PrimeXBT Introduction
Established only two years ago, Prime XBT has become a fairly versatile crypto trading platform with a strong breadth of exclusive products. Prime XBT distinguishes itself in being able to interface with other markets: giving you access to crypto, Forex, commodities, and stocks all at the same time.
Part 1, Let’s run through the basics:
The platform has over thirty different trading assets, including the popular BTC, ETH, LTC, XRP, and EOS. It also has access to trading Indices, such as the S&P 500, JAPAN, and the NASDAQ, as well as to commodity speculation on Gold, Silver, etc. Of course, can trade with up to 100x leverage. Not a great idea to use such high leverage on all of your capital, but using a comfortable amount cuts down counterparty risk.
When it comes to liquidity, PrimeXBT is solid with their offerings. Most retail traders will be comfortable with the depth in their books. According to PrimeXBT, they work with over 12 liquidity providers to ensure your orders get filled, it has the characteristics that an active trader needs: low fees and high liquidity.
Trading fees are very competitive. 0.05% for crypto trades, 0.01% for indices and commodities, and 0.001% for Forex. PrimeXBT also has Overnight Financing — you can think of it like funding, though it’s not quite the same thing. The fee isn’t big, but it’s good to be aware of — you can see their Overnight Financing fees on their website. Keep in mind Overnight Financing is incurred only when an open position is carried into a new day. A trading day at Prime XBT closes at 00:00 UTC. If you open and close position during the same trading day, no Overnight Financing fees are charged.
PrimeXBT is incorporated in St. Vincent and the Grenadines and they’ve managed to tow the legal line giving customers the option to trade without KYC. For me, this is a soft requirement for exchanges. For most of us, this is a blessing. For those more risk averse — caveat emptor. PrimeXBT purports to have top notch security and from a user standpoint they’re offering the right tools. 2-FA set up is recommended, they also have withdrawal address whitelabeling.
If you’re looking for an avenue to trade on all of these different markets with Bitcoin, there really isn’t any other competitor out there. PrimeXBT takes the cake. Onboarding is a very smooth process. This is probably one of the easiest exchanges to sign up for and use, I constructed a simple step-by-step guide. This process legit takes 30 seconds:
1. Begin to create an account by clicking register, enter your email, confirm it, then onto the platform, you’re ready to go. You’ll need at least a 0.001 deposit, so that’s around $10 (for now).
2. Click “deposit to wallet” and you’ll be able to easily transfer money from one account to the platform. It will give you an estimated calculation of how much your money converts to in BTC or another listed crypto.
3. Afterwards, you will transfer that money to your trading account, which kind of acts like an extra step of verification. And don’t fret, this process occurs immediately once you click the button.
4. Now here’s another step for security: when you go to the “withdraw” tab, it will ask you to add an address (which is just another wallet/crypto location). It creates an airtight security for your money. When you add a new address, all you’re doing is ensuring that if the platform gets hacked, the only place the money can go is back to that white-listed address. The platform also claims to have other security protocols in place that you can read about here, including your standard 2FA.
5. Get to trading! Just a reminder — market orders trigger immediately for a fee, and limit orders set the trade to execute at a specific price. Don’t forget, you can add widgets to keep track of the comparative performances of different assets.
6. Bonus: Exclusive promo code for 50% deposit bonus: promo code “CryptoDog” (https://primexbt.com?signup=243086)
On the trading platform itself, there are many neat features you can add to best suit your style so you don’t have to jump between tabs. This is highly customizable and why traders may find this platform great and easy to use. All you have to do when you click “add widget” is to just click what you want to see on your screen, then drag and drop. It almost feels like creating your own website if you’ve ever used some popular web designers out there.
In terms of the type of orders, aside from the common market and limit, Prime XBT has the standard fare and allows stop-loss orders (which allows you to sell at when it reaches a particular price), and OCO (or conditional trades).
Pro tip: If you are a noob, I don’t suggest you try out leverage trading and derivatives, stick with spot until you’ve lost and made enough money first.
