Prime XBT is a brand new cryptocurrency exchange that is giving clients the ability to trade a number of crypto pairs with leverage.
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 Futures and CFD brokers that operate in the space.
However, can such a new exchange really be trusted?
In this Prime XBT review we will take an in-depth look at this exchange. We will cover some of the most important aspects including security, leverage, trading technology and fees.
Prime XBT is a cryptocurrency exchange that is registered in the Seychelles. The holding company name is Prime XBT Trading Services and their Company number is 148707. The exchange opened their books to the market in early 2019.
One of the main selling points behind Prime XBT is the fact that they have leveraged trading for 6 cryptocurrency assets up to a maximum of 100x. They also aggregate their liquidity from over 12 different exchanges.
Given that Prime XBT does not have any financial service licenses, there are some countries to which they can not offer their services to traders. These include the likes of the United States and a few other countries.
For those that do not know, trading on leverage is a way for the individual to get more exposure to an asset than they have put down in funds. This gives the trader the advantage of making money on “borrowed funds”.
When you trade on leverage can potentially enhance your returns by a certain factor. Of course, this also works on the way down as losses are also magnified. Below is an example of how leverage will work on the Prime XBT platform.
Another advantage of leveraged trading in general is that it allows you to short an asset. This means that you can make money on a fall in the price of the asset. In the case of a short position, you are borrowing the coin in question in order to sell it forward in the future.
As mentioned, the maximum leverage on Prime XBT is 100:1. This means that you only need to put down a 1% of the required capital in order to take out that position. This is available for all of the coins on offer which includes Bitcoin, Litecoin, Ethereum, Ripple and EOS. Below are some of the leverage and coin limits for the respective coins.
|Pair||Min. order size, units||Max. single trade size, units||Max. exposure, units|
|BTC/USD||0.01 BTC||15 BTC||30 BTC|
|ETH/USD||0.01 ETH||200 ETH||550 ETH|
|LTC/USD||0.01 LTC||650 LTC||1650 LTC|
|XRP/USD||1 XRP||55,000 XRP||150,000 XRP|
|EOS/USD||1 EOS||8500 EOS||21,000 EOS|
It is important to point out that this is the maximum leverage limit and you can indeed opt for a lower number level. This may in fact be a more prudent move as even the slightest amount of volatility in can lead to an exhaustion of funds with 100x leverage.
If there is a case where you exhaust your equity and the value of your account falls below a certain level then you will get what is termed a “Margin Call“. With traditional financial brokers, they will actually call you and ask for the margin. Prime XBT closes out the position instead as they need to manage the risk that they have on their books.
Given the ever increasing news of cryptocurrency exchange hacks, one of the most important considerations for the trader is security. This is also one of our main review criteria when it comes to grading an exchange.
There is an entire section on the information page that details the security protocols that are employed by Prime XBT.
Most of the coins that are held at Prime XBT are kept in cold storage. This means that they are kept in a secure offline environment away from internet connection and the threat of potential hackers.
In order to service their current payments and withdrawals, they will also need to run a “hot wallet” but only a limited number of coins are kept in this state. In order to make any movements from the cold wallet to the hot wallet, they make use of multi-signature access.
This means that in order for any transactions to take place in the Prime XBT wallets, they will need the authorization from a number of different people who hold those keys. This reduces the risk of a single point of failure.
In terms of other security protocols that they have in place, they also make use of Cloudflare’s technology in order to mitigate the risks that are posed by Distributed Denial of Service Attacks (DDoS).
Like most exchanges and financial sites these days, Prime XBT has full SSL encryption. This means that all communication that you send the exchange will be encrypted and make it hard for any malicious actors to intercept it.
It will also help you identify if you have accidentally landed on a phishing site of some sort. This is because the actual login page should have a secure padlock in the browser. If you do not see this then it means that you could 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 were to access the servers of the exchange they would not be able to read them.
Of course, even if a hacker is able to get hold of your password, Prime XBT offers two factor authentication. This means that you will have to authorise the login on your phone via the Google authenticator.
It is not mandatory for you to enable 2FA on your phone although it is highly encouraged. You can do this quite easily through your account management options in your “security settings”. Prime XBT will present you with a QR code and a backup key.
