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Bitconnect

Sep 25 2017

BREAKING: Bithaul Won’t Let You Withdraw; Likely a Scam

Bithaul Scam

Once again, the team at Metacoin is likely “taking one for the team.” We “invested” a little into the Bithaul platform and, while the site is still operational, what’s going on is really not a good sign.

Bithaul Sep 25

We revisited our own Bithaul dashboard this morning, saw that we were racking up the Satoshis, and waited until 24 hours after our last withdrawal to take out more Bitcoins. (Or fractions of Bitcoins; we’re experimenting but not going crazy.)

However, our attempt to withdraw was met with an “ERROR” message, followed by another. And another.

We’ve been trying all morning and we’re not alone…

https://youtu.be/Uq5tmkThbqs

Seems like the folks at MakeBitGrow had the same problem; only, to their credit, they thought they’d test the following theory…”If they’ll take deposits, they’re likely a scam.”

Sigh.

What’s Next?

We’ve reached out via email AND we’ve even Tweeted at the company. However, the odds of anyone seeing their money again are pretty slim.

While we wait for any response, it probably makes sense to go back to a couple old saws:

  • A fool and his Bitcoins are soon parted;
  • If it sounds too good to be true, it probably is;
  • Returns that sound unsustainable in the long-term will end up crippling any platform in the short-term.

By that last one: sure, platforms are throwing off interest and you can withdraw, so everything seems hunky dory. Until it isn’t.

We had our own strategy worked out with this site – we were going to be in for a little while, adding some and taking some profits, and then we were going to just take profits and stop adding. This way we could offset any long-term issues with a short-term win or two. But, sadly, it doesn’t appear that we’ll be able to get back what we put in.

Our Recommendations…

We’re doing our best to try out these platforms and to recommend the ones that are paying out and are legitimate. Right now, only two in this category (passive income investment/lending platforms; separate from mining pools like Genesis) still get the green light from Metacoin:

  • Bitconnect – that’s an AFFILIATE LINK – which is backed by a the Bitconnect coin;
  • and Bitpetite – another AFFILIATE LINK – which we actually wrote about in a head-to-head vs. Bithaul last week.

We have not tried a big chunk of these…give us time.

Right now, we can only tell you the ones that we’ve tried that have gone belly up:

  • Ambis
  • Microhash
  • Control Finance (which we actually wrote about earlier today).

One Other Note…

We would suggest pulling down as many records as you can from any platform you use, and make a habit of doing so on a regular basis. This way, you can best account for what you did actually invest in – and, sadly, you can account for any losses – come tax time.

Written by David Van de Walle · Categorized: AMBIS, Bitconnect, Bithaul, Bitpetite, Microhash, Passive Income

Sep 20 2017

Bitpetite vs Bithaul: Who Wins?

EDITOR’S NOTE: Bithaul, as we reported on Monday, September 25, is likely a scam. Withdrawals are virtually impossible. We have updated the text below, and have removed our affiliate links. TREAD LIGHTLY.

We joined two “Passive Income Platforms,” or “PIPs” as we call them, within the past few weeks. Both have been pretty fruitful – but both are also potentially risky, too. If you’re looking to get started on the passive income journey with your Bitcoins (and, in one case, with other currencies, too), here’s a breakdown.

What is Bitpetite?

Bitpetite Front Page

Sounds simple, right? Money transfers. Cutting-edge technology. Okay…they’re doing something that really isn’t all that new to the Bitcoin and cryptocurrency world. Let’s scroll down a little more to find out what they mean:

BP Business

Now I get it – they anonymize the transactions by pooling your coins with the coins of others; they charge a fee for doing this service. By “investing” in their platform, you can share in those fees through a daily interest rate.

There’s one catch – we’ve talked about it before and we’ll continue to talk about it here; we are part of their AFFILIATE PROGRAM (here’s the link: Bitpetite Affiliate Link) and we pride ourselves in being as up front with you on all facets of all of these programs. That catch is that your “investment” is treated like a lease or rental fee. Think of it like investing in Genesis Mining (use our AFFILIATE CODE – waVTYG –  to save 3%): you buy the mining capacity, but you will not get your initial investment back.

The returns can potentially be great – but, and this is important, they are NOT as great as they tell you on the site, because you DO NOT get your initial investment back.

When we started in the program, we only started with a tiny amount of Litecoin. As you can see from this screenshot, we are “in the black” and our profit is more than 20%. Not a bad return for what will, at the end, be a six-week term.

Bitpetite

It’s the Affiliate Program, Baby…

Where we’ve had the most luck with Bitpetite is with its affiliate program. It’s potentially pretty lucrative – and if you know a “whale” or two that might want to try this program out, heck, sign up with this link and then invite them with your link.

