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Operators generally set up a website offering an "investment program" which promises very high returns, such as 1% per day (3678% APY when returns are compounded every day), disclosing little or no detail about the underlying management, location, or other aspects of how money is to be invested. The U.S. Securities and Exchange Commission (SEC) has said that "these fraudulent schemes involve the purported issuance, trading, or use of so-called 'prime' bank, 'prime' European bank or 'prime' world bank financial instruments, or other 'high yield investment programs.' (HYIP's) The fraud artists … seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs."[1] In 2010, the Financial Industry Regulatory Authority (FINRA) warned that "[t]he con artists behind HYIPs are experts at using social media — including YouTube, Twitter and Facebook — to lure investors and create the illusion of social consensus that these investments are legitimate."[2]

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There are people who invest in Ponzis knowingly. This is because if you are lucky enough to invest and withdraw from the schemes before they collapse or stop functioning, you can make bigger returns than through the genuine HYIPs. However, you must bear in mind how easy it is to lose everything that you invested with these systems. You may think you know when to leave these programs but in truth, it is almost always luck rather than skill which provides investors with a profit from these schemes. Often the organizers of these schemes invite their friends to participate so that when they receive the profits, only the people they select to share them will benefit.

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HYIPs use an array of websites and social media—including YouTube, Twitter and Facebook—to lure investors, fabricating a "buzz" and creating the illusion of social consensus, which is a common persuasion tactic fraudsters use to suggest that "everyone is investing in HYIPs, so they must be legitimate." Some of these sites purport to monitor and rank the "best" programs. Others tout "winning" HYIP investment strategies or provide a forum for trading tips on how to profit from HYIPs, even those suspected to be scams. Still others—such as the "Pathway to Prosperity" scheme in which investors on six continents allegedly lost $70 million—expressly caution investors against HYIP scams, using a form of reverse psychology to create the false impression that this HYIP is somehow different.
Most of these HYIPs share some common attributes which can be used to see if they’re legit or fake. They offer zero or limited Information about the management or owner of the company. No contact information is provided, sometimes an email may be given, to which there is no reply. The promised returns are very high, around 5% to 10% every day. There is no information regarding their business plan and there are vague mentions of a mining operation or some sort of trading. They vanish after some weeks or months off the internet without a trace.
Now you understand the reason why some Bitcoin HYIP monitor websites observe those HYIP sites showing the runtimes in a daily actualized list. So people can estimate more easily if it might make sense to still invest or not as they can see how old the project already is. Because it happens that participants just get too late into the program’s life cycle and then of course don’t get their principal plus profit back.
To generate a high return, HYIPs often involve investors’ money put into high-risk ventures, such as day-trading stocks or bonds, or sports betting. A Bitcoin HYIP can work the same, except with Bitcoin or another crypto as the investment currency. Those running HYIPs are looking to benefit from an increased willingness to invest from crypto holders, as well as the cross-border payments enabled by cryptocurrency.

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The popularity of Bitcoin has increased greatly over the last few years along with its value. This has led to a significant rise in different types of Bitcoin investment programs. One such investment program is called a High Yield Investment Program or HYIP, an investment scheme which promises to offer unusually high returns on an investment by generating revenue from new investments for existing investors. There are several websites that offer 1 to 15 percent return on invested Bitcoin but chances are that not all are legit. If an investor allocates his digital currency holding in an HYIP, then he can expect low to moderate returns. Several investment schemes promise high returns but they may be ponzi scheme. Investors risk losing all their money if they invest in a fake HYIP. This article by CryptStorm News introduces a Bitcoin HYIP and helps investors analyze such investment schemes.
HYIP Investments monitor and HYIP monitoring service, Current online, archive monitoring data, rating of HYIP and their payment status. Control your investments with our HYIP monitoring service. On other pages of this section you will find information about High Yield Investment Programs, which stopped their work or turned into scammers. We archive the monitoring results, announcements and news of investment programs since 2003. We have all the information. From the first mentioning of most HYIPs, their successes and failures. We were one of the first and remain the best.
Step 2) The website is offering one or more “investment packages”. All you need to do is give the company some money, and they’ll magically turn it into more money. Scam artists love to advertise daily or even hourly ROIs. A ROI of 1% may not seem that high – but it adds up to 3778% annual percentage yield with daily compounding interest. Nobody can guarantee a return that high.
Actually there are even many programs which run for several months. In those cases there must be really a lot of early investors who have got their high yields for sure. Let’s say the program ran for 6 months, then all people who started within the first 3 months should have got their profits out of it. So the trick is just to be early in the game, then you get the high gains. And you have to hope that the system runs for a while and doesn’t collapse at the very beginning already, what sometimes happens. 

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A HYIP is essentially a Ponzi scheme – more often than not, a scam. It involves paying returns to earlier investors with money invested by new investors. As a result, some do walk away with a positive return, if they get in early enough. However, it’s not a sustainable model. Once new investors stop coming on, the cash flow stops, often leaving a large number with significant losses.
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