Prime XBT has plenty of neat features and many more to come, but I’ll leave that to you to explore. From my experience Prime XBT is an excellent trading platform with low fees and high liquidity, with much potential to expand. With all that, let me know what you think about the platform, manage risk appropriately, and good luck out there.
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Part 2, Covesting in Crypto: Expanding Markets
Introduction
For anyone familiar with the stock market, investment funds in general oftentimes have a lot of maneuverability with their capital. This allows the managers of these funds to invest in a diverse number of assets with a high sum of cash in order to generate greater returns. Due to the public nature of some of these financial vehicles, retail investors are able to view various sets of investment strategies as well as their usual yields. Publicly traded funds also give an opportunity to retail investors to take a piece of the pie from whatever skill or luck persists in the managers that control the assets of a particular fund.
Yet the best of investment opportunities, some hedge funds and private funds, are usually not available to everyday investors like you and me. And if they are, they usually require a lock-up period and a minimum investment amount. This limits the participation in such funds and, thus, excludes investors in potential extremely profitable opportunities. Fortunately (and as usual when discussing matters of finance), there are proposed solutions to be found in the crypto industry.
As the blockchain space grows and slowly becomes legitimized, it is inevitable that crypto assets will, in some respects, mimic the financial markets by adopting special types of investment instruments similar to our traditional markets. The difference being the ever-increasing inclusivity as well as the accountability for a decentralized financial system.
The latest in these tools now available to investors comes in the form of being able participate in high-performing investment funds in some capacity. In the crypto industry, Covesting offers a solution. On Prime XBT, an Investment Fund-like system has been developed. Their Covesting Platform allows its users to buy and sell using designated crypto strategies as well as the possibility of the creation of one’s own strategy.
Platform Overview
Much like in some other trading platforms, Prime XBT already has a simplified version of trading services as well as the ability to watch and monitor the returns of professional traders. On their Covesting platform, Prime XBT has “Strategy Managers’’ and invites its users to participate by “Following” other trader’s strategies. This works in a similar way that traditional investment funds do but with the difference of universal inclusion.
A user can create their own strategy for a minimum deposit of 0.05 BTC (around $500 at the moment), name it, describe it, and earn a fee based on how much money makes up the fund. Individuals who decide to follow the fund are investing into the strategy determined by the strategy manager. This, in turn, earns the follower a percentage of what is earned by the aforesaid strategy and its manager.
For strategies trading with an amount of 0.01 to 0.3 BTC, followers earn 60% of the profits, the platform earns 20%, and managers earn 20%. This increases incrementally by 5% for followers and decreases by 5% for the platform the more BTC is invested. However, the 20% fee remains for managers. This incentivizes investors to choose players with more skin in the game. It is also not too different from the traditional investment fund system with an average 20% fee for managers.
As many financial professionals are well aware of, managers often distinguish themselves by their historical performance. At time of writing, no strategy went beyond a quarter, and the highest amount of followers was around 400 investors. This platform is still in its very early stages though and picking up traction. Unfortunately without too much history only other ways to do your own due diligence is by viewing the strategy’s description and rating (ratings have not yet been established across the board).
However, the highest followed strategy is trading with an upward of 40BTC, which is currently a few hundred thousand dollars. Although that does not guarantee that the trading strategy works, it does give credence to the idea of Covesting and its growing interest within the crypto community.
Since anyone can create their own strategy on the platform for a price of 0.05 BTC, users directly interact with Prime XBT as opposed to the managers themselves. Covesting keeps these unique financial instruments within the platform’s own walls as opposed to a tet-a-tet between stakeholders and managers. This could be viewed as a layer of security although some individuals may be hesitant to jump on board.
Conclusion
For those looking to put your money in the hands of someone presumably smarter than you, why not? Personally I like to get my hands dirty but that’s not for everyone, and there is potential to grow your stack. It’s a unique way to get exposure to crypto trading without the pressure of trading yourself. Beyond a doubt, it is an intriguing idea, and in time we will see how the community grows around it.
If you’d like to trade, I’d appreciate it if you signed up through my referral link: https://primexbt.com?signup=243086
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Glad I finally got to post this, I like PrimeXBT a lot and they deserve more recognition and attention than they get. Cheers.
