​Bitconnect Review
Is It a Legitimate Cryptocurrency or No?

Bitconnect Investment review

Bitconnect is a new cryptocurrency and investment platform that is generating a massive amount of interest. This year, it featured for the first time in the list of top digital currencies by market cap, peaking at a valuation of two billion USD.

If you want to learn more about Bitconnect and get in on the action, then you are in the right place. We are here to show you exactly how this specific altcoin works, where it originated from and where it might be going in the future.

This digital currency works in a very similar way to others on the market. Digital tokens are traded between users on an exchange, using peer-to-peer computing power to confirm and process the transactions by solving complex cryptographic algorithms.

Now, let’s get straight into it and look at how Bitconnect is different from other cryptocurrencies.

What Is Bitconnect and How Does it Work?

devices using bitconnect

This digital currency is a recent addition to the cryptocurrency world, with the company registered in 2016. The Initial Coin Offering (ICO) occured at the end of the same year.

The creators were initially looking to create a way for users to make money by investing their Bitcoins. They then transitioned into their current model with their own currency called Bitconnect coin.​​​​

Since then, the coin has shot up in value and has become a popular choice for altcoin investors. As a digital currency, this one has some very unique mechanics that separate it from other coins.

Linked to Bitcoin

This virtual coin is inextricably linked with Bitcoin. In fact, the only way other than mining it is to buy some using Bitcoin. While the two cryptocurrencies are not affiliated, this situation has led to their prices closely tracking each other.

Being linked to the original and most valuable cryptocurrency does lend an air of respectability to this project.

btc links for payment and tradings

A Platform for Investment

The most revolutionary feature is the ability to earn interest on deposited coins and also lend your coins to receive a return. This system aims to help people who want a way to use cryptocurrency they plan to hold onto long-term.

The company publishes the various rates of return for the different investment types on their website.

Centralized Exchange

One feature that is not common is the centralized exchange. Instead of having their digital currency openly traded on third party exchanges, they have elected to own and operate a dedicated exchange.

This has the benefit of concentrating the coins on the company’s own platform, allowing for use in the investment program.

Now let’s take a look at exactly how this cryptocurrency works.

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How Exactly Does This Crypto Coin Work?

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At its core, Bitconnect works in a very similar way to other popular cryptocurrencies. It uses blockchain technology to process and validate transactions.

But there are some unique features to this crypto coin that make it an interesting option for investment. Below, we will look at some of these unique features in depth.

This will help you to understand how this coin is different to other altcoins and gives you the information you need to decide if it’s a good investment choice.

Proof of Work and Proof of Stake

The ideas of Proof of Work (PoW) and Proof of Stake (PoS) algorithms are not unique to Bitconnect - almost all cryptos use one of these.

What is unique about this coin is how these two protocols are used. PoW is an algorithm that rewards a user for the computing power they add to the network, while PoS gives rewards to users who own and hold the currency.

While Bitconnect started by rewarding users for both PoW and PoS, once it hits 262,800 blocks in their blockchain, they will stop PoW rewards. From this point, which is fast approaching, only PoS will gain rewards.

holding a coin

​This feature is sold as an ‘interest bearing’ cryptocurrency. So long as you hold some on an active wallet on your PC, it will earn you a predefined percentage each month.

Trading and Lending Software Reviews

A big question you may have is how the ecosystem can operate if it pays out rewards for buying and holding the currency. The answer is the ‘Volatility’ software behind this crypto.

Although it is billed as ‘interest’, the money you earn on your wallet balance is actually earned by a trading bot. Your balance is loaned to the Volatility Bot, which makes trades on the exchange and returns a share of the profit to you.

As far as we are aware, there is no other high profile digital currency trying anything like this yet, which makes it a revolutionary experiment.

Hashing and Protection

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The protection and validation of trades on this platform is performed by a combination of the PoW and PoS algorithms.

The entire system runs using the Scrypt hashing algorithm, which builds a block every two minutes. This block-creation frequency makes this currency quick, with transactions generally processed faster than other currencies with longer block intervals.

Are you interested in getting some Bitconnect coins for yourself? If the answer’s yes, here’s more about how you store them.

How Do You Store Bitconnect?

While you can store the coins using other wallets or secure offline storage, the only way to access the lending function is with the company’s wallet.

Next, let’s take a look at how to mine Bitconnect.

While you can store the coins using other wallets or secure offline storage, the only way to access the lending function is with the company’s wallet.

Next, let’s take a look at how to mine Bitconnect.

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Can You Mine Bitconnect?

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One of the great things about Bitconnect is the ease of mining it. While other cryptos with large market caps need specialist hardware and software, mining this coin with consumer level CPUs and GPUs is still possible.

The mining application for Bitconnect is the official wallet itself. As long as you leave the wallet open and your PC on, you can mine new coins.

As explained above, the PoW algorithm will soon stop earning you coins and all new coins will be earned with the PoS protocols. Instead of mining you may want to buy - here’s how.

How To Buy Bitconnect?

Purchasing this cryptocurrency is a bit different from other coins on the market. Instead of having the option to buy it with physical currency, they only accept Bitcoin on their centralized exchange.

For you, this means you must first deposit Bitcoin into your wallet, which you can then use to buy this virtual currency. It also means if you want to sell your coins for cash, then you will need to convert them back to Bitcoin.

Do you think this digital currency is for you? Before you make your final decision, consider the following important information.

What You Need To Know About Bitconnect BEFORE You Invest:

bitconnect question

Bitconnect has exploded onto the cryptocurrency scene and there are still a lot of questions and uncertainty surrounding it. That doesn’t mean it’s not a good time to invest, but you should understand the different opinions out there before making a decision.

Questions of Long-Term Viability

Users of other cryptocurrencies question the long term viability of the PoS method and Volatility Bot used by Bitconnect. Because this currency is so new, such criticisms are normal, but are a little unfair.

This is an exciting experiment with digital currencies, which has the potential to give holders very good returns. The future is not clear, but that should not stop you from trying this new currency.

You should understand it is riskier than more established coins and adjust the level of investment accordingly.

Simplified Trading

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Trading is not actually a new thing with cryptocurrencies. Many users of the major cryptos have traded and made money for years.

The problem is to be good at trading requires a high level of technical understanding just like day trading with stocks and shares! Bitconnect’s automated trading allows regular people to access the returns enjoyed by traders without the steep learning curve.

You do need to understand the returns quoted on the platform are a result of trading and not something that can be guaranteed.

The big question everyone has is whether they should be investing in Bitconnect. There is no easy answer, but we are going to try and help you decide.

The Final Review: Should I invest in Bitconnect?

There is no doubt this cryptocurrency represents a unique opportunity to profit from the boom in digital currencies. Not only can you leverage any Bitcoins you currently own through the lending platform to purchase Bitconnect, you also have the opportunity to mine your own at home.

With other major cryptos now undergoing massive valuations, becoming involved in the early stages of a new currency is a good way to begin.

Even if you are not yet convinced of the long term viability of Bitconnect, there is still ample opportunity to get in early and make a profit. Once you feel the risk outweighs the reward, your investment can be easily moved out to Bitcoin or cash.

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There are definitely uncertainties ahead, but one big positive is the team behind this coin has already shown themselves to be innovative. They’re quick to introduce new features, address concerns and build the ecosystem around Bitconnect.

Only you can make the final investment decision and you should always carefully consider your risk profile and goals first. If you do choose to take part though, you may be getting in on the ground floor of the next big player in cryptocurrencies.