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BitConnect - Big Risk, Big Reward



EDIT Oct 21st, 2017 - Note that BitFinance is no longer in business.  They were even worse than the typical HYIP scam in that they only lasted a month instead of several years.  As of this date they continue to collect money but they do not make payouts.  DO NOT DEPOSIT WITH THEM!

I typically talk about different Crypto coins, particularly Alt coins, but for a change I am going to look at a couple different ways you can make money with Bitcoin.  In fact, what if I told you there is a way you can double your money in 3 months or less?  Sounds crazy, and maybe it is, but it is out there.

As you know, Bitcoin itself is a risky investment.  Nobody knows where the price is going or how long it will be around.  Is it a flash in the  pan "bubble" or is it a true technological marvel that will change the way we look at currency from now on.

I personally feel that Bitcoin, or more specifically "Blockchain", is a noteworthy invention that is here to stay.  What is the "correct" price for BitCoin, I have no idea.  But my view is it's price is directly correlated to supply and demand.  There is a limited supply so if demand increases, if more people start using and more stores start accepting Bitcoin, then naturally the price will rise.

If you believe that to be true then probably the most conservative Bitcoin investment you can do is to buy and hold it.  Just let the price appreciate over time.

There are many other ways to make money with BTC, too many to count.  But two I want to examine today are BitConnect and BitFinance.

Full disclosure, I use both BitConnect and BitFinance.  I you use either of them and you use my links to sign up, I will get some "referral" benefit out of that.  I use them because I am willing to take the risk inherent in each and I include my links here so if you use them I'd get the added benefit of that referral.  So let's get that out of the way first.  If after reading this you decide to use either one, please use one of the links below to hit their site when you sign up:

BitConnect:  https://bitconnect.co/?ref=grunderwear

BitFinance:  https://bitfinance.biz/?ref=whalecoin

Let's examine BitConnect first and more in depth.  BitFinance doesn't have all the features of BitConnect so if we cover BitConnect you'll automatically get BitFinance.  Both involve signing up for an account and sending in some BTC to start the process.  As always, don't invest more than you can comfortably afford to lose.

With BitConnect there are 3 different ways to make money, Trading, Staking, and Investing.  Trading is really just the same thing you can do with any coin.  There is an actual BitConnect Coin (BCC) and you can trade that coin by buying low and selling high.  At least that the theory.  If you check the charts, their coin has actually done very well, even when the Alt coin market was crashing this past summer:



The BCC coin is not traded on Poloniex, but it is traded on 5-6 other exchanges and you can trade it for BTC on an exchange withing the Bitconnect.co website itself.

Staking is buying some of the BCC coin and just holding it in your PC based wallet.  As soon as you pass the 15th day of holding the coin, you start getting paid "interest" for each subsequent day you continue to hold it.  The interest rate varies over time, but right now it comes down to about 8% per month, or 0.25% per day.  Not bad to say the least.  All you have to do is buy and hold the coin and you can make more in a month than you do in a year with a normal savings account.

Obviously the risk is the coin could fall in value during the time you are holding it, but because other people are also staking the coin, you can see from the historic charts that the value remains somewhat constant.

Lending is where the big money comes in to play.  If you lend your BCC back to BitConnect they will pay a variable amount every day in USD.  You can reinvest the money or you can convert it to BTC and withdraw it.  The amount they pay you each day is dependent on 2 main things.  First, the amount of money you lend in the first place.  Second a variable amount based upon how much money they made that day by trading with your funds - which they call the Volatility Software Interest rate. The good thing is you can't lose money that way, you can't get a negative payment.  You could get no payment at all on some days.  But, depending on how much you loaned them in the first place, you do get an additional guaranteed amount each day.  Here are the tiers for the guaranteed payments:

A) $1 - 1000 = 0%
B) $1k - 5k = 0.10%
C) $5010 - 10k = 0.20%
D) $10,010 - $100k = 0.25%

So if you deposit $100 you get no guaranteed rate on top of the Volatility Software rate, but if you deposited slightly over $10k, you'd get a quarter percent interest each day on top of the Volatility Software rate for that day.

Each tier also comes with a time commitment.  The more you invest, the shorter period of time you have to leave your money there.  Here's how the 4 tiers play out both in terms of interest paid and time limits before you get your capital back:



When they say "Capital Back" they mean they pay you back the amount of USD you put in.  So if you entered at the 2nd tier by putting in $1200, after 239 days of receiving interest payments every day, you'd then also get your $1200 back.  Where this confuses some people is to fund the account with $1200 you have to do that with Bitcoin (BTC).  Well when the time is up you don't get that same amount of BTC back, you get the same amount of USD equivalent to what you put in.  So the price of BTC going up or down has no effect on what capital you get back, you'll get back exactly the same amount as what shows up on your account the first day you start your loan.

The big question at this point should be, how much is the "Volatility Software Interest" rate each day.  Well, that amount does vary widely, but you can go on the site and see the average for the past 3 and 6 month periods.  My experience agrees with what the website shows and that is about 0.94% per day.    That's how you can double your money in about 2-3 months because at week 10, you have been making almost 1.2% per day for the past 75 days!

Sound too good to be true, maybe.  If it sounds too good to be true then it probably isn't true.  If you Google "BitConnect" you'll see 99% of the people calling it a SCAM, all in caps.  But if you look at those comments, about 99% of the people have never tried it.

If you try it, you see it works.  The real question is, how long can it keep on working.  How can they sustain these types of payouts.  I've seen a lot of sites like this.  I've tried a couple of them.  One of them I lost my investment.  On the other I made over $100k.

Do I think that BitConnect will go out of business at some point in time, yes.  The question is when. Is it next week, next year, or a few years from now.  What I do like about them is they have things I've never seen in other sites like this.  They have their own Crypto coin which you can buy and sell on multiple exchanges.  There are a lot of people making money trading this coin who probably don't even know what the website offers.

I like that they pay interest on staking the coin.  The more people that stake the coin, the smaller the supply of coins, the higher the price of each coin.  I am seeing more and more coins starting to offer interest or some other form of reimbursement for holding their coin.  NEO, one of my favorite coins pays a dividend in the form of NeoShares.  You can buy and sell NeoShares on exchanges just like any other coin.  So the more you hold NEO the more dividends you get paid in the form of NeoShares.

BitFinance has a similar "Lending" structure as BitConnect.  The difference are that BitFinance doesn't pay for staking because BitFinance doesn't have their own coin, and BitFinance pays a lower interest rate on lending.  What BitFinance does have going for it is the fact that they pay a LOWER daily rate and they are a brand new company.  BitFinance appears to be a much more conservative approach to what BitConnect does.  So if you are tempted by BitConnect but it is just to risky for you, you might consider BitFinance.  Because they are just starting out and it appears from my interactions with them that they have a top-notch crew on board, I think they are going to be around for at least several more years baring any sort of regulation changes that could bring a stop to what they are doing.

There you have it, a way to double your money in 2-3 months.  It is not for the faint of heart.  In fact I wouldn't even do it with hard earned money.  But, if you've made some money in Bitcoin already and you feel like rolling the dice with some of those profits, either BitConnect or BitFinance might fill the bill for you.  I know they do for me in exactly that scenario.

If you want to see my experience with EthTrade, a company that had a somewhat similar approach with Ethereum, check out my video series on YouTube.  I started out with a few hundred dollars as a test and I shot video each week of how it went.  Eight months and about $100k later, I made my last withdrawal from EthTrade.

My EthTrade Video Series:  https://www.youtube.com/watch?v=2mX8-uJhyXE

Best of luck to you and happy trading!







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