As of October 12th 2014 Bitcoin-Trader seems to be inoperative. We are not sure what this means but advise that no funds be deposited to them. As stated in this post orognialy – this is a high risk program. If you’ve already invested with them we advise you to try and cash out. At seems that at the moment it’s pretty hard to get fund out from BT – updates can be found on Bitcoin talk.
As of October 16th 2014 Bitcoin Trader is officially out of business
Just got the following email in my inbox, my deepest sympathies to anyone who suffered loses from this negligent business. I personally don’t believe what is written in this email and believe it all to have just been a scam.
About a month ago we’ve talked about how to profit from Bitcoin investments. We’ve covered a program called BTCJam which lets you loan Bitcoins to strangers and get a monthly payout – generating an APR (Annual Percentage Rate) of almost 20%. I’m happy to say that my experiment with this program has been going well and I’m getting my monthly payouts as scheduled.
Is it possible to make a 20% MPR (Monthly Percentage Rate) ?
One of the other things I’ve discussed in my previous posts was HYIP – High Yield Investment Programs. These programs are what is known as a Ponzi scheme. They pay out massive interest rates and their risk is much higher. Most of the times these programs are plain out scams. The program we will discuss today seems to have many characteristics of a HYIP, but I wasn’t convinced that it actually is so I decided to take a deeper look.
Bitcoin Trader seems to be paying out for almost 8 months
The main idea of Bitcoin Trader is that you buy shares in either a mining pool or a trading pool and get paid out according to the number of shares you own. So it’s like you invest in the company and in return get future profits that the company will make through trading or mining. The whole thing sounded pretty shady to me, especially after my experience with MyDailyCoin so I decided to test it out for myself.
It’s important to note that I was first introduced to Bitcoin Trader by Haroun Kola also known as the Bitocin Baba. Haroun stated that he has been working with Bitcoin Trader since February 2014 and that he has been receiving payouts from them on a regular basis.
In the past 9 days I’ve made 7.9% on my investment
I’ve tested out Bitcoin Trader with a small amount of cash so I won’t care to much if it’s a scam. I bought some trading shares and waited to see what happens. It doesn’t really matter which shares you buy, trading or mining, since the idea is the same – you invest a certain amount of money and get a precent of that amount in return.
After 9 days I’m glad to say that I’ve made a 7.9% ROI (return on investment) which will probably come to about a 16% ROI at the end of the month. Bitcoin Trader also post their daily results on the website so everyone can see. This is pretty cool since there aren’t a lot of places out there that will give you such an interest rate, but things aren’t always as they seem to I decided to investigate a bit further…
BitcoinTalk users are divided in their opinions regarding Bitcoin Trader
One of the most reliable sources of information about almost anything in the Bitcoin world is BitcoinTalk – the largest and oldest Bitcoin forum. I found a thread discussing Bitcoin Trader which started out on December 2013 and is continuously updating until today. Since the thread has over 1300 comments here are the highlight:
- No one claims he hasn’t gotten paid by Bitcoin Trader.
- Most skeptics haven’t tried the program themselves.
- The owners of Bitcoin Trader are for the most part anonymous (names are revealed but nothing that can link to an actual person).
- No one is regulating or auditing the company which leaves the door open for a Ponzi scheme.
- Bitcoin Trader uses payment processor which are known to be accepted by HYIPs – nothing that can be charged back on.
So is Bitcoin Trader a good investment ?
One of the things that disappointed me about Bitcoin Trader is that it doesn’t actually pay you out in Bitcoins. Meaning you only use Bitcoins in order to deposit money and the value is immediately converted to USD. This is a shame in my opinion since I would like to find a way to grow my Bitcoins, since otherwise they are just laying around. That’s why BTCJam is better suited for such a purpose (but the yield is lower).
To sum things up I think Bitcoin Trader is a viable investment opportunity at the moment but I would be extremely cautious when using it, meaning:
- I won’t invest any amount I can’t afford to lose.
- I would withdraw my profits on a weekly basis and not leave them on Bitcoin Trader.
I think Bitcoin Trader hasn’t necessarily proved to be a HYIP (yet) and you may actually profit from if you play you cards right. Please keep in mind that I’m not a financial expert and everything I write on this blog is my own opinion – so you take it with a grain of salt and at your own risk. Good luck!
Just look at Bitcoin Trader landing page and you’ll see that specified user names, their photos and “I’m happy with your software bla-bla” reviews are just fakes (they use https://uinames.com/ to generate users info)
So it doesn’t seem to be a good to trust your money to a service that falsifies user’s data and reviews.
It seems very risky to me. Im going to pass this ‘oppurtunity’ 🙂
@Graham – What interest rate are you getting at your bank, on bonds? A 4% return in 2 weeks is AWESOME! I have been using BTC for 3 months, and have doubled my money!
Yeah this is definitely a whole other level than what you can get at the bank
Thanks for the shout out Ofir. While the returns are not great, I’ve been earning a steady income since Feb and I’m still investing the income I earn from the affiliate system which has been my big income earzystem
For someone who started out missing the mining boon and only my wits about me and a few failed attempts at affiliate marketing systems.
Like Ofir says, they could turn out to be one of the biggest ponzi scam in bitcoin so don’t risk any money you can’t afford to lose but I’m really keen to school or tutor anyone who signs up under Ofir to promote their bitcoin-trader affiliate link.
Its working for me at the moment in a big way…
This was my first time unwittingly being part of a ponzi scheme.
I’m glad that at the very least, I know now what to look out for to prevent myself from being part of a fraud.
Bitcoin Trader sounds like a risky option, but one that might make some nice money right now. I will give it a go while it lasts and see if I can make some money. Yeah, I also don’t like the fact that you can’t get your profits in Bitcoins. Why are they converting it into USD? I don’t get it.
I think they’re just doing plain arbitrage, or it could be a ponzi scheme. I have no idea though and apparently there’s no one to ask…
I’ve tried Bitcoin Trader and didn’t make much in the 2-3 weeks I used it. I think I got a 4% ROI which is horrible in my opinion! I don’t understand the hype for this because it’s clearly not going to make you much money. I’m never going to use it again.