Ofir’s Four Rules for Successful Bitcoin Investments

Today we are pleased to have a guest post here on the BTCjam blog courtesy of Ofir Beigel. Ofir is an Entrepreneur, Bitcoin lover and blogger at 99Bitcoins.com. His site is a great resource covering many awesome topics with the Bitcoin industry. You can follow Ofir on twitter here: @ofirbeigel

My 4 rules for successful Bitcoin investments  

If you’re investing with Bitcoin by buying and holding long term, – you’re doing it wrong. Today I’ll try to explain four basic rules that I follow in order to maximize my Bitcoin investment potential.

It has been almost a year since I got acquainted with BTCJam and now I realize how little I knew about Bitcoin investments back then. Keep in mind – what is written in this post is my own personal opinion about investing and you can choose to accept it or reject it, but never do anything just because “someone said so”, always understand the motive for your actions.

  1. Diversify your Bitcoin portfolio

I have many currencies I deal with, and for each currency I have a different portfolio. For example, for US dollars I have some of my money invested in stocks, bonds and some in Bitcoins. Under this portfolio Bitcoin will be considered as a stock, mainly due to the fluctuating exchange rate and the fact that I do not get a steady stream of income out of it.

If I look at my Bitcoin investment portfolio, just buying and holding the currency itself would be considered as normal “cash” and my cash wouldn’t be bringing in any return. It’s the equivalent of just keeping your money at the bank without investing it.

When investing in BTCjam under this portfolio I consider the investment to be a corporate bond with a specific BTCjam rating.

If I wanted to invest in stocks under my Bitcoin portfolio I’d need to find a company that is valued in Bitcoins and not in USD. However, I don’t see any reason to do so as BTCjam’s investments yield competitive returns.

Since I earn a substantial amount of my income in Bitcoin I have to make sure I make the most out of it. Here are some of the things I do:

  • Keep a certain of my Bitcoins in the form of the currency itself (cash)
  • Invest some of my Bitcoins in BTCjam so they will continue to grow (bonds)
  • Exchange a portion of my Bitcoins to USD (another type of low risk investment)

Interestingly, BTCjam also saw the importance of diversification and received feedback that they acted on – with the launch of AutoInvest feature about a week ago. Instead of having to browse individual listings, an investor can easily diversify in 100 loans with specific quality and term parameters! One button diversification, now that is an EASY button.  But if you are the investor who wants to control which specific loans get invested in, and want to understand how to do that effectively – read on.

  1. Conduct ample research before investing in someone

I never invest in something I don’t know about. Luckily enough since I’ve been running 99Bitcoins for 2 years now I know a lot about Bitcoin. That’s why when I come to chose an investment I usually look at the following:

Expected Yield and Rate – Most people would prefer to get the highest yield they can. I personally believe that people who have super high yields have a serious risk of not paying back their loan. On the BTC platform the lowest yield I could currently find was 22% and the highest was 37%.

You’ll notice there is a high correlation between the Yield on an investment and the low BTCjam rating of a user. Even though I’m not aware of the whole process a user goes through in order to get the BTCjam rating I’m sure this means something.

I tend to go for a low-middle yields knowing that for shorter term loans there is the be

The user profile – People who are serious about getting their investment and actually repaying it will take care of their profile. Here are some of the things I look out for:

  • The user’s profile picture – nothing spells trouble more than a blank profile picture.
  • Has this user repaid previous loans – I never invest with someone who hasn’t repaid a considerable amount of money in loans in the past.
  • User credentials – Has the user connected his Facebook profile, LinkedIn profile and other profiles to BTCjam. If so it means he is open about his identity which is a positive indicator.
  • How long has this user been a member of BTCjam – I shy away from users who joined in the past 3 months.
  • BTCjam’s rating – This will usually correlate with my own findings about the profile but I treat this as a second opinion to validate my research.
  • What is the investment for – If there is no detailed description for the investment I will not invest. An important question that should be answered is what will the investment be used for.

Here’s an example of my latest investment – you can take a look at the profile and detailed description.

OFIR - img1

  1. Never invest more than you can afford to lose

Probably the most important guideline of them all – Never invest an amount that is crucial for your survival. I’m a believer in Bitcoin but still I keep only a fraction of my entire wealth in it – why ? Because it’s too risky not too.

Whenever I enter a risky investment (e.g. Bitcoin) I try to imagine how would I react if I lost all of it. If the thought is too scary, I just don’t do it – or I lower the investment amount.

