Hi guys,
I am creating a mini series of articles about investing cryptocurrency coins and today I will be reviewing something called High Yield Investment Programs - HYIP in short. I’m gonna take a closer look at a few of HYIP websites, what they claim to be and what they really are.
Please note: everything that you read here is my opinion only. I do not believe that I'm always right so always filter everything that you read trough your own judgement.
In one of my previous posts I reviewed metizer.com website. It's a good example of HYIP investment but there's a lot more websites that claim to give you great profits from the bitcoins that you deposit to them. Let's take a look at few of them.
In short words - you account balance increases by 20% daily from every deposit you make, but the minimum deposit if very high - 0.5 BTC. This is a recent change as you could deposit smaller amount of 0.01 BTC before. This change may indicate that the owner of the site is thinking about closing it and running away with the BTC deposited by users so he wants to get as many BTC as possible. But it can also mean that they are diversifying their strategy and found out, that bigger deposits are more profitable for them. Time will tell.
Now, the first question is - how can someone develop an investing strategy that makes 20% a day and then allow others to participate in the profits? Why would anyone bother to work if you can just pay some internet website and make 20% profit a day (that's 230% a month!). If you don't believe in fairytale, you probably know it's not possible. Yet, the website is functioning for over a 100 days and everyone gets their money so far.
There are two factors here that make any HYIP possible. First, the profits of old users are generated from deposits of new users. In other words, if you register and deposit, your BTC are being transferred later on to other users as their profits (ponzi scam). But the second mechanism is more interesting - it's called greed ;) When you see that your first deposit is generating you a stable income, you deposit more because you want that income to increase. Sometimes it can be hard to notice that by depositing more you indeed increase your daily income but in the same time you still don't get the 100% return of your investment - you are still on the negative and you're putting back in time the moment, when you will receive more than you deposited.
If you're interested - below you can see the summary of my account on tophash.net
RapidHash
Rapidhash has a lot lower minimal deposit value which makes it more accessible. The site claims to generate 0.16% profit hourly from your deposit which makes about 3.8% daily and 115% monthly.
Of course, as on any HYIP investment website, you can not withdraw your whole deposit which means that you need to wait at least 26 days to get your investment back. After this time period you will be making profits as long as the website exists.
On almost every HYIP website you will be able to read an amazing description of their investment strategy which will tell you nothing.
Tophash: TopHash Limited offers lucrative cryptocurrency market investments. Profitable operations and high yield are achieved through the use of modern systems for the cloud Bitcoin mining. TopHash Limited technical experts possess the necessary knowledge and are in close cooperation with financial analysts and traders on cryptocurrency exchanges ready to make a profit on a consistent basis, and to develop and influence the development of Bitcoin industry as a whole.
RapidHash: Founded in 2017, Rapid Hash Limited (incorporation number: 10604525) has quickly established itself as a trusted cryptocurrency investment company, offering a comprehensive set of services for Bitcoin holders to make sound investments and safeguard their financial future. Based in London, Rapid Hash Limited has invested in a diversified staff of leading professionals across a broad spectrum of specialties, including engineering, advanced computational technology, and cryptocurrency mining techniques.
Zinc7 The Enterprise focus mainly on Zinc7 Reselling & Logistics, like reselling of coal and Zinc-fiber reinforced plastics to high demand areas that lack in supply, with over a thousand M/tons per month (and increasing), this provides a slow but substantial profits for our "short term" needs.
Most of those descriptions are pure gold:) But let's say you are an inexperienced cryptocurrency user and you find those descriptions believable. Your next step is checking the companies that own those websites and here lies another surprise. Those are real companies but you should notice one thing - they are all registered in UK. Why? Because UK has very liberal economic law and basically anyone can register company in UK. As far as I know, you can hide behind proxy person and legitimate your company by registering it using any real London address - no problem here.
Well, I'm still not 100% sure that those websites are scam. Maybe some of them really have shares in crypto mining operations or do indeed invest the deposits with success. Nevertheless the risk is still high as those profits are to high in my opinion.
So is it worth to deposit some of your cryptocurrency coins into HYIP platforms? I think that yes, but only under certain conditions:
As always, the decision is yours. Cheers!
Please note: some links used in this article contain my referrals which are:
https://rapidhash.io/?ref=qrde
https://tophash.net/?ref=qrde
https://metizer.com/?ref=J3kmFc
If you find this post helpful, please consider using them. Remember to invest only small portion of your assets!