It is incredibly important to save this backup key as it will be required for you to reset your 2FA in the case that your phone gets stolen or lost. If you do not have this then you may have to wait for up to seven days as the broker manually resets this.
Lastly, when it comes to withdrawals, Prime XBT is one of the few exchanges that require a mandatory white-labeling of Bitcoin addresses. This means that your funds cannot be sent to a rouge address in the instance where your account is breached.
Trading fees are a really important consideration as they can directly impact your profitability in the long run. If you trade a great deal of volume on an exchange then these fees add up on a cumulative basis.
Prime XBT is quite transparent with their fees. They only have two types of fees and these are the trade fee and the overnight fee. The former is a fee that is charged for entering the position and the latter is for financing the position overnight. We have the fee breakdown in the table below.
|Pair||Trading fee||Financing/day Long||Financing/day Short|
|BTC/USD||0.05%||-$3.9 per 1 BTC||-$3.9 per 1 BTC|
|ETH/USD||0.05%||-$0.13 per 1 ETH||-$0.13 per 1 ETH|
|LTC/USD||0.05%||-$0.03 per 1 LTC||-$0.03 per 1 LTC|
|XRP/USD||0.05%||-$0.00038 per 1 XRP||-$0.00038 per 1 XRP|
|EOS/USD||0.05%||-$0.0025 per 1 EOS||-$0.0025 per 1 EOS|
This places Prime XBT more in line with the fees model of a CFD broker than a Futures exchange. They are not charging settlement fees on the contracts but are charging an overnight rate for holding the position. The latter will not apply if you enter and exit the position within the day.
The trading fee of 0.05% is much lower than comparable CFD brokers such as IQ Option etc. If you are a trader that is trading with considerable volume then Prime XBT will consider volume based discounts on most asset pairs. You can reach them on email@example.com should this apply.
In terms of funding your account, there are no fees that are applied to inward payments. However, if you are to withdraw funds from the exchange then you may have to pay an arbitrary miner fee in order to propagate your transaction.
If you have decided that you would like to try out the Prime XBT platform then you will need to register an account. In order to do this, you will need to provide them with an email and password. You also have the option to insert a referral code if you were given one (more on this later).
They will send out an email to the address that you have provided so that you can verify it. Once this is done you can log back into your account and access the trading platform and the account features.
Something that you may have noticed is that Prime XBT does not require any forms of identification when you sign up. This is because they are one of the few exchanges that do not complete KYC or AML checks on their traders.
They are a fully anonymous exchange which can be advantageous for those traders that value their online privacy and would not like send over personal documentation. Moreover, this makes the exchange less of a target for identity thieves who are looking for juicy targets in databases.
Prime XBT is a crypto only exchange. This means that they do not take any Fiat currency funding and you can only make deposits / withdrawals in Bitcoin. If you need to get your hands on Bitcoin to fund then you will have to use a Fiat gateway such as Bitstamp or Kraken.
Once you have your Bitcoin, funding your account is relatively simple. You will head on over to to your account section and you will hit the “Deposit” button. This will take you to the deposit page where you can access your Prime XBT Bitcoin address.
They have also tried to ease the burden of buying Bitcoin with Fiat as they have integrated a Changelly widget on their deposit section. This is a third party Bitcoin purchasing service where you can quickly buy your coins with the use of a credit / debit card.
Once you have the applicable address, you can send your Bitcoin in. The deposit may take a bit of time to show up in your account due to the fact that they require a total of 6 confirmations on the network before they will credit it.
Withdrawing from your account is just as simple. In this case you will head on over to the “withdraw” page where you will provide them with your personal Bitcoin address. This will be the Bitcoin address that you would like to white-label for all future withdrawals.
Once you have requested the withdrawal, you will have to wait for them to process it. If you are requesting quite a sizable withdrawal then it may take a bit of time to be processed. This is because withdrawals are processed from the hot wallets and if they do not have enough on hand they may have to access some from their offline cold wallets.
As a trader, you will be spending over 90% of your time on the main trading platform. As such, it is quite important that it is well laid out and semi intutive from a user interface perspective.
On the Prime XBT platform, you have three main sections which can be accessed in the header toolbar. These are the account administration section, the information section and the actual trading platform itself.