Bitcoin is a risky business, and BTCjam investments make it even riskier by lending it to strangers – but if done wisely, these investments can grow your Bitcoin wealth over time.

  1. If you don’t find any good investment – don’t invest!

Sometimes you just won’t be able to find someone that matches your criteria. In this case you’re better off not investing and checking back to see if there are new investment opportunities in a few days or so.

There are so many scammers out there and Bitcoin is still an extremely risky business. For example, in my initial review of BTCjam I also cover a Bitcoin investment website called “Bitcoin Trader”. That site later on turned out to be a HYIP and many users (myself included) lost their money. There is no such thing as “easy money”, make sure to conduct proper research.

To conclude, I believe that if you follow these guidelines your chances for success will increase dramatically. Please remember that this is based on my own personal opinion and experience (I have no formal investment certification). I recently finished getting back a loan on BTCjam and just invested in a new one with a larger amount of money.

Hopefully this one will go well also and I can move on to additional investments and update you about them as well. If you have your own investment tips please feel free to leave them in the comment section below, I’d love to hear them.

BTCjam mentioned in CheapAir’s People of Bitcoin

People of Bitcoin  The Mad Maverick   CheapAir

Q: Can you share a bit about who inspires you in the Bitcoin space?

A: I’ve  recently been inspired by Celso Pitta, the CEO of BTCjam. Celso had credit problems in college and the credit system in his home country of Brazil is profoundly unfair, charging borrowers 200% interest for a standard loan. Celso was motivated by these troubles to found BTCjam, which is a new peer-to-peer bitcoin lending website that allows anyone on Earth to give or take a loan in Bitcoin. It’s a really exciting idea and I think using bitcoin to fund loans could really expand access to credit and improve the world. I believe in this so much so that I’ve recently joined BTCjam as their Community Manager. I’m very excited about BTCjam.

CheapAir, People of Bitcoin: The “Mad Maverick”

Volabit y BTCJam permiten inversión en micropréstamos con bitcoin en México

Volabit y BTCJam permiten inversión en micropréstamos bitcoin2

(OroyFinanzas.com) – Las startups Bitcoin BTCJam y Volabit, brasileña y mexicana respectivamente, se alían para permitir que usuarios mexicanos puedan invertir con bitcoin a través de una plataforma de micropréstamos para la financiación de proyectos internacionales.  Read More…

BTCjam partners with Volabit to bring bitcoin loans to Mexico


Hola Jammers! We’ve got great news this morning… BTCjam is partnering with the leading Mexican Bitcoin exchange Volabit to bring our users from Mexico a superior Bitcoin experience.  Volabit users can now transfer funds and activate automatic payments all from BTCjam.com!  Lending bitcoin and gaining returns has never been easier, and Volabit users can now transfer their bitcoins to BTCjam without ever leaving the site. Together Volabit and BTCjam make borrowing and investing bitcoin in Mexico simple!

  • You can withdraw bitcoin seamlessly from Volabit without leaving BTCjam
  • Your automatic payments can withdraw from your Volabit wallet to make a payment

BTCjam and Volabit have partnered to make borrowing bitcoin in Mexico easier than ever.

BTCjam CEO Celso Pitta said, “I’m thrilled about our Volabit partnership.  Volabit integration will make BTCjam much easier to use for our customers in Mexico.”  Hannah Kim, Co-Founder of Volabit agrees, saying “BTCjam is one of the most exciting companies in Bitcoin and we’re delighted for how our new partnership makes bitcoin borrowing and lending easier for our customers.”

“Volabit integration will make BTCjam much easier to use for our customers in Mexico.” – BTCjam CEO, Celso Pitta

Get detailed instructions on how to connect your Volabit Wallet to BTCjam on the BTCjam Blog!  Once you have connected your Volabit wallet, you can easily transfer bitcoin to BTCjam and make automatic payments on your loan.  It’s just that easy.

Attention Bitcoin Wallet providers, we are looking to integrate additional wallets! Please contact us at partner@btcjam.com if you would like to partner with BTCjam.

About BTCjam BTCjam is the global leader in peer-to-peer lending using Bitcoin, and the first to offer a proprietary credit score to its users.  BTCjam’s disruptive credit model is changing the way borrowers and investors connect, providing a new path to financial freedom for users from more than 200 countries around the world. BTCjam promotes lending without borders, where people can borrow and lend bitcoins, without having to worry about banks and other intermediaries. Transactions are instantaneous, hassle free, and supported by an engaged, trusting global community.

