Ethbits.com is raising funds to develop a platform designed to take LocalBitcoins style trading to the next level. The UK registered company has already developed a platform called Ethbits Local, which facilitates peer to peer online trades as well as face to face trades for a range of Cryptocurrencies.
LocalBitcoins was founded in June 2012 by Jeremias Kangas. The platform connects bitcoin buyers and sellers in an over-the-counter trading environment. Users request or offer the cryptocurrency for a fixed amount, and settle trades in person for cash, or online with bank transfers. By August 2016, LocalBitcoins had 1.35 million people from 249 countries using the platform, and trading in excess of US$14 million per week.
“Local bitcoins allows users to buy bitcoin without a bank account, but we are moving into Alternative currencies to cater for the growing movement into crypto.” said Pravjit Singh, Ethbits.com Director, Founder & CEO
Ethbits Local will launch immediately after a Token Crowd Sale running from April 15th through to May 13th. The platforms token will be used by customers to pay site fees, while a planned integration with the payment cards like mycelium will allow the tokens to be spent around the world. The funds will help Ethbits.com enter the second phase of development, a trading exchange called iTrade.
Ethbits iTrade will launch in 2018, covering the top 15 cryptocurrencies. The trading platform revolves around a system known as “copy trading,” which enables traders in the financial markets to automatically copy positions opened and managed by a selected investor.
New traders benefit from the expertise and knowledge of experienced market gamers, who can amplify their profits based on their number of followers. “Traders who work in our platform have the opportunity of earning a percentage of their follower’s profit and obtain power-ups to gain certain privileges, such as reduced fees,” explains Ethbit.com Director, Founder & CEO Pravjit Singh.
ETHBITS iTrade will provide new users with all the information needed to decide whom to follow, including a full profile outlining profit and loss in different time frames and historical graphs of performance. Users can choose to be notified every time they copy a trade and can check the overall profit ratio for a certain period.
“Our ultimate objective is to create an exchange for the people owned by the people which also provides profit to the people; because we believe our profit is our investors profit too.”
Copy trading has led to the development of a new type of investment portfolio, which some industry insiders call “people-based” portfolios. People-based portfolios differ from traditional investment portfolios in that funds are invested in other traders, rather than traditional market-based instruments. The system has become increasingly popular in recent years.
Prominent copy trading providers include eToro, ZuluTrade, Cmstrader, and many more. eToro was founded in 2007, and is domiciled in Limassol, Cyprus. The platform is currently used by more than 5,000,000 traders. It is regulated by NFA, CySEC, ASIC, CFTC, MiFID, FCA and has been the recipient of several awards.
ZuluTrade was also founded in 2007, enables traders to share their knowledge with people interested in their strategies. In the strictest sense, ZuluTrade is considered a Forex autotrading platform, as it allows traders to automatically copy the trades of others into their own trading platform. Many also consider it a social trading platform, however, because traders can leave comments and feedback and see live feeds of other traders’ activities.
Cmstrader is a relative newcomer to the Forex scene. Since opening its doors in 2013, it has won several international awards including one for being the leading Forex broker and for having best customer service in 2013. Cmstrader is headquartered in the UK and has service offices in Cyprus, Hong Kong, France and the Kingdom of Bahrain. It offers a host of features but most outstanding is its customer support which is provided in a number of ways including by remote control through team viewer, a high tech and timely system not offered by any other broker.
While there are many more platforms offering copy trade style trading, very few offer a variety of cryptocurrencies. Zulutrade and eToro offer trades on bitcoin, eToro recently added Ethereum. Ethbits aims to launch with the top 15 cryptocurrencies.
There will also be the option to Auto Trade, a feature that automatically follows the top traders based on their performance. Auto Trade will be implemented alongside a separate feature, the Ehtbits Investment Fund, which is managed by the company and will invest in leading cryptocurrencies.
While developers get to work, the CEO plans to move headquarters to Gibraltar, with a services office in the UK. Ethbits.com also has agreements to open offices in UK, France, Spain, China, USA and Australia. A full legal team will be hired to assist with expansion and legal compliance. The end goal is 20 offices across the globe.
“Having easy-to-use, secure cryptocurrency technology that integrates P2P exchange between fiat and cryptocurrency, credit card capability, and cold, secure storage of user funds while providing novice users techniques to improve their skills is the future of safe trading and exchange of assets. Providing users with a return on net profits serves as an additional Enticement.”