[NEWS] Paymium introduces negative transaction fees and it changes everything !

[NEWS] Paymium introduces negative transaction fees and it changes everything !

By McAlex7 | justsomenews | 10 Apr 2020


In a world where cryptocurrency is more and more popular some crypto enterprises decide to make risky moves like Paymium (a french trading platform). They've established negative transaction fees up to 0,1%, which is kind of unusual because it is like traders are remunerated to trade. It is a premiere in Europe (for BTC/EUR), so let me drive you trough this surprising decision.

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Let's start by what is the benefit for the enterprise to establish negative fees. The main interest for Paymium is to improve the liquidity needed for an active market, they said that by introducing negative fees, customers who will bring liquidity (market makers therefore), are directly rewarded. This allows them to set the price and quantity of Bitcoin for sale, not only free of commission, but also paid for their transactions. Meanwhile the “takers” (who place immediate orders on the market) will be subject to a 0.5% fee when they “take” available liquidity.

Their second objective is to encourage the arrival of new people on the platform. 

"As a trading platform, our first priority is to provide secure access to cryptocurrencies to the maximum of people in Europe, and this requires a good level of liquidity. We are confident that this unique initiative will help further boost exchanges on our Paymium platform»,said Paymium’s founder, Pierre Noizat 

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Indeed cryptocurrency transaction cost a lot more than the traditional markets, this imbalance is due to the fact that the exchange platforms which charge these high tariffs assume that there are few alternatives in this emerging market. Indeed the more rare a thing is, the more expensive it is, it is then perfectly illustrated with the platforms who apply very high transaction fees, offering the best prices to customers who exchange the largest volumes in their market.

Furthermore Paymium presents some advantages, negative transactions fees, possibility to use Apple Pay, has an Application on iOS and Android, and more. 

To finish, I will say that their idea is interesting and very ambitious, however we can wonder if it will last and if there will be no abuse of this system by certain people, let me know what you think !


McAlex7
McAlex7

i'm alex and i'm here to bring you news, informations and some of my knowledge about the cryptocurrency world !


justsomenews
justsomenews

Just bringing few information, knowledge and news around the crypto world

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