The BitConnect Experiment: How Much Did I Make Lending on BitConnect
This is part two of my BitConnect experiment. Start by reading part 1 here.
So when we left off I had $1120 invested, maybe I should have stopped there, but everything had been going well so I decided to put up another loan out of pocket. I wanted to see what it would be like if I hit tier 3 interest payments so I decided to go ahead and put up $5,300. I had already invested $1120 so this would give me a total of $6,420 in loans.
You might wonder what made me choose the amount of $5300…well honestly its because I was playing with the BitConnect profitability calculator and I saw that $5300 loan would generate me a little over $1700 in monthly income.
The numbers were so good I would be doing my self a disservice if I didn’t give it a shot. Don’t get me wrong the thought of losing this money was heart-wrenching but the risk vs reward on this for me highly favored the reward side. On one hand, the loss of $5300 would be something that I would have to work hard to bounce back from but if these returns were real…well let’s just say this is life changing stuff then.
Depositing The Money
So I had my mind made up I was going to do it. I opened up my Coinbase app(by the way if you sign up for Coinbase here, they will give you an additional $10 in bitcoin when you buy over $100 worth) I noticed something that would put a wrench in my plans. Coinbase has a maximum weekly limit, I had seen this before but somehow forgotten about it. I had a max buying limit of $1250. I would still need to buy $4050 worth of bitcoin but from where? I hopped online to tap into many of the popular online marketplaces such as Craigslist and OfferUp, maybe I could buy bitcoin from someone willing to sell. Listings were scarce and the people I called did not answer the phone. I knew there had to be another way so I did what I always do when in doubt…I Googled. After some research I found out that there were a few BitCoin ATM’s in my area. BitCoin ATM’s look similar to regular ATMs except that convert your USD into BitCoin and send it over to your wallet. I decided to go check one out, my GPS led me to a gas station. I walked inside and asked the guy at the counter if he had a bitcoin ATM. The guy points over to the far corner and low and behold, there it was, my ticket to easy bitcoin. There was only one problem, the fees were astronomical. This BitCoin ATM was charging 20%….Shit! I did the math I needed $4050 that would $810 in fees alone…Yikes.
I left immediately there was just no way I was going to pay $810 in fees, I knew there would be some fee but we were talking about close to $1000 here. I drove home and did some more research. I was able to find a coinatmradar.com. This site listed the various locations around my city with BitCoin ATM’s and also shared what the interest rate was. After a few seconds of scrolling I located an0ther BitCoin ATM that charged 10%…still expensive but I was willing to pay after all this was all in the spirit of finding new revenue streams and it takes money to make money. That and the fact I was tired of trying to figure it out caused me to go ahead and pay the 10%. There may have been other places cheaper but I found that most of the people who have these BitCoin ATM’s at their business have no idea about anything about them. None of the owner of the stores I had been to could tell me the percentage rate over the phone.
Using The BitCoin ATM
Using the BitCoin ATM was pretty straight forward. It looked like a regular ATM with a touch screen. I was asked to input my phone number so I did. I was then sent a verification text in which I had to type the code that was text to me into the machine. Next, I had to verify my identity the machine asked me to take a picture of my ID front and back. After this was completed I was asked to input or scan my desired destination wallet address. Now I was ready to insert my money I did so making sure to calculate the extra needed to cover fees. Once this was done they asked was I done and I said yes. I wasn’t given a receipt the screen went back to the start screen and I became a little concerned. I checked my wallet app that I pointed the BitCoin ATM too and saw the pending transaction in the amount I just deposited. I was relieved and left to drive home excited to make the loan. By the time I arrived home the transaction had cleared.
The $5300 BitConnect Loan
I got home transferred the remaining bitcoin to my BitConnect Wallet, the converted them to BitConnect tokens and well then this happened
What kind of returns can you expect lending on BitConnect?
I’m sure that’s what you want to know. What was I going to earn from lending $5300. Well because this loan was over $5010 I hit the third tier which gives me the base interest rate + an additional 0.20%. With daily rates averaging 1%, this translates into a monthly income of $1700 from this loan. This combined with my other loans was giving me approximately $65 per day in passive income. This allowed me to do $100 reinvestments every 2 days as seen below.
A day later I got some referrals and had enough to invest another $200 without adding any money, this thing was compounding fast.
After this investment, I had a total of $6820 in loans generating me passive income.
My BitConnect Investing Strategy
Now I’m sure you have heard many people call BitConnect a scam or a Ponzi scheme, and others that will defend it with their lives. Both sides have some pretty solid arguments but I’ll be the first to admit I don’t know. All I know is it works…for now. That being said I spent some time coming up with the safest BitConnect strategy I could think of. I decided that once I hit $7000 total in active loans that I will start withdrawing my original investment of $6420 out of the account. With the total active loans I have, I should be generating near $2100 per month. That said over the next 4 months I will likely be pulling at least $1700 from the profits out monthly until my original investment is paid back. I hope this platform will be around for a long time but all in all I would feel much more comfortable if I knew I was playing with house money. Any remaining money I have monthly will be reinvested but the focus, for now, is to secure the original investment as I think this is the safest BitConnect strategy.
I will continue to keep you updated on my progress with the BitConnect Experiment. If you are interested in joining my team you can earn with me on BitConnect here. I offer strategy and tips for anyone who joins using one of my links. Also, follow these videos or click here to see me on youtube. Like and subscribe and leave any questions or comments in the comments section.