How to Lend Money with BitConnect, to Earn Around 1% per Day Compound Interest

Note: Unfortunately, BitConnect ended their lending service on 16th January 2018. See my article for details:

BitConnect have ended their lending platform :-(

The Article Explains:

• Why you should invest lend money to receive interest
• What the BitConnect lending program is
• How to lend with BitCoin to receive interest. This includes how to set up security, how to purchase BitCoin, how to lend/re-invest and how to release your profits (back into your chosen currency, BitCoin or other Cryptocurrencies)

Why Invest with BitConnect?

BitConnect allows you to invest money for a period of time (120 days to 299 days depending in your lending amount), for an average of over 0.94% per day (based on the current six month moving average).

On top of the daily return (which fluctuates), you can earn a guaranteed percentage of between 0.1% and 0.25% per day. This means that you can earn an average (based on the current six month moving average) of between 1.04% — 1.19% per day on money that you lend them.

This table shows the required lending amounts, financial returns (interest) and retention periods:

The above table shows that you can lend from as little as $100. You can re-invest your profit on a daily basis, from as little as $10. This form of compound interest really does add up in an impressive manner.

No bank savings account, pension, ISA or other traditional form of savings will give you anywhere near this level of return.

Why Invest when the Crypto Market is Volatile?

Just as the Internet brought a rapid change to sharing information, ideas, knowledge and the depreciation of traditional media (e.g. newspapers, magazines, video rental and television), Cryptographic Currencies are bringing a rapid change to how money is used in its conventional sense, how people will see and use money in the future will be very different to how it is handled (even thought of) today.

With change comes opportunity. At the start of change is volatility — this is where you can make the most profit. Right now, we are at the early stages of the Cryptographic Currency revolution — it’s like the Wild West. BitConnect trades BitCoin (and in 2018 it is planned to also trade other coins), when trading, profit can be made when the prices are volatile, not when prices are static; the more volatile the prices, the higher the potential return.

Andreas Antonopoulos giving a presentation on How BitCoin is changing the world

What is BitConnect?

BitConnect is a company that specialises in making profit from Cryptographic Currencies (e.g. BitCoin), just as traditional banks specialise in making profit from traditional (FIAT) currencies (non-convertible paper money made legal tender by a government decree e.g. USD, EUR, GBP, AUS).

Just like conventional financial companies, BitConnect performs multiple financial related functions, which allow them to generate profit. Similarly to their traditional counterparts, they incentivise the public to hold their money with them, by providing financial incentive (such as paying interest).

These Functions Include (but are not limited to):

Trading Digital Currencies

• BitConnect themselves, buy and sell digital currencies such as BitCoin. A percentage of profit gained from this is returned to the customers on a daily basis. The more volatile the Crypto Currency market is, the more opportunity there is to make profit. The daily percentage value is always presented one day in advance

Mining BitConnect Coin (BCC)

• Customers (with specialist computers) can create/mine BitConnect Coin (BCC) in return for payment. These coins mathematically get harder to mine as time goes on which helps ensure that their value goes up due to supply and demand

BitConnect Exchange

• Customers can trade (buy and sell) BitConnect Coin (BCC), to take financial reward from fluctuations in BitConnect Coin

Staking

• Customers can stake/hold BitConnect Coin (BCC) in return for payment (interest)

Storing Money

• BitConnect incentivise their customers to keep money held on the BitConnect platform (by offering interest, ease of payments via Debit Card, etc.). This allows BitConnect to leverage better deals with more financial backing

Spending (Debit Card)

• The BitConnect debit card allows users to load, transfer and spend several currencies for purchases as well as ATM withdrawals

Is BitConnect a Scam, Pyramid or Ponzi Scheme?

Many people think that BitConnect is likely to be a scam, Pyramid or Ponzi scheme, possibly a scam where the company builds up a large amount of money, then disappears with it all.

I don’t think this is the case.

