Beware! Bitsolite is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Bitsolite attempts to present itself as a regulated crypto-asset trading and investment platform. But even a minimal scrutiny exposes these claims as lies. Bitsolite is a completely anonymous website designed to capitalize on the hype surrounding Bitcoin and scam people out of their money.
BITSOLITE REGULATION AND SAFETY OF FUNDS
The first indication that Bitsolite is not a legitimate business is the fact that nowhere is it stated which is the legal entity behind this website. The links to the supposed legal documentation refer to the index page.
Despite this anonymity, the Bitsolite claims to be regulated and licensed by an institution called “International Financial Commission”. No such institution exists. There is a private body called the “The Financial Commission” which deals with the resolution of disputes between traders and brokers. However, the Bitsolite is not listed in the database of that institution, and furthermore, even if it were a member, that would still not make it a regulated broker.
The website lists an address in London, United Kingdom. In order to offer such services in the UK, a company must be licensed by the Financial Conduct Authority (FCA). The fact that the Bitsolite does not provide a company name and registration number is indicative enough that it does not have such a licence. For the purpose of this review we did search for “Bitsolite” on the regulator’s register and predictably found nothing:
If you want to trade in the financial markets without falling victim to fraud, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority.
They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
BITSOLITE TRADING SOFTWARE
On its website, Bitsolite advertises a “custom-built” platform for desktop and mobile devices. However, after registering an account and logging into the customer portal, this platform cannot be found anywhere. Instead, there are only a few simple charts with current asset prices, which can be picked up for free from the TradingView website.
Separate from the charts is a menu designed for binary options trading. This menu is not active, and more importantly, binary options trading is no longer allowed by the UK’s FCA and many other leading regulators. This type of simplistic trading is associated with numerous scams and exploits.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
BITSOLITE TRADING CONDITIONS
Nowhere on the Bitsolite’s website can one see any information about the supposed terms of trade being offered. There is no description of trading accounts or investment schemes. The dubious binary options trading platform shows a payout of 80%, which is a typical level for these financial instruments. But it is obvious that Bitsolite does not offer real trading, be it binary options or otherwise.
Prize competitions are described on the website, which also indicates that Bitsolite could not be a licensed broker operating in the UK. The FCA, like all leading regulators, prohibits practices such as bonuses, promotions and prize games.
If you have decided to invest in the financial markets, it is wise to use the services of a licensed broker, many of which offer starter accounts with a low minimum deposit.
BITSOLITE DEPOSIT/WITHDRAW METHODS AND FEES
On Bitsolite’s website you can see the logos of popular payment methods such as MasterCard, Skrill, FasaPay, Neteller and WebMoney. The website also mentions the possibility of using PayPal. However, there is a single option in the deposit menu – to send an amount to a specified bitcoin wallet.
While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card and bank transfer. Cryptocurrencies as a sole payment option is a big red flag. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.
As mentioned, the Bitsolite does not have Terms and Conditions and other legal documentation. Information on fees, commissions and withdrawal terms is nowhere to be found.
HOW DOES THE SCAM WORK
Scammers who promise easy money without any effort are nothing new, especially on the internet. But given the excitement around bitcoin and cryptocurrencies in recent years, malicious actors have run rampant more than ever, capitalizing not only on people’s desire to solve their financial woes with a magic wand, but also ignorance and misunderstanding of how blockchain and complex financial instruments actually work.
If your curiosity is stirred by one of the many flashy websites promising easy riches, and you provide your contacts, you will soon be contacted by skillful and persuasive scammers who will convince you to start with a relatively small and “risk-free” investment. If you agree to this, you will be transferred to even more skilled at convincing scammers, who will persuade you to invest even more. Any money you give to such people is money you are unlikely to get back.
Any attempt to withdraw deposits or alleged profits will be hampered by numerous and significant fees, as well as harsh and often prohibitive conditions written into the terms and conditions – such as high trading volume requirements, unexpected “taxes”, or withdrawal fees as high as 10% or even 20% of your funds.
WHAT TO DO WHEN SCAMMED
When you find yourself scammed and seek advice and help online, you are likely to receive offers from individuals and companies who promise to refund your money for a fee that you have to pay in advance. Don’t trust such offers or recommendations from anonymous commentators on the internet – this is also a well established scam.
The best chance to get at least some of your money back is to request a chargeback, but this applies only if the transfer is made via credit card. It is of course advisable to notify the relevant authorities of the fraudsters’ activities and to spread the word online to warn other people who may fall victim to the same scammers.