The feature also works when selling Bitcoin, so traders effectively have an easier time profiting from changes in the Bitcoin price. The below image, courtesy of CleverCoin, illustrates how easy it is now for even the most novice trader to see how they will win via Boost trading.
Karsten Nilsen, CEO of CleverCoin, said of the feature via Skype, “It’s a flexible option that gives people to speculate with some leverage or buy and sell without paying the full amount at once.” He provided CCN with two examples of how the Boost feature works when selling Bitcoin.
1. You sell 1 Bitcoin at the market price of € 250.00. You pay at the time Ƀ 0.10000000 (10% x Ƀ 1.00000000). The price rises to € 260.00 at the time of early termination. Then the sold Bitcoin will be repurchased for that market price of € 260.00 and you will receive Ƀ 0.96153846 (the amount paid x (purchase / sale price) = 1.00000000 x Ƀ (€ 250.00 / € 260.00).
2. You sell 1 Bitcoin at the market price of € 250.00. You pay at the time Ƀ 0.10000000 (10% x Ƀ 1.00000000). The price falls to € 240.00 at the time of early termination. Then the sold Bitcoin will be repurchased for that market price of € 240.00 and you will receive Ƀ 1.04166667 (the amount paid x (purchase / sale price) = 1.00000000 x Ƀ (€ 250.00 / € 240.00).
Also read: Coinbase Across The Pond: Bitcoin Exchange Opens In UK
CleverCoin is currently not licensed for the US and other countries, so the Boost feature will really only be useful to those with European bank accounts for the near-term. Nilsen says the exchange is working on getting licensure in other jurisdictions.
We currently only have the proper licenses to support European countries, but we are working on making it available to more countries.
CleverCoin has been around since 2013 and currently focuses on European customers trading in BTC and Euros. This move to make profiting from price fluctuations easier than traditional margin trading marks it as an innovator, and hopefully will induce competitors to come up with similar features for other markets. The company is backed by the Boost venture capitalist group which counts preeminent Bitcoiner Tim Draper as its founder.
One of the big drawbacks to those looking to dive into Bitcoin, after all, is the possibility that the price will have dived within days of their purchase, thereby making their investment already worth less than it cost. By giving users a chance to re-consider, the exchange is offering a new level of user-friendliness which may attract more customers to its platforms.
Last modified: June 10, 2020 4:56 PM UTC