Here’s the Affiliate Payout Plan:

Affiliate Program

Again, those whales: actually, it doesn’t take much “Level 1” activity to lead to bonuses.

Bitpetite’s Long-Term Potential?

We realize we’ve been bitten before – see our results from Microhash, Ambis, and Control Finance – and, as with all things crypto, you have to operate under a few assumptions:

  1. If you don’t have the keys, you don’t have the coins;
  2. A fool and his Bitcoins are soon parted;
  3. Do Your Own Research.

However, that being said, we have been able to withdraw both our earnings from our original LTC investment AND our affiliate commissions rather easily and quickly. So far, zero issues with website downtime. We remain cautiously optimistic – but we feel it necessary to point out to you, once again, that you are not investing in the way that you’d buy a share of stock and get the dividends; you are, in effect, sending them your share of stock and letting them send you rich dividends.

AFFILIATE LINK one more time: Bitpetite Affiliate Link.

What Is Bithaul? – LIKELY A SCAM

Bithaul (AFFILIATE LINK REMOVED) is so new that, when we signed up, the site was on day two of its existence. That was two weeks ago.

My Bithaul Performance

That screener will show you not only that they’ve been online for just 16 days, but they also have 158-plus Bitcoins under deposit. (And, in the top center of the image, that’s what I’ve thrown in there. A couple hundred dollars worth as of right now.)

Bithaul is closer to a mining platform than anything – it has a bunch of “behind the curtain” elements that remind us more of the three sites we mentioned above than the more trustworthy outlets like Bitconnect (THAT’S OUR AFFILIATE LINK) and Bitpetite.

However, we can give them this: we have successfully made a series of small withdrawals without any issues.

REMOVING OUR RECOMMENDATION – IT’S A SCAM

See our article from Monday. It’s a scam.

Is There A Winner?

Yes, for now – Bitpetite is the winner. Better platform, better history, better-looking site. And Bithaul is a SCAM, so there’s that. So stay tuned – we’ll keep tracking these platforms, and keep you updated. Those are both our AFFILIATE LINKS and we’d appreciate it if you support our site by using those to sign up – if you choose to sign up.

Thanks so much for reading.

Written by David Van de Walle · Categorized: Bitconnect, Bithaul, Bitpetite, Passive Income

Sep 16 2017

How To Avoid Getting Rekt

Easy

If only it were that easy.

Spending 48 hours watching the Bitcoin market (and the other crypto markets, too) was enough to elicit trips to the store for industrial-strength antacids. You had a weird week – China news ping-ponging throughout the market, Jamie Dimon saying that Bitcoin was headed to zero (or something like that) – and the price craziness did cause quite a few “hold my manbun while I vomit” moments.

However, now that all that’s in the rear view mirror (because we’ll never have a price drop ever again, right?) it’s time to talk about how you can avoid getting rekt.

We’ve got four parts to this approach – four pillars of risk management that you can consider. Those four pillars: The Ratio, The Basket Theory, Passive Income Platforms, and ICOs. We’ll explain it all below.

Again, Do Your Own Research. Here goes…

Risk Management, Part One – The Ratio

Traders – the hardcore type – talk about “risk/reward” ratios in a very simple way: expressed as a ratio with a colon between the numbers (giving us an opportunity to maximize the use of various punctuation marks in one glorious sentence; we are big fans of glorious sentences here at Metacoin HQ) and it looks something like the below image.

In this situation, you are advised – by the hardcore traders, not by Metacoin, since this site does not offer individualized trading advice and you should do your own research and you and you alone are responsible for gains or losses and don’t invest more than you can afford to lose – to risk 1 to potentially make 5.

A trader would say, for instance, that they see the potential for a profit of 50% on a trade. If that’s the case, you’re setting a stop loss at 10%. Applying it to the above Bitcoin price, if you listened to this trader’s hypothetical advice when Bitcoin was at $3000, you’d have stop losses to sell your holdings at $2700, and you’d have a sell order at $4500. (And you might actually see both of those prices in the next couple weeks, at least given the volatility in the marketplace.) Neither have been triggered, but, if the price hits either level, you’ll either sell and cut your losses, or sell and take some profits.

But you can also apply a different sort of risk management concept, which I’ll call the “Basket Theory.”

Risk Management, Part Two – The Basket Theory

Andrew Carnegie famously said “Put all your eggs in one basket, then watch that basket.” The general premise for Carnegie started with steel, which he used as a fulcrum to get into all sorts of other things; so maybe his basket of steel gave birth to other baskets (bonds, oil, general finance, etc.) and you could use his theory to some extent with crypto. In other words, you need to know a lot about cryptocurrency if you’re going to have a basket of crypto, but you need to diversify that basket itself.

