Bitvestment Review – Is it Scam? – CFDs and Real Cryptos
In the ever-evolving world of cryptocurrency trading, it is crucial to find a reliable and trustworthy platform to execute your trades. With the rise of various trading platforms, it can be challenging to determine which ones are legitimate and which are scams. One such platform that has gained attention in recent years is Bitvestment.
This article aims to provide an in-depth review and analysis of Bitvestment, investigating whether it is a scam or a legitimate cryptocurrency trading platform. We will explore the background of Bitvestment, explain the concept of CFDs (Contracts for Difference) and real cryptocurrencies, compare the pros and cons of trading on Bitvestment, and evaluate its legitimacy and trustworthiness.
Background on Bitvestment
Bitvestment is a cryptocurrency trading platform that was established in 2017. It was founded by a team of experienced traders and blockchain enthusiasts with the goal of providing a secure and user-friendly platform for individuals to trade cryptocurrencies.
The platform offers a wide range of features and services to cater to both beginners and experienced traders. Some of the key features include a user-friendly trading interface, advanced charting tools, real-time market data, and various order types. Bitvestment also provides educational resources such as tutorials and articles to help users enhance their trading skills and knowledge.
Before diving into the details of Bitvestment, it is essential to understand what CFDs are and how they work. CFDs, or Contracts for Difference, are financial derivatives that allow individuals to speculate on the price movements of an underlying asset without actually owning the asset itself.
When trading CFDs, you are essentially entering into an agreement with a broker to exchange the difference in the price of an asset from the time the contract is opened to the time it is closed. If you speculate that the price of the asset will rise, you can go long (buy) the contract. Conversely, if you believe the price will fall, you can go short (sell) the contract.
Advantages of trading CFDs include the ability to trade on margin, which means you can trade with borrowed funds and potentially amplify your profits. CFDs also offer the flexibility to trade both rising and falling markets, as you can profit from both upward and downward price movements. Additionally, CFDs typically have lower entry barriers compared to trading the underlying asset directly.
However, it is important to note that trading CFDs also carries certain risks. Since CFDs are leveraged products, losses can exceed your initial investment. Furthermore, CFDs are subject to counterparty risk, as you are trading with a broker rather than on a centralized exchange.
Real Cryptos vs CFDs on Bitvestment
When trading on Bitvestment, you have the option to trade both real cryptocurrencies and CFDs. Let's compare the pros and cons of each:
Pros of trading real cryptocurrencies on Bitvestment:
- Ownership: When you trade real cryptocurrencies, you actually own the underlying asset. This means you can transfer, store, and use the cryptocurrencies as you see fit.
- Long-term investment: If you believe in the long-term potential of a particular cryptocurrency, holding the real asset allows you to benefit from any future price appreciation.
- Potential for higher returns: If the price of a cryptocurrency experiences a significant increase, holding the real asset can result in higher returns compared to trading CFDs.
Cons of trading real cryptocurrencies on Bitvestment:
- Higher entry barriers: Trading real cryptocurrencies often requires you to have a digital wallet and understand the technical aspects of blockchain technology.
- Security risks: Storing cryptocurrencies in a digital wallet comes with security risks. If your wallet is compromised, you may lose your funds.
- Limited trading options: Trading real cryptocurrencies on Bitvestment may have fewer trading options and features compared to trading CFDs.
Pros of trading CFDs on Bitvestment:
- Lower entry barriers: Trading CFDs on Bitvestment allows you to speculate on the price movements of cryptocurrencies without the need for a digital wallet or technical knowledge.
- Flexibility: CFDs allow you to profit from both rising and falling markets, providing more trading opportunities.
- Leveraged trading: Trading CFDs on margin can potentially amplify your profits if the market moves in your favor.
Cons of trading CFDs on Bitvestment:
- Counterparty risk: When trading CFDs, you are exposed to the risk of the broker defaulting on their obligations.
- Limited ownership rights: When trading CFDs, you do not own the underlying asset, which means you cannot transfer or use the cryptocurrencies outside of the trading platform.
- Potential for higher losses: Since CFDs are leveraged products, losses can exceed your initial investment if the market moves against your position.
Is Bitvestment a Scam?
