How to: Invest Bitcoin on BTCPOP
How to: Invest Bitcoin on BTCPOP
Soon after discovering BTCPOP, it became not only our favorite P2P lending site, but also our favorite way to invest bitcoin. With a variety of securities to invest in, including: stocks, IPOs, cloud mining, investment pools, savings accounts, etc. We made it our favorite Bitcoin investment.
BTCPOP offers a variety of securities to invest in. This guide shows you how to get the most our out of them!
Their broad range of Bitcoin securities allows users to buy and trade without verification of identity. This adheres it to some people’s understanding of the Bitcoin’s “Anonymity”. Their range of securities allow users to diversify investments on one site and mitigate risk according to their own investment goals.
BTCPOP has changed the way they handle pooled investments. Previously they had different ratings of investor pools, ranging from trusted to C pools.
These pools consisted of a variety of loans. Investment pools, or “Instants”, are a way to deposit Bitcoin and get daily (mostly) returns. These returns may be small, but we have made 1% on our one deposit in a couple months, with no work. We appreciate this feature because it makes it easy to invest.
They have something similar to the instants investment called a 5% savings account. Although we trust BTCPOP, our small deposit hasn’t made 5%. We’re not sure how they calculate returns, or payouts, or where these returns come from. 5% seems a bit high to be guaranteed, so we have very little in this security.
Bitcoin Mining Shares
BTCPOP offers a the popular “cloud mining shares”. We personally avoid these being that mining is best when the hardware is owned, or a special pool, like clevermining is used. Many people trade mining shares because of price fluctuations and weekly dividends. Trading mining shares may work to your advantage, depending on your investment goals.
IPO Bitcoin Investment
BTCPOP curates a selected number of IPOs for users to invest in. Like most securities on the site, investing in IPOs does not require account verification. This is a risky business and thorough due-diligence is required for investing in these securities. We recommend mitigating risk and allocating certain percentages to other things in combination with IPOs.
P2P Lending and Bitcoin Loans
BTCPOP’s bread and butter allows users to lend other users money. This utilizes an integrated but separate company to verify identity, collateralize loans, and confirm trusted parties.
Use common sense and carefully analyze each person’s plan before investing in P2P loans.
P2P investing requires common sense and carefully outlined goals. BTCPOP makes use of an integrated chat platform to allow investors to speak with each other. Enabling another level of community within BTCPOP.
Pop boasts 20 different linked-currency loans. A linked loan maintains the value in the underlying fiat of the initial principle. This protects you from currency risk. BTCpop has lending pools, autoinvest allowing diversification across all particular loans of a particular credit rating.
BTCpop acquired the private company Ardeva to manage their user verification process. Arrived is a due-diligence verification platform which BTCPOP uses to verify its users. Each step of the verification process is given a score. A full Ardeva verification provides users with 60-70 reputation points, which are used to determine a borrower’s credit rating. Reputation points are earned by building a record of successfully repaid loans on the platform.
Insurances on Select Deposits/Loans
BTCpop has taken steps to counter default risk by collateralizing trust-worthy lenders. They’re working with a debt collection agency that strives to reclaim loans after a payment has been late for 21 days or more. Should in the highly unlikely scenario that the debt collector succeed the recovery minus fees are returned to the lenders. Upon full integration of these promised features, BTCPOP will likely grow ten-fold for Bitcoin investors.
Risks associated with BTCPOP
When a company has no collateral backing up deposits, if and when the company goes under, there goes everyone’s deposits. Time has shown over and over that Bitcoin service sites shouldn’t rely on centralized systems. This is one of the key problems to BTCPOP’s investments. Although they are a registered company with huge community support. They are prone to the same risks any Bitcoin website is, cyper secuirty breaches and theft. At the time of posting, no other trust-worthy site offers the same service and range of services that BTCPOP offers. Until there becomes de-centralized markets (i.e. OpenBazaar) This being said…
BTCPOP offers a tremendous service with steady returns and riskier investments for gamblers
BTCPOP is an amazing website with a bright future. The consolidation of multiple markets allows users to diversify bitcoin deposits on one site, simply and easily. The social integration make this a top-tier site; allowing users to debate lenders legitimacy, which stocks show promise, etc.
We’ve gone from 1,321,733 satoshi to 1,331,529 in two months, or 0.75%!
A fair rate, even for fiat investments! No fees, no management!
We hope you found this article insightful. We are constantly testing new Bitocin-related services and products. If you missed our review on BTCPOP, please click the button below. Please let us know what you think in the comments below, and thanks!