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Bitcoin Loophole – Another Crypto Scam to Avoid

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Bitcoin Loophole
Image by Bitcoin Loophole

The popularity of digital currencies has led to an explosion of cryptocurrency investment schemes and services. These investment services offer a variety of crypto-related financial products to investors who are looking to generate profits by trading cryptocurrencies. One such online investment vehicle is Bitcoin Loophole.

While Bitcoin Loophole markets itself as a cryptocurrency trading software, it has become apparent that this venture is very likely a scam, preying on unwitting cryptocurrency investors.

How Does Bitcoin Loophole Work?

Bitcoin LoopholeBitcoin Loophole claims to be a new cryptocurrency trading software that has been designed by alleged “prominent investor” Steve McKay. According to the company’s website (of which there are several), the software operates on a fully automated mode.

The Bitcoin Loophole trading software allegedly works by utilising a “highly efficient programming algorithm” that is based on a so-called ‘Flock Principle’. The platform’s alleged creator, Steve McKay, apparently found a loophole, which enables him to apply the economic theory to a basic computer code. The platform development team who manage the computer code assert the trading software scans the ongoing market situation and then predicts whether the price of any digital asset, traditional asset or cryptocurrency pair will rise or fall.

Bitcoin LoopholeSigning up for Bitcoin Loophole is free using the site’s log-in form. The next step is opening a “trading account” on the partnering broker service. The site claims to work with legitimate brokers and thus claims that investors funds and information are secure.

To begin trading a user has to fund his account with an initial deposit. The minimum deposit is $250. The deposits can be made through a variety of payment channels including credit cards, wire transfer, and bitcoin (BTC) and its operators claim that funds can be withdrawn any time. The site also claims once users have signed up and made a deposit they are guaranteed to get daily returns.

How is Bitcoin Loophole a Scam?

The obvious red flag concerning Bitcoin Loophole is the site promises a minimum of $13,000 daily returns. Now, imagine making over $500 an hour without any effort? Sounds goods to be true! Well, that is because it is good to be true.

Going by their guarantee, it would mean that anyone using the service will be a millionaire in a few months. However, when you study the disclaimer on the website you will notice it states that the site does not guarantee any profits. This is a direct contradiction to what is stated on the sales page.

Bitcoin Loophole Scam

Furthermore, the alleged CEO of Bitcoin Loophole, Steve McKay, does not seem to exist. If you take a closer look at any of his photos on the website you will notice they are stock images and a reverse Google image search proves that. It is, thus, very obvious that the site’s operators want to stay anonymous and are using a fake frontman to lure investors into their scheme.

Also, research has failed to confirm the claim that he has been featured on Forbes or Business Insider in the past even though the site makes this claim and the reviews found on the website are all fake.

It is also important to note Bitcoin Loophole is not regulated nor does it have any license for its operations. In fact, the FCA issued a warning against Bitcoin Loophole as it has no authorisation to target investors in the UK.

Unsurprinsgly, there is also no information on how the “trading software” actually works nor is there evidence of any actual trading in the crypto markets by the operation.

Moreover, most of the reviews online praising the trading software are actually fake and cannot be trusted. The reality is Bitcoin Loophole operates like any other Bitcoin MLM scheme and uses referral payments to get its users to attract new users for a commission and there is no evidence that the company actually trades cryptocurrencies on behalf of its “investors.”

Red Flags Summarised

  • No valid information on the company or individuals behind the platform.
  • The alleged owner Steve McKay does not seem to be a real person.
  • The Steve McKay online persona has been linked to other alleged bitcoin scams.
  • Bitcoin Loophole uses fake reviews and gives no insight into ownership structure.
  • No insight into how the “trading software” is generating its alleged profits.
  • The platform uses several different websites and its main website is no longer online.
  • The UK financial regulator has issued a warning against Bitcoin Loophole.
  • Finally, the platform guarantees a profit, which is arguably the biggest red flags of all!

Stay Away From Bitcoin Loophole

Bitcoin LoopholeIf such an extraordinarily profitable trading software really existed, it would be all over the news and not mentioned on some obscure websites. So, chances are the software is just a trading bot that executes whatever the site administrators have programmed it to perform if they even trade anything at all.

Based on all these factors it is safe to assume that Bitcoin Loophole is a scam. Any online reviews that state otherwise have likely either been paid for or have solely been written to benefit financially from the platform’s referral system.

Bitcoin users are always advised to research, consult experts and use some common sense before investing in any investment vehicle in the cryptocurrency space.

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How to Earn Digital Currency Online in 2020

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earn digital currency

The following is a guide on how to earn digital currency online in 2020. This guide lists five ways.

Earn Digital Currency Online through Trading

You can earn digital currency online through trading on peer-to-peer (P2P) exchanges like Paxful. Trading could mean that you are exchanging one digital currency for another. Instead of getting paid in your local currency for selling bitcoin for a profit, the buyer can pay you in another digital currency like ether.

