Bitlio Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.
Bitlio Review – is it scam or safe?
Like most other digital currency exchanges, Bitlio has one type of account, which must be verified with a government ID. If a client wants to withdraw their money into a bank account, it must be connected to the Bitlio wallet and verified.
Bitlio does not offer leveraged trading, similarly to the majority of cryptocurrency exchanges and acts more like an exchange bureau.
If you wish to speculate on cryptocurrencies, better turn your attention to the growing numbers of forex brokers who offer CFDs on various digital currencies, with a leverage. Such brokers are are FXTM, IG, HYCM, easyMarkets (started offering those instruments only recently), FxChoice, Grand Capital, etc. There are also some digital currency exchanges like Poloniex, Kraken, Bitmex and Bitfinex.
Bitlio does not readily provide information about its location or ownership. Upon some digging, we found that it is owned by the company Birch Stone Ltd.
The exchange says it offers its services in 40 countries. It offers trading in Bitcoin, Ripple, Ethereum, Monero, Bitcoin Cash, Ethereum Clasic, Dash, Litecoin, Zcash and Tether. Those tokens can be traded against USD, NZD, AUD, HGD, SGD, GBP, EUR, INR, AED and KES. Additionally, Bitlio offers an international money transferring service and the option to pay one’s bills. This option is available only in Australia, India and New Zealand.
Bitlio says it provides a safe trading environment and security for clients’ funds, with 95% of the bitcoin held in cold storage.
Bitlio claims to be “one of the most trustworthy brands in the digital currency space”. But it isn’t.
At first sight Bitlio appears to be a reputable exchange, but only until one does a google search on its name. Then the ugly truth is revealed and suspicions that it is a scam are raised.
According to numerous posts in various forums, Reddit, blogs and on Facebook, Bitlio is the successor of a scam bitcoin exchange called Igot. There have been warnings against Igot – from New Zealand’s Financial Markets Authority and the Australian Digital Commerce Association. There have also been warning against Bitlio’s owner Belize-based Birch Stone Ltd. – from the International Financial Services Commission of Belize (IFSC), which noted the company is not regulated by it.
The drama with the Australian-based exchange Igot, owned by Beaumont Ventures Ltd, unfolded over months in 2015 and 2016 and ultimately ended up with the company owing its clients tens of thousands in fiat currencies and bitcoin. There are Facebook groups and Reddit discussions on Igot being a scam and demanding refunds. – Claims that have been substantiated by publications in Australian media. Their investigation found that Igot has had financial troubles pretty much since its inception in 2013 and apparently has not been buying enough bitcoins as requested in client orders.
As with many scam forex and binary options, Igot was coming up with various excuses and implausible explanations as to why they cannot process the customer withdrawal requests, leaving clients high and dry.
“So as to whether the company was insolvent? I would say the balance sheet looked pretty crappy”, American entrepreneur Jesse Chenard, who worked with Igot as an advisor in 2014 told the Australian news outlet ABC.
But we digress…
Now it appears that Bitlio is promising the defrauded Igot customers to eventually refund them. Some day… If they transfer their accounts from Igot to Bitlio. According to some posts on Quora, Bitlio was getting them to transfer their Bitcoins into some other token, IGX. As per Bitlio’s proposition, IGX’s price is pegged at $1 per token and it can be traded on Bitlio’s platform, at a later date. On face value it may seem that Bitlio is intent on refunding the scammed clients, most likely it will not happen. For the simple reason that the number of IGX coins they get will correspond to the dollar value of Bitcoin when it was purchased (in 2015 it was trading for an average of $360 and in 2016 – for around $600). At the time of writing this article one Bitcoin trades for around $5700. All this being said, the fine print on the agreement says that if the former Igot clients agree to take the IGX coins, they waive their right to file a lawsuit against Igot/Bitlio.
Like most digital currency exchanges which offer just exchanging digital currencies for fiat money and vice versa, Bitlio has a relatively simple to use online platform. It does not have analysis or charting tools like the far more sophisticated platforms used for trading in forex and other assets, but simple buy and sell options.
Methods of payment
Bitlio says it accepts bank transfers and deposits in cash. We are not very sure what the latter means, because we could not find a brick-and-mortar address of Bitlio where a deposit in cash be made. Perhaps the company means fiat currencies.
Withdrawals and deposits can be made in USD, EUR and Bitcoin, which is a rather limited selection, compared to other exchanges. But at least Bitlio accepts deposits in some fiat currencies, which cannot be said for all platforms.
Bitlio Review – is it scam or safe? Conclusion
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