How did those HYIP earn if they are paying on a high interest?

@jamed28 (1903)
Philippines
May 17, 2010 3:37am CST
I just keep wondering, how did those HYIP site get their money and able to pay their investor if they are paying a very high interest? If you tried to inquire on local banks you can see that time deposit or investment usually earn only 1% monthly. But in most HYIP site they pay 1% in a day. Well if some of you knows the magic behind this HYIP, if there are any. please do share it here. By the way for those who don't know HYIP, it means High-Yield Investment Program.
1 person likes this
4 responses
• Malaysia
17 May 10
Hi Jamed, thanks for coming with the nice topic. First of fall, as far as I know on hyip..they pay the profit by doing the ponzy scheme which is will definitely scam to all investors. Number 2, they pay the profit by trading the money that they got from investors. So if they use this second method, the profit will be based on how smart they are trading the money. If they are smart enough or maybe they use some good robots to trade so they gain for tons. But if they loose in the trading and it comes to margin call so that's why they fall. Well, my best advice is learn forex by your own. You can turn $.30 to be $7 in one trading. So the choice is yours
@jamed28 (1903)
• Philippines
19 May 10
Thanks friend. So this means it is really risky to invest on those HYIP. Good thing there are people like you who are willing to share their knowledge. God Bless
@magtibaygom (4858)
• Philippines
24 May 10
It's a money game. These HYIP's make money from the last entrants, the last batch of investors that puts money in, before the owners of HYIP decide to fold down the site. Only those who invested early and have bailed out early emerged as victors, while the last ones cry.
@tonyllenium (6252)
• Italy
23 May 10
In many cases HYIP sites uses investor money to trade by themselves and a part of profits will give you a part of these depending how much you invested!! So normally HYip can have a good rate in a short period but normally after few months they become scams...or uses the pyramid schemes and so they become scams as soon!!
@klipjobs (24)
• Indonesia
18 May 10
this program may be a combination of classical pyramids and money games. to invest in hyip, many people use the strategy of hit and run. this is because participants who joined in the beginning will most likely have obtaining a return of investment, whereas the latter is less likely investment return.