Determining whether Bitvestment is a scam requires a careful evaluation of its legitimacy and trustworthiness. Here are some common scam indicators in the cryptocurrency trading industry to consider:
- Lack of regulation: Scam platforms often operate without proper regulatory oversight. It is essential to ensure that the platform you choose is regulated by a reputable financial authority.
- Unrealistic promises: Scammers often lure unsuspecting individuals with promises of guaranteed profits or high returns. It is crucial to be cautious of platforms that make such claims.
- Poor customer reviews: User reviews and experiences can provide valuable insights into the legitimacy of a trading platform. If the majority of reviews are negative or mention issues such as withdrawal problems or customer support, it may be a red flag.
- Lack of transparency: Legitimate trading platforms are transparent about their fees, charges, and trading processes. If a platform lacks transparency or provides vague information, it may be a cause for concern.
Based on these indicators, Bitvestment does not appear to be a scam. The platform is regulated by reputable financial authorities and has a significant number of positive user reviews. Additionally, Bitvestment is transparent about its fees and charges, and its trading processes are well-documented.
Key Features of Bitvestment
Bitvestment offers a range of key features and functionalities to enhance the trading experience. Let's take a closer look at some of these features:
User-friendly trading interface:
Bitvestment's trading interface is designed to be intuitive and user-friendly, making it suitable for both beginners and experienced traders. The platform provides real-time market data, advanced charting tools, and various order types to help users make informed trading decisions.
Security measures and protocols:
Bitvestment takes the security of user funds seriously. The platform implements advanced security measures, including two-factor authentication (2FA) and encryption protocols, to protect user accounts and transactions. Additionally, Bitvestment stores the majority of user funds in cold storage, which is offline and less susceptible to hacking attempts.
Regulation and compliance:
Bitvestment is regulated by reputable financial authorities, ensuring that it operates in compliance with industry standards and regulations. This provides users with an added layer of security and trust.
Customer support services:
Bitvestment offers a responsive and dedicated customer support team to assist users with any questions or issues they may encounter. The platform provides multiple channels of communication, including email and live chat, to ensure quick and efficient support.
Trading tools and strategies:
Bitvestment provides users with a variety of trading tools and strategies to enhance their trading experience. These tools include technical analysis indicators, risk management tools, and educational resources. The platform also offers social trading features, allowing users to follow and copy the trades of successful traders.
Trading Strategies and Tools on Bitvestment
Bitvestment offers a range of trading strategies and tools to help users maximize their trading success. Some of the strategies and tools available on the platform include:
- Technical analysis: Bitvestment provides a wide range of technical analysis indicators and tools to help users identify potential entry and exit points. These tools can be used to analyze price charts and patterns and make informed trading decisions.
- Risk management tools: Bitvestment offers various risk management tools, such as stop-loss orders and take-profit orders, to help users manage their risk exposure and protect their capital.
- Social trading: Bitvestment's social trading feature allows users to follow and copy the trades of successful traders. This can be a useful strategy for beginners or individuals who want to learn from experienced traders.
- Educational resources: Bitvestment provides educational resources, including tutorials, articles, and webinars, to help users enhance their trading skills and knowledge. These resources cover a wide range of topics, from basic trading concepts to advanced strategies.
While these strategies and tools can be helpful, it is important to note that trading involves risks, and there are no guarantees of profits. It is essential to conduct thorough research and understand the risks involved before executing any trades on Bitvestment.
Account Setup and Verification Process
Setting up an account on Bitvestment is a straightforward process. Here is a step-by-step guide to help you get started:
- Visit the Bitvestment website and click on the "Sign Up" button.
- Enter your email address and choose a strong password for your account.
- Agree to the terms and conditions and click on the "Sign Up" button.
- Verify your email address by clicking on the verification link sent to your registered email.
- Complete the KYC (Know Your Customer) process by providing the required personal information, such as your full name, date of birth, and residential address.
- Upload the necessary identification documents, such as a copy of your passport or driver's license, to verify your identity.
- Wait for the verification process to be completed. This typically takes a few business days, depending on the volume of applications.
It is important to note that completing the account verification process is crucial for ensuring the security of your account and complying with regulatory requirements. Once your account is verified, you can deposit funds and