What is HYIP ?

HYIP stands for High Yield Investment Program and is a way for people to invest money into high yield, high risk markets who couldn't normally do so on their own, usually because they lack the initial investment funds. A HYIP pools money from investors together and uses the funds to invest in these markets; investors receive a portion of the return on their investments over a pre-designated amount of time. Most HYIPs pay interest daily, weekly, or monthly over the Internet. While some HYIPs are valid investment tools, a majority are actually one form of a 

ponzi scheme* (further explanation about ponzi in another post).

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HYIP Mechanism :

Admins generally set up a website offering an "investment program" which promises returns as high as 45% per month or 6% a 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." 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.

Some HYIPs have incorporated in countries with lax fraud laws to secure immunity from investor laws in other countries. The operators have been known to host their website with a web host that offers "anonymous hosting". They will use this website to accept transactions from participants in the scheme.

Some investors try to make money by attempting to invest in HYIPs at an early enough stage to create a return, and then by cashing out before the scheme collapses to profit at the expense of the later entrants. This is in itself a gamble as poor timing may result in a total loss of all money invested. To reduce this risk some of these investors use "tracker sites" listing the schemes and their current state. One expert states that there is not enough evidence to corroborate that tracker sites can actually help investors make more money.

example :
a HYIP site that are bringing a devident of 5% a day !! and in 60 days your money will be 300% such a mega awesome deal right? thats how a HYIP site attract their investor, through the non actual investment with such crazy interest. Further example will be in next post :D .

To summarize, HYIP is an online investment program that are made based by ponzi schemes, that are gonna be a scam thought, but no one know when, only admin and god knows. Even though in the end HYIP site are scam, there are still many group of people that are making good use of it before it turned into a scam. They usually called HYIP soldier that are in rage of war with HYIP admin with the ammo of money $. If a soldier ammo is back to the soldier bringing new ammo ( new money, means profit )before the site turned into a scam, it means the soldier is won. Even though there is a ton of soldier that died and lose in the war.