Surely many of you are no stranger to the HYIP investment form with attractive offers such as 100% huge profit in just a short time. But what is the true nature of HYIP? Is it really that easy to eat? Let's learn about the HYIP operating model with Coin98 in this article!
What is HYIP?
HYIP (High Yield Investment Program) can be understood as a super profitable investment. This form of investment does not require participants to be financially knowledgeable, because users only need to deposit money to a certain party and receive periodic interest.
HYIP investment will normally bring very high profits, much higher than if you deposit money in a bank account. HYIP allows you to invest money and generate profits monthly, daily or even hourly depending on the regulations of each site.
Basically, investing in HYIP sites is quite simple, your job is just to invest money in the HYIP site and wait for the day to withdraw the money, you will receive interest according to the % specified on that site. The interest rates of HYIP sites are often very high.
What exactly is HYIP investment?
Any investment opportunity that promises high, easy, risk-free returns shows signs of dishonesty. The High Risk – High Return principle is almost true in all markets.
Therefore, the majority of HYIPs are Ponzi schemes and the organizers aim to steal the invested money of the users . In there:
- Money from new investors is taken to pay profits to the original investors.
- The money is not invested and no real underlying profit is earned.
- The new money is only used to pay people who participated in the scam earlier.
Although Ponzi schemes have existed since the early 20th century, the rise of digital communications technology has made it much easier for fraudsters to commit Ponzi scams. You can learn more about what Ponzi is, as well as how to scam investment organizations using the Ponzi model through the article below.
Naturally, not all HYIPs are scams . Not to mention, in crypto there is also a form of making relatively stable profits from 10 - 100% per year, such as providing liquidation for stablecoin pairs to participate in Liquidity Mining of some protocols.
For example: Provide UST- USDT liquidation on DFYN and then Staking LP Token on Dinoswap or deposit UST on Anchor to earn 20% APY per year,...
Providing stablecoin pair liquidation on Dinoswap with nearly 20% profit
The above may be easy for many of you familiar with Crypto. Even 10% - 20% profit a year you still criticize a little, but that interest rate is almost higher than the deposit interest rate of banks.
In the eyes of many people who are not familiar with Crypto, the above interest rate is an attractive interest rate. If someone did all the work, they just needed to deposit money and wait to receive monthly interest, do you think they would accept it?
Of course, higher profits still have certain risks, for example, hacked protocols, UST & USDT price deviations, dollar & VND exchange rates, etc. Ultimately it is still a problem of Risk & Return.
Should you invest in HYIP?
As I stated above, not everyone who invests in the HYIP model loses everything. Because if all were like that, this type of investment would no longer exist today. It is important that you understand where that interest rate comes from, its operating model and the surrounding risks so you can make a more accurate decision on whether to invest in that HYIP project or not. Are not.
On the other hand, never put Capital into a HYIP investment channel, because most HYIPs are ponzi models, or otherwise are also high-risk investment models (the minority), so if you put Capital "All in" once with the hope of changing your life, there is a small possibility that you will Ashdraked.
In addition, you should not borrow Capital to invest in HYIPs because they carry too many risks. If you borrow Capital to invest, in the worst case you can lose money and take on debt, which will have many negative effects. towards you and the people around you.