Carnegie’s advice could be boiled down to this: you’re getting into eggs, but that doesn’t mean you shouldn’t have a variety of eggs, either.

Bringing us to the other old adage: don’t put all your eggs in one basket.

Basic risk management in any sort of trading involves a diversified portfolio. You could call the BRED Portfolio we talk about as diversified, but, in all honesty, it’s not diversified enough.

Our own Hedge Fund is probably a better choice for this – a basket of a variety of currencies, chosen for their diversity. If one goes way up, there may be others that don’t do as well – and that’s okay, because the basket itself gets bigger and is more diversified than betting on just one crypto.

But there’s one other angle to our own recommended approach to risk management: Passive Income Platforms.

Risk Management, Part Three – Passive Income Platforms

We have talked at length about some of these platforms, and we are really only scratching the surface. There’s money to be made if you know where to look – and we cannot stress the following point enough:

Spread out your risk in Passive Income Platforms, or you will regret it.

This part of our crypto journey began in July with a Bitconnect investment. (AFFILIATE LINK over there.) Bitconnect (which we explain more on the Passive Income page, which includes some running totals and updates from our various experiments) has the potential to be the best long-term passive income platform in cryptocurrency. This is because the platform is backed by a coin that has a market capitalization of $700-plus million.

We couldn’t go crazy with Bitconnect, though, because we have to keep banging the drum on diversification and risk management and egg-watching. This led us to more platforms worth trying out: Bitpetite (AFFILIATE LINK; Bitpetite “borrows” your Bitcoin, Ethereum, or Litecoin to profit from transaction fees, they pay you, but it’s a lease, like Genesis Mining, and you won’t get your original principal back) and Bithaul (AFFILIATE LINK; brand new, we’ve pulled some BTC out of it, but it’s a test and we’re not sold yet).

But, our research also led us to three additional platforms that went belly up: Ambis, Microhash, and Control Finance.

Affiliate commissions and referral fees can offset some losses, and some of these programs are potentially pretty lucrative. Plus, if you don’t like the “multi-level marketing” component of some of these (Bitconnect and Bitpetite both have tiers of affiliate commissions, so you can potentially profit from introducing others who introduce others), you can just sign up for trading platforms that are launching – like Altcoin Exchange, or WCX – and potentially profit from trading that happens down the road. (Those are REFERRAL LINKS.)

We’ve got one more in our four-part guide…And it’s one that American blokes like us are often kept from taking advantage of. But you…if you’re not in the US or one of the other verboten countries, should totally look at ICOs.

Risk Management, Part Four – ICOs

Initial Coin Offerings – ICOs – are the new Initial Public Offerings – IPOs. We’ve gotten into two ICOs; that number is only two because of the following:

  1. We’ve been skeptical of the product and/or
  2. We’ve been slow to the draw and/or
  3. We’re American.

That last point is uncool, in our opinion. Because of the lack of clarity around regulation, many ICOs are deciding that they just don’t want to muck with American involvement. Some of the cooler ones (Presearch, for instance) asks you at the front page whether or not you are a US citizen or US resident. Answer yes and they’ll thank you for playing and send you on your way; you can’t even register because you aren’t worth the hassle.

You have to wait, in those cases, until the coins trade on an exchange. If it’s a project worth investing in in the first place, its price will pop on the exchange. If it’s not worth investing in at ICO levels, you can possibly get coins on the cheap once they trade – but once they do trade, if they’re trading at a discount, there’s a reason.

We’ll use baseball vernacular to explain our two investments: we’re 1-for-2 – a hit and we reached on a fielder’s choice.

  • Tierion – this is a base hit, maybe could be a double. We’ll probably score a run with this one. Great project, and it’s right now trading 80 percent higher than its ICO price.
  • Exscudo – if you’re not a baseball person, a fielder’s choice is when you get on base thanks to hitting the ball, but a fielder makes a play elsewhere, allowing you to reach base. It’s not a hit. It’s not an out. You’re on base. You could eventually score a run, or you could be stranded there after the third out.

With Exscudo, it remains to be seen how successful it will be – if it’s successful at all. Unlike Tierion (which trades on HitBTC, a market for post-ICO coins that aren’t found on regular exchanges, like Poloniex or Cryptopia), Exscudo hasn’t traded anywhere yet – the project is forthcoming. We’re planning, honestly, to get stranded on base (or, even worse, to get picked off daydreaming after wandering off first base). They launch their “test net” on October 4, and the entire project has been delayed.

(We participated in their “Bounty Program,” giving us the chance for pretty substantial gains – but we’re preparing for the worst.)