As you can see from the standard layout of the trading platform, you have your order books on the left, your crypto pairs in the middle and previous orders at the bottom. You also have your trading charts to the right of that.
Something that we really liked about the Prime XBT trading platform was the widget functionality. This will allow you to insert numerous different widgets and set up the interface in a layout that works best for you.
You will select “add widget” and you will be given a list of different ones to choose from. You can spread the platform out across more than one screen or you can have numerous different markets on a single screen.
When it comes to the charting package, Prime XBT seems to have quite comprehensive charting functionality and tools. For example, there are a number of customization options which allow you to alter the appearance of the charts. These include things such as the colors, grids and spacing. This is not something that we have seen on other charting packages developed by an exchange.
Taking a closer look at the actual tools that are at your disposal, you firstly have all the drawing tools that you will need to map your important levels. These include fan lines, Fibonaccis, retracements and other trend lines.
You also have a plethora of technical studies and indicators that you can use. These include all of the momentum indicators as well as relative strength and volume based studies. You can also customize the indicators in terms of the time-frame and other important inputs.
For those traders who are more technical, you will also want to have a range of order types and functionality. This will allow the trader to define specific levels for entries and exits. They are also imperative as a risk management instrument to limit losses especially when it comes to leveraged trading.
Prime XBT has most of the standard order types as well as some protection orders. These include:
Nothing can be quite as frustrating for a trader than an exchange that takes a long time to respond to their questions or customer support queries. This is why it is such an important criteria for us when we complete these reviews.
Given that Prime XBT is still a new exchange, there is no precedent when it comes to how long one is expected to wait for support responses. However, one of the biggest bottlenecks for previous exchanges was their KYC verification procedures. As mentioned, Prime XBT does not do this so it could free up support staff.
They claim to offer customers 24/7 support through a dedicated support email. You can contact their team on firstname.lastname@example.org if you have any questions that related to security, account management or product inquiries.
Unfortunately, they do not have a dedicated phone line which you can dial in the case of an emergency. They also do not appear to have an online chat functionality but perhaps this is something that they could roll out later on.
If you have been using the exchange for a period of time and are comfortable with the service then you may want to consider getting involved with their referral program. This will allow you to earn a commission from referring friends to the platform.
Prime XBT operates a tier based referral program where you will earn a percentage of trading fees not only on those traders that you directly refer but also a percentage from 2nd and 3rd tier referrals. Below are the commission rates:
If this is something that you would like to get involved with then you will need to get your referral code. This is something that you can get in your account management page under the “referral” section. You can either elect to use a link with your code embedded or to give your referrals your code when they are signing up.
While there were many things that we liked about the Prime XBT exchange, there are a few things that we think warrant improvement.
Firstly, when it comes to trading technology, they do not offer API functionality. This would allow developers to code their own bots and trading algorithms to trade on the Prime XBT platform.
They also do not offer any PC client program or mobile app to trade on. This could limit the opportunity for those traders who would like to trade away from the browser based platform. Perhaps this is something that they are considering down the line.
However, PrimeXBT officials suggested that native mobile app for both Android and Ios is already fully developed and currently waiting for Appstore and google store approval. According to the team, both apps should appear in a course of one month.
Lastly, they need to increase their online presence and they need to establish a longer track record in the industry. Of course, this is something that can only really come with time as they grow out their service.
It seems from this review that Prime XBT could be an attractive option for you to trade leveraged cryptocurrency instruments. There are numerous traders that are looking for alternatives to the likes of BitMEX et al. and the exchange is launching at an opportune time.
Indeed, the high leverage levels make it a similarly attractive proposal which will allow those users to magnify their returns on borrowed money. Of course, this is a double edged sword and leverage can chop you down on the flip side. Appropriate risk management is a must.
There were of course some things that we thought warranted improvement. However, these are all as a result of the brand new status of the exchange. They may have several improvements to their technology in the pipeline. Similarly, they can only really build up a track record with new traders.
So, is Prime XBT the exchange for you?
If you are looking for a leveraged cryptocurrency exchange with relatively advanced technology, transparent fees and strong security procedures then it should be considered. You will need to make a judgement on whether you are comfortable using a brand new exchange service.
Featured Image via Prime XBT