This peer-to-peer banking system enables its users to borrow and lend Bitcoins.
The advance of cryptocurrencies has been so notable that they have managed to create a whole new economy, which is completely independent of any institution, there is no involvement of third parties and the users have the full control over their financial actions. Platforms such as BTCpop make the users’ lives easier, more convenient and give the ability to be more involved in the crypto world. This article will give you a BTCpop review so that you can understand what makes BTCpop so outstanding in the cryptocurrencies world and to will help you to answer a commonly asked question, ‘Is BTCpop legit?’
What is BTCpop?
BTCpop is a financial platform that is designed especially for cryptocurrencies. This platform provides its users with a number of tools and gives opportunities to do multiple crypto related business on the same platform.
BTCpop has started operating since 2014 and was founded in Great Britain. The founder of BTCpop is Lee Bartholomew, however, the company was sold in June 2016 because of management issues. The new owner ended up investing his own crypto savings in order to repay the lost cryptocurrencies of the members. At the same time, the website had a number of bugs, which have been fixed since 2016 and along with it a number of features were added. Currently, BTCpop is rewriting its code and the company hopes to finish it soon in order to launch a new BTCpop platform with the improved versions of the current features in addition to an API. The company has moved from Great Britain to Majuro, Marshall Islands.
BTCpop services are:
BTCpop enables its users to convert their wealth from one currency to another. The supported currencies on the BTCpop exchange platform are – Bitcoin, Litecoin, and Dogecoin. The exchange pairs are usually Litecoin or Dogecoin to Bitcoin and vice versa. The exchanges on BTCpop take place within the community. The platform does its best to increase the number of the available cryptocurrencies. Right now it includes Black aka BLK, CureCoin aka CURE, Bitcoin Gold, Datacoin, TAO coin, Stratis and so on.
The loans on BTCpop are also referred to as “reputation-based lending”. The reason behind this is that BTCpop, in contrast to the traditional lending institutions, is not checking the borrowers’ credit scores but instead their reputation. In case you do not need to borrow money, you can still use this service as a lender. In other words, you can earn money by giving out BTCpop loans, and in this case, you have the ability to set the terms along with the amount of the loan.
Staking – Proof of Stake
With the advance of cryptocurrencies, a number of tokens start adopting the verification process known as PoS aka the Proof of Stake. For this very reason, BTCpop is providing its users a pool which will let them invest and earn money from cryptocurrency mining.
IPO aka Initial Public Offering
Another service that is provided by BTCpop is giving funding to new businesses and startups, especially the ones that are usually not financed by the banks or other official companies. Users can also take a spotlight on the other side of the IPO as well, as investors, who are interesting in investing in a new innovative business.
As you may see BTCpop is rather broad and it tries to satisfy multiple customer needs and wants at the same time, instantly. The question is how successful it is in doing so.
BTCpop Special features
- BTCpop has a system on its page that allows it to have a conversation with members about topics like risks involved in lending amongst other issues.
- There are loans that are insured against default.
- It allows creating an IPO right on the BTCpop website.
- BTCpop offers Bitcoin stock trading.
- Collateralized loans, which depend on the ranking of loans, and some can have collateral and be enhanced based on how reliable they are.
- The platform offers insurance against defaults in case of some loans. This is very much depending on the loan history if the applicant and the authentication.
BTCpop Verification Process
Verification on BTCpop is required in order to connect the users’ identities and their usernames. The verification creates a trust for the investors because that they need to know the identity of the person they are financing. In order to get verified on BTCpop you need to:
- Navigate to your profile or alternatively the tab “Apply”, which is on the toolbar’s left side.
- Click on “Get Verified” bottom.
- The more information you put in the more trust you will create in front of the investors.
- In the “General identity and address verification” section you are supposed to put in information such as name, date of birth, the home address that you are registered at.
- In case of “Address+ Verification”, you are supposed to put in your address and you will receive a mail with a code for activation.
- “Address+ Verification” is for the users whose API risk score is higher than it should be.
“Address + Verification” can also be asked from the users based on the country you are located in because this verification is exempted only from 28 countries and all the rest need to do it.
- The letter will cost about $3 worth BTC.
- “Address+ Verification” is also recommended for those users who plan to take large sums of loans, so that the investors get to feel more assurance.
- At the time of SMS verification, you are supposed to put in your cell phone number. You will receive an SMS that will provide you with a code, which you need to verify yourself with.
You need to upload:
- A video.
- Your ID card.
- Your passport.
- A picture/selfie of you holding the code.
- Your driver’s license.
- The reference stating the income of the last 3 months.
- The utility bills for the last 3 months and it has to be sent through the mail.
- The documents need to be uploaded in .jpg, .jpeg formats, without any edits and should not be any larger than 5MB with their size.
- Provide links to your social media accounts such as Facebook, LinkedIn, Google, and Twitter.
