Prime XBT is a trading platform launched in 2019 that allows traders to take advantage of the ability to trade Bitcoin and other major cryptocurrencies with leverage.
They quickly became one of the major players in the margin trading industry by hiring heavyweights like BitMex.
The exchange aims to overcome the common problems of other platforms, including lengthy KYC approval processes, unexpected downtime, low liquidity, trading issues on failing markets, limited order types, poor user experience, and high trading fees.
Instead, PrimeXBT offers amazing leverage, a highly user-friendly interface, extensive liquidity, and trading volumes. Read on for our full review.
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Prime leverage XBT
Leverage is one of the many features that advanced traders tend to look for, but most platforms offer very limited leverage when it comes to cryptocurrency trading. PrimeXBT stands out by offering a leverage of 1:100.
This means that for every $1, you get $100 in buying or selling power. This essentially gives you access to a greater market position, so you can make even more profits, or even losses.
Leverage is one of the key features of PrimeXBT and among its main features. The website also offers a detailed explanation of the leverage on its website to help those who do not fully understand.
This explanation includes an example with BTC/USD for example.
- In this example, let’s say Bitcoin is $10,000 each and its price increased by 5% during your investment.
- If you were to use a traditional exchange without leverage, you could buy 10 BTC for $100,000 (10 x $10,000).
- If the price increased by 5%, your BTC would be worth $10,500 each, so if you sell them, you will earn $5,000 from your $100,000 investment.
Conversely, if you were to make the same trade on PrimeXBT with its 1:100 leverage, you would only have to pay 1% of the $100,000 position, which means an investment of $1,000 upfront.
In the same situation, this means that you would still earn $5,000 but only invest $1,000. In other words, you can multiply your profits enormously with the same amount of start-up capital.
PrimeXBT explains some of the benefits of leveraged trading, including the ability to magnify profits, gearing opportunities (the ability to free up capital that you can use for another investment), and the ability to earn when the market falls.
There is also a convenient leverage calculator on PrimeXBT, so you can understand your purchasing power based on your available capital.
Keep in mind that while using leverage increases the potential reach of your funds and your potential profits, it will also increase your potential losses.
Therefore, you should always be cautious when using the maximum leverage offered on PrimeXBT. That said, those with trading experience and confidence in their methods find leverage an incredibly useful tool.
Profiting from market movements
Since the cryptocurrency market does not always rise, PrimeXBT offers profit methods whether the market is going up or down. You can trade any of the most popular cryptocurrencies and hedge existing holdings or profit from rallies or declines in the market.
In other words, you can go long or short with PrimeXBT. Buying is when you go long while selling is when you go short. To go long, you should buy Bitcoin and watch your account increase in value as the price of BTC rises.
In this case, a drop in the price of BTC would drop the value in your account. On the contrary, you can go short, which means that you open a position that will increase its value if the price of BTC falls.
You can view specific examples with calculations for each of these types of operations on PrimeXBT. There is also information about calculating your profits, so you can understand what is going on in your account. To calculate your profit or loss, you just need to take the price difference at the opening compared to the close and multiply this value by the size of the position. If you combine it with leverage, you can increase the size of your position.
Prime XBT Trading
In addition to the ability to go long or short and enjoy leverage of up to 1:100, PrimeXBT stands out in several ways. It has a very user-friendly interface that is fully customizable and includes support for multiple monitors.
The trading platform is a best-in-class option as it is safe, reliable and fast. It is quite simple to understand for beginners, but it includes the advanced tools that professional traders want.
Charting tools are especially useful with various types of charts, a range of drawing tools and indicators, and the option to trade directly from the chart. PrimeXBT also offers very low trading fees. You’ll notice simple and low commission rates, so there are no surprises. In addition, PrimeXBT offers tight spreads.
PrimeXBT Trading Platform
You can preview PrimeXBT’s live trading platform to get an idea of how it works before opening an account. The preview version of the platform is incredibly similar to the real version.
The only difference is in the bottom section of the screen labeled “Locations”. If you have a live account, you will see a list of positions with the following columns for each: symbol, position ID, time and date, side, size, fill price, current price, take profit, stop loss and P/L.
Since the preview version is not associated with an account, this section is blurry and above it, you will find the option to log in or register.
Overall, the trading platform is exactly what you expect as it is very similar to the trading pages that experienced investors are used to. At the top left of the screen, you will see a list of cryptocurrency pairs.
These include LTC/USD, BTC/USD, ETH/USD, EOS/USD and XRP/USD. For each, you can view the bid price, the ask price, and the change. These figures are color-coded in white, green, or red.
