Update: Bitcoin-Trader.biz head John Carley claims the service has been hacked during an audit that was previously touted as successful. Bitcoin-Trader is closing down and it may even have been a ponzi from the very beginning. For more information, read: Bitcoin-Trader Goes Rogue – HYIP Exposed.
CCN apologizes to anyone that lost money with Bitcoin-Trader. As a reminder, CCN publishes sponsored stories which are text advertorials written by CCN authors for pay. The views of the sponsored story ad are not those of CCN or the author, they are explicitly the views of the advertised company.
You might not have heard of Bitcoin Trader before; you see, they haven’t been advertising on Bitcointalk.org in full force like many other Bitcoin companies have in the past. In fact, this is the only thread about Bitcoin-Trader.biz on Bitcointalk, and no Bitcoin Trader representative has ever posted there. Bitcoin Trader never planned to do things the orthodox way and actually launched privately many months ago with invitees only allowed one additional invitation and just a few trusted promoters. Also, unlike many Bitcoin services, Bitcoin Trader claims to be a fully registered company out of Panama. Now, Bitcoin Trader is slowly increasing their size and are now offering their “passive income opportunity” services to Bitcoiners around the world. Bitcoin Trader takes its users security very seriously and among other security precautions, passwords are never stored on Bitcoin Trader servers in plain text or encrypted forms; instead, Bitcoin Trader only stores salted hashes for use as a comparison. For those of y’all that are curious, this is how the money part of it works. When you deposit your Bitcoins, at the then market exchange rate your account will be credited a USD amount. Likewise, when you withdraw, your account’s posted positive USD balance will be converted to Bitcoin at the current market rate and withdrawn. This means that the USD value of your investments does not lose value if there is a dip in the BTC/USD exchange rate; along the same vein, your accounts do not gain from any rise in the BTC/USD exchange rate either. Bitcoin Trader uses Coinbase’s BTC/USD exchange rate, having joined many other Bitcoin services in abandoning Mt. Gox’s API. Bitcoin Trading Bitcoin Trading shares puts your money into a pool for Bitcoin Trader’s London-based trading team to use in classified arbitrage operations for a contracted length of 120 days. Bitcoin Trader is intentionally vague in revealing which currency and exchange pairs (or groups) are traded on but so far their track record is impressive. The London-based team might be running bots, but they are indeed very human and only work Mondays through Fridays, they do not trade over the weekend or on publicly recognized UK holidays. Losses won’t ever exceed 3% due to stop-loss orders meant to secure the investor’s bottom line. At the end of 120 days, the original balance of the shares is returned to the investor. The maximum number of trading shares an individual investor may have is 2500. Bitcoin Mining Bitcoin Trader currently owns around 10 TH/s of mining power and have roughly 1700 mining shares with each share being worth around 6 GH/s. Unlike trading shares, mining shares expire after their specified 12-month period and their original balance is not refunded. Bitcoin Trader plans to increase the amount of GH/s represented by each share during the course of the mining share contract as the coming year will see a highly increased mining difficulty. The current maximum amount of mining shares per individual investor is 500. Are these kinds of returns sustainable? In my experience with crypto-arbitrage across the Bitcoin community’s varied exchanges, profits upwards of 1% per day are not unheard of. In this intrinsically unregulated market, things such as insider trading are mere facts of life and the efficient market hypothesis faces daily reality checks. Arbitrage is a lot less risky than playing with exchange rate volatility straight up; however, there are still days when negative trading returns occur at Bitcoin Trader. The risk of a Pirateat40-like situation is always present as well. For anyone whom wants to see sustainable returns over a long period of time, Bitcoin Trader might be for you. I particularly recommend their trading over their mining; however, I must emphasize again that during your contracted term you will neither lose nor benefit from any manic bubbles in the BTC/USD exchange rate. For those of y’all that are interested, registration link is right here. Note: It is important to not that Bitcoin-Trader.biz and Bitcoin-Trade.biz are two separate entities run by different sets of people from different countries. In contrast with Bitcoin-Trader.biz, Bitcoin-trade.biz specifically advertises to the High Yield Investment Profile (HYFP) crowd on well-known ponzi scheme forums and appears to be Russian or Eastern European in origin. Bitcoin-Trader.biz only advertises “via ad networks, like AdWords, Bing Ads or Add.ly, to name just a few, as well as in Bitcoin related advertising networks.” per the words of Michael Brandenburg, the head of Business and Marketing Development over at Bitcoin Trader.