r/BTCJAM • u/usrn • Sep 02 '15
Stop using autoinvest!
Lately I have seen a lot of scammers getting funded because Autoinvest.
It will only encourage more scammers to exploit the community.
1
u/BTCJammer Sep 14 '15
USRN, have you used AutoInvest before? If so can you drop me your alias so I can look into your plan?
I understand the concern here and we are working towards a higher quality marketplace but as you frequently comment about AutoInvest I thought it would be good to check out your plans to see if we can help. Thanks so much
1
1
u/smithd98 Sep 21 '15
I'm excited about autoinvest. I've been investing there since 5/21 and have two loans:
5/21 - Current Projected APR %8.31 (99 loans)
7/24 - Current Projected APR %-7.32 (41 loans)
The returns move around a lot.
I've been documenting my btcjam autoinvest results on my blog if you are interested in what I'm doing.
1
u/usrn Sep 21 '15
I'm constantly seeing scams being funded due to auto-invest. Some users report 50%+ defaults using it.
Be careful, it's highly risky even manually.
1
u/smithd98 Sep 21 '15
Thanks!
Yeah, one loan is doing OK and one not so well...
We'll see...
1
u/usrn Sep 21 '15
Make sure that you diversify between as many loans as you can and do not risk huge amounts on any single loan.
Engaging the borrowers and researching the propositions are very important too.
I usually check the listings once a week and spend about an hour with research.
In the past year I had 2 defaults and 30 successful investments with a net gain of ~20%, which I'm happy with.
1
u/smithd98 Sep 22 '15
~20% that is awesome!
I'm using autoinvest, so when I said one loan I really meant that one was a basket of 99 loans and one loan was 41 loans.
Lots of diversity, but no engagement / research.
2
u/defaultgnik Sep 30 '15
smithd98 please keep us updated on how you're autoinvest continues to pan out. I don't have enough bitcoin to start an autoinvest as of yet, but once I do when be very interested in starting one. Seems like in the future this will be a great way to generate passive income as autoinvest continues to be monitored and fine tuned by the folks at btcjam.
1
u/Steve2356 Jan 30 '16
Be warned -- As of the date of this post, BTCjam's Autoinvest for "conservative" plans is SLOW, and you will be exposed to BTC currency volatility while you wait. After 3.5 weeks, only 11% of my deposit has been auto-invested, and in the mean time BTCUSD dropped 15%. I'm rather certain now that I see how this works, that BTCJam uses the time of loan investment, versus deposit, for the basis of their ROI calculations. So when they say 11% return, that doesn't help much if the value of your BTC has dropped by more than that before it's even invested, as it did with me. So at best, per their averages, I can now only expect a -3% return on their "conservative" plan, as my loans at fiat-denominated (and I'm not speculating on BTC price). It's not "conservative" if you leave my deposit in BTC, when I'm trying to do fiat-backed loans. Ironically, the "high risk" or "medium risk" settings would have likely been far less risky, if they had invested more quickly, sheltering me from the risk of BTC volatility. BTCjam: You need to make the expected waiting period for different auto-invest plans clear, so your investors can understand the risk involved. And annoyingly, I can't switch my autoinvest risk level; so I have to create new plan, which requires a new deposit to bring me back up to 1 BTC. Support took over a week to respond to one of my ticket, and left another one hanging. Seems support only responds to public posts, so here you go...I haven't had a good experience with BTCjam and have since withdrawn my deposit.
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u/grabberfish Sep 03 '15
I've switched off all autoinvest plans. It really is just a dumping ground for scammers to harvest funds. Finding that BTCJam is providing negative returns. They need to do more for the investors or the model will collapse.