Trading on P2P exchanges could become a full-time job and earn you a living. On Paxful, for instance, you can post your sale offers and wait for users to buy from you. To increase your sales, you should have good feedback from users you have traded with previously, your selling price should be attractive, and you should have a high trade volume.

Furthermore, you can earn crypto by selling the gift cards you are not using. Some of the gift cards you can sell on Paxful for crypto include iTunes, American Express, Nike, Sephora, and Macy’s.

Participating in Affiliate Programs

Affiliate programs are arrangements where individuals earn commissions in crypto for onboarding new users. Such programs are great opportunities to earn extra income, especially if you believe in the company’s service or product.

For example, you can earn 50 percent of the escrow fee on Paxful when your friends (tier one affiliates) buy bitcoin on the platform. Additionally, you can earn ten percent of the escrow fee when your friends (tier two affiliates) purchase bitcoin on the P2P exchange.

Paxful pays commissions in bitcoin. Once you have earned at least USD10 in BTC, “you can cash out your earnings into your Paxful wallet anytime.”

To become a successful affiliate, you should understand the product or service you are recommending to your friends. Also, it would be best if you are a user of this product or service. People are more likely to try out an exchange, for instance, if you can prove that it is working for you.

Joining the Paxful Ambassador Program

Young AfricansPaxful’s ambassador program is suitable for individuals that believe in the P2P exchange and financial freedom. As an ambassador, your job is to tell as many people as you can about Paxful and to help them become users.

The initiative has three levels: peer, ambassador, and associate. Each level has several benefits and specific tasks that individuals should accomplish. For example, you will earn $5 as a peer each time your referrals complete their first trade on Paxful.

Individuals that join this program are eligible for affiliate program earnings. Furthermore, you will be invited to all Paxful events in your region, giving you a chance to increase your crypto knowledge and build your network.

Freelance Writing

Writing for crypto companies is another great way to earn digital currency. You can find freelance writing opportunities with crypto news sites, exchanges, crypto projects, and blockchain companies.

Crypto writing gigs can pay you in cryptocurrencies or company tokens. When it comes to the latter, ensure that you can easily exchange it for major cryptocurrencies before accepting payment.

You can apply for crypto freelance writing opportunities on Crypto Jobs, Cryptocurrency Jobs, Freelancer.com, Crypto Jobs List, Upwork, and Simply Hired.

Becoming a Crypto Social Media Influencer

If you are a crypto enthusiast with a large following on social media, you can advertise crypto products and services in exchange for digital currencies.

When advertising for crypto companies, ensure that you understand their product or service. Alternatively, use the product or service first before recommending it to your audience. To start earning digital currency online as a crypto influencer, you should actively reach out to companies with pitches.

With these five methods of earning digital currency online in 2020, you can start making extra income in the comfort of your home. All you need is a multi-coin wallet, a computer, a smartphone, and an internet connection.

Next, read where to purchase bitcoin in Africa by learning the difference between P2P marketplaces and centralised exchanges.

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How to Buy Your First Bitcoin: A Step-to-Step Guide

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Buy Your First Bitcoin

So, you have finally decided to get on board the bitcoin ship and are wondering how to buy your first bitcoin. This guide will take you through the process of purchasing bitcoin on Paxful.

How to Buy Your First Bitcoin

Paxful is a peer-to-peer marketplace where you can buy and sell bitcoin. However, before you register a Paxful account, you should create a mobile wallet that will hold the bitcoin you purchase.

Some of the best bitcoin wallets that support multi-cryptocurrencies include Edge, Jaxx Liberty, and Guarda. These wallets are compatible with both iOS and Android. Mobile wallets are ideal because of easy accessibility. You want a wallet that enables you to check your bitcoin regularly. Also, you can send and receive bitcoin easily through a mobile wallet.

Some of these wallets are also compatible with other devices. As a result, you can access them on a computer or your browser as extensions.

To create a wallet, follow these steps:

  • Download the app from the App Store or Play Store
  • Once it has installed, open it, and follow the prompts

Creating a wallet is simple. You should, however, remember to write down your wallet’s backup phrase and store it in a secure place. The phrase is important because it will give you access to your wallet when you get a new phone or when you want to open it on a different device.

Furthermore, you should secure your wallet with a strong password. If possible, add two-factor authentication. To get a more secure wallet, buy a cold wallet like Trezor or Ledger.

