain how the returns are made then you may want to avoid investing in the

program.

HYIP AS AN INVESTMENT

A High Yield Investment Program( HYIP) is a type of investment scheme

normally offered via the Internet payment

processor typically accept deposits as low as $10 through e-payment system.

while promising astoundingly high returns. Online HYIP schemes rarely last

for the long term. Overwhelming number of cases suggest that HYIPs are

Ponz schemes,in which new investors provide the cash to pay a profit to

existing investors, which they typically then withdraw. This approach allows

the scam to continue as long as new investors are found and/or old investors

leave their money in the scheme,known as compounding (because even

higher profits are promised).