Do you want to trade cryptocurrencies using a lot of borrowed money? You want to use the BidAskBit platform, but you don’t want to send money to a company you don’t know much about. If so, you’re in the right place. In this review, we will show you, among other things, how to trade on BidAskBit and how much the company charges for its services.
BidAskBit review at a glance
BidAskBit is a platform for trading cryptocurrency pairs that focuses on margin trading. Margin is a very important word here because trades are done with leverage of 1:500, which is very high.
Traders can bet on the rise or fall of dozens of cryptocurrencies, which are usually paired with USDT or BTC. Bid Ask Bit doesn’t accept traditional currencies, so all deposits and withdrawals must be made in cryptocurrencies.
BidAskBit doesn’t have its own platform. Instead, it uses cTrader’s white-label platform. It has standard trading instructions like “Limit,” “Stop,” “Stop Limit,” “Stop Loss,” and “Take Profit,” as well as a few other functions. For instance, a tool for scripting trading robots or social trading.
Because of two things, we think trading on BidAskBit is high risk. The first reason is that there is a lot of financial leverage, which can be disastrous for new traders and traders with little experience. The second reason is that not enough is known about the company that runs it.
Advantages:
- Advanced cTrader platform
Disadvantages:
- Minimum information about the operator
- It does not support fiat currencies
- High spreads
- Terms and conditions in English
BidAskBit – Basic Information
BidAskBit, operated by Trinity Capital LLC based in Saint Vincent and the Grenadines, offers trading of cryptocurrencies with leverage on the cTrader platform, supporting BTC, BCH, ETH, DASH, LTC, NEO, ADA, DOGE, USDT, EOS, and TRX. Trading fees are charged in the form of spreads and swaps, while there is an inactivity fee but no fees for deposits or withdrawals.
Payment methods are limited to cryptocurrencies, with a demo account available and a minimum deposit/withdrawal of 0.0016 BTC. The minimal order is 0.01 BTC with a minimum margin of 0.000 02 BTC, and financial leverage is offered at a fixed rate of 1:500. Social trading and AOS support is available, as well as hedging.
What can BidAskBit do?
BidAskBit is a cryptocurrency platform that has a lot of different uses and lets you trade cryptocurrencies with a lot of leverage. The platform doesn’t let you trade cryptocurrencies without using leverage or buy and sell cryptocurrencies in exchange for traditional fiat currencies.
Traders and speculators with a lot of experience in trading cryptocurrency will like the platform. On the other hand, the high financial leverage will make the platform too risky for people who are just starting out.
FROM REGISTRATION TO WITHDRAWAL OF PROFITS HOW DOES BIDASKBIT WORK?
- First, you make a trading account and put cryptocurrencies into it. You can put in more than ten different types of cryptocurrency, such as BTC, ETH, or LTC.
- As soon as the coins get to your account, you can start trading. The platform lets you place Market, Limit, Stop, and Stop Limit orders, and you can bet on the price going up (Buy) or down (Sell) ( Sell). But be careful, because 1:500 leverage is used in all trades.
- You can find a list of open trades, along with results so far, in the window Position, below the graph. You can close a trade by clicking on the cross symbol, or you can use the function to automatically close a position at a certain loss (Stop Loss) or at a certain profit ( Take Profit).
- You can move cryptocurrency from your trading account to any wallet that accepts cryptocurrency.
TRADING WITH LEVERAGE
BidAskBit says that its 1:500 leverage is high. But it’s still not clear whether high leverage is worse.
With leverage of 1:500, your orders will be 500 times bigger than the amount you put in (margin). Profits and losses from these kinds of trades will be 500 times bigger than they would be if there were no leverage. Even a small change in price can mean a big gain or loss.
First, we need to know that cryptocurrencies are very volatile and that their prices often change by units of percent per day. Every time you make a trade, you should expect to lose money, even if it’s only for a short time. The problem is that when bad things happen on the market, financial leverage makes your losses much worse. And they can sell everything in your trading account.
