What is PrimeXBT - [A Step-by-Step Beginners Guide]

    Rajarshi Mitra

    3 months ago

    PrimeXBT is a one of a kind, Bitcoin-based margin trading platform that offers instant access to over 30+ assets, including Crypto (Bitcoin, Ethereum, Litecoin, Ripple, EOS), Forex, Commodities (Metals, Oil, Gas), and Indices. The exchange was founded in 2018 and currently serves clients in more than 150 countries. The company is registered in Seychelles and has a daily trading volume of $375m. In the 2020 ADVFN International Financial Awards, the company won the award for the best bitcoin Margin Trading.

    Another interesting thing to note about PrimeXBT is that it’s a fully anonymous exchange which can be really helpful for traders who value their online privacy. Plus, this discourages hackers who are looking to steal identities from attacking the exchange.

    The platform offers:

    • Up to 500x leverage for both long and short positions. 100x leverage for cryptocurrencies.
    • Online privacy.
    • Aggregated liquidity from multiple liquidity providers
    • A wide range of technical analysis tools for trading
    • Security, liquidity, and a safe and efficient trading environment

    Bitcoin Margin Trading

    One of the main features of Prime XBT is bitcoin margin trading. For those who aren’t familiar with the concept, let’s clarify two terms before continuing:

    • Leverage: Usually expressed as a ratio, it the rate at which you can take on debt. So a 20x leverage means that if you have $1, you can trade up to $20.
    • Margin: This is the debt, or borrowed money, that a trader uses to invest in other financial instruments.

    Advantages of bitcoin margin trading

    • Trading on leverage allows traders to get more exposure to an asset than they have put down in funds. Using margin trading, traders will have the advantage of making money on borrowed funds. On the flip side, any losses you make are also significantly magnified.
    • Leveraged trading enables you to short an asset, i.e., you are making money on a fall in the price of the asset.
    • PrimeXBT offers maximum leverage of 100:1 for the crypto pairs and up to 1,000:1 on some of their forex pairs. So, you just need 1% of the capital required to put in orders on crypto pairs.
    • The exact leverage allowed will depend on the type of asset you are trading and the size of the position you are taking on.

    Bitcoin margin trading has become a hugely booming business with institutional investors moving into the space. This boom is the most significant factor behind Prime XBT’s surge in popularity.  To ensure profitability, PrimeXBT provides a host of advanced trading tools to its clients:

    • Built-in charting tools to ensure that the perfect timing of entries and exits from margin trading markets
    • Tools include almost all the popular indicators, such as RSI, MACD, Bollinger Bands, Williams Alligator, and many others.
    • PrimeXBT has the lowest known fees of 0.05 percent on all bitcoin trades.

    PrimeXBT Order Types

    PrimeXBT gives you the option of using several different order types. These orders offer additional protection and hedging on the margin trading platform. Some of the advanced order types available are:

    • Market Orders: The order set will execute immediately or in the first time available.
    • Limit Orders: Allows the trader to set a “limit” on prices where they would buy or sell at.
    • Stop Orders:  Buy or sell an asset once it reaches a pre-determined “stop” price.
    • Protection Orders: Limit losses or protect profits on any trade or order.
    • One-Cancels-Other Orders: One-Cancels-Other (OCO) is a conditional order. It allows you to combine two different orders under special conditions. Once one of the orders is triggered and executed, the second order is automatically canceled.

    PrimeXBT – Navigating around the platform

    Registering your account is super easy. Just put in your email and an account password! PrimeXBT doesn’t do any lengthy KYC processes.

    What is PrimeXBT - [A Step-by-Step Beginners Guide]

    Following that, PrimeXBT will send over a confirmation email to your account. Just click on the link.

    What is PrimeXBT - [A Step-by-Step Beginners Guide]

    Now, you will come back to the exchange site. To start trading, just enter your country.

    What is PrimeXBT - [A Step-by-Step Beginners Guide]

    Now, you will receive the private key of your personal deposit address. You will need to deposit a minimum of 0.001 BTC.

    PrimeXBT only accepts bitcoin deposits. In the address given above, you must only send BTC. Send any other coin or token and you will end up losing it. All incoming deposits will be credited to the “Wallet” balance. In order to start trading, you’ll need to make an internal transfer to your “Trading account”.

