As the cryptocurrency market grows, there is a growing interest in derivatives for digital assets. Seasoned bitcoin users are looking for new opportunities that have long been known in traditional financial markets. The increases do not last forever, so it is worth looking at the mechanisms that allow you to earn even when the bitcoin price drops. The market of cryptocurrency derivatives in recent years was dominated by the controversial BitMEX platform – users did not have much choice at that time. Now the situation has started to change, incl. due to Geco.one – a new margin-trading cryptocurrency exchange created by Poles.
Geco.one – a safer alternative to BitMEX
Considering the issue of security, a better choice than a company registered in Seychelles will be an entity that has chosen one of the EU countries as its jurisdiction. In terms of cryptocurrency market regulation, Estonia is currently leading in Europe. Although the registration of a company in this country requires much greater transparency from the owners, stock exchanges and entities related to the digital asset market are increasingly moving here. For companies, such a move brings greater legislative security, and users – more peace of mind when it comes to the deposit. It is from this assumption that team Geco.one. In addition to registration in Estonia, Geco One, along with companies such as PZU and Orlen, inaugurated Polish-Estonian Chamber of Commerce.
When thinking about profit, remember about safety
While blockchain is called “trust technology,” it alone is not enough to properly secure users’ funds. Especially in the case of exchanges that are responsible for user deposits. That is why Geco.one cooperates with qualified entities such as BitGo, whose task is to insure deposits. Moreover, in order to increase the level of security, the vast majority of funds are kept for the so-called cold wallets, not connected to the Internet, and only the necessary funds are left on the platform itself, used for current transactions.
What makes Geco.one different from traditional cryptocurrency exchanges?
Traditional cryptocurrency exchanges allow you to buy bitcoin and other digital assets at the current rate, depending on the offers available at the time. Profits are achieved when the price of the purchased cryptocurrency increases in value and we make a sale. The cryptocurrency market, like other markets, is cyclical, so we cannot count on the fact that the increases will continue indefinitely. Is it impossible to earn on cryptocurrencies in a period of decline? Not necessarily.
Unlike exchanges that only offer simple cryptocurrency purchase and sale transactions at the current rate, margin-trading exchanges such as Geco.oneoffer a much wider range of possibilities.
What earning opportunities does Geco.one give you?
Geco.one It currently offers 48 different assets on 4 markets:
- cryptocurrencies, incl. BTC / USD, ETH / USD;
- traditional currencies, incl. EUR / USD, EUR / GBP;
- indexes, incl. NASDAQ, Dow Jones;
- goods, e.g., Brent, Crude;
In all of these markets, users have the option of trading with leverage as low as 1: 100. In addition, users can place 5 types of orders on the exchange: fast trade, market, stop, limit and OCO (one-cancels-other). To further increase the level of security, the developers added a negative balance protection mechanism to the platform. At a time when the cryptocurrency market is not conducive to trade, users also have other, traditional assets at their disposal.
A nod to the users Geco.one it is possible to freely configure the interface of the platform. Each user can easily arrange individual elements of the stock exchange, according to individual preferences. Compared to other platforms, we will see at first glance that the platform created by the Polish team is clear and intuitive. Instead of spending time looking for the functions we need, we can just trade.
Margin trading on the bitcoin and cryptocurrency market
Margin trading allows you to trade with a larger position size, while determining the amount of collateral that you are willing to risk. The capital that makes up the increased size of the position is lent to the investor, with its original interest being used as collateral.
For example, Jan has $ 10,000 free in BTC that he has decided to use as a deposit. On a traditional exchange, if the BTC rate increased by 10%, Jan would have made a profit of $ 1,000 (minus transaction fees).
However, if on the basis of his analysis, Jan was sure that the bitcoin price would increase, he could also make a transaction with a lever (or so-called lever) to make a greater profit. Geco.one allows you to trade with up to 100x leverage.
But let’s say John wants to use 10x leverage, using his $ 10,000 bitcoin as collateral. In this case, the value of his position would be $ 100,000 ($ 10,000 x 10).
If John decided to take a “long” position – assuming BTC rises – for every $ 1 increase in Bitcoin’s price, John’s position would yield $ 10 in profit. Similarly, in the event of a fall, John’s position would decrease by $ 10 for every $ 1 decline in BTC.
While BTC is moving in the direction John predicted, he can keep his trade open as long as he likes. If John decides to close his long position when BTC / USD rises by 50%, he will make a profit of $ 50,000 ($ 10,000 deposit x 1.5 x 10x leverage).
Rule no. 1: Don’t invest more than you can afford to lose.
Each user of the exchange would surely like to earn money on every transaction made. Unfortunately, when thinking about profits, we must always consider the risk of losing money as well. That is why we recommend that you remember the basic rule: “do not invest more than you can lose”. Exchange Geco.one implemented, among others a mechanism to protect against a negative deposit, but you should always realistically assess your financial capabilities.
No KYC = more privacy and anonymity
Deposits on the stock exchange Geco.one are currently made only in bitcoin (BTC). Unlike platforms that support deposits in traditional currencies, there is no need to provide private data in this case. Therefore, we do not have to provide information such as home address or data from an ID card. This is undoubtedly an advantage for many users. Privacy and anonymity are the foundations of cryptocurrencies, which are unfortunately in vain to find on exchanges that support fiat currencies. We need to verify the identity only if we decide to buy BTC through a widget integrated on the platform that allows card payments. However, if we send bitcoins to the deposit from our own external wallet, additional verification will not be necessary.
Registration on Geco.one
Geco.one is also distinguished by the speed of registration – it takes about 30 seconds and requires only basic data that will be used to log in. After confirming the registration (by clicking the link in the e-mail), we can immediately log in to the platform, send the deposit and start trading.
Registration on Geco.one: https://app.geco.one/register?ref=C8QIOIun