After much research, it is evident that:

• BitConnect started its lending program in January 2017 (see https://bitconnectcoin.co/roadmap). Since this time, there have been no outcries from users telling of any significant issues with the system — i.e. people have not lost money, people have not had difficulty with withdrawing their money, etc.
• If you read BitConnect related Facebook groups, you will see a lot of scaremongering, but these are always counteracted by active lenders who portray their positive experiences with BitConnect
• BitConnect have had a healthy (and rapid) state of development in 2017 and the 2018 roadmap shows that they are introducing new features and methods for the company to generate profit — as well as introducing new functionality for the customer (such as the prepaid debit card and a decentralised Crypto Currency exchange system that accepts both FIAT and Crypto Currencies)
• BitConnect has quickly grown to be one of the largest (and well known) Crypto Currencies by Market Cap, so the chance of it being ‘dodgy’ and ‘doing a runner’ is extremely low

Is the BitConnect Website Secure?

The BitConnect website is very secure.

The features and options that they offer are in line with (and in some cases exceed) most regular banks:

TLS Encryption

• Provides data privacy, data integrity and server identity validation

Supports Two-Factor Authentication

• Makes identification of the user (you) very secure

Supports Code Card

• An additional layer of security when sending or receiving money from your main wallet. This can be stored offline (I.e. printed), so not accessible by electronic means

Login Shield

• Prevents login to the site from unauthorised web browsers and devices

Login History

• Stores a log of previous login’s, which you can review

Password with reCAPTCHA

• reCAPTCHA ensures that humans (not bots) are attempting to log into the website

Login Notification

• BitConnect displays details of the previous login

All of this means:

• Data sent between your device and the BitConnect website is private and secure
• Your authentication to the BitConnect website is done in a secure manner and you can review previous logins
• Certain actions require an additional level of validation, beyond the already secure login process

Is my Money and Data Safe with BitConnect?

BitConnect is not regulated or backed by a financial services body (only its data is self-regulated via the blockchain), therefore it cannot be deemed to be as controlled, managed and low risk as companies that are (e.g. regulated banks, investment companies and registered financial services).

However, so far; there have not yet been any reports of ill intent, lost money or short-sightedness. The development milestones that they announced in 2017 have all been met and the objectives in 2018 look promising.

Their market cap increased quickly and significantly in 2017, placing them in the top 20 of all Cryptographic coins by market cap.

How does BitConnect make Profit?

Just like conventional financial companies, BitConnect performs multiple financial related functions, which allow them to generate profit. Similarly to their traditional counterparts, they incentivise the public to hold their money with them, by providing financial incentive (such as paying interest).

These Functions Include (but are not limited to):

Trading Digital Currencies

• BitConnect themselves, buy and sell digital currencies such as BitCoin. A percentage of profit gained from this is returned to the customers on a daily basis. The more volatile the Crypto Currency market is, the more opportunity there is to make profit. The daily percentage value is always presented one day in advance

Mining BitConnect Coin (BCC)

• Customers (with specialist computers) can create/mine BitConnect Coin (BCC) in return for payment. These coins mathematically get harder to mine as time goes on which helps ensure that their value goes up due to supply and demand

BitConnect Exchange

• Customers can trade (buy and sell) BitConnect Coin (BCC), to take financial reward from fluctuations in BitConnect Coin

Staking

• Customers can stake/hold BitConnect Coin (BCC) in return for payment (interest)

Storing Money

• BitConnect incentivise their customers to keep money held on the BitConnect platform (by offering interest, ease of payments via Debit Card, etc.). This allows BitConnect to leverage better deals with more financial backing

Spending (Debit Card)

• The BitConnect Debit Card allows users to load, transfer and spend several currencies for purchases as well as ATM withdrawals

Have other users actually made a profit and taken money out?

Yes, absolutely.

Don’t take our word for it, watch these YouTuber’s take money out of BitConnect.

How Much do I need to Invest?

At least $100.

You can try a little to see how it goes, but we recommend investing at least $1010 in order to obtain a bonus.

This table shows how much you need to invest, to reach each daily bonus and ‘Capital Back’ return level:

Note that when transferring money to BitConnect, you will be charged commission (and possibly other charges from your bank) from:

• Bank to exchange (possible charge from the bank)
• Exchange (e.g. Coinbase charges 4%)
• Moving money into BitConnect (a small charge for this)
• Converting digital currency (e.g. BitCoin/BitCash to BitConnectCoin)

You will also be charged commission when taking money out of BitConnect.

