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 common problems of other platforms, including lengthy KYC approval processes, unexpected downtime, low liquidity, trading issues in failed markets, limited order types, poor user experience and high commercial fees.
Instead, PrimeXBT offers incredible leverage, a highly user-friendly interface, ample liquidity and trading volumes. Read on for our full review.
XBT Main 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 cryptocurrency trading.
PrimeXBT stands out for 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 bigger position in the market, so you can make even more profits, or even losses.
Leverage is one of the key features of PrimeXBT and one of its main features. The website also offers a detailed explanation of leverage on their website to help those who don’t fully understand.
This explanation includes an example with BTC/USD, for example.
- In this example, let’s say Bitcoin costs $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’ll earn $5,000 on your $100,000 investment.
On the contrary, if you were to place 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 up front.
In the same situation, this means that you would still earn $5,000 but only invest $1,000. In other words, you can massively multiply your profits with the same amount of starting capital.
PrimeXBT explains some of the benefits of leveraged trading, including the ability to increase profits, gear opportunities (the ability to free up capital that you can use for another investment), and the ability to win 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.
Please note that while the use of leverage increases the potential range of your funds and your potential profits, it will also increase your potential losses.
Therefore, you should always be careful when using the maximum leverage offered at PrimeXBT. That said, those with trading experience and confidence in their methods find leverage an incredibly useful tool.
Profit from market movements
Since the cryptocurrency market does not always go up, PrimeXBT offers profit methods whether the market goes up or down. You can trade any of the most popular cryptocurrencies and hedge existing holdings or profit from ups and downs in the market.
In other words, you can go long or short on PrimeXBT. Buying is when you go long while selling is when you go short. To go long, you need to buy Bitcoin and watch your account value increase as the price of BTC increases.
In this case, a drop in the price of BTC would drop the value in your account. Conversely, you can go short, which means you open a position that will increase in value if the price of BTC falls.
You can see specific examples with calculations for each of these trade types on PrimeXBT. There is also information about the calculation of your earnings, so you can understand what is happening in your account. To calculate your profit or loss, you just need to take the price difference at the open compared to the close and multiply this value by the position size. If you combine it with leverage, you can increase your position size.
Trading Prime XBT
In addition to the ability to go long or short and enjoy leverage of up to 1:100, PrimeXBT stands out in a number of ways. It has a very easy to use interface that is fully customizable and includes support for multiple monitors.
The trading platform is the best option in its class, as it is safe, reliable and fast. It is quite simple for beginners to understand, but includes the advanced tools that professional traders want.
The charting tools are especially useful with various chart types, 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. Also, PrimeXBT offers tight spreads.
PrimeXBT trading platform
You can preview the PrimeXBT 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 blurred, and above it, you’ll find the option to sign in or sign up.
Overall, the trading platform is exactly what you would expect, as it is very similar to the trading sites 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 see 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 buy and sell prices, as well as the low and high prices for the pair.
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 in this order book is that, in addition to a list of quantities and prices, it also shows a visual representation through 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 takes up 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 appears and typing in the new pair (you will notice autocomplete suggestions) or by clicking on the pair to the left in the cryptocurrency list section.
PrimeXBT trading charts
The default setup 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 any part of the chart will show you the specific date and time, as well as the open, high, low, close, and value.
You can increase or decrease the time interval displayed by adjusting the time graph immediately below the main graph. The top of the chart is where you’ll find most of the settings.
There is a dropdown menu that allows you to change the intervals of the candlesticks. 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 viewer. 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, 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 studios available or add your own studio. Use up to five at a time.
There are two methods of trading with PrimeXBT. You can click on a couple 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 commission | Financing/Day of Duration | Financing/Short day |
|---|---|---|---|
| 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 each individual client can hold with PrimeXBT. The trading platform will not allow clients to place orders that exceed the limit if executed.
The restriction is set by the risk management department of PrimeXBT and depends on factors such as the liquidity of the instrument, volatility and other market conditions.
| symbol | Minimum order size | Minimum change in order size | Single trade size | Max Exposure |
|---|---|---|---|---|
| BTC/USD | 0.01BTC | 0.01BTC | 15BTC | -$3.9 for 1 BTC |
| ETH/USD | 0.01ETH | 0.01ETH | 200BTC | -$0.13 for 1 ETH |
| LTC/USD | 0.01LTC | 0.01LTC | LTC 650 | -$0.03 for 1 LTC |
| XRP/USD | 1XRP | 0.01XRP | 55000XRP | -$0.00038 for 1 XRP |
| EOS/USD | 1 EOS | 0.01 EOS | 8500XRP | -$0.0025 for 1 EOS |
conclusion
PrimeXBT has built a strong 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 launched last year and has continued to build a good reputation in the industry.
As with all types of exchanges that offer leverage, we advise you to proceed with caution if you have never traded this way before. It is quite easy to go wrong and end up getting liquidated and losing your cryptocurrency this way, especially if you are employing a large amount of leverage.