Firstly I do realise there schemes are scams 99% of the time. The aim of this post is to inform people how they function and with this information know when to invest and when to withdraw your funds.
What are Bitcoin HYIPS
Bitcoin high yield investment programs, also short Bitcoin HYIPs, may pay you high returns for a small amount you invest in them. These programs get the profits by trading forex, stocks and bonds, sports betting and other. HYIPs pay hourly, daily, weekly or monthly. The daily income rates depend on the HYIP itself and range from 0.5% to 6%.
Can you make money by investing in Bitcoin HYIPS?
The answer is yes, you can do profit by investing in Bitcoin hyips. Though you must know, that most high yield investment programs will sooner or later turn into a scam and run away with your investment. You can imagine the way a hyip like a gaussian curve, see image below:
Explanation of the Grafik: We can divide the lifespan of the HYIP in three parts.
Phase 1: The Launch. Admin launches a HYIP platform. Investors invest Bitcoin, Admin pays the promised percentage. Admin is essentially paying from his own pocket and is making losses.
Phase 2: The Upswing. The HYIP is booming, many people are signing in and investing. The potential profit of the admin grows faster than the amount he needs to pay daily to the investors.
Phase 3: The Fall. Only fewer people continue investing in the platform. This means, that the potential earning is getting less, due to the fact that the admin needs to pay out a profit daily. Admin decides, that now is the point of maximum earnings for him. First, he stops all the payments out of the website, yet you can continue invest. Later he runs away and closes the website.
This is why the next question is very important:
How to minimize the risk?
As seen in the upper graphic, the periods you are going to earn are phase 1 and 2. This means you need to join as early as possible, equivalently, you need not join too late. To find out if the HYIP is in the beginning of phase 2 or at the end is not easy.
Therefore our rule of thumb on joining hyips:
If the hyip is paying more than 5% daily, then don’t join it after it has been there for more than two weeks.
If the hyip is paying between 5% and 2.5%, then don’t join it after it has been there for more than four weeks.
If the hyip is paying less than 1.5%, then the choice is hard. The website might pay for a very long time like HashOcean (more than a year), or stop like Business Angels (less than three months).
Don’t forget to request manually your daily withdraw.
All information and graphs taken from https://www.coinstaker.com/bitcoin-hyip/#3
So today I came across a HYIP program that offers a return of 5% a day or 0.20% per hour. This program is just one day old. Perfect time to invest!!!
I suggest if you want to invest in a program like this follow my advice.
Disclaimer
I do not guarantee returns. There is a risk of losing money. Only invest what you can afford to lose. Keep investments at a minimum