Bitnomics’ offer is aimed at investors who are enthusiastic about online trading and cryptocurrencies. Because at Bitnomics, cryptocurrencies can be bought and sold at attractive conditions. However, the British Columbia Financial Services Authority has issued a public warning about Bitnomics.

Table of contents

  1. Bitnomics Review
  2. Bitnomics website
  3. Contact details of Bitnomics
  4. Bitnomics Licence
  5. Regulatory alert from financial regulators on Bitnomics
  6. Online trading guide
  7. Lawyers to help with problems

Parallel to the question of the extent to which Bitnomics offers an adequate service, it is relevant to look at the basics for successful online trading. Our lawyers will also comment on how the Bitnomics platform compares to other financial services.

Furthermore, we will assist and support you in case of ambiguities and legal disputes in connection with Bitnomics.

Bitnomics Review

The Bitnomics website informs its readers that the provider offers the crypto solution for the global citizen. This is because Bitnomics is a powerful, secure and easy-to-use platform. Moreover, Bitnomics is doing its best to make the use of the innovation platform easy, convenient, fast and effective for the customer.

In addition, the Bitnomics website states that the provider has been on the market for more than two years and has more than 3,000 regular customers. Moreover, Bitnomics’ offer is aimed at both beginners and professional investors. Furthermore, Bitnomics’ customer service can be contacted online around the clock, seven days a week.

On its website, Bitnomics also talks about offering its customers secure transactions and a range of payment options.

The Bitnomics website

Information on the alleged online broker Bitnomics can be found on the German-language website of the company at the URL bitnomics.co/de.

Management Board

According to §6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the website must be displayed in the imprint. In many cases, this is a member of the provider’s management board. Disclosing the names of the responsible persons is not only an obligation, but also a sign of transparency.

As of November 2021, there is no information on the persons responsible for the content on Bitnomics’ website.

Query domain information

Many financial providers use their many years of practical experience as a pretence of trustworthiness. However, such statements are often contradicted by the date on which the domain was registered. Consequently, it is necessary to check who the domain holder is and when the domain was registered.

Our lawyers have queried the data on Bitnomics with this result on 08 November 2021: Domain Name: bitnomics.co Registry domain ID: DA9A6B505A94145C4ADF36CB6C56BF2BE-NSR Registrar WHOIS Server: whois.godaddy.com

Registrar URL: whois.godaddy.com Updated Date: 2020-11-20T18:51:34Z Creation Date: 2019-11-14T09:30:37Z Registry Expiry Date: 2021-11-14T09:30:37Z Registrar: GoDaddy.com, LLC

Operator and Trademark

The name of the online presence or trading platform or offer is not necessarily identical with the operating company. In the past, it was not uncommon for providers to appear on the market in parallel with different trademarks.

Furthermore, it is a common practice of some operators to deactivate the websites of compromised trademarks and to return to the market shortly afterwards using a different trademark. Therefore, when researching news and statements about a provider beyond the trademark, one is well advised to always consider the operating company as well.

The relevant data can be found either in the imprint or often also in the footer of an online presence. In the footer area of the website, there is information that Bitnomics is the trademark of a Money Flow OÜ in Estonia.

Imprint information

In the Federal Republic of Germany, according to §5 of the German Telemedia Act (TMG), there are basic obligations to provide information and mandatory details for the imprint. Consequently, this obligation to “identify the provider” exists for all commercially operated websites.

This is because this information is intended to inform the user of a website who he or she is dealing with. In addition, the address of the website owner plays a role in this context if legal claims are to be enforced against him.

In this context, it is also important to note that the obligation to maintain an imprint applies equally to providers domiciled abroad who conduct their business activities in Germany. At the time of November 2021, there was no legally binding imprint on the Bitnomics website.

Bitnomics contact details

At the time of writing, the following information was available on the Bitnomics website:

  • E-mail contact to Bitnomics: support[a]bitnomics.net
  • Phone number of Bitnomics: 003726682675 (Estonia)
  • Address of Bitnomics operator: Harju maakond, Tallinn, Kesklinna linnaosa, Sadama tn 17, 1011, Estonia

Bitnomics Authorisation

The existence of a valid authorisation from an official European financial supervisory authority can be an important criterion for determining whether a provider is trustworthy. This is because issuing a licence requires a great deal of financial effort on the part of the provider.

