How to open a Bitcoin savings and trading account with Magnr

28 Sep 2017

One of the greatest advantages in Bitcoin is the security provided by its encryption algorithm, as long as you have the private key to your wallet safely stored on your hard drive, external drive, or even on a piece of paper no one can make a withdrawal without your consent, unless they hack your computer or gain physical access to that same private key. Security is indeed one of the greatest advantages of a peer-to-peer network, but this security can have a downside when compared to centralized bodies like a bank or an exchange.

But no fear we have a solution for you!

Magnr is one of the most secure and leading Bitcoin trading and investment platforms out there, and we are going to show you why and how to use it to make your Bitcoin work for you!

Magnr currently offers Bitcoin holders two methods of growing their investments through their platform. If you are looking for a low risk, steady return on your Bitcoin, Magnr Savings provides a regular interest reward for your deposited funds. For those looking for a greater rate of return (but at a higher risk), Magnr Trading allows its users to take advantage of market price movements with its leverage trading service.

Secure Investment Rewards

In the digital currency world you can’t earn interest on your Bitcoin just by storing it away on your wallet, and trading is not for everyone. This is where Magnr comes in.

So how secure is Magnr

Security is something Magnr does not take lightly. The business implementation in fund management is such that they never run hot-wallet addresses for any client or business wallets, but instead opt for cold storage facilities that are securely protected using BitGo’s industry leading multi-sig technology. With this, all funds under their control require multiple signatories to approve before they can be moved off site.

As part of their strict process, every single client Withdrawal is monitored and subjected to human-audit before manual handling from their cold-storage facilities. Although this means that withdrawals can take a maximum of 24 hours, this policy designed to prioritize security over convenience, and allows for a greater level of accountability at all times.

Further account security enhancement provided by the client-enabled two-factor authentication (TFA).

What is the Reward?

When storing your Bitcoin with Magnr can enjoy the security Bitcoin provides, as well as a low risk interest return on your Bitcoin holdings. The current rate is 1.28% which is more than many of the established financial institution's offer.

How can Magnr afford this, and where does this interest come from?

This interest doesn’t show up out of nowhere, much like a Bank, Magnr uses the funds you deposit in a savings account to make investments that will provide a return for the business, giving you part of the returns by rewarding you with interest on your long term deposits.
Magnr is able to generate interest revenue by using a controlled proportion of user deposits to supplement their own private trading reserves at one of the three partner exchanges, Bitstamp, Bitfinex and itBit. When a client uses the Magnr trading platform to take advantage of the market price movements, they will be charged for use of the borrowed (leveraged) Bitcoin. 

But how does Magnr know the trader will be right in his price prediction and not lose the investor’s money?

They don’t need to. In order to use the leveraged trading platform, trade clients must first deposit bitcoin into a separate trading wallet. With each trade position, a deposit is held as collateral for the Bitcoin lent out. If the market goes against the direction of a trade, and the user is on the limit of defaulting on the investment (deposit), Magnr’s algorithm will automatically liquidate and close out their position. This means that even if a trader loses money, the investor’s remaining Bitcoin balance is always safe.

Using Magnr’s leveraged (borrowing) trading service can be an effective way to multiply your investment with a relatively small deposit. If you know what you’re doing you can double or triple your investment with the price movement of Bitcoin. Conversely, you can also erode it substantially by making the wrong predictions. In addition to their regular Limit Stop feature described above, Magnr allows traders to vary and control any potential losses through their Stop-Loss function. Again, this a good way of managing losses until traders become familiar with Trading Bitcoin.

How can Magnr afford this, and where does this interest come from? This interest doesn’t show up out of nowhere, much like a Bank, Magnr uses the funds you deposit in a savings account to make investments that will provide a return for the business, giving you part of the returns by rewarding you with interest on your long term deposits.

Magnr is able to generate interest revenue by using a controlled proportion of user deposits to supplement their own private trading reserves at one of the three partner exchanges, Bitstamp, Bitfinex and itBit. When a client uses the Magnr trading platform to take advantage of the market price movements, they will be charged for use of the borrowed (leveraged) Bitcoin.

For more information, check out Magnr Twitter and Facebook.

How to open a Bitcoin savings account

Opening a Bitcoin Savings account with Magnr is easy, all you have to do is register an account, deposit your Bitcoins and watch them grow daily!

Step 1: Head over to Magnr and click products > savings. Create an account with your email and a strong password. Magnr will send an email to your email address, click it to activate your account and login.

Step 2:  You account has been verified and you can now login. In order to login you must solve a simple captcha, which prevents brute-force attacks on your account. After the captcha has been solved you have to check the wallet address on your Savings account.

Step 3: Now, all you have to do is transfer the desired amount of BTC from your favourite wallet or exchange to the address shown on your account. Once you have set your Bitcoins, wait for them to show up on your Magnr account and you’re all set! No complicated paperwork, no need to divulge your identity, just a few clicks and you’re done. You can now watch your profit grow daily and you can withdraw it a month after the initial deposit.

 

How to trade Bitcoin on the Magnr Platform

Using this same account, you can also put your trading skills to the test using the various tools provided by Magnr. Have a look at their available toolkit:

In order to maximize profit, traders use the leverage or margin system. In this system the trader deposits a certain amount as collateral and borrows money from the exchange in order to maximize his profits.

Step 1: So, the first thing you’ll need to do after you deposit is to choose your leverage size. Go to ADVANCED and choose your leverage. You can choose between three leverage sizes as shown in the picture below. The more leverage you use the more your initial holdings are at risk - but then again the more you can gain!

I

If you deposit 1 btc and choose the 5:1 leverage, you’ll have 5btc to trade with. The bigger your leverage size, the bigger your wins/losses.

Step 2: You can also set a Stop Loss and Sell Limit order, this allows you to safely leave the markets and not worry about losing money or missing out on a peak!

Stop Loss: When you set a stop loss order it will be triggered when the price moves below the limit you have set, this means the order can be closed at a lower price than what you have set.  In this example, the Stop price is $1263

Sell Limit: When you set a stop loss order it will be triggered when the price moves above the limit you have set, this means the order can be closed at a higher price than what you have set. In this example, the Sell Limit is $600

(If you're wondering why our stop loss is higher and our sell limit is lower, it's because we were shorting Bitcoin. If you were hoping for the price to go up, the Stop loss would be $600 and the Sell limit would be $1263)

Step 3: Now you have to choose your Position size, depending on your leverage, a part, or the whole initial deposit will be held as collateral for your loan. If your initial balance gets close to not being enough to repay the loan, your account will be liquidated.

Step 4: Now that you have all your settings defined, it’s time to make an order. You can choose Sell or Buy according to your prediction. Your prediction can be based in many things: Technical Analysis, Fundamental analysis or just pure gut feeling!

That's it, now all you have to do is wait for the markets to work in your favour and collect your profits whenever you think it's time to do so. Magnr has made Margin trading easy and fast, while putting the fees back in the pockets of its users in the Savings Account section. 

Check out how quickly we placed a Buy order on the Magnr Platform:

Good Luck and Happy Trading!

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