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PrimeBit.com 2023 Review – Pros and Cons of Trading on PrimeBit
- New WebTrader
- MetaTrader5 still available
- Free demo account
- 200x leverage
- No KYC
- Powerful trading engine
- Only 3 coins tradeable
- CEO / founder unknown
- No live chat
- Restricted for US traders
PrimeBit is a Bitcoin margin trading platform where you can trade perpetual swap contracts for Bitcoin (BTCUSD, BTCUSDT), Ether (ETHUSD, ETHUSDT), Litecoin (LTCUSD, LTCUSDT) and Polkadot (DOTUSD).
The company was only founded in August 2019 and is therefore one of the youngest Bitcoin trading sites among the big players. PrimeBit Ltd. is registered in the Caribbean state of Saint Vincent and the Grenadines as it is legally easier to register cryptocurrency brokerage firms in certain Caribbean countries than in most other countries of the world.
After the trading company was able to establish itself on the market after a short time, they were able to grow further and expand their services. Since 2022, the platform with a greatly expanded trading offer even appears in a new face – with a refreshed modernized web interface PrimeBit shows itself in new splendor. Traders can choose between the professional interface, which is fully customizable according to personal preferences, or the simplified interface, which makes buying and selling as easy as possible, depending on their preferences and experience.
Since 2018, a number of new Bitcoin CFD trading platforms of that kind have been launched to compete with the leading broker in this field, BitMEX. Interestingly, however, the competitors all differ somewhat in their services, so they all don’t just copy each others services 1:1 but try to differ from each other and target different interests.
So does PrimeBit: It is the first trading platform for Bitcoin-backed cryptocurrency margin trading (CFDs) that not only offers “only” 100x – but as much as 200x leverage.
Also, the crypto margin broker is not limited to crypto trading, since they meanwhile also offer CFDs on a range of stocks, indices, commodities and even Forex.
Licensing / Regulation
The crypto margin trading broker is not regulated by Financial supervisory authorities which is typical for cryptocurrency trading platforms of this kind.
What Do We Mean By Platforms Of This Kind?
Surely you have heard that Bitcoin is now traded on Wall Street, at least in the form of futures, such as the CME. There are also other major exchanges or broker sites where the Bitcoin price is traded, such as the CFD trading platforms of eToro or ThinkMarkets. The latter are officially licensed CFD providers and regulated by certain Financial supervisory authorities. As financial service providers dealing with fiat money transactions, they must comply with certain rules and laws.
PrimeBit, however, falls into the category of unregulated brokers who only accept cryptocurrency deposits – BTC or Tether (USDT) – and do not verify the identity of their customers. Identities are only checked with such brokers if there is a good reason, such as the assumption that the user is a US American because he has logged in from the USA.
PrimeBit Trading Products
BTC / ETH / LTC Perpetual Contracts – P2P
Another special feature of PrimeBit is that it is a P2P network. Trading contracts are exchanged directly between 2 traders. The trading product offered by PrimeBit is an industry standard CFD called perpetual contract. The perpetual swap contract product is similar to a future, but the settlement date is open. So you can keep the trade open or close to your liking, or rather, depending on how profitable your trade is already.
This type of contract is offered by many competitors, most traders know it originally from BitMEX, the first platform to offer this type of peer-to-peer Bitcoin CFDs.
PrimeBit started their services by making use of the MetaTrader trading platform. This has now changed as the high leverage margin broker just introduced their new WebTrader. Now you don’t have to access MetaTrader anymore in order to trade on PrimeBit. Now it works right on the broker platform with their own trading engine and interface. The latter is actually well done, as it is a very intuitive, clear and user-friendly design. However, for traders preferring MetaTrader the old version is still running parallel, so you can choose which one to use.
Tether Also Supported
On PrimeBit you can choose whether you want to trade the cryptocurrencies against the USD or against Tether (USDT). Tether is a so-called cryptocurrency stablecoin. Its value is pegged to the value of the United States Dollar. The stablecoin is often used as a substitute for the US Dollar in cryptocurrency markets. On PrimeBit you have two different subaccounts – in one you can trade BTC, LTC and ETH against USD (as CFDs), the second one is for trading the 3 cryptocurrencies against Tether. In the BTC subaccount you can deposit BTC only, while the Tether subaccount is for USDT deposits.
Promotions & Contests
The margin trading broker frequently comes up with appealing promotions and trading contests in order to boost trading activities on their platform and offer some extras for their most engaged and best participants. Traders should make sure to follow PrimeBit on Twitter where such upcoming events will be promoted first and foremost. If you don’t have a PrimeBit account yet, make sure to sign up here in order to get a 15% fee discount for your first 6 months with the broker: 15% Fee Discount.
Since the Bitcoin broker does not have a KYC policy, you can register as soon as you want and start trading directly if you already have BTC.
