How to start trading on Bitsofa
1. Deposit Bitcoin (BTC) into your wallet. If you already have funds in Bitcoin in your wallet, you can proceed to the second step.
2. Navigate to the "Trading" section on the platform.
3. Make a deposit of funds in Bitcoin (BTC) into your "Trading Account Balance." After a successful deposit, your "Trading Limit" will be automatically established.
What is the "Trading Limit"? It is the maximum amount in US dollars (USD) that you can use for all your open trading positions and orders. This is an important restriction that allows you to control your risk and ensures the safety of your trading operations on the platform.
To fund your trading account on the Bitsofa platform and gain access to the "Trading Limit," follow these steps:
1. Go to the "Trading" section in the Bitsofa app or on the website.
2. Click on the "Make a deposit" option and specify the amount in Bitcoin (BTC) you want to add. You can also choose the "Send all" option if you wish to fully fund your account, then confirm the transaction by clicking "Confirm."
If you don't have Bitcoin in your account (in the "BTC wallet"), the system will offer you methods to top it up. It's important to remember that the "Trading Account Balance" can only be funded with Bitcoin.
What is the "BTC wallet"? After registering on Bitsofa, you receive a "BTC wallet" that enables you to send and receive Bitcoin using blockchain technology and conduct Bitcoin buying and selling operations through P2P trading. This wallet also serves as a source for replenishing your "Trading Limit" on the Bitsofa platform.
|«Account balance» equivalent in USD
|«Trading limit» in USD
|Corresponds to the leverage
What is a "Trading Limit"? It's a special resource that allows you to trade cryptocurrency using additional funds. These are extra funds that you can use for cryptocurrency transactions. It's essential to understand that your trading activity does not affect the funds in your main "BTC wallet."
You can fund the "Trading Limit" with funds from your "BTC wallet," and if needed, withdraw funds back to it. This limit restricts the maximum amount in dollars that you can use for real-time cryptocurrency trading. You decide how much of this limit you want to utilize – you can use it in full or only a portion, depending on your preferences.
How is the "Trading Limit" determined? It depends on the amount in your "Trading Account Balance." The formula for calculating the "Trading Limit" is simple: "Trading Limit" = "Trading Account Balance" * 100, but not exceeding 100,000 USD. This means you can use up to 100,000 US dollars if you have sufficient funds in your "Trading Account Balance."
Information about tradable assets on the Bitsofa platform:
1. Cryptocurrency List: You can view a complete list of cryptocurrencies available for buying or selling on the Bitsofa platform by clicking the "+" sign in the "Watchlist" section. This means you have a wide range of options for cryptocurrency trading, and you can choose the ones that interest you.
2. 24/7/365 Availability: The Bitsofa platform is accessible 24/7, 7 days a week, 365 days a year. This means you can trade cryptocurrencies at any time that suits you, without time restrictions.
3. Conditions: The prices of cryptocurrencies available for trading on the Bitsofa platform are determined by the Market Maker based on prices from Binance, Huobi, and OKX exchanges. This means that asset prices will reflect the current market conditions on these major exchanges, providing you with accurate and up-to-date quotes when making transactions.
So, you can choose from a variety of cryptocurrencies, trade them at any time, and have confidence in the price accuracy thanks to the use of data from major exchanges.
Commissions and Fees on the platform:
1. Trading Commission: This is a small fee you pay when conducting cryptocurrency transactions. It amounts to just 0.1% of the transaction amount and is deducted immediately after each transaction. For example, if you bought Bitcoin for $10,000, the commission would be only $10.
2. Borrowing Fee: This is a small hourly fee, equivalent to 5% annually, based on the borrowed amount. This fee is not unique to Bitsofa; similar fees are charged on other platforms as well. It is related to the fact that you can use additional funds for trading, and this fee covers the costs of providing those funds. For instance, if you borrowed $10,000 for cryptocurrency trading, you would pay only $0.12 for an hour of such usage.
In this way, these fees help the platform maintain its operations and provide you with the opportunity to execute transactions and use borrowed funds for cryptocurrency trading.
Let's understand how to manage your asset list on the Bitsofa platform - it's important for tracking potential trading and investment opportunities.
What is an asset list? It's like the main page of Bitsofa, where you can see all the assets you want to monitor to know when it's best to buy or sell. When you first register on Bitsofa, the asset list is automatically populated with popular assets to make it easy for you to get started.
How to add assets to the list? If you want to add an asset to your list, simply click the "+" icon on the "Watchlist" page in the Bitsofa app or on the Bitsofa website. Then, find the asset by its name or ticker (a short name for the asset) and select it. This way, you can keep an eye on the selected assets and see their current market situation.
It's essential to add assets that interest you to stay informed about their changes and make informed decisions about trading and investing.
Let's go over how to open and close trades on the platform:
1. Select an Asset: Start by choosing the asset you want to buy or sell. If you're unsure how to add an asset to your list, refer to our guide.