In the above steps, the bank and exchange charges are the highest. The others are usually minimal.

How much profit can I expect to make with BitConnect?

The current 6 month daily average is 0.94%.

If you have loaned enough to get a daily bonus (of 0.1–0.25%), the daily average would be from 1.04% to 1.19%.

The 2018 roadmap shows that in March 2018, BitConnect are planning to update their volatility algorithm, as well as add more Cryptographic Currencies to trade against. This should help increase the average daily return rate.

How Quickly can I get my Investment Money Returned?

This table shows how quickly your investment money will be returned — the more you invest (in a lump sum), the faster you get it back.

Note that you can take out profit on a daily basis. When re-investing profit on a daily basis, it takes about three and a half months for the profit earned to match the lending sum.

There are many ways to redeem your investment and limit your risk, including:

• Take out profit on a daily basis (this may provide the fastest withdrawal of your initial investment, but results in the slowest gains)
• Re-invest profit daily, then take out profit once per month (allowing for a more balanced risk/reward)
• Re-invest profit daily, then take out profit after the 2nd or 3rd month (allowing for a faster accumulation of profit)
• Take out the investment once it is returned (see the above table for when this will be)
• Take out the investment 1, 2 or 3 months after the ‘Capital Back’ date — this provides a higher accumulation of profit, with slightly more risk to your initial investment

What are the Potential Negatives of Investing in BitConnect?

• Once you invest, you cannot withdraw your money for the duration shown
• The daily percentage rate is not guaranteed and is only known one day in advance. It is determined by the volatility of other Crypto Currencies (not something that BitConnect has control or influence over)
• Note that even the minimum bonus rate of 0.1% per day is actually very good
• Because BitConnect is not regulated, the worst-case scenario is that it could disappear, with the loss of all customers’ money
• Note that this hasn’t happened yet and BitConnect has quickly grown to be one of the largest (and well known) Crypto Currencies by Market Cap, so the chance of it being ‘dodgy’ and ‘doing a runner’ is extremely low

Who Owns and Runs BitConnect?

BitConnect are being purposely secretive when it comes to who owns and runs the company. They don’t share this information on their website — this might be for security reasons.

Does BitConnect Trade with a Bot?

BitConnect are being purposely secretive when it comes to how they use and run a bot, to automatically buy and sell digital currencies. The lending page on their website simply says:

You can invest BitConnect coin in Bitconnect lending platform exclusively from the BitConnect Dashboard. This investment option involves profiting from Bitconnect trading bot and volatility software.

It is understandable that they would not want to explain how their bot works — other financial services (including mainstream banks) use bots, but do not explain how they work, in order to protect against manipulation.

Official BitConnect FAQ’s

For the official set of BitConnect FAQ’s, please see the FAQ page on their website.

Quick-Start Guide to Lending on BitConnect

This isn’t just a quick-start guide to lending, it’s a slightly longer version, to include the safest and most reliable methods of securing your money and lending.

The guide includes:

1. Installing a 2-Factor Authentication client
2. Setting up a user account on an Exchange (to buy BitCoin)
3. Setting up a user account on BitConnect
4. Purchasing BitCoin from an Exchange
5. Transfer Bitcoin from Coinbase to BitConnect
6. Exchange Bitcoin to BitConnect Coin
7. Lending BitConnect Coin to the BitConnect bot
8. Reinvesting BitConnect Coin
9. Using BitConnectstats

Install Authy

Authy is a 2-Factor Authentication client. 2-Factor Authentication helps protect your accounts online from unauthorised access.

Here is the difference between accessing a website (such as Facebook) with standard access vs accessing a website using 2-Factor Authentication:

If you already have a 2-Factor Authentication app on your phone, you can skip this step, if not, I recommend that you install Authy https://authy.com/download/

Sign up to Coinbase

The Coinbase website allows you to convert real money into digital currency.

