It’s no secret that Bitcoin and the crypto markets have become a playground for traders looking to maximize their profitability by cashing in on the immense volatility incurred by digital assets on a regular basis, and the introduction of margin trading to these nascent markets have exponentially increased their popularity amongst traders.
Prior to the introduction of leveraged trading to the crypto markets, traders often utilized margin to increase their profitability in the forex markets, although naturally the robust liquidity and immense volatility seen within the crypto markets makes it a more favorable environment for traders.
Crypto Margin Trading Platforms Boom in 2019
Prior to this past year, traders looking to utilize leverage to increase their profitability had to use BitMEX – which was the first platform to bring margin to the nascent crypto markets.
BitMEX had monopolized the markets as the only platform to offer margin trading to crypto traders for a couple of years, but the constant problems that traders were running into led to the creation of PrimeXBT in 2018, which was the first major competitor to the embattled platform.
PrimeXBT allows users to trade Bitcoin and other cryptocurrencies using 100x leverage, and unlike BitMEX, it also allows traders to expand their horizons past the crypto markets – offering support for commodities, precious metals, forex, and equity indices with up to 1000x leverage.
Users can trade these assets with low fees and extremely fast order execution, all while avoiding the pesky “submission errors” that plague traders on BitMEX.
The diversity of PrimeXBT’s offerings is certainly one advantage that is has over BitMEX, but there are a few other key features that users should be aware of.
First and foremost, while BitMEX’s user interface remains antiquated and burdensome to users, PrimeXBT has focused on making their UI clean and easy to use, which makes the experience more seamless and much more friendly to new and old traders alike.
Additionally, PrimeXBT also flaunts industry-leading security as well as full privacy protection for all of their users, allowing new clients to create a fully anonymous account without having to surrender any personal information.
Just this past week, BitMEX committed an egregious privacy violation for tens of thousands of its users when it failed to utilize the “Blind Closed Copy” (BCC) feature on an email, thus exposing the email addresses of all the recipients.
This instantly led a fleet of hackers to attempt to force their way into users account, significantly compromising the security of the user’s and the digital assets they store on the site.
2019’s Margin Platform Boom Leaves Trail of Failed Platforms in its Wake
Although the popularity of margin trading in 2019 did lead to an explosion of new leverage trading platforms, it also left behind a wake of failed platforms that failed to live up to user’s expectations.
Once such exchange is Digitex, a Bitcoin and Ethereum futures exchange that ultimately left nearly 2 million people out in the cold after it failed to launch its highly anticipated platform. This failed launch added Digitex to a long and ever-growing list of platforms that have failed to launch or fell apart shortly after launching.
Deribit, which is another platform that was launched in hopes of dethroning BitMEX, has been experiencing significant issues with the speed of their platform, in addition to incurring anomalous pricing data on multiple occasions – with Bitcoin’s price dipping as low as $7,700 on the exchange while it remained steady around $9,000 on all other exchanges.
This isolated flash crash was a symptom of the platform’s subpar development, and elucidates the importance of using reputable and well built platforms like PrimeXBT, which utilizes a plethora of cutting-edge features to safe-guard its users from erroneous price movements while also offering lightning fast transaction speeds.
Bybit, another margin trading platform that recently launched, has not been able to carve out its own identity within the crypto markets, and appears to be attempting to copy the features offered by PrimeXBT and Binance’s newly launched leveraged trading platform.
Shortly after Binance added margin trading capabilities to its platform, both Kucoin and Bitfinex followed suit and added leverage to their platforms, and it is likely that even more exchanges will get in on the margin trading trend in the coming months.
With a plethora of options to choose from, those who are keen on trading with margin need to consider the different options that lay in front of them, and users looking for a diverse array of supported assets with low fees and a fully anonymous account may favor PrimeXBT over the other alternatives.
As the crypto markets continue to develop and as more traders begin utilizing leverage in order to increase the profitability of their trading strategies, it is highly likely that the competition between the platforms that have survived 2019 will continue to heat up, which will lead to greater innovation and better features for users.