hitBTC Exchange Risks

Cryptocurrency Forum - Jan 10th 2018

  1. hiranuk

    hiranuk

    Joined:
    Jan 2018
    From:
    UK
    Hi

    I am just trying to look for a good exchange. I have been advisex Polinex is good for UK users ubt it does not have a large crypto coins base. I was just looking at hitBTC and they state the following

    "You may sustain a total loss of the Funds in your HitBTC Account, and, in some cases, you may incur losses beyond such Funds. If the market moves against your position, we to provide a substantial amount of additional margin Funds, on short notice, in order to maintain your position, may call upon you. If you do not provide the required Funds within the time required by us, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your HitBTC Account"

    Does this mean that if i deposit £500 worth of bitcoin so i can then buy VIBE if the price of VIBE goes down i could lose more than £500 for eg -£1000 therefore i would then be owing hitBTC £1000.

    I just simply want to use Bitcoin to invest in other Cryptos like VIBE without having to worry about losing more than i deposit. i dont mind losing the £500 that i deposit, but i dont want to login after a few days and see my balance as -£1000.

    Thanks
     
  2. Cyreath

    Cyreath

    Joined:
    Dec 2017
    From:
    UK
    Crypto:
    XRP, IOTA, LTC, XMR
    This sounds like leveraged / margin trading. I just signed up with them last night and parked the account. CHasing Dentacoin and some other alts. I'll be sure to read through it all properly tonight!

    If it's what I think, this is where you don't have a Stop set on a trade and the price moves so far from what you thought that to keep the position open they have to fund the account. They'll only do that for so long before they close your position out and charge you the difference.

    This should NOT have anything to do with a direct Market purchase, where you just buy at market price and then hold the crypto/con in your account. I always select Market on the exchanges as I just want to buy at the given price now and HODL.

    I've seen this a lot on IG where I Spreadbet. When you open a position, you have to have enough to cover the trade (i.e. the money to buy the position at the price and volume you want) and a Margin (to continue to fund the position as the price moves). If you don't put a Stop or Limit and the price moves against you, you can bust through your margin limits and essentially go broke. I always place Stops and Limits on those trades.

    That said, I will double check this tonight.

    Cy
     
  3. gabs888

    gabs888

    Joined:
    Dec 2017
    From:
    Liverpool
    Hi, the three sites I trust and use most are Binance, Coinexchange and Cryptopia... You will need to buy bitcoin using Coinbase first, as the other sites will only accept crypto currency as payment. Over the last week or so new registrations have been frozen although it is still possible to get in with a little patience....

    Sent from my iPhone using Tapatalk
     

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