Bitop, a cryptocurrency derivatives exchange, has lowered its trading fees to 0.15 percent.
Trading Fee Reduction Coincides with Crypto Price Expansion
In a tweet on September 28, the CFD derivatives trading exchange said the move would make the platform more attractive to active traders. The announcement also coincided with crypto prices bottoming up markedly with the resurgence of Bitcoin from $40k.
At the time of writing in early October 2021, the BTC price is changing hands above $47k, bouncing back after weeks of lower lows. For the better part of September, analysts observe the price of Bitcoin and cryptocurrencies were retracing from August highs. Notably, the Bitcoin price fell over 40 percent from the $52k peaks, bottoming out at around $40k.
Fee Reduction, a Relief for Active Traders
Bitop traders can initiate long and short positions as the cryptocurrency derivatives exchange is a Contract for Difference (CFD) platform. This means traders don't own the underlying asset as they would in spot exchanges. Instead, while accepting the depositing of funds in cryptocurrencies like Bitcoin and USDT, the exchange allows only traders to benefit from price fluctuation. Accordingly, traders can hold short and long positions of any supported crypto pair with access to up to 100X leverage.
The combination of high leverage—which is notably higher than Binance Derivatives and FTX Exchange capped at 20X—and the flexibility of initiating long and short positions adapting to market changes provide more opportunities for traders to exploit price movements. Therefore, the decision to reduce applicable trading fees for derivatives is a relief for traders across the board.
Considering the volatility of cryptocurrency prices, "scalpers" or day traders who open numerous positions daily have been relieved. Under ordinary circumstances, scalpers can rack up high trading fees that negatively affect their bottom lines, even discouraging participation.
Daily Mining and Copy Trading Features
Besides lower trading fees, Bitop also holds regular giveaways. The exchange recently concluded a 100 USDT giveaway where ten active users received USDT as rewards. At the same time, the exchange continues to rollout trader-improving features.
After the release of the daily mining program, the exchange recently announced the copy trading function. The feature is a portfolio management strategy accessible for experienced and new traders. The copy trading function allows traders within the Bitop community comprising over 100k users from over 80 countries to copy trades of successful traders.
This way, the exchange can reward skill. At the same time, position copiers benefit from the skill and experience of profitable traders without necessarily having access to all the tools or time at the latter's disposal. In Bitop, the selection of traders can be sorted depending on the period, for example, long-term or short-term, risk, or trading style, which tend to vary between traders.
Focus on Compliance, Education, and Fund Security
In the wake of a regulatory crackdown by agencies, especially in the US, Bitop has received approvals from Canada's Financial Transactions and Reports Analysis Centre (FINTRAC), the national financial intelligence of the country, and the Financial Crimes Enforcement Network (FinCEN), which is an appendage of the US Department of the Treasury responsible for collecting financial information to ensure compliance with Anti-Money Laundering (AML) and anti-terrorist financing laws.
Since Bitop is operational in other economies like Japan, Russia, Brazil and the U.K, the exchange has revealed its commitment to remaining compliant with existing laws in all zones of operation.
The exchange's dedication to compliance and its focus on fund security can help the derivatives trading exchange carve out market share. Bitop said they use decentralized and centralized means of keeping funds secure while promoting crypto adoption through trader education campaigns.