HYIP (High Yield Investment Program) is, as the name says, program that offers a high returns on the investment. But be wary, HYIP carries an extremely high risk, and is a type of pyramid scheme.
Some HYIPs promise high returns, usually around 2% per day, but in some cases much higher.
Therefore it is quite obvious that 1,000% annual return on the investment cannot be made legitimately.
Illegitimacy of these schemes is even more obvious when you think about one of the most successful investors, Warren Buffet, who was making around 30% return per year in his most successful period.
In my opinion, most of the HYIPs are nothing but scams. They purely function by constantly attracting new investors and paying out old ones from the money that new investors bring in. This scheme will inevitably collapse, sooner or later, losing money to most of its investors.
No doubt, there are some legitimate HYIPs out there, but they also carry extremely high risks, which is why I can never recommend a HYIP to anyone. If you really want to invest your money into high risk investment, hoping for a high return, and if there is nothing I could say that would change your mind, at least go with penny stocks. In my opinion, penny stocks are a much safer bet, even though penny stocks also carry high risk. At least they are not a scam, and with a proper research risk is substantially smaller.
HYIP Monitors.
HYIP monitors are websites that list and rate various HYIP programs. Be advised that most of these sites are working for commissions, so it is in their interest to promote these programs. Just because some HYIP is highly rated it does not mean that you will not lose your investment.
Also, many HYIPs will payout these HYIP monitor websites, but not their other investors. So HYIP monitor might keep recommending the site, while being unaware that other investors are not getting paid.
Some HYIP scammers can go very far in their attempts to deceive public. Some will establish themselves as trusted members in various HYIP forums, and scam a lot of people once the trust is established. Or they will pay HYIP monitors to keep recommending them, pay other forum members to recommend them, send millions of spam emails, or use various other techniques, all with a goal to deceive as many people as possible.
They will go as far as making a HYIP monitor website themselves. They will use it to promote their own programs, by giving them the highest ratings. This type of scam is used in many different industries, so be wary of these "unbiased" review websites.
To sum it up, HYIP can be extremely attractive to many people. No wonder, since it all looks amazing on paper. Bu in a real life story is much different, and majority of HYIP investors do lose their money.