Here are just a few:
If the price of the cryptocurrency goes down by 0.2%, you will lose everything. So you lose everything you put into the trade as a margin. If the price goes up or down by 2%, you could lose ten times what you put in. If you don’t have enough money in your account to pay for the loss, your position will be closed for you.
Trading with a lot of leverage can only work if you are very careful with your money. Traders should be able to get to most of their money quickly, or even a small change in the market could wipe out their accounts.
At Binance, which is a competitor, new traders can’t use the platform for margin trading. The people who run this popular exchange know how hard it is to trade with high leverage, so they only give this service to users who pass a knowledge quiz and show that they have enough knowledge. Everyone can use BidAskBit to trade on margin.
Fees at BidAskBit
On the BidAskBit website, you won’t be able to find the list of fees. The business contract is the only place where the broker talks about fees, and even then, only in broad terms. No specific values, and no examples. So we had no choice but to open the trading platform and look for the fees carefully:
- Spreads: The price to buy is always a little bit more than the price to sell. Their difference, or spread, is essentially the fee you pay for each trade.
Spreads on platforms that compete with each other
Spreads on BidAskBit are very high, especially for crypto-pairs that aren’t as popular. We compared the spreads at BidAskBit and other platforms that allow leveraged trading to get a better idea of how they work.
- Swaps: For each position you hold after the market closes, you have to pay a swap fee. The market always closes 5 seconds before midnight and opens again at 00:00:00. The swap fee rate varies, but in our tests, all currency pairs had the same annual rate of 0.24%. Using the formula [annual rate]x[trade volume]/365, the fee is charged every day.
Don’t forget that the swap is figured out based on the total size of the order, not the margin. Due to leverage, a $100 margin order is worth $500x that amount, or $50,000. The daily swap for this kind of trade comes to $0.33.
- BidAskBit doesn’t say anything about a commission fee for making a trade. Because of this, we think that merchants don’t pay any commissions.
- Administrative fees: It’s free to sign up and manage your account. BidAskBit also doesn’t charge any fees for deposits or withdrawals, but you do have to pay attention to the fees that miners charge.
But the broker won’t waive fees for not trading. You have to pay these if you don’t trade for 90 days. The fee is $10 per month, and it is taken out of all inactive accounts that still have money in them.
Registration, deposits, and withdrawals
It’s quick and easy to make an account. You only need to fill out the registration form and agree to the terms and conditions. BidAskBit does not need to verify your identity, but the terms and conditions say that the company may (but may not) need to verify your identity when you withdraw money.
Since CZK, EUR, and USD are not supported by the platform, both deposits and withdrawals are done with cryptocurrencies. In the client zone, you can deposit money by card or bank transfer, but they will send you to the website of their exchange partner, Virarosi.
Who is behind Bid Ask Bit
Bid Ask Bit is not based in the Czech Republic, but it has strong ties to the country. The BidAskBit website is written in Czech, it has a Czech IP address, and the company even posts jobs on Jobs.cz. So it looks like BidAskBit not only has clients in the Czech Republic but also a branch there.
Trinity Capital LLC runs the Bid Ask Bit platform. The company has been in business since 2020 and is based on the island of Saint Vincent and the Grenadines (not to be confused with the American firm Trinity Capital Inc.).
Final summary
The main thing that makes BidAskBit better than its competitors is that it gives you a lot of financial leverage. But, as we’ve seen, it can be a big problem for traders.
It’s pointless to lie to yourself. High-leverage trading is very risky and not at all good for people who are just starting out. If someone tells you otherwise, they’re not being fair to you. And if you take the advice of business managers who say you’ll make a lot of money, you probably won’t. Dot.
High spreads, which are up to 400 times higher than the competition, are also a big problem.
Another problem is that the BidAskBit platform is run by a company we don’t know much about and that is based in a tax haven.
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