Crypto currencies are connected to scamming, and this is not helpful towards BitConnect’s reputation.
It is bad news for anyone in this area.
It’s not regrettable that online users are bringing this issue focus.
There is cause for concern in the fact that fraudsters, scammers and criminal investors are perpetrating scams in online currency trading and other activities.
Apart from these fraudulent dealings, there are positive benefits by investing in virtual currency.
The question is whether there are any in BitConnect.
A new hot button issue, is the recent push by governments to regulate and monitor online currency and trading of such currencies, because of the threats lurking on these sites.
China is a primary example.
Online readers are searching for information about these virtual currencies, including BitConnect.
Online investors want to know is BitConnect a scam and what is a Ponzi scheme.
Are their claims too good to be true? And will they lose their money by investing with this company?
BitConnect offers two general areas of business on their site. The first is the BitConnect coin (BCC) and the second is the lending arm of the company.
Understanding the BitConnect Company
BitConnect’s website says that they are an open-source peer-to-peer model cryptocurrency.
One can look at BitConnect as a facilitator and allow you to be your own bank. If you choose not to sell your coins, you stand to earn more interest on your investment.
This strategy is to prevent the depreciation or loss of value, of the coin.
When trading on BitConnect, the fiat currency, is not accepted. You must have bitcoins.
Making Money on BitConnect
There are several ways you can accomplish this. First, you must possess BitConnect coins. Then by lending these coins, mining for coins and through referring people to the service.
Gain Ownership of BitConnect Coins
You must purchase bitcoins to stock up your online account. Once you buy them, transfer them to the BitConnect address of your account. After which, you will exchange bitcoins for BitConnect Coins.
For better returns on your investment, keep the coins for 16 days or more. The payoff is better than trading them.
Lending BitConnect Coins
Another way you can get more coins is through lending.
After buying BCC through the coin exchange, you can use the platform to invest your recent purchased coins or lend them to other users.
You will then accumulate profits daily. Their system trading bot handles the trades for you. However, there is one small catch.
Your investment must sit and lock in for a certain amount of time.
Mining for BitConnect Coins
It is a common practice among crypto companies to offer mining of coins.
So if you have your personal computer, you can use this to mine and earn more BCC. An ASIC miner is not necessary.
Referring People to BitConnect
There are several levels of the BitConnect referral program. It operates just like an MLM system.
The system attributes a part of the investments for people you refer by various percentage points, based on the level they are at, under you.
This goes seven levels deep and from 7 to 0.2%.
Is BitConnect A Scam?
This is the overwhelming question on investor’s mind. Can they trust the dealings of BitConnect?
We suspect that this is a scam.
There are many YouTube videos of people endorsing the website, but no finance professionals. And no one using technical jargon related to virtual currency.
It is all talk about lavish lifestyles, high-end vacations in distant lands and their bankbooks growing fatter. But what about the technical aspects of investing the cryptocurrency that got you supposedly rich in the first place.
Legitimate owners of bitcoin usually spew these jargons over and over again.
They can talk about their tactics, investment, the stock market and everything else related to the business of investing.
In addition, the lock-in strategy is unconscionable.
The period is usually four to ten months and this can cause you great anxiety if the coins decline in value.
There is also the worry thought of the vagueness of how those trade bots work. We only see them mentioned once.
Oh, the next concern is a worrying one.
The spelling and grammar on the website are atrocious. Which reputable million-dollar company will not spend a few dollars on a proper copywriter to edit the website content.
This is a big red flag.
Is this a one-person company and not a militia person corporation as we are lead to believe?
The Major Rule of Investment
All legit investors know that you cannot guarantee returns. Anything can happen.
Therefore, if an investor communicates this to you, run the other direction. It is an illegal practice to guarantee returns to investors.
It is a practice typical of ponzi schemes.
So, when they issue their BitConnect news of guaranteeing 10% or 25% daily returns, it rings false. If this were so, high-end bankers and hedge fund managers would be jobless.
Their referral service is built on a pyramid scheme!
Need we say more?