The three types of HYIP

There are countless HYIPs around at any given time, each with their own investment plans, site design, and grammatical errors. However, it’s only really the investment plans that we are interested in as they determine how much we will make. Sounds easy, but the problem is that HYIP admin aren’t the most honest operators and tend to obscure the truth. So, how do we work out the actual return from our investment?

HYIP investing is pretty basic – you simply deposit some bitcoin and then you get payments based on how much you invest and the stated interest which is usually expressed as a percentage. The interest rate can vary dramatically between HYIPs. The actual return is not simply the daily or hourly rate stated multiplied by the length of time. It actually depends on how the investment plan operates. It can get confusing as HYIP admin tend to make this hard to understand to try and trap investors. However, there are actually only three types of investment plans that HYIPs offer, and if you understand them, you can work out the return easily.

Principal Release

This is a common format for bitcoin-only HYIPs and not seen all that often in normal money-based HYIPs. It is my favorite type of HYIP as it offers the most flexibility. A fantastic example of this type of HYIP is AimBTC which has been running for about 50 days now.

For this plan, after you deposit your principal, interest is paid to your account at the daily or hourly rate at the specified interval. You can then withdraw your profit or re-invest to compound your earnings. Your principal can be released at any time and then withdrawn. Each HYIP is different, but generally this release carries a fee around 5% of your principal amount.

As an example, say you invest 1 BTC in a HYIP that pays 3% daily ‘principal release‘. After 60 days you would have 180%, or 1.8 BTC which is pure profit. Then you withdraw your 1 BTC principal and suddenly you have 2.8 BTC. Did I mention I love principal release HYIPs!

These generally seem like they are the lowest paying HYIPs, but with a little knowledge you can actually make quite a lot with them. The biggest advantage of this type of HYIP is the flexibility it offers investors – in terms of returns and risk. You can add and release deposits at any time, or you can simply deposit some bitcoin and ride it for the long haul.

Principal Included

This is by far the most common type of HYIP investment plan, mainly because it traps your investment and slowly dibbles it back to you – exactly how the admin like it. However, HYIPs that offer this plan can also become stable for a very long time. ForexParadise, PokerAm, and Coince are good examples of this type of HYIP.

For this plan, after you deposit your principal you are paid the specified amount of interest at the specified interval. This payment is not pure profit as it actually includes part of your principal. This is where it starts to get confusing.

As an example, say you invest 1 BTC in a HYIP that pays 3% daily for 60 days ‘principal included‘. Every day you would receive 3% of your invested amount. After the 60 days you have 180% return. The 100% is actually your initial amount, and 80% is your profit. The actual daily return of this plan is 80/60 = 1.33%. Problem is that this plan takes 33 days to reach 100% and you can’t do a thing about it.

So, although these types of HYIPs seem to be high-paying, you actually need to factor in the principal included part to work out the actual daily profit.

Principal Return

This is a bit like ‘principal release’ except you don’t decide when to release. For this one you only receive the interest payment at the specified interval, and then the entire principal is returned at the end of the investment period. The recent scammed mBitco was an example of this. This format is common on the very short-term plans such as 150% in 1 hour. These plans are dangerous and a HYIP can get unstable in a matter of hours due to the large sums being returned and withdrawn.

As an example say you invest 1 BTC in a HYIP that pays 15% in 3 days ‘principal return‘. The HYIP may pay the 5% per day, or it may just pay the 15% at the end of the period. In either case the 1 BTC is returned at the end of the period and you end up with 1.15 BTC, or a total profit of 0.15 BTC.

These HYIPs are much harder to read and I tend not to invest in them due to their unstable nature. The main problem is that you only get small payments which means a much higher risk of a large loss of your investment.

Summary

There is also a fourth type of HYIP known as Principal Gone. This type of HYIP is a actually one of the above three with the simple difference that you get no payments, no interest, no principal back, or whatever you call the payments, ever!

So, whatever a HYIP looks like and whatever the plans it offers, you can be sure that it fits into one of the above categories. Sometimes is can be tricky working out which one. A simple rule is that if it doesn’t explicitly say ‘principal release’ then it is ‘principal included’. Oh, and if you think you have discovered a new type of HYIP – do let me know.

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