End of zero commissions in China
Today something happened we expected all this week. Сrypotocurrency exchanges since the early days of the year have been waiting for a decision concerning fees on Chinese exchanges, which may significantly affect Bitcoin trading.
The rate of Bitcoin had dropped by 40-50 dollars, just a few hours before the release of news.
It should be noted, mainly European and American exchanges reacted negatively, as well as branches of Chinese exchanges working with BTC / USD, on exchanges working with BTC / CNY were not any sharp fluctuations. Probably, their traders are still not used to pay for each deal and plan new strategies.
However, even falling on the USD cryptocurrency platforms did not last long and soon after the release of reports the exchanges began to rise, almost fully recovered lost positions.
What are the new features:
- When you buy cryptocurrencies - a commission fee will be charged in cryptocurrency, if you sale, a commission fee will be charged in yuan (CNY).
- Single commission fee will be at 0.2% of the transaction amount.
To customers using API, it is recommended to make adjustments to the trading strategies, taking into account new cryptocurrency trading conditions.
What does this introduction mean for the Bitcoin ecosystem and cryptocurrencies as a whole? We all know that Chinese exchanges generate major trading volumes in cryptocurrencies, particularly in Bitcoins. Besides the weakening of the yuan, inflated trading volumes, there were two other reasons that constantly facilitated to continuous strengthening of this trend.
Margin trading or providing leverage, absent of trading commissions are two reasons that interlinked with each other. First of all, margin trading covered the cost and allowed no charge for deals, allowing customers to make countless operations with micro incomes or losses, increasing many times already large trading volumes.
Now, margin trading is prohibited. New commissions will cut off a huge layer of small speculators and give us a more realistic picture of the trade.
Besides, the elimination of margin trading, the Bitcoin rate will stabilize and eliminate the possibility of large-scale speculations, which strongly undermined its course. The last positive point lies - was removed uncertainty from the Chinese regulators, which also weighed heavily on the course.
So, at first glance, this measure should bring only a positive effect, it is necessary to see it in real performance.