They are all scams.
I am now 100% convinced that HYIP are all scams. Even if they pay out initially (which they do to get more people in), eventually, when they have enough money collected they stop paying, pretty soon after they disappear from the world. Not one has paid me back even my principal investment – I did have one pay back 80%, but nothing like the 120% that was promised.
Having a UK Limited Company Means nothing
Anyone just about can set up a UK Limited company for very little money. It’s quite easy to rent a london address and actually a lot of scammers use the same London address! (perhaps it’s the same person).
How do you tell?
- No tangible product or way of making money, saying they are Forex traders is rubbish. All the forex traders I know do not run this kind of website, it’s just too risky, the good traders make so much money the last thing they need to do is run something like this.
- It seems they have no benefit to themselves. What do they get out of it? How do they make money?
- High paying referral programmes, this is to attract more people.
- Badly built website (this is not always true!), if it looks badly built and has bad english or spelling mistakes that’s a sure sign.
- Google the company address, just have a look at the place on google maps and see what other companies are running from that address.
- Look on Bitcoin forums like Facebook where people are starting to come out and say when something stops paying.
High Risk = No Returns (unless you are lucky).
Low Risk = Low Returns and return on investment, but more likely to be a good site.
Is it a cryptocurrency problem?
Not really, these programmes have been running even before the internet, cryptocurrency does not help due to it’s lack of regulation. (which in some ways is a good thing).
Is there any way’s to really make money from Cryptocurrency
- Mining – it’s slow, I do it, a lot of it with different companies and on my own home mining rig – but it’s making money and as you mine more and increase your mining power you will make more money. There are some links above but my favourites are SplititMIning, Genesis, Eobbot < this is amazing, Hexocoins.
- Trading – Not for the faint hearted, you can buy one cryptocurrency and sell it in exchange for another one, but watch out for the fees for the exchange, you need to factor that into your calculations.
- Lending/Bitcoin shares – BTCPOP for instance.
- Selling bitcoin or buying bitcoin, it’s possible to make a small profit doing this exchanging bitcoin for fiat currency, but be VERY careful with things like PayPal, a great scam is for someone to buy some bitcoin through PayPal and then charge it back, or cancel the transaction, so you’ve lost your bitcoin and they’ve got both their bitcoin and their money.
- Making and selling things
- Providing a service
- Holding Currency < Sometimes quite profitable, imagine if you had 20 bitcoins 5 years ago when they were like £1 each and now they are £1000 each!, £20000 for just doing nothing. (however of course the value will go up and down).
If it looks too good to be true, it probably is.