In this review we expose the Bitniex scam – how it works and how it is made to steal your money.
What is Bitniex
Bitniex is presented as a cryptocurrency exchange. It will let you trade with various digital assets, such as bitcoin, ethereum, XRP, litecoin etc.
On Telegram you will also find a group with an arbitrage bot that can make you money in trading between different exchanges, like Binance, and Bitniex.
We’ve seen offers like 4.5% returns per trade with Bitniex.
This exchange has positive review on Trustpilot, so can you trust it?
No, you can’t trust Bitniex, it is a dirty scam. It won’t make you any money, the arbitrage bot is fake and all your deposits with this exchange will be lost.
How it works
Arbitrage trading is a perfectly legit way of making money. Sometimes you can see that one cryptocurrency is traded at different price levels on different exchanges. So you can buy that one asset for a lower price on one exchange and sell it for a higher price on another exchange.
But these opportunities are limited in time and by liquidity. You will never find a permanent arbitrage window, differences in prices between exchanges are erased over time because people will arbitrage them out.
And here comes Bitniex. When you look at the exchange, you will see that all cryptocurrencies have their prices about 9% higher than what you can trade on other exchanges.
So the quick conclusion would be to buy anything, for example bitcoin, on any other exchange like Binance for a lower price, transfer the bitcoins to Bitniex and sell them there for a profit of about 9%. You don’t even need any trading bot or group on Telegram for that, you can do it yourself.
That would be great, but that won’t happen. Because Bitniex is a fake crypto exchange. You can transfer cryptocurrencies there, you can even sell them, but you won’t be able to withdraw anything. These fraudsters will keep everything you ever send to that exchange.
The higher crypto prices you see on Bitniex are just a trap, they want people to send them their cryptocurrencies with the vision of selling them for a higher price with a nice profit. But it’s just a black hole where your cryptocurrencies will disappear.
As if it was not enough, if you contact Bitniex support, you either won’t get any answer, or they will make up a technical glitch that you supposedly can resolve only by sending them more money. Don’t do it! Because everything you send to Bitniex will be lost.
Scammers from Bitniex will make up all sort of reasons why you should send them more while their only goal is to steal as much cryptocurrency as they can from you.
What to do if you lost money with Bitniex
Scams like Bitniex are really hard to deal with, because they transact in cryptocurrencies only. And crypto transactions are irreversible. So there is no central authority that you could ask to return your deposits to you.
The only thing you can do is to go to the police and the financial authority in your country and report Bitniex for fraud. Only them can start investigate Bitniex and try to do something about it.
In all honesty, chances to get money back from crypto scams are lower than with traditional scams, because crypto transactions are harder to track. But we should never let scammers get away with it.
Bitniex review – the conclusion
Bitniex is a scam, a fake crypto exchange. Crypto prices on this exchange are fictitious, all your deposits will be lost and you will never be able to withdraw anything from Bitniex. Stay away from it!
If you want to try legit crypto trading, do it on reputable crypto exchanges or with regulated companies.
Also, please be aware that trading with cryptocurrencies carries high risks, you can make, but also lose money.