Topic: My experience with bitcoin-trader.biz (including numbers) (Read 1082 times)

I heard that they want to bring down the time the invested money is "blocked" as there seems to be a great demand for that.

But I can understand that it's important for them to have a "guaranteed" source of money to trade the arbitrage. I could imagine that they would do shorter plans that would generate less interest, though.

Let's see - they have just been around since last November. I am pretty sure that they will have more products available in future.

Best

iFlash

I don't like that part: (your money can not be taken out during that time).

If that would be changed, i'd maybe put 20$ in it for test. I believe that this is legit business, but i wan't to see upper part removed.

Hello Coin-Cons,

to paint a possible scenario, I made an excel chart based on the initial invest and the fact that I will re-invest any payouts during my journey. The result:

After 120 days (which means around 85 trading days) and an average payout of 0,84 per cent interest per day (which is the average since last Friday), I might have doubled my invest.

But that also means: If I would reinvest the whole thing again, after 120 days I would have gained 100 per cent a second time and so on. The effecitve interes p.a. is around 900 per cent.

Okay. Now all the alarm bells should ring, shouldn't they?

Well: It all really comes down on the question: Can they make around 0,84 per cent profit through arbitrage or not? If you answer the question with "yes" (like I did), then everything else is pure math. An interest of that amount simply leads to the 900 per year (if you re-invest) because that's how interest works.

Now is a gain like this sustainable? And if so, how long is it sustainable?

Bitcoin is a VERY young market, with only a couple of million people actually following it these days. I would say it is fair to believe that if Bitcoin wants to have a chance at all, we would need far more people joining the party. And I would assume that there will be many, many more users over the next few years.

And as long as new users are coming to the market, the arbitrage trading will just work great. Only if the user numbers of services like bitcoin-trader grow faster than the bitcoin user basis, the profits for those investors would vanish.

Best,

iFlash

Dear Coin-Cons,

Now I saw many, many of those High Yield stuff but I felt that  bitcoin-trader (yes, there is a ref-link included) actually have a case: Arbitrage is proven to generate incredible results if done clever. In fact, that's where the high frequency traders make their money as well, don't they?

So last week I gave it a try and I want to share the results with you on a regular basis.

I am in with 1.600 USD and only bought into their trading shares (they also offer mining shares but I think that this is simply not very profitable at all). A share is priced at 20 USD and it will generate interest of about 0,8 per cent daily (Monday to Friday that is) for 120 days (your money can not be taken out during that time).

Whenever the interest sums up to 20 USD I immediately buy another share to maximise the effect of interest. After 120 days your initial shares are converted back to money, so you end up with your principal and the interest generated during the way is your profit.

So far, so good.

The downside is that they do not pay out on weekends although BTCs are traded, of course. One could think that they still trade with your money and keep the profit for themselves (on top of the percentage that they will take anyway during the week). But as long as they generate interest - fine with me.

Now I know what the usual suspects will says: It's a scam, it just has to be one.

I don't know. The business model looks legit to me. They need the money from investors because otherwise they can not do the arbitrage trading in the first place. The more money they have to trade the higher their profit is as it's a percentage. I think the real "risk" with this is: When there are too many users with them, they might not be able to find enough trades with arbitrage to use all of the money available. This would constantly bring down the overall interest for each user.

Now to the numbers: I started last Friday with 78 shares (equals 1.560 USD). With the profits of the last days I was able to buy 2 more shares, so now I am at 1.600 USD)

If people want to follow how I am doing I will post on regular basis about my progress.

Happy trading,


iFlash