    Regardless, this is what your account will look like:

    What is PrimeXBT - [A Step-by-Step Beginners Guide]

    PrimeXBT also has an affiliate program. Just send over the link to other people to create their account.

    PrimeXBT Withdrawal and Deposits

    As mentioned before, PrimeXBT is a crypto-only exchange, so you can only make deposits in bitcoin. It might make sense to get some Bitcoin beforehand using a fiat-to-crypto exchange like Coinbase or Kraken.

    Now that you have some bitcoin, head over to the Deposit tab and send over the bitcoin to your public address. It’s that simple.

    What is PrimeXBT - [A Step-by-Step Beginners Guide]

    PrimeXBT has actually installed a Changelly widget to make the process of getting Bitcon’s even more straightforward.

    Changelly is a third party bitcoin purchasing service where you can quickly buy your coins with credit/debit cards. The deposit requires a total of 6 confirmations on the network, so it may need a bit of time to show up on the screen.

    The withdrawal process is also straightforward.

    Head over to the “withdraw” page where you will provide them with your personal bitcoin address. After that, when you request a withdrawal, you’ll have to wait for them to process it. Here are some things to keep in mind about the withdrawals:

    • The bigger the size of your withdrawal is dependent on the processing time.
    • The withdrawals are processed from the hot wallets and if there aren’t enough at hand, the exchange accesses the funds from its offline cold wallets.
    • PrimeXBT processes all pending withdrawals once a day, between 12:00 and 14:00 UTC.
    • A withdrawal requested before 12:00 UTC will be processed on the same day. Any requests made after that will be processed on the next day.
    • If a withdrawal request triggers a suspicious activity alert, PrimeXBT may review the details and pass the withdrawal, post-approval.

    Prime XBT Leverage

    Now, let’s get into the meat of things. You can view a full and comprehensive list of the leverage limits for the other assets in your account management area. To understand how this works, consider the following image:

    If you have a higher exposure to the market, PrimeXBT will reduce leverage limits. In the image shown above, you can see that a larger position will require more margin, which reduces exposure risk.

    Why is this important?

    Funds that have 100x or 1000x leverage may get exhausted by even a slight change in market volatility. This is the reason why the effective management of your market risk is critical. If you do exhaust your equity and your account falls below a certain level, you will reach a stage that’s called “Margin Call.” When you reach this stage, PrimeXBT will close your position to manage risk.

    PrimeXBT Security

    PrimeXBT utilizes an extensive cybersecurity framework to make sure that strict measures and best practices are in place to protect customer assets against any eventualities and threats. The following tools and steps are taken to ensure security:

    • They conduct regular stress tests and security audits to ensure compliance with the strictest security standards.
    • Ensures account security with two-fact authentication with Google authenticator
    • Mandatory bitcoin address whitelisting feature.
    • Stores digital assets in cold storage with multisig technology
    • Hardware security modules with a rating of FIPS PUB 140-2 Level 3 or higher
    • Encrypted SSL (https) to encrypt and secure our website’s traffic.
    • Conducts a full risk check after every order placement and execution
    • Mitigate potential DDoS attacks with Cloudflare.
    • All account passwords are automatically hashed, while all other sensitive data is encrypted.
    • The entire operations are hosted on Amazon Web Services (“AWS”). AWS has a proven track record for physical security and internal controls.
    • On-going and IT security assessments are executed to keep up to date with new potential vulnerabilities.

    PrimeXBT Fees

    Trading fees are another important factor to consider while choosing your exchange of choice. You don’t want to end up paying a small fortune after adding up all your trades, right? However, as we’ve mentioned before, PrimeXBT has one of the lower trading fees in the entire ecosystem.

    PrimeXBT is quite transparent with their fees. They only have two types of fees:

    • Trade fee: This is charged for entering the position.
    • Overnight fee: To finance a position overnight

    The fee breakdown for some chosen pairs are as below:

    The trading fee is 0.01% – 0.05% This is much lower than comparable CFD brokers such as IQ Option etc. PrimeXBT also offers some attractive discount rates. You can earn these on a 30-day rolling trading volume:

    • 300–600 BTC: You will get a volume within this range.
    • 600 + BTC: Traders with volume over 600 BTC will be rewarded with a 50% discount on the current fee offer.

