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Exchange performance review – 2017 August/September/October

In order, to learn from our mistakes and improve our decision-making we analyse every order executed. We believe that being transparent will help to maximize gains on both sides. Therefore, in this post we are comparing our past 3 months results in getting the most optimal rate while buying cryptocurrencies within the given timeframe.

On average for the past 3 months we have achieved 3.26% better prices for our clients than the average market price when the order was placed. Our fee from 0.2% to 2% is included in these calculations.

All statistics in this article are comprised from orders who have chosen execution time ranging from 5 days to 30 days.

Our exchange platform allows clients to choose the amount of time they are willing to wait before the order gets executed. They can choose from ASAP to 30 days.

Giving us the default 15 days execution time allows the usage of our know-how of crypto market dynamics. We are also able to execute high volume orders without impacting the market price.

Table below represents the statistics of what rate our clients actually got versus average market price on the day they submitted the buy/sell order.

Kaiserex execution price vs average daily price

Buy

Sell

Avg. gain %Max. gain %Max. loss %Pos. outcomesAvg. gain %Max. gain %Max. loss %Pos. outcomes
Bitcoin2.37%8.38%-5.68%87.49% -8.42%*-2.45%*-14.40%*0%*
Altcoins3.83%24.05%-9.94%66.58%7.97%*7.97%*7.97%*100%*
All orders3.24%24.05%-9.94%75.02%3.28%*7.97%*-14.4%*71.5%*

Avg. gain % – Average percentage gain from orders comparing to daily average price.

Max. gain % – Maximum percentages gained from a single order comparing to daily average price.

Max. loss % – Maximum percentages lost from a single order comparing to daily average price.

Pos. outcomes – Percentage of orders that had better results comparing to daily average price.

*Currently over 95% of our orders are buying and only very few go towards selling. Statistics from the sell section are not conclusive, since they were made from a very small amount of sell orders which happened before September price crash. In order to be fully transparent we are sharing these as well.

Our analysis includes China’s implemented ban on ICO and tighter regulations on cryptocurrencies exchanges which led to a dramatic almost 40% decrease in the value of BTC (annex 1).

Annex 1. Source: Cryptocurrency Market Capitalization

At the moment we had access to more than 30 cryptocurrency exchanges worldwide.

Our research showed that during the period when market is in the recession we managed to get away with an average of 1.27%* loss in comparison to buying the assets asap. The biggest issue during the fall in the price of cryptocurrencies was to move fiat money fast enough to buy cryptocurrencies before the price recovered.

On the other hand, during the growth period with the given timeframe we managed to get an average of 3.91%* more units of cryptocurrencies than buying them asap. The range in our results varied between -9.48%* and +22.15%*.  Giving our team recommended 15 days timeframe to execute orders not only minimized costs by balancing out the commission fee for our clients, but they got a reasonably higher result.

A few actual cases

a) Client placed a 1 000 EUR order for Byteball bytes on September 5th (average value of GBYTE on that day was approx. 295.5 EUR which would have summed up to around 3.23 units of GBYTE(including our fees)) and set September 14th as an execution date. Our experts decided to purchase GBYTE on September 7th when the value of GBYTE was 4% lower and ended up by getting 8.58%* more units of GBYTE.

b) Client placed a 5 000 EUR order for Bitcoin on August 29th (average price of BTC on that day was 3860.2 EUR which would have summed up to around 1.2745 units of BTC(including our fees)) and set September 27th as an execution date. Our experts saw an opportunity to purchase Bitcoin on the same day (August 29th) at a much lower price than the average price that day, so ended up getting 5,29%* more units of Bitcoin to the client.

Considering that this market is still at an early stage and is still developing, unexpected events might occur, hence, there is always some risk involved. Even though Bitcoin price was affected dramatically in the past two months Kaiserex still managed to get a better deal if the Client gave 15 days to execute the order (annex 2).

Limiting factors to execute every order at better than average market price

  • Deploying fiat capital taking too much time
  • Extreme volatility during crashes and breakouts
  • Unpredictable market moves
  • Partner exchanges not operating as usual
  • Other circumstantial factors

We are constantly working on optimizing our process to have the least limiting factors that are possible, but this is a never ending process – especially in such a young market.

Adjusting results to real market conditions

When buying or selling bitcoin, every user will pay an average fee of 0.25% on the exchange they are using.
When exchanging fiat currencies to altcoins, they will pay this fee twice.

If we would add these standard fees to daily average market price this would improve our results even more and better reflect true difference between retail crypto traders and Kaiserex buying/selling cryptocurrencies.

Differences between Kaiserex buying/selling cryptocurrency and a retail user
KaiserexRetail user
·         Has access to 30+ cryptocurrency markets

·         Has automated tools to maximize performance

·         Uses statistical models to predict various price fluctuations

·         Can execute high volume orders without increasing the price

·         Can deposit fiat reasonably fast

·         Constantly does due diligence on exchange partners

·         Has access to 1-3 cryptocurrency markets

·         Does trading manually

·         Guesses the price movement

·         Even small orders may increase the price

·         Fiat depositing is usually slower

·         Hopes that everything will be fine