If the latter is not the case, you can simply buy the cryptocurrency on one of the major exchanges, e.g. Kraken, CoinMama, Coinbase, BitPanda etc.
Otherwise, you register with an email address, get a confirmation email with a link to a page where you have to create your password and you are in.
Why no KYC / ID Verification
Brokers who do not accept fiat money do not have to verify user identities and usually do not do so. So does PrimeBit. They target users for whom privacy is particularly important.
As always, however, this broker is also excluded from certain jurisdictions. US-Americans, Canadians and citizens of some other countries are excluded. From 2020 this will also apply to Japan, as there is a new law that cryptocurrencies in Japan may only be traded with a leverage of 1:2.
The cryptocurrencies that can be traded on the platform are BTC, ETH and LTC, each paired with the US Dollar. As already mentioned, these are CFDs, not an actual purchase of the underlying asset.
Deposits and Withdrawals
Deposits can be found in the top left corner menu, next to the logo, in the “Accounts dashboard”:
The available payment methods are limited to a range of cryptocurrencies, including Bitcoin (BTC), ETH, LTC, BNB and more. There is no minimum deposit, so you can start trading with a very small amount of BTC in order to check out the platform functionality or just to practice (which is always a good a idea for beginners).
As already mentioned earlier, if you don’t have Bitcoin yet, you can buy some with bank transfer or credit card (faster!) on one of the big exchanges. Once you’ve bought cryptocurrencies you can deposit them instantly into your PrimeBit account.
Withdrawals are processed instantly and you can claim payouts at any time. There is no minimum payout stated. However, you must always take into account the small Bitcoin network fee that is paid to the miners in a BTC transaction. PrimeBit itself also charges a tiny fee for BTC withdrawals, but only 0.0001 BTC.
Deposits and withdrawals can also be accessed on Metatrader 5 when logged in there. You find both links in the under “File” in the main menu.
Trading on PrimeBit
The very high leverage of 200x is new in the area of Bitcoin margin trading. Unlike other trading platforms, this enormous leverage applies to each of the 3 contracts. So you can also trade ETH and LTC with up to 1:200 leverage.
And although this may seem appealing at first glance, you should be aware of the danger of using too much leverage. Because the higher the leverage, the closer the liquidation price is to your entry price. High leverage should not be used carelessly by inexperienced traders.
WebTrader or MetaTrader 5 Trading App To Choose From
On this high leverage bitcoin margin broker platform you can either trade through their brand new WebTrader or within the MetaTrader 5 trading platform, which is integrated in the PrimeBit website as well. MT5 is available for Windows and MacOS as desktop software, but also as mobile apps for Android and iOS.
On top of the orders widget you find the icon of the trading calculator:
The old MetaTrader 5 interface – still accessible alternatively:
Since PrimeBit is aimed at professional traders who are familiar with the system anyway, we won’t write an in-depth explanation about how to use MT5. If you’re a beginner and you’re not familiar with MetaTrader, we suggest you take a look at a PrimeBit tutorial video:
Mobile Trading Through WebTrader:
The new WebTrader works excellently on mobile phones as well:
PrimeBit Spot Price
The Bitcoin price displayed in the PrimeBit Trading System is based on the current spot price of the largest purchase exchanges (Kraken, Gemini, Bitstamp, Coinbase). Therefore, the price cannot be manipulated by large leveraged positions.
The trading fees are in line with industry standards: Makers receive a discount of 0.025% of their position, while takers have to give up a fee of 0.075%.
As mentioned above the broker charges a small withdrawal fee of 0.0001 BTC per transaction.
Leveraged positions are also subject to a funding fee which occurs every 8 hours when the funding interval ends. This is basically the same as with any other margin trading broker. Depending on market conditions the fee is paid either from longs to shorts or from shorts to longs. This fee is capped at ta maximum of 0.1875%.
As the company is only around since couple months there isn’t much going on yet on their Twitter account. But they do have a lot of helpful tutorials in their Youtube account:
The platform is also on Reddit:
Unfortunately the company doesn’t offer a live chat support on their website. If you have a question to PrimeBit, you must first click through the support platform, where many questions have already been answered. If you don’t find the right answer there, you will be directed to an inquiry form to contact the support in writing. However, you can also just directly write to support[at]primebit.com. The support team is available on working days.
PrimeBit has obviously been trying with success to rise above the existing offer to brokers by doubling the previously maximum available leverage. The whole system looks as if it was set up with much effort, as there is a proprietary trading engine, plus the possibility to use MetaTrader instead. However, more customer contact, e.g. through live chart support, would be great, because the company seems somewhat opaque and unapproachable. If you are good with MT5 and flexible leverage, you have certainly found an interesting alternative to other crypto margin brokers.