     

    Also, two more points to keep in mind about deposits and withdrawals:

    • There are no fees on incoming payments, so you can fund your account without paying any fees.
    • However, if you withdraw funds, you may have to pay miner fees to propagate your transaction.

    Order Slippage

    “Order slippage” occurs when you place an order, and the price you get is not close to your desired entry point. This is one of the most significant risks that traders are incredibly wary of. There are two reasons why slippage occurs:

     

    • Limited liquidity in the market.
    • The matching engine at the exchange isn’t fast enough.

     

    Since PrimeXBT has a pretty efficient trading engine, it can execute orders at below 7.12 milliseconds on average.  This ensures that the exchange has less slippage than regular exchanges.

    When the exchange measures its slippage it discovered that 94% of their orders were met at Quote or better.

    Prime-XBT “Turbo” Platform

    Another interesting tab that you will see after you create your account is the Turbo platform. If you are a beginner, then you will Turbo to be a great starting point. It allows you to take a position on an asset over a period of time for a defined gain. You have the option of going both long and short.

    NOTE: If you wish to buy a bitcoin, for instance, then your account will grow in value as Bitcoin’s price increases. If bitcoin price decreases, then your account loses value accordingly. Apart from a standard trade (purchase), the PrimeXBT platform allows you to open a position that will increase in value as the cryptocurrency decreases in price. This is referred to as selling or going short, as opposed to buying or going long.

    Regarding the duration of the trades made, you have three different options:

    • 30 seconds.
    • 1 min.
    • 5 mins.

    Currently, you only have options to trade six different assets. These are BTC/USD, ETH/USD, EUR/USD, GBP/USD, EUR/JPY, and USD/JPY.

    Some more points about the Turbo platform:

    • The potential profit from a correct prediction can either be 70% or 85% depending on the expiry time.
    • There is limited downside risk.
    • There is also a social aspect here. You can see what the other traders are doing and you can also compete with them on the leader board.
    • The trading charts are quite simple and have none of the technical analysis tools.

    Customer Support

    Another critical criteria to note is the quality of customer support. Let’s face it. Customer support can make or break an exchange. KYC verification takes up a lot of time during customer support. However, since PrimeXBT doesn’t do any of that, it frees up a lot of time and allows you to enjoy faster query resolution.

    The most effective customer support channel here is the live chat option. The chat is active and manned 24/7.

    You can contact their team on support@primexbt.com if you have advanced questions based on topics like security, account management, or product inquiries. If you are not getting your queries resolved fast, you have the option to contact them on Twitter or Telegram. Unfortunately, they do not have dedicated phone support.

    Another interesting thing to note is that you can always check if their exchange is down or not by heading over to their status page. It gives you an iin-depth overview of the operational status of the trading engine, deposits/withdrawals, and website.

    PrimeXBT Covesting

    Thanks to a recent partnership with Covesting, PrimeXBT will soon launch the Covesting module. The module will rate each fund by important metrics such as total capital, daily ROI, overall all-time ROI, and much more. This module can be super-helpful for both successful and novice traders.

    • Successful traders will be offered the ability to build a positive track record, gain a following, and earn extra income by managing funds,
    • Novice traders will be able to allocate a part of their portfolio to managers who meet their risk/reward appetite and have built a successful trading rating based on their performance.

    Conclusion

    All-in-all, it really isn’t surprising that PrimeXBT has received multiple awards over the last few years. Here is how PrimeXBT measures up to its main competitors – BitMEX and Bitfinex.

    PrimeXBT also has a mobile app that’s supported on both iOS and Android devices. Another interesting thing to note is that PrimeXBT has additional learning materials to help teach you about the different nuances of the exchange. If you are looking platform where you can do margin trading with good security, transparent fees, and advanced technology, look no further than PrimeXBT.

     

    If you are looking for leveraged cryptocurrency exchange with relatively advanced technology, transparent fees, and strong security procedures, then it should be considered. You will need to make a judgment on whether you are comfortable using a brand-new exchange service.

     

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