Monday, 5 October 2015 Review

As promised a few weeks ago, here is my review of BTC Flex.

"BTCFlex provides a unique client centered service which put our client's needs first. It's a privately owned company operating on the Bitcoin trade market. Founded in 2014, our company has managed over $2 million for institutional and BTCFlex investors. With abundant experience, unique strategic plans and smart investment schemes, we know how to minimize the risk in present Bitcoin trades and how to maximize our investors returns. Now it is the time we proudly announce our online program to those who are seeking a reliable investment opportunity," according to their website.

BTC Flex offers you the opportunity to earn 0.15% interest per hour, which is 3.6% interest per day, or even more if you compound, on Bitcoins you invest with them. Given that you'd be hard pushed to get 3.6% in a year with most bank accounts, it's a tempting offer, but is it too good to be true?

First I wanted to know how they can offer such a high rate of interest, but their website isn't very forthcoming with the details. From what I could tell it looks like they invest clients' bitcoins to make money, and pass some of the profit back to their clients, in a similar way to most high st banks paying interest on a bank account. However, Bitcoin isn't regulated and there's no government protection if BTC Flex go under, like there is for high st banks.

When I first looked into BTC Flex, back in July, a web search didn't show up much about BTC Flex itself, but there are similar websites. The others either offered lower interest or had a higher minimum investment. Even though I'm a firm believer that if something sounds too good to be true, it probably is, I decided as their minimum investment was only ฿ 0.001, which was worth about £0.17GBP at the time, I'd take a chance.and invest the minimum.

As you can see, I did invest a bit more, a week later, but I'll get to that.

I compounded 100%. That means all my earnings were added to my deposit to earn the 0.15%, so I was earning interest on my interest. I kept an eye on it over the next few days and could see it earning 0.15% an hour. I started earning ฿ 0.00000150 an hour, after 4 hours, it went up to ฿ 0.00000151 and continued to rise every few hours. By 26th July, I was earning ฿ 0.00000186 an hour and had earned a total of ฿ 0.00021834. At that point, I got excited by the earning potential and deposited ฿ 0.02. DON'T DO THAT. If you're trying to jump on the Bitcoin bandwagon for free, buying Bitcoins defeats the point. I didn't actually 'buy' my ฿ 0.02. I had it from a failed attempt at Bitcoin Mining, but that's another story and something I recommend everyone avoids.

Anyway, back to my ฿ 0.001 deposit with BTCFlex. By 9th August, that had gone up to over ฿ 0.002, meaning I'd doubled my money in 20 days. I'd recommend withdrawing your profit, once you've doubled your money. If I'd withdrawn then, I would have had my original ฿ 0.001 back, but still had ฿ 0.001 on deposit to earn more money. So anything from then onwards would effectively be FREE MONEY! Great!

Anyway, I didn't follow my own advice and left both deposits until 26th August, when my ฿ 0.02 deposit that I made on 26th July had gone up to ฿ 0.06109285. I withdrew ฿ 0.03, which to me was both my initial deposits back, plus a (very) little profit. Because they charge a 5% release fee, I only received ฿ 0.0285, but as I'd deposited a total of ฿ 0.021 and was still left with ฿ 0.03109285 on deposit, I was happy with that.

A few days later I tried searching for reviews etc of BTCFlex again, and this time I did get some results. I found a lot of Forums that said this type of website/investment is very HIGH RISK. Although I didn't find anything bad said about BTCFlex specifically, except one person who hadn't had their deposit credited to their account, but they had sent less than the ฿ 0.001 minimum, there was a lot of criticism about this type of website in general. Many forum posts said that all these sites go under in then end, so withdraw regularly. Others said that they only pay the low level investors, so don't invest a lot.

Having read that, I decided to withdraw my initial ฿ 0.001 deposit, so I only had one to keep my eye on. It had gone up to ฿ 0.00431201 because I was still compounding 100%. So I had quadrupled my money in 41 days, which you can't complain about, but as my initial investment was only worth about 17p, I wasn't exactly rich.

As for my ฿ 0.02 deposit, which had gone up to ฿ 0.06 at one point, but was now just over ฿ 0.03, due to withdrawing part of it, I decided to switch to 50% compounding, regularly release the earnings from my account, which is fee free, and every time it went above 0.05, bring it down to 0.04. As you can see from above, I've only released my deposit, to bring it down to 0.04 once so far, but I was successful. I've withdrawn the non-compounded earnings every week though, so have withdrawn a total of ฿ 0.03563249, including the deposit release, since 30th August 2015.

As it seems to be working for me, I've put my compounding up to 75%. I will continue to withdraw my (25%) non-compounded earnings regularly, and keep my total deposit between 0.04 and 0.05.

In conclusion, I've only invested a small amount, but I have earned the advertised 0.15% interest per hour/3.6% interest per day and have been able to withdraw my earnings with no problems, so I can't say anything bad about BTC Flex, based on my personal experience. However, I heed the warnings of people that are way more experienced in Bitcoins than I am. I won't invest anymore, will keep my compounded deposit low and will regularly withdraw my earnings.

If you want to give BTC Flex a try, I'd recommend using free Bitcoins, so you have nothing to lose.

At the time of writing, I have withdrawn a total of ฿ 0.06840890, invested a total of ฿ 0.021 and still have ฿ 0.05427060 on deposit and ฿ 0.00291038 earnings to withdraw.

I've earned a total of ฿ 0.10695665 and yes, I've just realised my active deposit is over ฿ 0.05, so it's time to withdraw it again.

RWD & Mobile App Dev Weekly - October 05, 2015

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