This will provide traders with another interesting alternative to the status quo with crypto margin trading. Prime XBT is trying to take on some of the more established CFD and Futures brokers operating in the sector.
However, is such a new exchange really trustworthy?
In this Prime XBT review, I will try to answer that. I will also give you some of the top trading tips you need to know.
What is PrimeXBT?
PrimeXBT is a registered cryptocurrency exchange in Seychelles. The parent company name is Prime XBT Trading Services and their Company number is 148707. The exchange opened its doors to the market in early 2019.
Since that time, they have also opened an office in St Vincent & The Grenadines and relocated their business structure to Switzerland. They now boast over $375 million in daily sales and claim to have over 30 employees.
One of the main selling points behind PrimeXBT is the fact that they have leveraged trading for a number of different assets. These include 6 crypto pairs with up to 100x leverage and several commodity/forex assets with up to 1000x leverage!
Prime XBT also takes advantage of the liquidity offered by the larger exchanges and market makers in the industry. They aggregate or “pool” their liquidity from more than 12 different exchanges.
PrimeXBT has traders from over 150 different countries. However, with certain regulations, there are some countries that do not accept traders. These include provinces such as the United States, the province of Québec in Canada, and several others.
PrimeXBT security system is it safe?
With news on the rise of cryptocurrency exchange hacks, one of the most important considerations for traders is security. This is also one of our main evaluation criteria when classifying an exchange.
There is an entire section on the information page detailing the security protocols used by PrimeXBT.
1. Exchange Security
Most coins held at PrimeXBT are kept in cold storage. This means they are kept in a secure offline environment away from the internet connection and the threat of potential hackers.
To service their current payments and withdrawals, they will also need to run a “hot wallet” but only a limited amount of funds are held in this state. To make any movement from “cold wallet” to hot wallet, they use multi-signature access.
This means that for any transaction to take place in the Prime XBT wallet, they will need the authorization of a number of different people holding those keys. This reduces the risk of a single point error.
Regarding the other security protocols they have, they also use Cloudflare's technology to mitigate the risk posed by distributed denial of service (DDoS) attacks.
Finally, they also have advanced hardware modules where they run their trading technology. They are hosted on the AWS web server which is known to be one of the best in the industry.
2. Confidentiality of communications
Like most exchanges and financial sites these days, PrimeXBT has full SSL encryption (SSL stands for Secure Sockets Layer, which is the standard for secure technology, encrypted communication between machines. Web server and browser). This means that all communications you send to the exchange will be encrypted and make it difficult for any bad actors to intercept.
It will also help you determine if you have accidentally visited a phishing site. This is because the actual login page should have a secure padlock in the browser. If you don't see this message it means you may be on a phishing site and should leave immediately.
When it comes to storing your passwords, Prime XBT claims that they use the “bcrypt” algorithm. This means that even if a hacker accesses the exchange's servers, they will not be able to read them.
3. User security
Of course, even if a hacker can get hold of your password, Prime XBT offers two-factor authentication. This means you will have to allow login on your phone through Google authenticator.
You are not required to enable 2FA on your phone although it is highly recommended. You can do this fairly easily through the account management options in “security settings”. PrimeXBT will provide you with a QR code and a spare key.
PrimeXBT . Leverage
For the uninitiated, trading on leverage is a way for individuals to gain exposure to more assets than they have put in. This gives traders an advantage when it comes to making money from “borrowed funds”.
When you trade on leverage there can be potential to enhance your profits by a certain factor. Of course, this is also decreasing as losses are also increased.
Another advantage of leveraged trading in general