1. Sign up to Coinbase
2. Note: This is my referral link. When you use it, you and I will both receive $10 worth of bitcoin
3. Go to the ‘Settings | My Profile’ page:
4. Complete your user profile
5. Go to the Settings | Security’ page
6. In the ‘Phone Numbers’ section, select ‘Verify a phone’ and follow the instructions
7. In the ‘Two-Factor Authentication’ section, select ‘Enable Authenticator’ and follow the instructions (pair it to Authy, or another 2-Factor Authentication app on your phone)
8. Go to the ‘Security | Payment Methods’ page
9. Select ‘Add Payment Method’
10. Choose either ‘Bank Account’ or ‘Credit/Debit Card’
11. Note: the ‘Bank Account’ option has to be verified and payment takes 4–5 days, but you get a higher limit (higher amount of bitcoin you can purchase. The ‘Credit/Debit Card’ option, doesn’t require validation, so you can use it straight away, although it takes a while to build up the credit limit.
12. I have only used the ‘Credit/Debit Card’ option so far and currently have a buy limit of £3000 per week

Sign up to BitConnect

When you lend money on BitConnect, they pay you interest every day.

1. Sign up to BitConnect
2. Note: This is my referral link (https://bitconnect.co/?ref=Techboy), each time you lend money to BitConnect, I will earn commission (this doesn’t cost you anything). In return, I will give you personal help and support, as well as give you full access to the BitConnect Stats site that my brother and I developed
3. Go to the Security page
4. In the ‘Two-factor authentication’ section, follow the instructions to set up Two-factor authentication (Note: You don’t need to use Google Authenticator, I prefer Authy. You can use any Two-factor application that you want)
5. In the ‘Code card’ section. Follow the instructions to enable the code card. Keep these numbers safe
6. Note: Once you complete the above steps (you might need to wait an hour), if you go to the Security page, it should say ‘Your account security level is: High’

Purchase Bitcoin via your Coinbase Account

Note: You need to purchase Bitcoin, which you will then exchange for BitConnectCoin. The below table shows that as you increase the lending amount (per lending transaction, not the accumulative level of capital), your daily bonus and speed of return on your investment are improved.

When purchasing Bitcoin, there is a 4% fee. There is also a small fee when purchasing BitConnect. Also, there is a weekly purchase limit when purchasing Bitcoin from Coinbase. All of this needs to be taken into account. I recommend that you buy about $1,300 Bitcoin (which might take you 2 weeks, because of the Coinbase purchase limit), to ensure that after commission, you will invest over $1,010. You can of course invest anything over $100 initially, to get comfortable with the whole process.

1. Go to the buy page
2. Select:
3. Buy
4. Bitcoin
5. Payment Method = <Bank or Visa (I use Visa)>
6. Click in the box that says ‘GBP’ and select ‘Buy Max’ (for me this is £500)
7. Note: The BTC box will be populated with the amount of Bitcoin (BTC) that you will be purchasing.
8. The section on the right will show the payment details, including the fee and subtotal
9. Select ‘Buy Bitcoin Instantly’ and follow the instructions

Transfer Bitcoin from Coinbase to BitConnect

• Go to the BitConnect Coin Wallet page
• In the section ‘Receive Bitcoin (BTC)’, select the button ‘Deposit Bitcoin (BTC)’
• It will display your wallet e.g.:

• Copy the long string of characters (this is your wallet address), make sure you copy it exactly. You now need to send Bitcoin to this address
• Go to your Coinbase Accounts page
• In your Bitcoin wallet, you should see the Bitcoin that you purchased earlier
• Select the ‘Send’ button
• Paste in the wallet address that you got from BitConnect (above)
• Send
• Moving money via Bitcoin might be very slow — it might take over an hour for the money to move from your Coinbase account to your BitConnect account (the longest it has taken for me so far is 8 hours). If you select xxxxx you can see how many validations the transaction has had, it generally needs at least 16 validations before the money can be transferred (don’t worry, be patient)
• Go to the BitConnect dashboard
• In the section ‘Receive Bitcoin (BTC)’, under ‘Incoming bitcoin transactions’, after a while (30 minutes?) you will see your incoming transaction. Just as above, you can see the details of the transaction and how many validations it has received so far
• Once the transaction has been validated and received, it will show up as the bottom of the BitConnect dashboard and at the top-right of this page, in the ‘Bitcoin Wallet’ section

