If you are looking into investing in Bits Trades and a bit worried about the legitimacy of it all then good for you. There are a lot of scams out there and quite honestly this looks like another. It has many resemblances of a very popular and infamous scam that I’ll go over and quite a few things I’m concerned with overall.
You might actually be able to make money with Bits Trades but is it really worth the risk? In this review I’ll be taking a level-headed approach to it all and try to break everything down for you. Is Bits Trades a scam? Find out…
Bits Trades (at bitstrades.com) claims to be a “digital banking community for bitcoin and cyrptocurrency investment solutions”. Its kind of confusing what exactly they mean by this because I don’t really see any evidence of this being the case.
The BitsTrades coin (BSS) is supposedly like bitcoin in just about every way. They really don’t give too much information on it all but they do tell you that it is a decentralized, peer to peer cryptocurrency. They don’t tell you anything about how the technology behind it works or anything like that.
The BitsTrades Platform
On the Bits Trades platform there are 4 ways that you can potentially make money with the BSS coin. These include the following
This is when you simply buy and hold BSS in your wallet. You will be able to earn a monthly interest for doing so.
They have a lending platform that you can invest your BSS in and earn profits from their trading bot & volatility software. Basically what you do here is buy BSS and then lend it back to the platform where they use it to trade.
On Bits Trades they have an exchange where you can buy and sell BSS for Bitcoin. You an potentially capitalize on market fluctuations.
They say you are able to mine BSS. I’m not sure how exactly this all works as there isn’t much of any information on it all.
The Main Focus of Bits Trades
The lending platform seems to be the focus of the entire site and this is worrisome. Why does it worry me? Well because we have seen some massive “lending” scams in the past such as Bitconnect & BitconnectX.
For those of you who do not know, Bitconnect was a massive cryptocurrency lending platform that was more than likely a covered up Ponzi scheme. It was once valued at over $1.5 billion and then collapsed in an extremely short period of time to well under $100 million.
Bitconnect and BitsTrades are very similar…. in fact they are pretty much the same darn thing. The same goes for other platforms like Davor Coin and LendConnect.
I’m not saying that just because it is a lending platform that its a scam. It is possible that it could be legitimate and that they really are doing what they say. There is nothing wrong with lending back to them and earning profit from their trading bot and volatility software. But I do still worry and have my suspicions about it all and this is why…
Besides resembling some known scams, BitsTrades has some other very common scam characteristics that you should be aware of.
#1) No Information On The Team Behind It
There is no information given on the people behind this. You don’t know who is running the show here and you don’t know if you can trust them or how credible they are. For all I know it could be the same people that created the Bitconnect scam (which are also unknown by the way).
#2) Vague Details About How Things Work
All of the information given about how things work and how you will be able to make money is very vague. There really isn’t much to it all that is known.
Take for example the “Volatility Software” that they mention several times. There is no information given on how this works, how it runs, what exactly it does… anything. We are just supposed to trust that this “volatility software” somehow brings in massive profits for you.
#3) No Transparency
When it comes to the platform, once again you just have to trust that they are doing what they say they are. You don’t really know what they are doing when you lend your BSS back to them. They don’t give you any information on what the trading and volatility software is actually doing with that and this is yet another problem.
Ok, so if you invest in BitsTrades you are going to be buying BSS and then probably lending it back to them, all while having no real proof that they are actually doing what they say. This was the big problem with Bitconnect. They told people that they were using their lended coins to make money with their volatility software just as BitsTrades tells you. But this obviously wasn’t true because if they were they would have never imploded as they did.
What Bitconnect was doing and BitsTrades is potentially doing was running a Ponzi scheme. This is when the investments of new members is used to pay off existing members. This very well could be going on in the background due to lack of transparency.
What also makes me believe that it very well could be a ponzi is the fact that they have a very lucrative mlm referral program. This means that you can recruit in others to invest in BitsTrades and make money off of them, and make money off of the people that they recruit in, and off of the people that they recruit in and so on. Recruitment structures like this definitely do not mean that opportunities are a scam but they are at the core of ponzi schemes and this coupled along with their lack of transparency is a problem.
But Can You Make Money?
In Ponzi schemes you can make money and some people make a heck of a lot of money. Bitconnect, for example, turned some people into millionaires. But this all depends on how early you get in and how successful the ponzi scheme will be.
Those that get in early stand a chance to make a lot of money if the ponzi continues to operate for a while after. Those that get in late are screwed. With Ponzi’s the majority of people lose money. That is a statistical fact.
Conclusion on BitsTrades – Is It Worth Investing In?
The possibility that BitsTrades is a ponzi scheme is very high. They are very vague with what they tell you, there is no information the creators or team behind it, and it resembles known cryptocurrency lending scams in many ways. Spotting a cryptocurrency scam can be tricky these days so you have to be careful.
While some people will probably make money with it I definitely would advise against investing in it. You never know how successful it will be and when it will collapse. All you know is that if it is a Ponzi then it will collapse at some point. And with all the negative news surrounding Bitconnect I don’t see this one being a very successful Ponzi.
You can invest at your own risk but this is not something I will be doing. And of course if you do invest never invest more than you can afford to lose, especially when there is a good chance you are going to lose it, as with this.
On another note, which is not cryptocurrency related. If you are looking to make money online check out how I do it. The reason I’m mentioning this is because I know a lot of people looking to make money with cryptocurrency are just looking for money and not necessarily interested in the crypto technology they are looking to invest in. So if you are wanting to make money take a look. I’m making over $6,000/mo consistently right now doing this.
If you have any questions or comments please leave them below and I’ll try to get back to you soon 🙂