As expected, green indicates an increase while red indicates a decrease.
Clicking on one of the pairs listed here will take you to a screen that allows you to buy or sell the cryptocurrency in question. It will show the prices for buying and selling, as well as the low and high for the couple.
Below this section, always on the left of the screen, you will see the Order Book. The Order Book displays information for any most recently selected currency pair in the upper-left corner. It is divided into sales and purchases. A nice touch on this Order Book is that in addition to a list of quantities and prices, it also displays a visual representation via green and red graphs in the background. This way, you can see current trends at a glance.
The main section of the trading page is the actual chart, which is located directly to the right of the crypto listings and order book and occupies most of the page. The upper left corner of the chart shows the trading pair it represents.
You can adjust it by clicking on the box where it is listed and typing the new pair (you will notice autofill suggestions) or by clicking on the pair on the left in the crypto list section.
PrimeXBT Trading Charts
The default setting of the PrimeXBT trading chart is a candlestick chart. It is color-coded green and red with prices on the vertical axis and time on the horizontal axis. Hovering over anywhere on the chart will show you the specific date and time, as well as the aperture, high, low, close, and value.
You can increase or decrease the time interval displayed by adjusting the time chart immediately below the main chart. The top of the chart is where you’ll find most of the settings.
There is a drop-down menu that allows you to change the intervals of the candles. The default value is 5 minutes, but you can also choose 1, 15 or 30 minutes; 1, 2 or 4 hours; or 1 day, week or month. To the left of this is the option to switch from a candlestick chart to a line chart or bar chart.
Next to this, you will find options regarding the viewfinder. You can also choose long or short and from a range of 13 indicators, lines and tools to add. These include things like a trend line, a trend channel, and Fibonacci rays, among others.
Advanced traders will be interested in the Studies section, accessible via the test tube icon to the right of the above options and to the left of Studies. You can choose from one of several dozen studies available or add your own studio. Use up to five at once.
There are two methods of trading with PrimeXBT. You can click on a pair on the left of the page and fill in the box that appears. Or you can use the section in the upper left corner of the chart, directly below the pair name.
PrimeXBT Fees and Limits
PrimeXBT charges two types of fees, trading and overnight financing. Since the instruments are leveraged products, the value exchanged is financed through overnight financing.
This cost of borrowing (financing) depends on the liquidity of the underlying asset. If you open and close a leveraged position within the same trading day, you are not subject to overnight funding.
| symbol | Trading fee | Financing/Day Long | Financing/day Short |
|---|---|---|---|
| BTC/USD | 0.05% | -$3.9 for 1 BTC | -$3.9 for 1 BTC |
| ETH/USD | 0.05% | -$0.13 for 1 ETH | -$0.13 for 1 ETH |
| LTC/USD | 0.05% | -$0.03 for 1 LTC | -$0.03 for 1 LTC |
| XRP/USD | 0.05% | -$0.00038 for 1 XRP | -$0.00038 for 1 XRP |
| EOS/USD | 0.05% | -$0.0025 for 1 EOS | -$0.0025 for 1 EOS |
The exposure limit is a restriction on the size of a position that each individual client can hold with PrimeXBT. The trading platform will not allow clients to place orders that will exceed the limit if executed.
The restriction is set by the PrimeXBT risk management department and depends on factors such as the liquidity of the instrument, volatility and other market conditions.
| symbol | Minimum order size | Minimal change in order size | Single operation size | Max. exposure |
|---|---|---|---|---|
| BTC/USD | 0.01 BTC | 0.01 BTC | 15 BTC | -$3.9 for 1 BTC |
| ETH/USD | 0.01 ETH | 0.01 ETH | 200 BTC | -$0.13 for 1 ETH |
| LTC/USD | 0.01 LTC | 0.01 LTC | 650 LTC | -$0.03 for 1 LTC |
| XRP/USD | 1 XRP | 0.01 XRP | 55000 XRP | -$0.00038 for 1 XRP |
| EOS/USD | 1 EOS | 0.01 EOS | 8500 XRP | -$0.0025 for 1 EOS |
Conclusion
PrimeXBT has created a solid offering in the crowded cryptocurrency trading space.
The trading platform is easy to use and PrimeXBT stands out from the competition with its low commissions, tight spreads and class-leading leverage of 1:100. The exchange officially opened last year and has continued to cement a good reputation in the industry.
As with all types of exchanges that offer leverage, we recommend that you proceed with caution if you have never traded this way before. It’s pretty easy to get things wrong and end up being liquidated and losing your cryptocurrency this way, especially if you’re employing a high amount of leverage.
