Bitcoin Leverage Trading
Overbit allows you to magnify your Bitcoin exposure to the market with up to 100x leverage
Margin Trading using Bitcoin
Bitcoin is the first digital asset to use peer-to-peer technology to facilitate instant payments. The brainchild of a pseudonymous entity called Satoshi Nakamoto, Bitcoin is a cryptocurrency with an interconnected network (nodes) of independent individuals and companies processing the confirmation of transactions and creating new Bitcoins in the process we know as mining.
Bitcoin, unlike fiat, has a finite supply. There will only ever be 21 million Bitcoins in total supply which means even as demand rises; supply will remain constant. Once every four years, miners’ rewards are slashed in half through a process called Bitcoin halving. Bitcoin’s in-built deflationary feature factors in helping keep the supply in check until the last Bitcoin is mined around the year 2140.
Benefits of Trading Bitcoin
Bitcoin is the most liquid cryptocurrency with the largest market capitalization and is traded across more than 2,000 exchanges. The popularity of Bitcoin also makes it the coin with the most prominent trading pairs. Virtually all of the other coins have Bitcoin as their base trading pair, making it the most versatile trading pair.
The Bitcoin market is open 24 hours a day, 7 days a week including public holidays. Bitcoin is decentralised and there is no single organisation or government that can control it. However, Bitcoin is susceptible to market sentiments, opinions and regulatory speculation. This does make the currency quite volatile and quite responsive to positive and negative news and rumours.
Bitcoin is a transparent currency and open to anyone from anywhere in the world to own it. Unlike fiat money, you can see the movements of Bitcoin on the blockchain. Traders often speculate on those movements in order to determine the sentiment of the wider Bitcoin holders – whether they are moving funds on exchanges to sell them or off exchanges to hold their Bitcoins.
Make profits when Bitcoin goes up or down
Go long or go short on Bitcoin when the price is rising or falling using the Overbit platform. Profit from trading both ways.
Trading Bitcoin with leverage
Overbit allows you to trade Bitcoin with leverage. This means you can trade Bitcoin to make profits when the market goes up or down. With leverage you get exposure to a lot more of the Bitcoin price movement than the amount you deposit. Let’s look at an example. Say the Bitcoin price is 40,000 USD and you expect it to rise to 45,000 USD within a few days. You wish to buy 1 BTC with 75X leverage. Your margin requirement is 1/75 * 40,000 USD = $533 USD.
When Bitcoin rises to 45,000 USD, you can close your position and profit $5,000. The amount you risked would have been $533. Similarly, if Bitcoin falls in price, you could lose the entire $533.
A similar example can be applied if you are expecting Bitcoin to fall in price. If Bitcoin is trading at 40,000 USD and you expect it to go down to $35,000 – you could short (sell) the market. At 75X leverage, your margin requirement is 1/75 * 40,000 USD = $533 USD.
If the Bitcoin price gets to $35,000 and you close the position, your profit will be $5,000 USD. However, if Bitcoin simply rises by $533, you will lose your entire $533 that you risked for this trade.
You can get a more accurate calculation of the margin requirement and your liquidation price (the price at which you would get liquidated if the position is against you) on the deal ticket window.
How Bitcoin leverage works
With a Bitcoin leveraged trade, you can get up to 100X the exposure of the capital you deposit.
Why trade Bitcoin with Overbit
Overbit is a world-class exchange with a deep and liquid order book from our multiple global liquidity partners. Our traders enjoy fair market prices consolidated from the world’s top exchanges and are free from price manipulation. This means no single trader can manipulate the Overbit price with large positions. At Overbit, you can trade crypto and FX using your Bitcoin or USDT without the need of taking delivery of assets.
We provide a wide range of features in leverage trading. On Overbit, you can trade and enjoy up to 100X leverage on your crypto assets and 500X leverage on your FX assets. However, in order to limit your risk exposure, we employ advanced risk management measures. We allow you to open each position with your own margin preference (isolated margin or cross margin).
Overbit recognizes and rewards community efforts by running one of the best affiliate programs from any crypto exchange. Users get rewarded in BTC or USDT for referring friends. This is unarguably the most rewarding cryptocurrency affiliate program in the world. As a way to incentivize the continued use of our exchange, we operate a tiered reward program. Traders get rewarded in Tier Points (TP) for trading. Once you reach 1,000 TP, you can swap for BTC or USDT.
You never have to worry about the security of your funds on our exchange as we employ military-grade security to ensure customers’ funds are always safe. We segregate user funds to ensure they are protected, and stored in multi-signature cold wallets. If you ever need support service, we offer 24/7 live chat support to all users.