On Apr 24, 2020, our CEO, Chieh, held his first AMA session with Philip Masa on YouTube live. In the live video, he introduced Overbit and himself in more detail.
Chieh is a veteran in the cryptocurrency space and has also been an Forex trader in the past. Overbit was founded in 2017 and officially launched in 2018 to cater to users who preferred a platform that is easy and simple to use.
Overbit is a margin trading platform and accepts deposits in BTC and most recently, USDT. The largest leverage is 500x for Forex and commodities. While oil has yet to be added to Overbit, it is a feature that is in the future roadmap. Overbit prides itself on three major features:
- Security - Multi-signature cold wallet feature, AML measures.
- Fair market pricing - there is no pricing manipulation as the prices on Overbit are derived from the world’s top exchanges
- Liquidity - Overbit ensures pairing of positions and works with several liquidity partners.
Chieh also talked about the new features included in the recent update, which is the ability to choose and toggle between 2 modes when trading on Overbit - fees and spreads. Isolated and cross margins were also included in the updates. Please check Overbit’s help center for detailed guides and information regarding the new updates and features. This update also brought about a much faster interface with 0 downtime, 300% faster, 100k transactions per second.
Overbit will be introducing its own academy and it will include various educational pieces on blockchain, trading and etc. A mobile app is also coming soon, it is in development and will be released on Android at the end of June (TBC), followed by an iOS release.
Below are the questions answered during the AMA session.
Q1. How old are you, Chieh?
31 years old.
Q2. Why are you not listed on CMC/CoinGecko?
Actually, this is related to our fair market pricing. To be listed on CMC/CoinGecko, we need to have our own order book (which will be uploaded to CMC/CoinGecko), so while we would love to be listed on CMC/CoinGecko and understand the merits of being listed on CMC/CoinGecko (better recognition for our users), currently we still require further discussion and planning.
Q3. Will Overbit’s oil prices become negative?
We have not yet listed oil on Overbit. Talking about this, our technical team has had ~10 years of experience working with FX systems and for the first time, they saw negative numbers so no one is sure about what is going to happen. For starters, since we already know that there can be negative numbers, we will make sure that we do the coding properly.
Q4. Where does Overbit get their prices from?
As previously mentioned, Overbit’s prices are derived from an average of other top exchanges’ order book.
Q5. If the trader profits, does it become Overbit’s loss?
It is always a pair at Overbit. For example, if there is 1 BTC on sell position, there will be a 1 BTC on buy position. Let’s say if on Overbit, there are 100 BTC on a buy position and just 1 BTC on a sell position, it becomes a very risky situation for us. So, what Overbit does is we would then work with our external partners to achieve an equilibrium for the remaining 99 BTC.
Q6. Would you use API for liquidity supply?
Currently, we only have an internal API and we work with liquidity partners. We have considered providing an API and will look to do it in future.
Q7. How can I become an affiliate partner?
Please apply on our website via our online form and our team will process your application from there. We have other details and a commission calculator so please check it out!
Please go to this page: https://www.overbit.com/en/affiliates
Q8. How do you pay affiliates?
When a user signs up using your affiliate link and starts trading on Overbit, a percentage will be paid out as commission. You will be paid within 24 hours into your Overbit account.
Q9. When is the next AMA?
We have not decided on an exact date but we would definitely love to have another AMA in the near future.
Q10. What are your thoughts on the upcoming bitcoin halving?
Theoretically, the price of bitcoin should go up as the supply decreases. However, I think the chances of bitcoin’s prices rising by a huge percentage, as seen previously, is slim as there are a lot more leverage trading/exchanges now, as compared to before. I think due to the decrease in supply, the cost to mine will increase while the reward will decrease so probably smaller mining companies will not continue to operate.
Q11. Can you have both long and short positions?
Yes, that is possible but as the price fluctuates, you would also have losses and profits fluctuating both ways.
Q12. Where are you from, Chieh?
I was born in Taiwan.
Q13. Please allow partial profit/partial closing of a position instead of closing the entire position.
That is an interesting opinion. Currently, Overbit does not have that feature but moving forward, it will be a function that we will add to Overbit.
Q14. Do you have any seminars catering to beginners?
Sure, that’d be great - we could have a session focusing more on the platform’s features in the future.
Q15. Do you plan to add options and futures to Overbit?
We don’t really have plans to do that. Recently, we did a traders’ survey that collected the feedback from 2500+ traders and from there, we understand that there are not many people who are well-versed in options and futures.
Q16. I have a 0.3BTC bonus from signing up from a referral link. There is no information or notice about the expiry date so why did it disappear?
Previously, we had a campaign offering 0.03BTC (not 0.3BTC) to new users who signed up with us and the expiry date is 30 days. The details were written under the terms & conditions but probably, you might have missed the details. This campaign has currently ended.
Q17. The plus/minus fluctuates often. I want to understand how the fluctuations in these buy/sell interests are set.
These are actually set based on ratios. For example, if the buying and selling ratio is 50%-50% then both interests would be the same. If the buying and selling ratio is 90%-10%, then the interest would be higher for selling. We understand that people would naturally want to go for the position that has higher profits, so we set this ratio to have a balance between the buying and selling positions.
Q18. It is hard to hold a position for a long time.
Totally understand. Actually, it is not recommended to hold a position for a long time on a margin trading platform as there are interests. For example, if you wish to hold 1 BTC for 1 year, it is recommended that you actually purchase 1 BTC from an exchange and keep it in a cold wallet.
Q19. There are fees and spreads, which is recommended?
It is totally up to your preferences. There are no merits/demerits to both so it really depends on your style and preferences. The amount you pay is the same for both.
Q20. When is Overbit’s academy going to go live?
We are creating the articles and it will start in English, with a plan to go live from June 2020 (TBC).
Q21. I wish the withdrawal fees were cheaper.
Overbit does not charge for deposits and withdrawals. You will be charged a small withdrawal fee, which is simply the Bitcoin transaction fee. We do hear this feedback, however, and we will discuss with our partners to see how we can improve on this.
Q22. Could you increase the number of pairs of FX instruments?
Yes, we do have plans for that. Besides oil, we have plans to add other pairs too.
Q23. I am interested to know the survey’s results, when will it be announced?
We will be releasing it soon. The English version is almost completed and the Japanese version will be released on CoinPost. Of course, we will also be releasing this on our blog.
Q24. I'm a miner, so I want to hold the currencies that I expect for mining in the selling position for a long time. However, it is difficult because interest rates may increase.
There are actually no merits to holding the positions for a long time (like a month) for derivatives/margin trading. Thus, it is not recommended. However, you may choose to hold your positions for a week or so.
Q25. On another exchange, it seems like they charge for limit and stop loss settlements; is it the same with Overbit?
No, Overbit does not charge for limit and stop loss settlements.
The 1-hour long AMA has officially concluded and please do stay tuned to Overbit’s next AMA session.
Margin trading carries a high level of risk to your capital and you should only trade with money you can afford to lose. Margin trading may not be suitable for all traders, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.
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