HYIP Deposit Insurance


Features of HYIP deposit insurance

Each investor seeks to protect their investments, and this desire is quite natural. In this article, we will understand what deposit insurance in hype is, how it actually works and what results you can count on.

Insurance is a common investment service. For example, Russian banks have a deposit insurance system (CER), a government-supervised system designed to protect individuals’ deposits. According to this system, if an insured event occurs, then a deposit returns to the contributor. But money above this figure is unlikely to be compensated, as a result of which it makes sense to divide your deposits between different banks.

Keep in mind that not all investments fall under state insurance (as an example, you can bring a bearer contribution). In addition, not all financial institutions participate in CERs. We see that even state insurance has limitations and does not always cover losses. And there are organizations that do not insure investments at all.

I think this example is enough to understand that insurance is a very specific topic and contains many pitfalls. Now imagine how investment insurance is carried out in HYIP, where there are no contracts, data of the insurer company, etc. The reliability of such protection is in doubt. However, the service “deposit insurance in HYIPs” exists. Let’s see how it works and who benefits.

The benefit from such a service is, in the first place, the administration of the hype projects. Nobody forbids her to promise the participants 100% protection of deposits, and then to disappear without fulfilling the obligations. Therefore, I definitely do not recommend trusting insurance from the administration.

There are also bloggers with their own sites or ordinary reporters with high-quality hypers. They can carry out insurance on funds allocated by HYIP administrators, receiving a considerable percentage for this. These people are intermediaries. They really receive and keep money in their accounts for insurance payments. However, there are a number of negative points:

  • Harsh conditions

    The insurer really insures a deposit for a certain amount. But it establishes extremely stringent requirements, even with a slight deviation from which it will void the insurance. Such conditions may include insurance of an extremely minimal amount (for example, $ 10), the absence of a refback and the choice of an investment plan, the daily publication of messages with their payments in specialized forums or monitoring, etc.

    Usually, in such conditions, a person actively works for 1-2 months to recapture his investment. Then comes the insured event. The investor remains with the same money that he had at the start. But at the same time, he worked for an insurer free of charge for 1–2 months, fulfilling his requirements. In fact, this is a divorce. Sometimes HYIP can be successful, and its insured members will profit. But in practice this rarely happens.


  • Small amount

    For example, an insurer has a compensation amount of $ 300. Investors who are confident that their funds are protected by insurance make investments worth thousands of dollars. In the event of an insured event, a compensation of $ 300 is distributed among all participants. As a result, each of them gets a penny, remaining in a deep minus.


  • Scam Insurers

    For some time a person impeccably insures, building up a reputation for himself and increasing the total amount of insured deposits. Usually, such a person acts as the administrator of hyps that are insured. Earning a reputation is necessary for him only for more money on the deception of investors. Having reached a certain limit (often the account goes to hundreds of thousands of dollars), he opens large insurance at the same time in several highs, then scams all his projects at once and disappears, deceiving the depositors.


As you already understood, deposit insurance in hyps does not guarantee proper protection. From my observations and the experience of other investors, I will say that the presence of insurance indicates the inexperience of administrators and unsuccessful advertising. The availability of insurance services only scares away experienced players who know how the insurance system works.

A long time ago, when there were not so many insurances, I noticed such a tendency – if the project gives out insurance, it will soon be used to pay compensation 🙂 This is not the rule, but more often it happens this way. And now, when almost every second project provides insurance, I am only convinced of this.

Those. Initially, in most of these projects, bringing investors into plus is not even considered. And not surprisingly: pay for a listing on a resource worth up to $ 1000, draw a bonus deposit of $ 300-400, and even give insurance, preferably from $ 1000. And so a couple of thousand dollars fly away from the administrator, and this is only on one resource, and usually they pay a few. The project didn’t really start, but already has a huge load – is it any wonder that with such costs the admin immediately “makes legs” when the activity of deposits decreases?

A huge amount of money is allocated from the project for deposit insurance, instead of using these funds for competent promotion, a pillow at the moments of calm, and simply for payments to investors.

I consider adequate insurance when the project has already completed, and the admin gives out some money to the blog to compensate referrals. Or temporary insurance, which is returned to the project after a certain period of time.

Why is insurance so attractive? Its presence gives investors a false sense of security, they think that if they lose, then not all of the contribution.
How is it really? Happens fast, investors compensate for some of the losses, they rejoice. This happens until they notice that in spite of all the compensations, money is not added, but on the contrary, it becomes less and less. Just against the background of partial compensations, this is not immediately and not very noticeable.

Therefore, I try to choose “quiet” projects that do not give a bunch of listings and insurance, the chances of making money in them are many times higher. In projects with insurance, only partial compensation is expected, or at best breakeven. And we are interested in profit. Breakevens can also be organized by yourself – without investing anywhere.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Leave a Reply

Your email address will not be published. Required fields are marked *