Buy Your First Bitcoin on Paxful

Now that you have a wallet, you can buy your first bitcoin. Firstly, you will need to create an account on Paxful. To do this, follow the steps below:

  • Visit the Paxful
  • Click “Create Account”

Paxful 1

  • Enter your email address and password
  • Complete the puzzle for verification
  • Open your email and verify it

Paxful 2

  • Paxful will have given you a username. Change it according to your preference. You can only change your username once, so choose wisely
  • Upload a picture of yourself
  • Enter your phone number and verify it by entering the confirmation code Paxful sends you
  • Write your bio, change your email preferences and save changes
  • Set answers to the security questions provided and save. The security answers come in handy when you need to change your phone number
  • Next, click “Verify ID.” Watch the video provided to understand how it is done
  • Verify your home address according to the instructions given

After sending your identity details, wait for Paxful to approve your application. It is crucial to keep in mind that you cannot buy Bitcoin on Paxful until you verify your identity. Therefore, since the verification and approval process will take some time, prepare in advance by getting the following:

  • A PNG or JPG photo of the front and backside of your government-issued ID
  • Good lighting for Paxful to capture a picture of your face
  • A utility bill, bank statement, or credit card statement, showing your full name, city, residential address, and postal code. Paxful does not accept a P.O. Box address and requires proof of address in PDF, JPG, or PNG.

Buying Bitcoin: The Process

Once Paxful approves your application, you can now buy bitcoin. Log into your account and click “Buy Bitcoin.” Paxful will show you a list of sellers from your country. Next, take these steps:

  • Explore the sellers from your country by clicking on their usernames. On their profile, you will see their trade volumes, how many people trust them, the number of trades they have carried out, the number of trade partners they have, and the positive feedback they have received. This information will help you decide who to trade with. Note that trust and positive feedback are important in peer-to-peer trading.
  • Before you hit “Buy,” check the buying limit of each seller, the payment method, and how much they are selling BTC above the current market price. Additionally, check the time it will take the seller to send you bitcoin after you make the payment.

Paxful 5

  • Once you find your preferred offer, click “Buy” and enter the amount you want to spend. Paxful will show you the amount of bitcoin that you will receive. Also, confirm that you are okay with the seller’s requirements before proceeding.

Paxful 7

  • Click “Buy Now” and send payment as per the seller’s instructions. Paxful offers live chat between traders. Therefore, you can discuss the payment option with the seller. You can also use live chat to ask the seller questions.
  • Click “Pay” and the seller will confirm your payment. If you sent the payment successfully, the seller will release the bitcoin to your Paxful wallet

Paxful uses secure escrow to hold bitcoin from the seller as you make your payment. As a result, you are protected from being cheated.

Transferring your Bitcoin

When you complete your transaction, click the “Wallet” tab to view if your BTC has arrived. Once it hits your wallet, you will see a new balance clearly stated. Now, you can transfer the bitcoin to the mobile wallet you created or you can spend it directly from the Paxful wallet.

To transfer bitcoin from Paxful to another wallet, click “Send” and paste the address of your bitcoin mobile wallet. The BTC should appear in your mobile wallet in a few minutes. It is easy to do this if you use the Paxful app. That way, you can carry out the transfer on your mobile phone.

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4 Things to Do Do Before Investing in Bitcoin

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Before Investing in Bitcoin

Investing in bitcoin can be an exciting and profitable opportunity that is unlike other investments that you have made previously. However, investing in bitcoin can also be a big commitment that can put you and your finances at risk if you do not take the right precautions.

Here are four things you should do before you invest your money in bitcoin.

1. Brush Up on Your Cryptocurrency Knowledge

Like with every new opportunity that you are interested in, the first step that you should take before investing is to research this type of investment. Research is vital to find out everything that you need to know about how cryptocurrency investments operate, how much you can expect in returns, and how you can develop a successful strategy. Many online guides can help you to do this. For instance, CryptoVantage can guide you to the best crypto wallets for you and your investment strategy.

2. Know How to Protect Yourself

Protecting yourself is of vital importance when you are deciding to invest in cryptocurrencies like bitcoin and to ensure that you are not bowled over by the many risks that are associated with cryptocurrency and other forms of investing. These risks include the possibility of hackers accessing your bitcoin, incidents of fraud, and a heavily fluctuating market.

To avoid your bitcoin from being stolen by cybercriminals, you should never leave large amounts of bitcoin on exchanges. You should also update the anti-virus software on your computer and make sure that you have installed a firewall, in addition to using a strong password on cryptocurrency platforms.

3. Look at Your Finances

Before you decide to invest in bitcoin, you need to decide how much money you can afford to part with. You should not rely on being able to get this money back as cryptocurrency is a risky asset class whose value increases and decreases regularly.

Once you have decided how much you are willing – and can – invest in crypto, you should then set aside a small test amount. This will enable you to try your hand at cryptocurrency and practice your strategy without the worry of losing all of your money if something goes wrong or if your strategy is not as effective as you at first hoped.

4. Become Part of the Trading Community

Becoming part of the trading community for cryptocurrencies and bitcoin is extremely important if you want to hear about the latest developments and receive advice from seasoned professionals. To do this, you should consider heading on to cryptocurrency forums, joining a local networking group, or choosing to attend a nationwide event that can help you to hone your trading skills and make the most out of your investment for the future.

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