Everything You Need To Know About Bitcoin Hyips

in #hyip8 years ago

 

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.

Insurance: Bitcoin Investment

Insurances have been around for decades. The first ones beeing made by the Chinese and Babylonian (~2000 BC) in case a shipment got stolen. So basically, an insurance is a way to protect one from a financial loss.But why are there no good insurances for our financial decisions as Bitcoin investors? Why don’t the big platforms care about the small people? We decided to fill this gap since TOGETHER we are stronger!

Insurance for your Bitcoin Investment

Since all of us are trying to make some money over Bitcoin investments, we found a way to reduce the risk of the investors by making an insurance! Normally insurances cost, but in our case, those are going to be free for us coin investors. So let us show showcase you how the Bitcoin insurance will work.

How does the Bitcoin Insurance function?

The easiest way to understand this is by making an example.
So let us assume:

  • insurance amount is 1 BTC – so in case of a claim, the amount to be distributed to our community will be 1 BTC.
  • insurance period is 20 days – if the bitcoin investment program stops paying before the end of this period, the insurance amount will be paid out to the investors. Each ivnestment opportunity with an insurance will have a counter showing when the period is going to end.
  • Investors: 1 invested 0.5 BTC, 3 invested 0.2 BTC, 5 invested 0.1 BTC, 10 invested 0.05 BTC, 20 invested 0.01 BTC, 2 invested 0.005 BTC

If the investment program stops paying on the 21st day, the insurance expires and nobody gets paid.
If the investment program stops paying before the 21st day, the insurance amount is distributed to all of the investors. To calculate who gets how much, we use the amount each user invested and weight it to the total amount.The formula for each person is: (Own Investment/ Total Investment)* Insurance AmountIt is important to say, that the maximum amount taken into this calculation is 0.1 BTC per user. The minimum is 0.01 BTC.
In this example, the total amount of invested is: 1*0.1 + 3*0.1 + 5*0.1 + 10*0.05 + 20*0.01 = 1.6 BTC.
The 0.1 BTC investor will get for example: (0.1/1.6)*1 = 0.0625 BTC back.

Who is eligible to claim this Insurance?

Everyone who is registered as a referral under us will be insured – else it is impossible to us to distinguish real and fake investors.Important to notice:

  1. Maximum Amount: 0.1 BTC – else the small investors wont be able to get anything
  2. Minimum Amount: 0.01 BTC – the effort is else higher than the transaction costs
  3. Need to be referral of our testing account – so only our community gets the insurance
  4. Only on first payment to the BTC website – else it is currently too hard to figure out the invested sum
  5. Time to claim: 72h – since we can only calculate the amount each investor gets when we know the total amount of people claiming an insurance. And since we want to proceed giving the money back as fast as possible, we decided to put this time limit.

Who pays for the insurance amount?

Since we are a community website with enough investors, we are able to make this insurance demand directly to the Bitcoin investment platform. This means that the Bitcoin HYIP or Cloud Miner is paying the insurance amount.This amount is then transferred to our secure Bitcoin Wallet. If the Bitcoin Investment platform continues paying after the insurance time, we are going to give them the insurance amount back.But how can you trust us, that we really distribute the insurance bitcoins fairly?

Transperency of the insurance Amount over the Blockchain

We are going to use the following Bitcoin Wallet address: 1FY3z24HxHScjwH75JHKu67jXKbHV6Xaf6By clicking on it, you can see all the in- and outgoing transactions. So you will be able to verify if we really got the insurance amount and if we really paid it back.

How to claim?

On maturity of the insurance, there will be a special contact form under our explicit investment review. As mentioned, one can use this form for 72h, after this time limit, it will get disabled. All the needed information will be explained on the form.After the 72h, we will post the calculations of the claims and send the transactions over the block chain.

Bitcoin Investment Security: Disclaimer

The formula of calculation is showcased above. By no means everybody will get his total investment back, it is just a way to maximize the earnings we make. We hope this community movement will minimize the risk each of us is taking.

Satoshi by satoshi we try to improve the Bitcoin investment world! – Team CoinStaker

Source:.coinstaker.com/bitcoin-hyip/ 

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