Bitcoin is a highly volatile cryptocurrency. The price of bitcoin is overall on the rise. Bitcoin is the main cryptocurrency, its ups and downs dictate where the market will go. Trading bitcoin is getting more and more popular.
Bitcoin was denied for decades as even a serious alternative to fiat monetary systems, but today bitcoin is adopted by countries, financial institutions, and hundreds of millions of users. However, the crypto world is still in its infancy.
There are many players on the market, trying to find new and better ways to profit from the crypto craze. Some of them are building a better future by actually trying to topple the current kings of blockchain technologies.
Others are attempting to build on top of existing practices and make them easily accessible by those new to the world of crypto investments or crypto trading. For example. Instead of letting you cut your own way through the dangerous world of decentralized finances (DeFi), there are platforms that will provide easy onboarding for the uninitiated in the dark secrets of crypto trading.
Then there are scammers who promise high returns to people with no access to cryptocurrencies. They pose as experts and simply steal money with impunity. Because crypto markets are so volatile, no one can accuse them of cheating their customers.
They simply take deposits, make sure that customers get some kickback, and then explain to the losers that they should have invested more in the system, that returns take long to bring significant yield. Sadly, that’s not even untrue, which gives scammers solid ground to freely fleece the ignorant.
Luckily, there is a known set of red flags that each by itself doesn’t present proof of fraudulent platform, but combined rises enough suspicions to tag the project as unreliable.
Bitcoin Champion review
What is a Bitcoin Champion? The official website states that it’s a trading robot that generates a daily profit of up to 60% speculating on bitcoin prices.
It’s not clear what does it mean 60% is. Is it a percentage of starting investment? Percentage of success of the trading bot? Daily 60% rate is quite a tall promise even for the crypto world, especially if it is in bitcoins because annual yield rates don’t go above 10%, and that’s compound interest on loans.
Crypto trading robots exist since 2015. They are basically sophisticated algorithms that will conduct spot, margin, or arbitrage trades for you. Trading bots are nothing new, they have existed in forex and day trading industries for ages.
Bitcoin Champion features suggest a very profitable software with great reviews on Trustpilot. Bitcoin Champion’s community on Trustpilot is much livelier than on some other similar projects, but still, it is tiny (just 11 reviews, compared to hundreds of reviews for legit trading bot sites), and it is overwhelmingly filled with negative comments (37% Bad, 9% Poor, 9% Good, 27% Excellent). This is a big red flag right there.
The next claim is that Bitcoin Champion sports powerful trading algorithms, applying artificial intelligence and machine learning in auto-trading, channeling trading systems owned by big banks in Wall Street through the Bitcoin Trading App.
Search on the app stores reveals no Bitcoin Champion app for mobile phones. But that’s ok, maybe they refer to web apps or the trading bot software running on their platform. However, artificial intelligence and machine learning, while being awesome and buzz-worthy technologies, have no real meaning when it comes to crypto trade bots.
Trading bots are built to keep track of the grid market’s sell and buy orders, to automate tasks that are too stressful for humans, or too fast for the human eye to track, like micro-fluctuations in the spot trading pair prices. Trading bots are as efficient as the human who inputs the parameters, providing the market is volatile enough. Trading bots use algorithms and automation to perform orders, but they are not smart (yet) and unless proper stop orders are inserted, they can wreak havoc with your portfolio. Crypto trading bots often make mistakes when the market is either too calm or too volatile for their parameters.
From questions and answers, we realize very little about the app or the robot or the trading options, but there is very important data to gleam. Namely, Bitcoin Champion is not about buying or owning crypto coins. It’s about Bitcoin CFD trading.
A Bitcoin CFD trading is more or less, betting on the prices of bitcoin. A contract for difference (CFD) is similar to a future. Buyer and seller agree to pay differences in price rise or fall instead through the delivery of goods. Basically, you have to guess if the price will rise or fall, conducting the trade without owning a single bitcoin.
In this arrangement, you enter the market agreeing to settle any difference in prices when the contract is terminated. The simplicity of this method of trading makes it very popular with traders and brokerage companies.
Though it is not clear how exactly the process of trading proceeds, from the FAQ and customer reviews it seems that users register using their email and phone number. Starting deposit minimum is $250 and the money is transferred to a third-party broker.
It is not clear who sets the parameters, but it is also not clear why would a third-party broker handle deposits. Withdrawals have a 2% fee but Bitcoin Champion charges only fees on the winnings, they don’t take any fees from unprofitable trades.
Bitcoins are not the only cryptocurrency offered, as users can pick to pair against 20 different tokens, as well as fiat currencies, USD, AUD, GBP, and EUR.
Another red flag is namedropping on the homepage about Bitcoin Champion never being featured on Shark Tank or Dragons Den TV shows. Big red flags are also the old look of the homepage which is identical to scammy Bitcoin Circuit’s website, lack of contact with the support, hidden information about the company or the team.
Overall this product is maybe not a fraud, but certainly is not a respectable crypto service, so big caution is advised, as well as making your own research and bringing your own decision.
I think my life changed the day I learned about this amazing guy whom I share the name with – Aaron Savage. He was among the first people ever to advocate for freedom of information and the internet, and I feel he would support a great deal of decentralized finance idea if he was alive today. So, I am just another IT guy, super curious about crypto and writing my opinions and analyses here from time to time. Enjoy!