Bit.com cryptocurrency derivatives
What is Bit.com?
Bit.com is an exchange launched in 2020 and registered in the Seychelles.
This exchange is primarily (but not only) the so-called derivatives exchange. Those, the main area of work of the Bit.com crypto derivatives trading exchange.
Bit.com is a relatively young platform, so the choice of trading instruments here is still limited. Currently, derivatives are available on the platform for: Bitcoin, Ethereum and Bitcoin Cash.
The turnover of the exchange is not very large and shows ambiguous dynamics. In the summer of 2021, intraday turnover was in the order of USD 30 million. However, by the end of 2021, according to Coinmarketcap, turnover had dipped to $8 million. For comparison, the trading volume of the world's largest exchange Binance at the end of 2021 was approximately $30 billion.
In order to compete with such giants as Binance and attract new customers, the Bit.com exchange has launched a referral program for its users, with which they can attract new users, and then receive a commission from the trade of the attracted users.
The referred user receives 25% of all trading commissions generated by the referred user. This means that if you (User A) invite a friend (User B) and User B starts trading on the platform, you will receive 25% of User B's trading fees - forever.
What are crypto derivatives?
A derivative is an instrument whose value is determined by another asset (underlying asset). In the cryptocurrency space, the value of a derivative is determined by the value of a digital coin.
A distinctive feature of derivatives is that the total amount of liabilities under them is not related to the total amount of the underlying asset circulating in the market. Derivatives are not necessarily the owners of the underlying asset.
For example, the total number of derivatives on the shares of a certain company may be several times greater than the number of issued shares. Buyers and sellers of derivatives are not initially guided by the delivery of real shares, they are only interested in the difference in price that arises on these shares for the period of time specified in the contract or under the agreed conditions.
All these features are typical for the cryptocurrency market.
There are different types of derivatives. On Bit.com, trading is limited to Bitcoin, Ethereum and Bitcoin Cash futures and options.
What is crypto derivatives exchange?
The Crypto derivatives exchange is a platform where you can trade cryptocurrency derivatives.
Most exchanges were originally focused on spot trading. After the appearance of the first cryptocurrency futures and the popularity of these assets, many exchanges began to actively add the function of derivatives trading.
In this regard, Bit.com is somewhat different from its competitors. Bit.com was originally created and optimized for derivatives trading. Derivatives trading is a priority area of development at Bit.com. At the same time, spot trading is also available on the exchange.
How does cryptocurrency derivatives trading work?
Trading in derivatives has certain advantages over trading on the spot market:
- Speculation on price movements: Trading cryptocurrency derivatives allows traders to enter long or short positions, depending on their forecast of future price movements. Those, you can trade with the trend in any direction of the market movement.
- Leverage: Some derivatives are leveraged and allows traders to open a position on margin. This means that a trader can conclude a major transaction in the cryptocurrency market by investing only a fraction of the total value of the transaction. Such margin trading allows traders to make large profits with a relatively small investment, but this instrument can also greatly increase losses. Therefore, traders must use leverage with caution and make informed decisions with their risk tolerance in mind.
Each time you place an order, the exchange will charge you a trading fee. It doesn't matter if you are on Bit.com cryptocurrency derivatives trading or if you trade on another exchange. Any exchange takes a commission from you for performing trading operations. This makes up the profit of the exchange. Due to these commissions, it functions and exists.
The trade commission is usually a percentage of the value of the trade order. On exchanges, traders are divided into takers and makers. Takers are those who "take" an existing order from the order book. Makers are those who add orders to the order book, thereby creating liquidity on the platform.
If you are on Bit.com as a taker, you will pay 0.07% and as a maker you will pay a 0.02% commission on your spot trading. According to the industry report on average trading fees, the industry average commission for spot trading was 0.215% for the taker and 0.162% for the maker.
Thus, Bit.com offers its users commissions significantly below average, regardless of which group of traders you belong to.
If you are trading on Bit.com cryptocurrency derivatives in the Philippines, the fees are slightly different. For derivatives trading, the industry average taker pays 0.063% and the maker pays 0.018%.
Bit.com derivatives trading is cheaper. Bit.com charges 0.05% for takers and 0.01% for makers. As you can see, commissions are lower than the industry average. Bit.com offers its clients a very competitive environment. Therefore, despite certain disadvantages, it is quite profitable to trade cryptocurrency derivatives in the Philippines on Bit.com. You save a lot on commissions.
How to trade Bit.com derivatives in the Philippines?
At Bit.com, cryptocurrency derivatives trading is a priority area of development. The platform has created the most convenient and beneficial conditions for derivatives trading. Therefore, trading on Bit.com derivatives in the Philippines may be of interest to you.
The convenient interface for trading on the Bit.com derivatives trading platform is available not only for PCs, but also for mobile devices. The company has developed user-friendly applications that can be said from the AppStore and Google Play. Thanks to this, the trading terminal is always at your fingertips. You can trade on Bit.com crypto derivatives in the Philippines or any other country in the world wherever and whenever you like.
But if you prefer to trade derivatives not only for major cryptocurrencies, but are also interested in rarer coins, then Bit.com is not quite for you. On Bit.com, crypto derivatives trading is only available on Bitcoin, Ethereum and Bitcoin Cash.
How to register?
Registration on Bit.com crypto derivatives trading platform is the same as the registration process on other exchanges. To register, you must enter your password and email address. After that, a confirmation code will be sent to your mail, which must be entered in the appropriate line.
This completes the registration process. Trading on Bit.com derivatives in the Philippines does not require an immediate KYC process. But if you want to withdraw money or simultaneously on Bit.com cryptocurrency derivatives trading platform and trade on the spot market, you have to do it.
There are several KYC levels on Bit.com:
- Unverified (KYC 0) - you cannot withdraw funds and trade in the un-spot market and the derivatives market at the same time.
- Basic Verification (KYC 1) - you cannot withdraw funds and trade in the en-spot and derivatives markets at the same time.
- Advanced Verification (KYC 2) - $1,000,000 / day withdrawal limit and access to spot and derivatives trading.
- Video Verification (KYC 3) - withdrawal limit $5,000,000 / day and access to spot and derivatives trading.
How to open a demo account?
Derivatives trading is not possible on Bit.com on a demo account. The platform does not support this feature. To trade on a demo account, you need to look for another platform.
Bit.com derivatives list
At Bit.com, cryptocurrency derivatives trading is quite profitable due to low fees. But there is also a downside to the coin. The platform offers clients a very limited list of tools.
Currently, derivatives are only available for Bitcoin, Ethereum and Bitcoin Cash. Perhaps this list will be expanded in the future, but so far the platform offers a limited set of tools.
Alternatives to Bit.com cryptocurrency derivatives
Trading on Bit.com cryptocurrency derivatives in the Philippines is a good choice for traders who value trading conditions. Bit.com offers very favorable trading conditions, as the commission size is significantly lower than the average commission on other sites.
But if you want to work with a lot of tools, then Bit.com is not your option. The platform offers a very meager selection.
There are actually a lot of alternatives. As a rule, most users prefer to-10 exchanges, for example:
4. KuCoin and others.
These trading platforms provide a large selection of trading instruments and a fairly high-quality service. You have to pay for everything, so the commissions on these sites will be higher than on Bit.com.
Obviously, there are no perfect exchanges. When choosing, you should be guided primarily by your needs and priorities. This will allow you to make the right choice.