What is ErisX
ErisX is a US-based cryptocurrency exchange and clearinghouse that provides trading and settlement services for digital assets. It was founded in 2018 and is regulated by the Commodity Futures Trading Commission (CFTC).
ErisX offers trading in Bitcoin, Bitcoin Cash, Ethereum, and Litecoin futures contracts. It also provides spot trading for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, as well as trading for stablecoins like USDC and Paxos Standard.
The exchange offers a range of order types, including market, limit, and stop orders. ErisX also provides an API for institutional clients to access its trading and clearing services.
ErisX has partnered with various financial institutions and companies, including Fidelity Investments, TradeStation, and Bitmain, to provide its customers with a reliable and secure platform for trading digital assets.
The history of ErisX
ErisX was founded in 2018 by a team of financial industry veterans with experience in traditional markets and digital assets. The company was formed with the goal of providing a regulated and secure platform for trading digital assets, which at the time were still considered to be a nascent and risky asset class.
In April 2018, ErisX announced that it had raised $27.5 million in a funding round led by Fidelity Investments. Other investors included Nasdaq Ventures, DRW Venture Capital, Valor Equity Partners, and CTC Group Investments.
In December 2018, ErisX received approval from the Commodity Futures Trading Commission (CFTC) to operate as a regulated derivatives exchange and clearinghouse for digital assets. This made ErisX one of the first companies to receive regulatory approval to offer physically delivered bitcoin futures contracts in the United States.
In April 2019, ErisX announced that it had acquired the technology assets of DCM Capital, a cryptocurrency exchange and brokerage firm. This acquisition enabled ErisX to expand its product offerings and provide its customers with access to spot trading for digital assets in addition to its existing futures trading products.
Since its launch, ErisX has continued to expand its partnerships and product offerings, including adding support for Ethereum and Litecoin futures contracts in 2019. The company has also established partnerships with companies such as TradeStation and Bitmain to provide its customers with a reliable and secure platform for trading digital assets.
How ErisX works
ErisX is a regulated cryptocurrency exchange and clearinghouse that allows customers to trade digital assets such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Here’s how ErisX works:
- Account Setup: To trade on ErisX, customers must first create an account and provide personal information to comply with regulatory requirements. This includes providing government-issued identification, such as a passport or driver’s license.
- Funding: Once an account is created, customers can fund their accounts using either cryptocurrencies or fiat currency. ErisX supports several cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, as well as stablecoins like USDC and Paxos Standard. ErisX also supports funding via bank wire transfer.
- Trading: After funding their account, customers can begin trading on ErisX. ErisX offers both spot trading and futures trading for digital assets. Spot trading allows customers to buy and sell digital assets at the current market price, while futures trading allows customers to enter into contracts to buy or sell digital assets at a future date.
- Clearing and Settlement: ErisX acts as a clearinghouse for all trades made on its platform. This means that ErisX matches buyers and sellers, and also handles the clearing and settlement of trades. ErisX uses a combination of off-chain and on-chain settlement processes to ensure the security and reliability of its platform.
- Withdrawals: Customers can withdraw their digital assets or fiat currency from ErisX at any time. Withdrawals are typically processed within a few business days, depending on the withdrawal method chosen.
Overall, ErisX provides a regulated and secure platform for customers to trade digital assets. Its combination of spot trading and futures trading products, along with its clearing and settlement services, make it an attractive option for both retail and institutional customers.
Can ErisX be trusted
ErisX is a regulated cryptocurrency exchange and clearinghouse that is subject to oversight by the Commodity Futures Trading Commission (CFTC), which is a U.S. government agency that regulates commodity futures and options markets in the United States. The fact that ErisX is regulated by the CFTC means that it must comply with strict rules and regulations designed to protect customers and ensure the integrity of the markets.
In addition to being regulated, ErisX has implemented a number of security measures to protect customer funds and data. These measures include:
- Cold Storage: The majority of customer funds are held in cold storage, which means that they are stored offline and are therefore less vulnerable to hacking or other cyber attacks.
- Two-Factor Authentication: ErisX requires customers to use two-factor authentication to access their accounts, which provides an additional layer of security against unauthorized access.
- Regular Audits: ErisX undergoes regular audits by third-party firms to ensure that its systems and processes are secure and compliant with regulatory requirements.
- Insurance Coverage: ErisX has secured insurance coverage for its custodial holdings, which provides additional protection for customer funds in the event of a security breach or other loss.
Overall, ErisX appears to be a trustworthy cryptocurrency exchange and clearinghouse that is committed to providing a secure and regulated platform for trading digital assets. However, as with any financial service, customers should always conduct their own due diligence and be aware of the risks involved with trading cryptocurrencies.
Does ErisX charge a fee
Yes, ErisX charges fees for trading on its platform. The specific fees charged by ErisX depend on the type of trading and the volume of trades made. Here are some examples of the fees charged by ErisX:
- Futures Trading: ErisX charges a trading fee of 0.075% for Bitcoin futures trades and 0.10% for Ethereum and Litecoin futures trades. This fee is charged on both the buyer and seller side of the trade.
- Spot Trading: ErisX charges a trading fee of 0.10% for all spot trades. This fee is charged on both the buyer and seller side of the trade.
- Withdrawal Fees: ErisX does not charge a fee for withdrawing cryptocurrency from its platform. However, there may be fees associated with the specific cryptocurrency being withdrawn. ErisX charges a $15 fee for bank wire withdrawals.
- Other Fees: ErisX may charge other fees, such as fees for account maintenance, margin requirements, or other services. These fees can vary depending on the specific service provided and are subject to change.
It’s worth noting that ErisX’s fee structure is designed to be competitive with other cryptocurrency exchanges and clearinghouses. Customers should always check the current fee schedule on the ErisX website before trading to ensure that they are aware of any fees that may apply.