Exchange Bitcoin to BitConnect Coin

• Go to the BitConnect dashboard and select ‘Exchange’ in the top right corner of the screen (next to the ‘Bitcoin Wallet’. This will take you to the ‘BCC Exchange’ page (https://bitconnect.co/user/trade?Market=BCC), which you can also get to using the second icon from the top, in the menu on the left of the page
• Make a note of how many Bitcoin you have (see your Bitcoin Wallet in the top right corner of the screen)
• In the section ‘Live Orders | Selling Orders’, look for the cheapest order available, which has the same or more number of Bitcoin that you are looking to transfer into BitConnect

• Click on the ‘-’ in the blue box, next to the trade that you would like to purchase from. This will populate the text fields within the section ‘Buy/Sell BCC’

• Ensure you have sufficient funds available. Adjust the ‘Total’ value to match the amount of Bitcoin you have if you don’t (select ‘All’)
• Select ‘Buy BitConnect Coin’
• Once you have used your Bitcoin to purchase BitConnect Coin, at the top of the page, you will see that the BitConnect wallet now has a value and your Bitcoin wallet no longer has a value

Lending BitConnect Coin to the BitConnect Bot

• Go to the BitConnect dashboard
• Write down the amount of BitConnect that you have in your BitConnect wallet (shown at the top of the page)
• In the section ‘Lend BitConnect/Reinvest’, select ‘Lend BitConnect’

• Enter the ‘Amount in dollar’ value, until the ‘Amount in BitConnect’ value is at, or just below the amount you have (you wrote this down in the step above). You can only add the ‘Amount in dollar’ value in multiples of $10
• Once you have the correct value, scroll down and tick, to accept the ‘Terms of use’
• Select ‘Pay from BitConnect wallet’
• The transaction will show at the bottom of the page, also in the Transactions section of the website (https://bitconnect.co/user/transaction) — note that transactions might take half an hour to appear

Reinvesting BitConnect Coin

Each day, you will earn interest in your capital. The interest rate is variable (always defined 1 day in advance). You need to log onto the BitConnect website in order to reinvest the interest — this takes less than 2 minutes to do from a mobile phone (unfortunately there is no way to automate this).

1. Go to the BitConnect dashboard
2. At the top of the page is the ‘Lending Wallet’. You need at least $10 in here before you can re-invest
3. In the section ‘Lend BitConnect/Reinvest’, select ‘Reinvest’

1. Click on both of the ‘All >>’ buttons, this will update the ‘Total’ value
2. Click on ‘ReInvest’ and confirm

Using BitConnectStats

With BitConnectstats (created by KevinUK and I), you can forecast potential profit and calculate when you should re-invest your profit, to give you the maximum return, in the shortest time (taking into account the bonus levels, profit achieved so far, referral gains, forecast income, money you have already withdrawn, etc.).

1. Contact me on twitter or LinkedIn for a free user account on https://www.bitconnectstats.com/
2. Sign up to https://www.bitconnectstats.com/
3. Each time you make a loan or re-investment, enter it in the Loans page
4. Note: You can enter pretend loans and re-investments here to see how much profit you could make from them
5. From the Stats page, you can view:
6. Date = date
7. Total On Loan = total Investment on Loan
8. Interest Rate = the interest rate given per day
9. Note: All history and tomorrow’s interest rate is known. Past this, the six month moving average is used
10. Daily Interest + Bonus = the amount of profit gained/forecast for that day
11. Reinvest Amount = the amount of money that you should reinvest that day, to give you the fastest capital growth (see how it changes to $0 when building up to $1,010, as this will give you an additional 0.01% bonus per day)
12. Lending Wallet Balance = the amount of money you will have in your lending wallet
13. Loan Release Date = the release date that your loan/reinvestment will be available for release

Make Additional Income from Referrals

BitConnect has a referral program. When you register an account on BitConnect, in the top left of every page, you will see your referral link (mine is https://bitconnect.co/?ref=Techboy).

When you get others to subscribe to BitConnect using your referral link, you will earn 5% commission each time they lend.

But wait, there’s more! It’s a 3 tier system!

1. People that sign up to BitConnect using your referral link will give you a commission rate of 5%
2. If your first tier (direct) referees refer other people, you will earn 3% from them
3. If your second tier referees refer other people, you will earn 2% from these people

BitConnect’s 3 tier referral program

Taking Profit out of BitConnect

Profit accumulated in your BitConnect account shows as a US Dollar value. When you decide to take value out of your account, there are a number of ways to do this.

