People have always had a craving for quick and easy money. It seems that this is some kind of natural instinct that cannot be suppressed. It was on the craving to make money quickly and a lot that many scams and schemes were built, on which, in the end, only their organizers earned money.
HYIP projects
The era of the Internet has opened up a new realm of fast and anonymous payments, with which you can transfer any amount of money to anyone, quickly and easily. Based on this ability to send and receive money, thousands of HYIP projects were built calling for increased investment.
HYIP stands for highly profitable and risky project (from English) and is an automated service that accepts and issues money to participants. It looks like a site filled with elements of a "beautiful life" - images of money, yachts, cars and beautiful girls, making it clear that all this can be achieved by making an investment in the project. A classic example can also be seen on the website of the Royal-Invest project (me) - there are attractive photos of expensive cars, and even statistics on deposits and payments (calculated, of course, in millionsrubles). It may really seem to an ordinary Internet user - what's wrong with that? Before us is a certain investment project Royal-Invest, which opens deposits in virtual currency. However, let's take a closer look.
How do HYIPs work?
So, first, let's analyze the scheme by which all programs like Royal-Invest operate. Reviews of such projects best show the dynamics of its activities. From the very beginning, users who have made investments claim that they are ready to take a risk and entrust a small amount as an experiment to such a program. Perhaps they will even receive their first payout promised by the organizers (and perhaps even more than one). However, the mass of negative comments remains unchanged after the payments stop coming after a certain period of time. Everyone understands that the life of the program is over. Royal-Invest is no exception, since it is the same HYIP as many others. The money from which payments to partners come from cannot come from nowhere - it's just funds contributed by the following investors. The principle of operation of such programs resembles a financial pyramid, like MMM, only in a small amount.
Why do people bring money to HYIP?
The question arises: "If people lose their money anyway, why do they carry it?" And here we return to the statement that was made at the beginning of the article: people love easy prey. Feeling like we can get somethingthen, without doing anything, attracts us, forcing us to deposit our money. Investors of projects like Royal-Invest confirm these reviews many times, they hope that the project will collapse after they withdraw the money. This is what the calculation is made for, which sounds like this: “Yes, people will lose their money. Yes, the pyramid will collapse. But I'm smarter, and I can cash in on it." And to tell the truth, there is a category of investors who really manage to make money by investing in HYIP. Even a project like Royal-Invest (a scam, to be more precise) must make the first wave of payments anyway, and these are the lucky ones who managed to make a profit. And, in fact, due to the first payments and the ability to distinguish those programs that are able to make these payments from the rest, some people receive income from such a risky investment.
What happens after a program crashes?
After a site like Royal-Invest (which gets worse reviews as people lose their money) crashes, nothing happens. The organizers of the project, most likely, beat off the funds invested in its launch, and continue to open similar programs. Users who have made a profit and taken the money move on in search of such profit. And the majority - those whose money remained in the project, either tie up with HYIP investment, or do work on the mistakes. And on all kinds of blogs, forums and directories of investment projects, there are reports that Royal-Invest is a scam, and you should stay away from it.
Is it possible to make safer investments?
Of course, you can not get involved with high-yield programs at all (and income in the amount of more than 30 percent of investments per year can already be safely considered high) and work with more reliable and “correct” ways to increase capital. For example, bank deposits, purchase of shares, trust management can serve as such. Then, however, you can’t count on getting up to 50% profit per day (as they promise at Royal-Invest). The reviews of people testify that few people are interested in such methods of earning money. This is understandable: conservative investments can be useful for owners of a large stock of cash. Against the backdrop of large amounts of invested money, the profit that conservative sources will give can be called significant. At the same time, most people do not have a lot of money to buy shares of successful companies. Accordingly, the income that they can receive in this way cannot be called sufficient. It turns out that there is only one way out - to take a risk in order to "hit the jackpot".
Royal Invest project
