INTRODUCTION

Nowadays the word HYIP has become a very common term in the cyber arena, even though a lot of people still have never heard of it before. It's even caught the attention of government financial departments to ponder on. Even the federal securities are talking about HYIPs. So what's the big story behind this four letter word? Let's find out through this detailed report, which is based on what I've learned from other experienced investors, some of which have several years of field experience in this arena.

What is High Yield Investment Program (Hyip)?

HYIP, which simply means High Yield Investment Program? It's exactly what it sounds like. These companies ask you to provide them with a loan of money and they promise to repay you with interest payments on a Daily / Weekly / Monthly basis.

The return you get on your investment ranges from very small to very large percentages and could be spread over a long period of time. You'll usually recoup your investment in about 2-3 months, and from then on it's pure profit.

HYIP’s are probably the most profitable investments available now days. Some can give you up to 100% return on your investment per month. This industry is growing by storm everywhere on the internet. There have never been investment opportunities such as this to give such a high profit within the shortest time.

There are many different HYIPs on the internet with many different methods of payment and repayment.

The real HYIP's are legal, they're a form of investing, but they're only legal if you declare your earnings from them on your tax form, usually under 'capital gains' (similarly, you can put your losses on them as well).

Can there be fraud in HYIPs?

Yes there can be, and there are plenty of them online. From our research, as many as 90% of the HYIP programs out there are fraudulent programs run by scammers. They're are just there to take your money and run. These HYIPs usually last no more than 3-6 months. That's why it's wise to do your due diligence before investing any money.

How Do I Know if an HYIP is a Scam or Not?

Simple and straight answer: You don't. You can take advice from people in the industry, read forum posts, etc. The decision to join should be entirely your own, and you should understand the risks involved as I've outlined them here in this report.

An observation -- Possible Scam filters

In my time in the HYIP arena I've observed the following:
1. Hourly or Pay by the minute HYIPS are almost all scams. None of them lasted for more than a few weeks.
2. HYIPS with 'Gold' at the end of their name (ex. KenaroGold and TradeProfitGold) tend be scams.
3. HYIPs with 'Bank' in their name tend to be scams. A HYIP is a HYIP, not a bank.
4. HYIPS with 'OIL' in their names (There was one called OILBank once. LOL) all tend be scams. The OIL like the bank and the gold is added to disguise the scam.
5. HYIPS with the canned HYIP script then to be scams (we are aware of only a few exceptions out of the hundreds of HYIPS that have launched and disappear since May when I started out).

Is there any risk in HYIPs?

There's risk in any business. If you can't take a risk, then you can't expect to gain either. The bigger the risk, the bigger the return. These HYIP companies manage their investments in the high-risk arena and that’s why they also make such a high profit. So there's always a risk of losing money, which can happen with any business. The same is true if you put your money in the stock market on your own. That's why it's always best to invest a comfortable amount you can afford to risk.

How Much Can I Make?

It depends entirely on how much you invest (obviously the more you invest, the more you make), and the daily percentage of the program (higher daily percentage = more money daily).

How Much Can I Lose?

Again, you can lose as much as you invest. Therefore remember the golden rule of HYIP: ONLY INVEST WHAT YOU CAN AFFORD TO LOSE.

How Much Can I Invest?

Depends on the company. Some companies allow you to invest from $1, and most have no upper limit. Check the specific company for more details.

Choosing The Project

1. First of all answer yourself a question "how did you find the project?". The best answers are "hyip monitoring", "forum" or "friends recommendation", but take it with caution if the answer is "google ads" or "spam".

2. Analyze the project website data. The following statements should be true for a good choise:
The project is well represented on forums and hyip monitorings (try using google search engine to find that out).
Another aspect is Alexa page rank which should ideally be less than 300.000 (that demonstrates high popularity of the project which in one's turn indicates the numbe of investors who bring money into the project).
The administration efficiently replies to your messages concirning the rules and problems etc (the admin of good project should be always interested in every particular user and provide constant support).
If whois data is not anonymous, them try to check the organization/person data (once again google search engine will give you a good opportunity to do that).
Pay attention to the project script and design (if you like that, then others will probably like it too). Try to decide which statement suits the project website the most: "design looks fresh and professional", "I've seen it before", "design is poor or no design at all". See the server script in proper perspective: "GoldCoders or something common", "unique", "no script, just static html". One should understand the fact that if the project spent enough money on the design and script of the website then he is probably wishing to at least refund his expenses and stay for some time.
Take a look at the quality and quantity of advertising possibilities (variety of banners, referral and promotional bonuses). Advertising the project will prolong its life. Check if the project has ordered advertisements on other web resources (hyip monitorings, forums etc). If the project agrees to spend some money on advertising itself, then it will probably stay for a long time.

Following the steps under before the registration will help you to choose the optimum.
project whois
last votings from three monitoring sites
common project information (news/admin/organization info)
alexa traffic rating
investigations
professional help and advise from Hyip-Assistant admins
investors package tool (track your spends and incomes)

Why Use Gold Currencies

Most, if not all HYIPs use Gold Currencies for funding investment accounts. Gold Currencies link together financial institutions and markets across the globe in a way that allows instantaneous value transfers with a fraction of the paperwork and fraud associated with traditional bank wires and credit cards.