The amount of the loan that is given is highly dependent on the collateral situation as well as the reputation of the user. The market is the one setting the limits but most of the time these are the factors that it depends on.
- It is recommended to list the first loan under 100% + collateral. In other words, if you as a user applying for a loan have only 1 bitcoin of collateral then you should get a loan worth 1 BTC. It is also important, where is the collateral coming from – if it is a rare one you should have at least 150%+.
- The maturity of the loan is related to the fact if you have applied for a loan before or not. To be more precise, the first time the loan applicant is the one deciding how long should the loan be taken for, however, it is recommended to make the time frame as short as possible (around a month). For repetitive, small loans, 7-day loans are an adequate time frame.
- The vast majority of the investors prefer small but frequent payments and for that reason, the borrowers are recommended to choose per week payments if possible.
- The interest rates also are related to the amount of collateral the user has. However, at the moment, the interest rates are usually higher in bitcoin than they are in case of fiat currency. The reason behind this is the risk that the lenders get to face and because of how young is the environment. To give you an idea these are the rates for the first time loans.
- If the collateral is 200%+ of the requested amount, then 10 – 15% APR.
- If the collateral is 100%+ of the requested amount then 15 – 25% APR.
- If the collateral is 25% – 75%+ of the requested amount then 20 – 45% APR.
- If there is no collateral then it is highly dependent on the user’s reputation and the interest rate will be around 50%+ APR.
The BTCpop fee services vary from service to service.
- Basic loans such as “Custom Personal Loans” usually charge 5% fee in addition to the interest rate. The BTCpop fees for other loans usually depend on the verification of the user and vary from one level to another.
- IPOs are usually referred to as a category of loans. In this case, the investors get a share of profit and are paid with the dividends that are generated by the company. BTCpop offers an insurance which is charges 1% of the loan.
- In general, the borrowers are paying 1% – 4% fees +1% in case of insurance. The investments are supposed to be in between 1 satoshi and 500 BTC.
Recently, a concern was expressed regarding the fact that Bitcoin transaction fees are the leading expense for BTCpop platform.
Is BTCpop safe?
As we have mentioned above, BTCpop is in the cryptocurrency industry since 2014 and it still is a major player. Peer to peer platforms like BTCpop highly depend on the community trust and if it was not safe enough people would most likely stop using the platform and become customers of alternative service providers.
BTCpop gives a lot of significance to its safety. It has created insurance plans for decreasing the possible risks threatening to the investors and even borrowers. The pool is backed up and is assured by BTCpop. In the past, the Instants Pools have lost around 250+ BTCs, however, the company insurers that the codes are improved and it is possible to generate profits. The company openly admits the possibility of risks, which are sometimes unavoidable but at the same time, it does its best to be as risk-averse as possible. At the same time the company uses HTTPS and to make sure that the supplied funds are stored and kept safe, it uses encryption models of McAfee.
As it was mentioned above one of the ways that BTCpop supports its customers is the ticket method. This way the company manages to coordinate the users and reach out to them as quickly as possible. Usually, the response takes as long as 24 hours.
How to use BTCpop?
If you want to get a loan on BTCpop you need to:
- Create an account.
- Get verified (through the process explained above).
- Gain reputation. This may be a bit time consuming but if you are patient enough you will get the best out of this process as it is a crucial one on BTCpop. To gain reputation you need to:
- Buy, hold collateral types.
- Import your reputation from other platforms.
- Get other users to vouch for you.
- Participate in discussions.
- Make investments in loans.
- Make sure your profile is complete.
- Get to know the website as good as possible and apply for a loan.
- Pay to back your loan: make sure you are not violating the rules, that you are on time, communicate with the investors.
If you want to make bitcoin investments, you need to:
- Deposit Bitcoin.
- Make sure you are well aware of the investment you want to do.
- Learn about how BTCpop community works and make an according to investment plan/strategy.
- Implement your investment plan.
- Monitor, evaluate and increase your investments.
The investment options on BTCpop are:
- Buying an altcoin through the BTCpop exchange.
- Earning interest rates ranging in between 5% to 15% (these are risk-free) and store the Bitcoin in the instant pools and save the account so that you are able to withdraw whenever you want to.
- Investing in loans with collateral.
- Investing in IPOs or trade shares.
- Investing in bonds.
- Creating vouchers and sell your BTC and generate profit.
To sum up…
BTCpop claims that they do not want to destroy the banking system but the banks that keep getting greedier and greedier. With its wide variety of services and the constant potential of becoming better BTCpop is trying to become a crypto banking system.
- A wide variety of cryptocurrencies that users can exchange.
- BTCpop wants to ensure everyone is satisfied, you can notice it by checking reviews and using their interface.
- Numerous services within one platform.
- Insurance for loans.
- The company itself admits the possibility of risks.
- May be difficult for beginners.
We hope this article helped you to get a better understanding of BTCpop platform. Thank you for reading and make sure to check our website for some more comprehensive reviews, guides and so on.