Magnr Review

Thursday, 28 Sep 2017 17:08

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 Magn

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.

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