2. Open a Position: If you want to buy an asset (go "long"), click "Buy." If you want to sell an asset (go "short"), click "Sell."
3. Choose Position Size: Use the special regulator (slider) to select the size of your position or enter it manually. You can also use the (+) and (-) buttons next to the regulator for greater precision.
4. Confirm the Trade: After selecting the asset and position size, click "BUY" or "SELL" to confirm your trade.
Now, let's talk about limit orders. These are special orders that allow you to set a price for the trade:
- Long (Buy): You can set a price lower than the current price, and your order will be executed when the price reaches or goes below that level.
- Short (Sell): You can set a price higher than the current price, and your order will be executed when the price reaches or goes above that level.
Open limit orders are displayed on the main screen in the "Your Active Positions and Orders" section. It's important to remember that funds allocated for an open limit order cannot be used for other positions or orders.
To set a limit order:
1. Select the asset for which you want to set the order.
2. Click "Buy" or "Sell."
3. Enter the desired purchase or sale price, as well as the position size.
4. Click "Buy" or "Sell" and confirm the creation of the limit order.
Now you know how to open and manage your trades, including the use of limit orders.
What are multiple limit orders and how to cancel them:
1. Multiple Limit Orders: You can set multiple limit orders to perform various actions, such as closing a position, opening a new position, or adding to an existing position. It's important to understand that limit orders allow you to control at which price a trade will be executed. You can manage them through the "Positions and Orders" section or directly from the asset page you are trading, in the "Your Active Positions and Orders" section.
2. Canceling Limit Orders: If you want to cancel your limit order, go to the main screen and find the order you wish to cancel. Click on the "..." (three dots) icon and select the "Delete" option from the popup menu. This will allow you to cancel the order if you change your mind or if the market situation has changed.
In this way, multiple limit orders provide you with flexibility in managing your trades, and canceling orders enables you to adjust your plans in accordance with the current market situation.
Balance Liquidation on Your Trading Account and Trading Limit:
1. Trading Account Balance Liquidation: Your trading account balance represents the funds you can use for cryptocurrency trading. It serves as a "safety cushion" and should cover any potential losses that may result from your trades or investments. If your losses exceed the amount of money in your account, your balance will be liquidated. However, it's important to note that you cannot lose more than what you have in your account.
2. Trading Limit: This is a restriction that determines how much capital you can use to open new trades or place orders. You have an available limit that you can utilize and a maximum limit that restricts how much you can borrow for trading. Your trading account includes a "Trading Balance" section where you can track your usage of the trading limit.
3. Trading Limit Utilization Level for Open Positions: If your trading limit utilization level reaches or exceeds 100%, it means you cannot open any more new trades. If it reaches or exceeds 200%, the size of your open positions will be reduced to bring your utilization back to 100%. This is done for your protection and to prevent significant losses.
Therefore, balance liquidation and managing your trading limit are important to maintain your safety and control over your investments on the platform.
Let's understand how your profit or loss is calculated and displayed on the Bitsofa platform:
1. Profit and Loss from Trades: When you make trades, your profit or loss is calculated in two forms: realized (from closed positions) and unrealized (from open positions). This information is displayed in several places on your Bitsofa account.
2. Currency of Profit or Loss: Profit or loss is calculated in the base currency of the traded asset. For example, if you are trading Bitcoin, your profit or loss will be expressed in Bitcoin.
3. Display in Different Currencies: Your profit or loss is also displayed in the equivalent value in US dollars and in the cryptocurrency that is on your account. This allows you to see the value of your trades in real-time in different currencies.
4. Display Locations: Information about profit or loss from trades is available on the asset screen you are trading, as well as in the "Your Active Positions and Orders" section. This helps you track how your profit or loss changes during your trading.
Therefore, understanding how your profit or loss is calculated and displayed is important for evaluating the results of your trades on the Bitsofa platform.
Profit or Loss on Your Account:
1. Currency of Profit or Loss: Your profit or loss is always expressed in the currency of the base asset you are trading. For example, if you are trading the BTC/USDT pair, the currency in which your profit or loss will be displayed is USDT.
2. Trading Balance Block: This is where you can see your profit or loss for your position. It displays the unrealized profit or loss from all your open positions. You can view this information both in the base currency of the traded asset (e.g., BTC) and in the currency that is on your trading account.
Therefore, you can always easily track your profit or loss in the currency that matters to you, helping you understand the results of your trades and investments on the platform.
"BTC Wallet" funds transfer
Press a wallet icon in the "Trading balance" section
Press "Withdraw" in the pop-up window
Indicate a withdrawal amount and press "Confirm"
Wait for your "BTC wallet" top-up
Important Risk Warning: Trading with leverage may not be suitable for all investors. It involves a high level of risk to your invested funds. Before you start trading, make sure you fully understand all potential risks, taking into consideration your goals and experience in investing. If necessary, seek independent advice from specialists.
It's important to remember that when conducting trades, you do not become the owner of the underlying assets and do not acquire any other rights to them.