Cryptocurrencies had a great year in 2021. In this period, we have seen the market go from being classified as a billion-dollar economy into a trillion-dollar economy. Aside from that, cryptocurrencies are gaining visibility in the mainstream world with, for example, El Salvador's adoption of Bitcoin as the official digital currency. As a result, investors are looking for the "new Bitcoin" on the market, hoping to find a great alternative in so-called altcoins. Unfortunately, many traders value an altcoin exclusively…
PrimeXBT is a trading platform and cryptocurrency exchange supporting major stock indices, commodities, and foreign currencies.
Many of today’s crypto traders have entered the industry from traditional trading markets. For example, they come from stock trading, currency exchanges, and commodities trading. However, to maintain their former portfolios and dip their feet into cryptocurrency, they have to register on different platforms. Unfortunately, this practice may come at high costs.
PrimeXBT aims to combine trading across different markets on a single platform. This way, both expert and beginner traders can exchange crypto, foreign currencies, stock, and more on one cost-effective dashboard.
In this PrimeXBT review, we look closer at one of the emerging players in the margin-trading industry. Read on to discover its features, fees, and security measures!
What Is PrimeXBT?
PrimeXBT is a trading platform that enables traders to exchange cryptocurrencies, fiat, major stock indices, and commodities. Also, users have access to a versatile offer of crypto pairs involving Bitcoin, Ethereum, Ripple’s XRP, and others.
One of the platform’s most significant advantages is that you can create an anonymous account without revealing personal information. Also, the exchange practices low fees and offers leveraged trading of up to 100 times the amount you provide. Lastly, users benefit from a rewarding referral system and convenient deposits via credit card.
PrimeXBT launched in 2018 and operates from Seychelles. It boasts a $545,000,000 daily trading volume that involves 80+ trading assets. Following a quick development stage, the platform expanded to St. Vincent and the Grenadines. It is available in over 150 countries, has 12+ liquidity providers, and has three offices worldwide.
On the other hand, PrimeXBT is not available in some of the strongest crypto-supporting countries. Among them are the U.S., Canada, Russia, and Japan.
The platform’s mission is to provide both beginners and professional traders with easy and rewarding trading opportunities. Contrary to other leverage-based exchanges, PrimeXBT aims to cut lengthy KYC approval procedures in half. Also, it seeks to offer ultra-fast order execution (< 7.12 ms on average), low latency, and small trading fees.
Lastly, PrimeXBT offers a high level of security thanks to a robust infrastructure powered by Amazon AWS. In 2020, the company saw 74.1% of its clients’ market orders execute at the requested quote, significantly higher than the industry average.
How PrimeXBT Works
PrimeXBT operates as a multi-wallet trading/exchange platform. Also, it allocates each of its five wallets to a specific cryptocurrency, including BTC, ETH, USDT, USDC, and COV. Users can transfer any of these digital assets to the platform in two ways:
- Direct deposits from personal crypto wallets
- Third-party deposit services, such as Paxful, Coinify, Xanpool, CEX.io
The platform provides an intuitive dashboard where users can manage their accounts and trading operations. Here, they can create and track multi-currency wallets, deposit crypto or withdraw earnings. Other essential features include:
- Long and short trading
- Bitcoin leverage trading
Alternatively, users can access extensive charts regarding cryptocurrencies and prices for Index, Forex, and Commodities. Lastly, traders can expand their strategy and further their portfolios with margin trading, turbo predictions, and covesting strategies.
Below is a short presentation of PrimeXBT trading tools and features. The platform is designed to suit both beginner and expert traders.
PrimeXBT offers leveraged trading, which enables users to trade long or short on cryptocurrency price trajectories. Simply put, you can “bet” on a crypto’s value going up and down without having the necessary assets to cover it. Instead, you leverage your trade by temporarily borrowing from the exchange.
Here’s how it works!
Long Leveraged Trading on PrimeXBT
Let’s say the ETH price is $3,147. You predict that Ethereum’s price will go up. Therefore, you purchase 200 ETH at this value, equal to the position value of $629,400. However, you don’t need to have this amount of ETH to engage in this trade. Instead, you only need to cover 1% of the total position, which, in this case, is $62,940.
If your prediction is correct and ETH price surges, you may decide to fix a profit. For instance, if Ethereum’s price hits $354.2, you can close your position with a $7,900 profit. On the other hand, if Ethereum’s price goes down, you lose your leveraged margin.
Short Leveraged Trading on PrimeXBT
Let’s say you predict Bitcoin’s price is going down from around $60,000. So, you choose to sell BTC at $60,000 for a total short position of $600,000 in value. Bitcoin has a margin requirement of 1% (1:100 leverage). Therefore, you need to deposit $600,000×1%=$60,000 as margin collateral.