Nevertheless, it does not necessarily have to be fraudulent if an online broker refrains from making statements about its licence or its regulatory status. The following financial supervisory authorities, among others, are responsible for issuing licences and supervising financial service providers such as Bitnomics:

  • FINMA, Switzerland (Swiss Financial Market Supervisory Authority)
  • BaFin, Germany (Federal Financial Supervisory Authority)
  • AMF, France (Autorité des marchés financiers)
  • MFSA, Malta (Malta Financial Services Authority)
  • CMVM, Portugal (Comissao do Mercado de Valores Mobiliarios)

No evidence of regulatory licensing could be found on Bitnomics’ website as of November 2021. Interested investors can discuss what this means in a conversation with a lawyer from our law firm.

Financial authority warns on the subject of Bitnomics

As early as August 2021, the Financial Services Authority of British Columbia (Canada) issued an official warning on the subject of Bitnomics. According to the authorities, Bitnomics claims to offer an online trading platform for cryptocurrencies and is also targeting residents of British Columbia with its offer.

However, according to the BCSC, a crypto trading platform may need to be recognised as an exchange under section 25 of the Securities Act, RSBC 1996, c. 418 (the Act) or registered as a dealer under section 34 of the Act. However, Bitnomics is neither recognised as an exchange nor registered as a dealer in British Columbia.

Before trading at Bitnomics and others – online trading advice

Online trading, as with Bitnomics, is the extension of traditional trading in financial instruments into the World Wide Web. Here, as there, market participants act with the aim of generating income by buying and selling assets. Trading is no longer limited to shares. Rather, investors can also choose from the following alternatives, for example:

  • Fixed Deposit
  • Gold
  • Commodities
  • Cash
  • Real estate
  • Cryptocurrencies such as Bitcoins and Altcoins, for example Tether
  • ETFs
  • CFD Trading
  • Foreign exchange trading
  • Bonds

Online trading is carried out via interfaces such as brokers (e.g. Bitnomics) or banks that offer their clients professional trading software. It is to be expected that in the future there will be more and more private investors who discover online trading for themselves. All you need is an internet connection and a PC or a tablet or smartphone.

Advantages of online trading

Digitalisation is also having a considerable impact on the financial world, especially when it comes to trading like Bitnomics. Because in view of the technical possibilities, trading has gained particularly massive performance.

Whereas investors and traders used to have to place their orders by phone, fax or post, today they can do so with a click and at a fraction of the cost. Factors such as the term and type of trade, pricing and quantities or the details of the account no longer have to be defined between the Bitnomics provider and its customer in a personal conversation.

Consequently, the possibility of online trading has created numerous conveniences:

  • Online traders have many tools and various indicators at their disposal.
  • The possibility of losses due to gaps is reduced.
  • A lot of tools can be used automatically and immediately.
  • Transaction costs are noticeably reduced as personal telephone advice is no longer required.
  • Training opportunities for online trading, knowledge pools, analyses or trading courses are offered as standard in many places.
  • Surpluses can also be realised with a small investment.
  • The platform executes the booked orders, all you need is an internet connection.
  • The speed of transaction processing has increased significantly.
  • The range of tradable financial instruments is wider and deeper.

But online trading not only brings advantages in terms of the simple use of the trading platform. Especially due to the analysis options, indicators and the many different tools, the investor enjoys noticeably more comfort. The times when you had to draw your own chart diagrams or make your own calculations are over.

Today, trading platforms offer their clients an enormous range of order types, which online traders can execute themselves with a day trading provider of their choice.