About Volabit Volabit is the fastest and safest way to buy and sell Bitcoin in Mexico.  Founded in 2014, Volabit has more than 4,000 users and they have converted more than 24,000,000 pesos into Bitcoin. Volabit received venture funding from the Bitcoin Opportunity Corp and has been described as the “Coinbase of Mexico”. Check out Volabit at https://www.volabit.com

How to Link your Volabit Wallet to BTCjam

At BTCjam, we are very excited about our new partnership with Mexican bitcoin exchange, Volabit.  Here are some simple instructions on how to link your BTCjam account to your Volabit wallet:

Log in to the BTCjam website at https://btcjam.com/

1. Navigate to the arrow by your user name, in the upper right hand corner, click Settings

2. Click Credit Rating
222 Settings   BTCJam   BTCJam
3. Click Wallets & Exchanges
4. Click Volabit


5. Click Authorize to allow BTCjam to use your account.
That’s it!  Your Volabit account is now linked with your BTCjam account.


To add funds from your connected Volabit wallet
1. Click on the arrow at the top center of the page near your Bitcoin balance.


2. then click Add Funds
3. From the Add Funds popup window, simply click the
“Add funds from Volabit” button at the bottom of the window:


4. Simply enter how much you would like to transfer from Volabit, enter your 2FA code (if you have 2FA enabled) and click “Transfer from Volabit” to transfer your funds.
And you’re all set! Thank you for reading BTCjam’s tutorial on how to link your Volabit Wallet to BTCjam.  Remember you can now use your linked wallet for transferring funds or even making automatic payments on your BTCjam loan.  Thanks to Volabit for partnering with BTCjam.
If you need a bitcoin loan, borrow on BTCjam!  If you want to invest, invest on BTCjam!

BTCjam featured in Valor Econômico, the largest financial newspaper in Brazil

Valor - Bitcoins making the radar of Brazilian entrepreneurs   Valor International

Since its creation, BTCJam lent $12 million in bitcoins, $10 million of which between January 2014 and January 2015. The expectation is to end this year with a 20% increase over the total already granted. Currently, the average rate on loans is around 40% per year, but the cost varies depending on the credit history of each customer.

Read More at Valor Econômico

BTCJam hires Anti-Fraud Expert from Lending Club

Howdy Jammers!

We’ve got great news at Jam headquarters today.  We’ve got a brand new Jammer!  Anti-fraud expert Marisela Zaragoza has joined the BTCJam team.  Marisela has more than five years of experience in anti-fraud, having worked previously at Lending Club, Montecito Bank & Trust and she received a degree in Criminal Justice from Santa Barbara City College.

Marisela is “thrilled to join the team at BTCJam” and she believes that there are “many exciting opportunities for the future in bitcoin peer to peer lending” and that “peer to peer lending could change the world by expanding fair access to affordable credit worldwide.”

WelcomeMariselaMarisela is an expert in customer relations and while at Lending Club, she used her Criminal Justice background to verify customers and evaluate identification documents. Marisela is a major fraud deterrent and we believe her arrival will usher in a new era in anti-fraud at BTCJam.

“Based on Marisela’s impressive experience at Lending Club, we believe her analytical abilities, criminal justice background and attention to detail will further expand BTCJam’s fraud department.” said Celso Pitta, CEO of BTCJam.

And for all those reasons and more, we’re super excited to have her here at BTCJam. Welcome Marisela, to BTCJam!

Until Next Time… Keep on Jamming!

If you need money, borrow bitcoins on BTCJam!  If you want high returns, invest on BTCJam!

Five New Currencies added to BTCJam

New Local Currencies Added

BTCJam now supports loans in BTC, USD, Brazilian Real (BRL), Mexican Peso (MXN), Indian Rupee (INR), Russian Ruble (RUB), and Euro (EUR)


Howdy Jammers!

Today we are proud to announce five new currency options on BTCJam. In addition to US Dollar linked loans (and of course Bitcoin), BTCJam is now offering loans in denominated in:

  • brazil Brazilian Real (BRL)
  • mex Mexican Pesos (MXN)
  • Russian_Federation Russian Rubles (RUB)
  • india Indian Rupees (INR)
  • euflag Euros (EUR)  

The addition of local currencies simplifies the loan process for borrowers, allowing them to match the loan with their income.

