Magnr describes itself as “the most secure leveraged bitcoin trading platform” and “the first savings account for bitcoin”. Find out what you need to know about Magnr today in our review.
What is Magnr?
Magnr is a bitcoin trading platform that offers several unique features – like a savings account and leveraged trading.
The company is based in London. Magnr launched in January 2014. However, the company dates back to 2013, when it operated as Btc.sx. Today, the Btc.sx website redirects to Magnr.com.
Magnr operates just one pair: BTC/USD. Today, customers can deposit bitcoins to earn a fixed annual interest rate of 1.28%.
Magnr offers two core services to customers: you can deposit money into a Magnr savings account and earn interest. Or, you can trade on the Magnr exchange and enjoy leveraged trading. The reason Magnr can offer an interest-generating savings account is because the company earns interest from traders engaging in leveraged trading.
How Does Magnr Work?
Magnr offers an annual interest rate of 1.28%. Interest payments are made at the end of every month. The interest rate changes frequently. A few months ago, it was at 2.18%.
How can Magnr offer a savings account? Well, after you deposit bitcoin into Magnr, your bitcoins are used to fund leveraged trades. The traders pay an interest rate to execute leverage trades, and that interest is passed back to Magnr savings accounts.
There are two interest rates available with Magnr: a fixed introductory rate as well as a variable interest rate. The rate varies according to trading activity on the Magnr trading platform.
Traders can open long or short positions through the Magnr trading platform. When you open a long or short position, a corresponding buy and sell order is placed on the market at a matching exchange with or without leverage. All positions opened have a corresponding position, which means any profits gained or losses generated from market movements will be passed directly to the client.
Here are some of the features that make Magnr a popular leveraged bitcoin trading platform.
- Currently, Magnr offers an introductory interest rate fixed at 1.28%.
- Interest payments are made at the end of every month
- After the introductory period, interest is earned based on the variable rate, which changes based on trading volume on the exchange (the more trading volume, the more interest you’ll earn)
- The maximum amount of interest you can earn is 100 bitcoins
- You can deposit more than 100 bitcoins for safe storage, although interest will only be paid on your first 100 bitcoins
- Withdrawals can be made at any time, and interest is earned on the balance held on your account
- Leverages of 10:1, 5:1, and 2:1 are available
- Volatility multiplier of 10% to 20%
- Minimum trade size of $5 (equates to $50 at 10:1 leverage), maximum trade size of $1000 (equates to $10,000 at 10:1)
Here are some of the key fees charged by Magnr:
- Deposit: Zero fees (minimum deposit of 0.001 BTC)
- Withdrawal: Zero fees (minimum withdrawal of 0.001 BTC)
- Open and Close Trade Fees: 0.5%
- Gap Losses: 0
Magnr doesn’t accept deposits in any fiat currency. They only accept deposits in bitcoin. Your funds are deposited once 3 confirmations are received, which typically takes about 30 minutes.
Magnr was launched in January 2014. Prior to January, the company operated as Btc.sx. Magnr is based in London’s Silicon Roundabout. The company is led by CEO Colin Kwan, a former VP for Deutsche Bank. Other members of the founding team included former employees from Barclays, eBay, and Jaguar Land Rover.
Colin Kwan was elected as the director of the board for the UK Digital Currency Association (UKDCA). The organization is responsible for lobbying the UK government in support of digital currencies.
Magnr offers two unique services to the bitcoin community: a bitcoin savings account and leveraged bitcoin trading. You can deposit your bitcoin into the savings account, then earn interest on your balance (the current interest rate is 1.28%). Or, you can sign up for Magnr as a trader and enjoy leveraged bitcoin trading. Magnr offers an interest-generating savings account because it earns interest off of traders’ leveraged trading activities.
You can learn more about Magnr, or sign up for the platform today, by visiting the company online at Magnr.com.