Cryptocurrency trading firm PrimeXBT has released a new product that mimics the attributes of binary options trading, promising the opportunity to earn predetermined amounts based on the price of Bitcoin at specific points in time.
Called ‘PrimeXBT Turbo,’ the new platform may appeal to the same type of people who traded binaries in the past or even those playing poker online, which raises a red flag as far as investors are concerned. It’s probably just a matter of time before regulators move in on them.
PrimeXBT’s bitcoin-settled synthetic contracts offer a form of trading in which you predict if the price of Bitcoin will rise or fall in a certain amount of time. If you’re correct, you earn the payoff, if you’re incorrect, you lose your investment. Each contract has a specific expiration date at which the platform checks to see if you expected the correct direction. Each ‘Bitcoin binary option’ also has a specific payoff that you can win, up to 90 percent.
With a duration of just 5-seconds, 30-seconds, and one-minute, don’t kid yourself. This is a gambling product, pure and simple.
Although another instance of integration with mainstream finance is a cause for celebration, binary options are an inherently risky trading method. In addition, the industry had been broadly connected to a plethora of dodgy firms with most binary options brokers are not compliant with regulatory requirements.
The proliferation of cryptocurrencies as binary options is not a fresh idea as traditional binary options platforms were aware of this popularity when cryptocurrencies were experiencing a boom. Seeing these trends play out, some native crypto firms have put their heads together to offer a similar product.
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PrimeXBT also provides excessive leverage
PrimeXBT, which claims it handles more than $200 million in daily volumes, said it Turbo platform will be available to a select set of clients as part of an early access phase. The company will also offer a free demo account for those interested in taking the new product for a test drive.
The new product complements PrimeXBT’s offering, which allows users to trade with margin across a plethora of cryptocurrencies and other financial instruments — including forex, indices, and commodities.
Not without risks, margin trading via PrimeXBT now covers 18 currency pairs, spot contracts for gold and silver, and CFD contracts for oil, gas, and stock indices. In an attempt to appeal to crypto traders of varying experience levels and budgets, PrimeXBT provides up to 1:1000 leverage on all available crypto and traditional assets.
Founded in 2018, PrimeXBT offers leveraged trading, real-time market data, and analysis tools across a wide spectrum of crypto assets.
The company has the aspiration to bridge the gap between cryptocurrencies and traditional asset classes, boasting features including 100x leverage, advanced order types, and charting tools.