Is there more to Risk Management? Sure!

We haven’t talked about mining and staking yet – I guess we could talk about those, and we might update this guide down the road. But, for now, we think that these four pillars could help you figure out how best to manage your own crypto risk.

Hang in there, friends. It’s just starting to get interesting.

 

 

Written by David Van de Walle · Categorized: Bitcoin, Bitconnect, Bitpetite, DYOR, Exscudo, Passive Income, Risk Management, Tierion · Tagged: rekt

Aug 28 2017

An Update on Two PIPs

Hope everyone had a great weekend – in or out of crypto – and is ready to make things happen.

We know we are – and we thought we’d update you on a couple of the posts we’ve shared recently. These are around concepts we’re calling PIPs – Passive Income Platforms. Here goes…

Bitconnect is Back

Here’s the post from late last week: Et Tu Bitconnect.

The site is now past its problems from the weekend.

One of the problems, as far as we can tell, stemmed from “whale trading” – where the big whales with lots of coins try to manipulate the price through massive buys and sells. It worked – the price dropped precipitously, causing the appearance of a “run on the bank,” and prompting Bitconnect to pull its site down.

It turned out to be a smart move – in our opinion – sortof like a trading halt on Wall Street.

The challenge from here on out, though, will be the performance of their volatility bot.

Above – and please ignore the apostrophe issue, as this is from the Bitconnect site directly – and that’s an AFFILIATE LINK over there – you’ll see two graphics. One is from a few weeks back, where daily interest was above 1% for 4 of the 6 days listed (on a chart that is actually supposed to be the last five days).

The second chart is the past few days. Interest is much lower, as you see – and it’s zero for payouts tomorrow.

Compare this to Control Finance (AFFILIATE LINK), who pays 1% minimum daily, and Bitconnect might have some trouble with the viral element of their approach, as YouTubers like to share great, predictable, dependable returns.

We’ll keep an eye out for you, and continue to share updates.

Bitpetite – Not Ideal…

We’re updating this post with more info on Bitpetite. And we encourage you to visit our “Passive Income” page for continued coverage of what’s up with this, and other platforms.

Our big beef, which we talked about a few weeks back, was this: It’s not obvious on the site that your “deposit” will not be returned. But, at the end of your “loan terms,” your deposit won’t be coming back.

Bitpetite

So, while we do strongly encourage Bitpetite to change the language on their site, it’s not unlike other mining contracts you may purchase. You are renting or leasing their capabilities, and you’re getting a return – but the return isn’t as large, because you don’t get your minimum back.

We are still profiting from our Bitpetite relationship, and you may as well. Here’s the Bitpetite AFFILIATE LINK.

We’re withdrawing our…”dividends”…as often as we can (there’s a minimum threshold) and moving them over to Coinbase. (AFFILIATE LINK.) We may consider another Bitpetite contract in the future. We’ll keep you posted.

Your Reminder…

For us, these sites are experiments. We’re happy to “take one for the team” here, but note that you will want to think carefully about getting involved with any sites where your Bitcoins (or other coins or tokens) are not owned by you.

And, in all cases, remembering that this particular site is NOT GIVING INVESTMENT ADVICE, do your own research and don’t invest more than you can afford to lose.

Written by David Van de Walle · Categorized: Bitconnect, Bitpetite

Aug 25 2017

Et Tu, Bitconnect?

Of the “Passive Income Platforms” (PIPs) we’ve studied so far here at the site, Bitconnect holds the most promise. And it also jolted the marketplace a ton in the past 24 hours; the resulting blowback has left more than a few cryptocurrency enthusiasts with a ton of questions.

First, the BCC Currency Dropped

BCC One Day

It since recovered, but the resulting shock might have done something to the Bitconnect platform – separate from the coin, the platform is where you can loan money to BCC and have them invest it on your behalf in their “volatility software.”

Earlier today, an “Site Maintenance” message greeted visitors. Now, the site is back, but the dashboard for users of the software will be down until Sunday the 27th; here’s the message they shared with visitors just now.

BCC Error Message

If you’re looking for a message that will inspire a little bit of confidence in the system, this really isn’t it.

Welcome. To. Crypto.

Honestly, this is all becoming par for the course – and I should be harping on the message over and over that you should do your own research and don’t put all your eggs in any basket and seek the advice and counsel of investment professionals and tax advisors.

We had thought that Bitconnect having its own coin would help with its long-term stability; we’ll need to wait and see if they can use their coin, their trading bot, and their website to make us at least a little more confident in the service.

Et Tu, Bitconnect

Written by David Van de Walle · Categorized: Bitconnect, Passive Income

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