Prime XBT is newer trading platform launched in 2019 that lets traders take advantage of the ability to trade Bitcoin and other major cryptocurrencies with leverage.
They have quickly become one of the major players in the margin-trading industry taking on heavyweights such as BitMex.
The exchange aims to overcome the common problems of other platforms, including long KYC approval processes, unexpected downtime, low liquidity, problems trading on markets that are failing, limited order types, poor user experience, and high trading fees.
Instead, PrimeXBT offers amazing leverage, a highly user-friendly interface, vast liquidity and trading volumes. Read on for our full review.
Prime XBT Leverage
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 trading cryptocurrency. PrimeXBT stands out by offering leverage of 1:100.
This means that for each $1, you get $100 worth of buying or selling power. This essentially gives you access to a greater market position, so you can make even more profits, or indeed losses.
Leverage is one of the key features of PrimeXBT and among its main features. The website also offers a detailed explanation of leverage on its website to help those that do not fully understand.
This explanation includes an example with BTC/USD for example.
- In this example, assume that Bitcoin is $10,000 each, and its price rose by 5 percent 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 went up by 5 percent, your BTC would be worth $10,500 each so if you sell them, you will make $5,000 off of your $100,000 investment.
In contrast, if you were to make the same trade on PrimeXBT with its 1:100 leverage, you would only have to pay 1 percent of the $100,000 position, meaning an investment of $1,000 up front.
In the same situation, this means you would still make $5,000 but…