January 1st, 2018
Bitfair Allows You to Trade Coins You Don't Yet Hold
Bitfair is a blockchain enterprise whose goal is to make trading in cryptocurrency simple and open the world to various features in its proprietary platform, which are still untapped territories in present day crypto trading. As of today, every crypto enthusiast has one pertinent worry- what does one do when the value of altcoins fall? Research showed that there is no existing platform that provides an easy mechanism to profit from general altcoins falling in value. This is precisely the gap that Bitfair looks to fill with its brand new feature that lets you do exactly that.
As of today, the only way you can make some profit out of the depreciating value of altcoins is by selling a token now and buy it back again at a lower price in future. While it may seem enticing, it comes with an inherent contradiction. You would still have to own an altcoin to be able to implement this mechanism. But, you may ask, what about leverage trading?
Some trading platforms do provide leverage trading, which is an option to trade cryptocurrencies on margin. Leverage trading is only available on leading tokens, provided they have enough liquidity and low volatility to eliminate the inherent risks of operating a leverage exchange. Moreover, only the top cryptocurrencies such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Ethereum Classic, Dash and Monero are currently available for margin trading.
The trading contracts tend to be complex and thereby necessitates the involvement of brokers. Margin trading of these coins are mainly centralised, and keeping in mind that decentralisation of currency was one of the ultimate goals of crypto enthusiasts, is not a step in the right direction. The terms of the contract also tend to be heavily manipulated by some brokers. So leverage trading, in its current avatar in cryptocurrencies, needs to be done with a lot of caution.
When above-mentioned aspects of leverage trading are taken into consideration, compared to an option by providing a predefined trading period or expiration policy, it was concluded that the need for holding the underlying asset can be eliminated. Translated into layman terms, it basically means that you can trade over an altcoin without even owning one.
Bitfair offers an Over-the-Counter trading platform based only on price movement. Bitfair was created as a marketplace for traders speculating their opinion on the short-term price movement of any cryptocurrency, be it a positive or negative price movement, without any broker involved. Bitfair provides traders with a new and innovative trading platform and concept. It aims to become a marketplace where crypto enthusiasts can directly enter into a peer-to-peer trade via a Smart Option Contract (SOC).
As with other OTC markets, these options transact directly between buyer and seller. There is no secondary market and the dependency on broker is totally eliminated. So the question arises, if there are no regulators or no brokers, who would ensure that the terms of the contract are adhered to? Bitfair uses Smart Option Contracts as previously mentioned to facilitate the agreement thereby ensuring a trustworthy marketplace. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
We know that the value of altcoins are prone to rapid downfall. This is the opportunity that Bitfair enables you to exploit. Let’s assume an altcoin to be valued at $100. As a trader who has some data on the ongoing trend, you think that the valuation of the altcoin will come down. This is where you would typically short sell the altcoins on Bitfair. So, when the prices do eventually come down, you make a profit.
Bitfair, with exciting features like these is definitely on its way to make crypto trading a profitable exercise. It has had the gumption to fight the very basic downfalls of crypto trading, thereby opening up avenues for more and more people to join in. The platform that they are engineering, not only makes trading profitable, but also extremely easy to use. Nevertheless, the prospect of earning money over altcoins which we don’t even own makes Bitfair an agent of disruption in the world of cryptocurrency in its own right.
To find out more, visit bitfair.com