If you want to extract value from your BitConnect account into FIAT currency (e.g. USD, EUR, GBP, AUS), the process is:

1. USD value -> convert to BitConnectCoin (this is done within the BitConnect website)
2. BitConnectCoin -> purchase another Cryptographic Currency (e.g. BitCoin, Etherium, LiteCoin, etc. This can be done within the BitConnect website, or on external exchanges)
3. ‘Another’ Cryptographic Currency -> purchase FIAT currency (e.g. USD, EUR, GBP, AUS, etc. This must be done on an exchange)

I am personally looking to move away from FIAT money (I mostly use GBP), to use Cyrptocurrencies as my primary store of currency. For an explanation of how I personally store and spend Cryptographic currencies, see my article:

How I Store and Spend Cryptocurrency in a Standard ‘Everyday’ Scenario

What’s Stopping you from Lending on BitConnect?

Most people I have spoken to are reluctant to even consider investing on BitConnect.

The Top Reasons I’ve Encountered Are:

1. It sounds too good to be true (1% compound interest per day — whaaaaaat?!?!), so it must be a ponzi scheme
2. It’s an unregulated Internet based website that could take all my money, the disappear one day
3. Someone could hack into the BitConnect and steal all of my money
4. I don’t understand the lending process
5. It sounds too complicated for me to use
6. I haven’t got the time to do this, along with my day job

My Reply to these Reasons:

1. Compared with standard backing processes and share schemes, theses returns are very high. However, in terms of manually day-trading (or swing-trading) Cryptocurrencies, these returns are actually very low. When trading Cryptocurrencies manually, you can expect much higher returns (making 10–40% per day on trades is not uncommon)
2. The BitConnect lending program has been available since early 2017 and has a proven track-record, with no significant complaints from its userbase. I have personally been using the service since September 2017 and have not had any issues. It has hit every development milestone on its 2017 roadmap and the features specified in the 2018 roadmap look promising
3. The BitConnect website has a lot of opt-in security features (as I have detailed above), which indicates that they take security very seriously. With the amount of money that they are handling on a daily basis (their market cap is increasing), they cannot afford to be complacent when it comes to security. The website they are using is actually a white-label site — other sites use the same software! I have not heard of any issues with the security. Also, the transactional data is stored on a blockchain — this is developed to be a highly secure method of trancsacting and storing data
4. You don’t need to fully understand the lending process — in simple terms, BitConnect receives lot of money from customers (such as you and I), it then uses this money to leverage gains when the price of BitCoin goes up or down. Gains are made then the value of BitCoin is different over a 24 hour period — the greater the difference, the greater the return. The return is distributed to the customers of the system — on top of this, customers can ensure a daily bonus of between 0.1 and 0.25%
5. The initial setup is quite fiddly — but you only need to do it once and if you follow the instructions I have provided above, you’ll be fine. After the initial setup the lending and re-investment process is very easy
6. I usually access the site from my mobile phone and can log on and perform a re-investment in literally just a couple of minutes — this is done once per day, on days when you need to re-invest (I use the website BitConnectStats to let me know which days I should reinvest my brother KevinUK and I developed it)

I’m Here to Help!

This article gives gives all the information you need to get fully up and running on the BitConnect lending system.

• Ask questions in the comments section below
• Join me in the BitConnect Stats Facebook group

Let’s Get Personal

If you would like personal assistance from me (helping with setup, re-investment questions, etc.), I’m happy to offer help over WhatsApp, Skype, Google Hangouts, Facebook, etc.

For this, please add me as a sponsor on BitConnect by using my my referral link (https://bitconnect.co/?ref=Techboy) if you haven’t already registered on BitConnect, or if you have already registered, you can add me as a sponsor from within the BitConnect website.

Once you’ve added me as a sponsor, please get in touch over twitter or LinkedIn with your question and how you would like me to get in touch with you. I will also set you up with an account on https://www.bitconnectstats.com/ for free, so you can see your optimal dates for re-investing (i.e. to get the best gains in the shortest time)