Hey everyone, Reed here. Over the last few weeks, we have gotten tons of questions regarding the logistics of trading #Bitcoin $BTCUSD and how we are planning on trading it. Sartaj and I have been researching all possible options and I’m happy to say we finally have some answers for you.
We have decided to trade $BTCUSD on Bitstamp, for a few reasons:
- Bitstamp is a trusted, regulated, bank backed exchange located in the UK.
- Our $BTCUSD model is built on a Bitstamp chart, so there will be no variance in price between the model and your exchange.
- Their fees are the lowest I have seen on a trusted exchange (I will attach their fee schedule below)
- Their trading volume is steady and prices come directly from the blockchain, unlike other exchanges who manipulate the price.
- Trades settle in a fiat currency (USD or EUR) and funds can be withdrawn instantly via debit card for a 2% fee.
Things to know about Bitstamp:
- There is no fee for deposits (on Bitstamp’s end)
- Trade fees range from 0.25% if you do less than $20,000 volume/month to 0.1% if you do more than $20,000,000 volume/month. Their full fee schedule can be found here
- There is no minimum deposit, nor is there any kind of PDT rule limiting your number of trades per day.
- You can trade BTC, ETH, XRP and LTC on Bitstamp as well.
- Currently there is no margin trading on Bitstamp. However, according to their website margin trading will be available in the near future.
Another vehicle we are looking in to trading is BitMEX’s $XBTUSD perpetual swaps. $XBTUSD is a derivative instrument of $BTCUSD which offers up to 100x leverage. I have a model for $XBTUSD ready to go, but we are still working out the logistics of trading on this exchange. I have a teleconference set up with an experienced Bitcoin derivatives trader tonight, and will post an update for those interested in trading these perpetual swaps.
I hope this post is helpful for those of you on the fence about subscribing to our algorithm and trading cryptocurrencies. If you do still have any questions, feel free to contact me via twitter DM any time and I will get back to you as soon as I can.