When Bitcoin’s price drops, you can buy back the BTC you sold at a higher value. Because this is a short position, you deduct the closing price from the opening price of your position to calculate profit. Next, you multiply it by 10. The result is your profit. Again, however, if the crypto’s price goes the other way, you lose your leveraged margin.
Both long and short leveraged trading are ideal strategies for expert traders. However, if you are a beginner trader and use these features, you can choose PrimeXBT’s demo option. There, you can use fake funds and understand more about this trading practice without losing your assets.
This feature enables users to follow and mimic top traders on the PrimeXBT platform. It is a trading practice that enables entry-level traders and others to earn passive profit with minimal knowledge. Simply put, users can sit back and watch the system replicate the successful decisions of expert traders with their assets.
Alternatively, users can set up their portfolios and trading strategies for others to follow. However, they will have to pledge a specific amount to become a covesting leader. At the moment, one would have to deposit any of the sums below, depending on their crypto choices:
- 0.05 BTC
- 1.2500 ETH
- 2,500 USDT
- 2,500 USDC
PrimeXBT Referral Program
The platform takes pride in one of the most advantageous referral programs in the industry. For instance, it proposes a four-tier payout system. Through it, users receive rewards for direct referrals and new users that their referrals lure into PrimeXBT. This way, a successful referrer can gain substantially from the trading fees of its following three tiers of referrals.
This feature enables users to earn more than 70% ROI quickly and efficiently. For example, they can make predictions on short-term price evolutions for various assets. Among them are Bitcoin, gold, oil, S&P 500, and fiat currencies like EUR and USD.
The process is simple. You pledge an amount of an asset of your choice. Next, you have to predict the exact price for these assets on specific turbo intervals, such as:
- Crypto: 5 minutes, 10 minutes, and 15 minutes
- Forex: 1 minute and 5 minutes
- EUR/USD: 30 seconds
Your gains depend on the turbo feature you have selected. However, if your prediction is wrong, you will lose the amount you have pledged.
Recently, PrimeXBT introduced a yield earning program on its platform. Users can create an account in less than 40 seconds, deposit and stake funds to gain passive income. Also, they can withdraw their gains at any time.
The annual percentage yield (APY) varies from 4.53% to 9.07%, depending on the amount users stake. At the moment, staking is available with ETH, USDT, and USDC.
PrimeXBT practices a simple but effective fee system that involves trading fees, overnight financing fees, deposit and withdrawal fees. They are the most critical fees for traders on the platform.
For instance, the overnight fee is a percentage of the open trade between 0.00277% and 0.1389%, depending on the trade type.
On the other hand, trading fees occur whenever traders open or close a new position. Also, they differ depending on the asset at stake. For instance, PrimeXBT charges a 0.05% trading fee on cryptocurrencies. However, it also levies 0.01% on stock, indices & commodities. Lastly, it charges 0.001% on foreign exchanges.
The withdrawal fees are flat and depend on the asset users choose to retrieve. For example, the platform charges 0.0005 BTC on Bitcoin withdrawals and 0.01 ETH on Ethereum.
Lastly, PrimeXBT does not charge any fee for margin deposits. However, it does charge 0.01 BTC for covesting deposits.
You can deposit assets on PrimeXBT only through your personal crypto wallet. Alternatively, you can do it through a third-party service, such as Paxful or Coinify. However, you cannot deposit directly from your bank account or through a credit card.
How Safe is PrimeXBT?
PrimeXBT aims to provide a high level of security to its users. In this regard, it employs a complex, multi-layered cyber security system that consists of:
- Google-provided two-factor authentication (2FA)
- Encrypted secure sockets layer (SSL)
- Password encryption using the bcrypt hashing function
- Cloudflare protection against denial-of-service (DDoS) attacks
- Constant IT security upkeep and upgrade
- Periodical stress tests and security audits
- Compliance with the strictest security standards
Lastly, PrimeXBT stores its ecosystem on Amazon Web Services (AWS) to ensure its digital and physical security.
PrimeXBT is a rapidly evolving trading platform for crypto and beyond. In the beginning, the exchange received several criticisms for lacking enough trading pairs or DeFi services. Meanwhile, the company has developed enough to support staking and yield earnings. Also, it should expand to include more crypto trading alternatives.
For now, the platform focuses on offering highly secure trading features to both beginner and expert traders. Should it extend its services to users from the U.S., Canada, and Japan, we could see a faster development of its adoption and popularity.