Individual trading plan

Because there are so many order types, online traders can tailor their trading plan to their needs and make various configurations in the process: Buy entries:

  • Buy stop orders: purchase above current market price
  • Buy Limit Orders: purchase below current market price
  • Buy Market Orders: purchase at the current market price

Sell entries:

  • Sell Market Orders: selling at current market price
  • Sell Limit Orders: Selling below current market price
  • Sell Stop Orders: Selling above current market price

Exit Orders:

  • One exits at a profit when the previously set price is reached (Take Profit)
  • You move the stop loss depending on the development of the price (trailing stop orders)
  • You exit with a loss when the previously fixed price is reached (stop loss)

Another convenience of online trading from the investor’s perspective is the absence of restrictions. Accordingly, you are free to choose your trading strategy and learn your own trading style. At this point, there are many different possibilities:

  • Automatic trading with robots (“Expert Advisors”)
  • Scalping: aggressive, short-term trading in rapid time intervals
  • Long-term trading
  • Intraday trading – opening and closing positions in the space of a single trading day
  • Swing trading – high-risk exploitation of price fluctuations

A large number of these trading styles made online trading possible in the first place by eliminating the previously unavoidable telephone dialogue with the provider. Thus, one can speak of a trading revolution that now builds a bridge between many private investors around the world and the global financial markets.

Investors are well advised to check to what extent the financial provider Bitnomics offers these plus points.

Weaknesses in online trading

Not all that glitters is gold, this basic rule also applies to online trading. Accordingly, in addition to the advantages, a number of disadvantages are also apparent, which inclined investors should include in their considerations:

  • Compared to classical trading, swing trading is rather hasty.
  • The emergence of fraudulent trading portals has led to great risks of loss.
  • If wrong decisions are made, large deficits are to be expected.
  • Investors should already be well versed in trading and rely on reliable strategies.
  • Investors should keep a constant eye on price trends.

Above all, risky day trading is not suitable for investors who are familiar with the subject of trading for the first time. This is because the risk of incorrectly predicting price developments is immense, and due to the time pressure, adjustments are not easy.

Consequently, this form of trading tends to be worthwhile for extremely competent or extremely risk-averse investors. If you belong to this group, day trading is an option for generating results quickly. In addition, one benefits, for example, from the elimination of fees for holding positions overnight.

Such financing costs should also be included in the overall consideration of a financial investment. On top of that, one literally saves oneself the rude awakening in the morning, in case there have been rapid and drastic price changes. Such “gaps” develop quickly due to bad reports about a company.

On the other hand, one quickly sees success when one can report a profit at the end of a trading day. Furthermore, it is relevant for day traders to compare the trading fees of the individual brokers. It may be advisable to opt for a flat rate.

This pays off especially if you trade at a high frequency and individual order fees would noticeably reduce your earnings.

Recognising risks and dangers – lawyers advise

In order not to unnecessarily increase the risks of online trading, it is recommended to check through which service provider one wants to be active on the markets. From the practical experience of our law firm, a number of questions have emerged that can be used to identify possible risks.

With reference to the example of Bitnomics, these would be as follows:

  • Is there an imprint on the Bitnomics website and are there credible statements about the company’s registered office?
  • Are there any warnings from lawyers or law firms that support clients who have suffered losses in connection with Bitnomics?
  • What experiences have other investors already had with Bitnomics, what opinions are expressed in forums?
  • Does Bitnomics promise unusually high surpluses or a guaranteed return and conceal or downplay the risks?
  • Does the exchange with Bitnomics result from an unsolicited telephone conversation?
  • Is Bitnomics controlled by a European financial supervisory authority and is the company subject to official supervision?
  • Are there any regulatory warnings about Bitnomics?

What can be done in case of losses?

If you suspect that you have been defrauded in trading, it is advisable to stop further payments immediately. This applies especially to the fact that the online broker recommends additional payments to compensate for deficits. Furthermore, one should try to recover the lost capital.

In this context, affected persons can seek investor protection and contact the lawyers of our law firm. Our law firm examines both civil and criminal law options and possible claims for damages against the company and against involved payment service providers such as banking houses.

“A private investor who loses his capital in online trading is truly not an isolated case. Numerous investors are deceived by the professional behaviour of the companies and only realise too late that they are not responsible for their losses.”

Our recommendation is therefore not to despair, but to act quickly and with commitment. Because the prospect of recovering the lost capital is often greater than the aggrieved investors suspect. Would you like to talk to one of our lawyers about Bitnomics? Then come directly to our contact area here.