Investors also benefit from having loans denominated in other currencies, allowing them to diversify their investments globally. For example, investors can offset losses from local economic crises by funding loans in foreign currencies. Investors are also able to reduce the beta of their portfolios, adjusting portfolio volatility against local economic crises.

Funding your loan in your local currency makes borrowing on BTCJam easier than ever before.


It is important to mention that investors must understand that they are exposed to exchange rate fluctuations versus their own currency. Meaning that if the borrower’s currency devalues, that devaluing may negatively impact the loan’s return. Of course, the opposite is also true: if the foreign currency gains value against the investor’s local currency, then the loan would get an exceptional return.

We’ve been working on this for a while now, and we’re excited to bring you the option of using these currencies on BTCJam.  As you know, our team is always working on new ways to improve our user experience.  Do you have an idea on how BTCJam can get better?  Send it to us at support@btcjam.com!

Until Next Time… Keep on Jamming!

If you need money, borrow bitcoins on BTCJam!  If you want high returns, invest on BTCJam!

BTCJam, Bitcoin Loans and Batman Save Christmas!

Jamie first heard about BTCjam from a friend and they talked the possibilities of getting a loan in bitcoin, but eventually they forgot about it. Jamie didn’t have very much experience with bitcoin so she wasn’t too confident about how to exchange bitcoin for cash, but a year later she decided to take a second look.

Jamie was suffering through some tough times in Christmas of 2014. She wasn’t sure how she was going to raise the money to make Christmas happen for her little one when her friend reminded her of BTCjam and bitcoin lending. Jamie and her friend worked quickly to set up her account and confirm her identity.

It was hard to believe that merely a week after signing up for BTCjam, Jamie would have a fully funded loan for to spend on her child’s Christmas Presents and she didn’t even have to promote it! All thanks to the BTCjam investor community.

All that Jamie’s son wanted for Christmas was Batman toys and he got a ton of them! It took him hours to open his gifts because he wanted to open them one at a time and play with each one. Jamie said it literally took him all day to open his presents. It was a nearly perfect Christmas. Thanks to the support of the BTCjam community.

In the months that followed, Jamie made good on her loan and paid it back in full. Jamie is now a known and trusted borrower in the BTCjam community.

Jamie looks forward to a long and beneficial relationship with BTCjam and if all goes well with this blog post, Jamie will soon be convincing her mother to join BTCjam as well. Let’s hope it all goes well! Thanks Jamie for sharing your story with us and thanks for borrowing…. with BTCjam.

Until Next Time…. Keep on Jamming!

If you need money, borrow bitcoins on BTCjam! If you want high returns, invest on BTCjam.

BTCJam Launches a New Feature: Refinancing Loans!

Howdy Jammers!

We’re really excited to tell you about a new feature developed by our hard working Jam Engineers.  Without any further ado, we’d like to announce that BTCJam users will now be able to Refinance their loans — right here on BTCJam!

Having trouble paying back a loan?  Refinance your loan on BTCJam today!

Q: What is refinancing?

A: Refinancing is a way for borrowers to restructure their current debt under different terms.

Q: How does BTCJam’s refinancing work?  

A: If the borrower chooses to refinance a loan, the new loan amount will be set to guarantee the repayment of this loan.  A refinance loan is a special type of loan that cannot be activated by the borrower.  The funds raised for this loan are sent directly to the investors of the previous loan.

Q: Can I refinance my loan?

A: Yes, any borrower with an outstanding loan can attempt to refinance their loan.

Q: What do you mean attempt?

A: The refinancing process is much like the process for funding your original loan.  Investors will decide whether or not to fund your refinancing based upon the completeness of your profile, the diligence you show in describing your loan, how you intend to pay it back, the reasons for your refinancing, and of course, our proprietary credit score.

Q:  What happens if my refinancing attempt is successful?

A:  If your refinancing loan reaches a point when the sum of investments is enough to repay the original loan, your loan will automatically activate and the investors of your previous loan will be repaid.

Q: What happens if my refinancing attempt is unsuccessful?

A: You can attempt to refinance again, perhaps with more favorable rates for investors, but if the investors choose not to fund you two times in a row, perhaps it’s time to continue paying off the original loan.

Thanks for reading about our new feature, Refinancing Loans on BTCJam.  We hope you like it.  If you have any questions or suggestions for a new feature or anything about BTCJam, we’d love to hear from you at support@BTCJam.com.

Until Next Time….    Keep on Jamming!

Having trouble paying back your debt?  Refinance your loan today with BTCJam!