dgtx

The Long Range View for DGTX

Digitex Futures
• Sulla Felix
July 24, 2020

This time next week, Digitex Futures will be opening the DFE to the public with a trading extravaganza like no other. The team has over $250,000 of giveaways and rewards for traders participating in the event, and it’s safe to say that the anticipation and excitement for Friday, July 31, 2020, is palpable. But that day is only the very beginning.

This week’s blog post by Ali Martinez verified the community’s anticipation of launch as he analyzed the current price action of the DGTX token, drawing a clear correlation between the DGTX price appreciation and an increase in the total number of addresses with DGTX tokens. It was great to see his metrics as they demonstrate interest is mounting for the DGTX project and what the team is about to achieve: that long-awaited, liquid, commission-free, intuitive trading platform that genuinely takes the house edge out of trading.

With all the current growth and developments, it’s easy to lose sight of the real potential that DGTX offers to not just the crypto market, but ALL markets. At this moment, The DFE is storming up the CMC rankings, achieving daily trading volumes now in excess of $600 million in a single market – Bitcoin perpetual futures.

For those of us who have been supporting this project over the last two and a half years, seeing this vision come to reality feels like Digitex is just one week out from bursting across the finish line. However, the reality couldn’t be further from the truth. Both long term and new investors will soon come to realize that this beast is just getting started.

DGTX Market Roadmap

If we look at what the team has managed to deliver between May 2019 and today, it makes for exhaustive reading. Writing this article, I tried to sit down and create a comprehensive list of functional achievements required to produce such an exchange.

Everything from user security and account settings, developing an intuitive trading ladder, a market maker trading engine, an API, conditional order tools, BTC spot price, contract value dynamics – to name just a few. The list is extensive, and in reality, this complexity is understood by just a few people (namely SmartDec). I define the work to date as Digitex laying its foundations. The support structures have been built, and next up is the utilities.

An unofficial roadmap for The DFE trading markets rollout might look as follows:

The Long Range View for DGTX 1

­­This rollout diagram conveys a simple point – that the BTC/USD market is just the beginning of our DGTX journey. Each of these markets will bring in new interested users who are looking to take advantage of zero-commission trading.

With the current economic conditions, volatility is through the roof or alternatively, through the floor. What trader wouldn’t have signed up to DGTX if it meant they could short crude oil as prices went negative, or long the recovery thereafter?

By utilizing the DGTX token, the Digitex team are able to incorporate some of the largest markets on the planet onto their exchange, a feat that will set them apart from the competition in the coming months. To better gauge the magnitude of this, we will delve into the market size of some of these trading pairs.

Market Size Visualisation

Cryptocurrency – $277 Billion

The above roadmap should not be underestimated when considering the DGTX token utility and potential. To those in the crypto-sphere, it’s fair to say that Bitcoin is the coin against which all others are benchmarked. The belief that other tokens can surpass the reigning champ is laughable to many hardcore hodlers.

Although I don’t care to debate this, there are some considerations whilst benchmarking DGTX against the market leader.

The total market cap for cryptocurrency at the time of writing is $277 Billion with Bitcoin (BTC), ranging between 60-70% market dominance. This means that, in the cryptocurrency sector, BTC is the biggest fish in the pond. It is nearly six times bigger than its closest rival, Ethereum (ETH), and 19 times bigger than both Ripple (XRP) and Tether (USDT).

The cryptocurrency market value is visually represented below, with Bitcoin roughly twice as big as all other cryptocurrencies combined.

The Long Range View for DGTX 2

Gold – $10.9 Trillion

However, comparing the market cap of BTC to that of gold is a humbling realization for the cryptocurrency champion. The metrics show that the current gold cap exceeds Bitcoin by a factor of thirty, not including jewelry and below-ground reserves.  For the DGTX token, the benefit of incorporating the gold market into the DFE is to create a direct link between cryptocurrency trading and traditional commodities.

This will allow users to hedge their cryptocurrency investments against the performance of gold without leaving the blockchain. Worried that crypto is going to go down in value but believe that gold will outperform the market? Then open a long on the DFE.

The Long Range View for DGTX 3

Digitex – A Decacorn?

This week I read a comment from a long-standing DGTX investor that simply read:

“Digitex Futures is a unicorn company.”

A unicorn company can be defined as a privately held start-up company valued at over $1 billion. If we take market cap as the defining metric, the top 18 cryptocurrencies currently maintain this status.

Personally, I’d go one step further and suggest that Digitex has the potential to be a decacorn – a company with a valuation above $10 billion. To achieve this status, the DGTX token would require a price in the region of $10, which recent Telegram polls suggest is the target for many current DGTX supporters.

The Long Range View for DGTX 4

One of the main reasons I see Digitex’s future as a decacorn company is because of its offering of traditional markets that have market capitalizations far exceeding that of just Bitcoin. These include gold, crude oil, and Fortune 500 companies.

Of the Fortune 500, the top five alone dominate with a combined market cap of $5.4Trillion. That’s thirty-one times larger than BTC.

The top 5 represents 24% of the Fortune 500, meaning the total market cap of this powerhouse is in the region of $21 trillion, or 124 times that of BTC.

Now considering the DFE is currently trading daily volumes in excess of $500 million on its BTC/USD market, we can start to get a picture for the DGTX potential if we can convert just a small fraction of traditional markets to use our ladder.

The Long Range View for DGTX 5

We haven’t even touched on the overall size of the global stock markets and indices. Trading the Nasdaq at the moment has higher volatility than the infamous BTC, and I can think of no better place to take advantage of the current price action than the DFE with zero commissions.

With an overall value of $89.5Trillion, these markets command different respect to that of young Bitcoin and its band of merry alt-coins.

The Long Range View for DGTX 6

What all this information represents to me is that even with Bitcoin’s dominance across the crypto-sphere, it is a small player in global finance. Herein lies the punch for the DGTX token – it offers a solution to trade futures in any market and does not restrict itself to the cryptocurrency realm. By offering a solution to trade futures contracts on astronomical markets such as gold, Fortune 500, and indices, Digitex has created a simply unique platform not just for cryptocurrency trading but all trading.

Tune in next time as we discuss the implications that these additional markets will have for the DGTX token and why the beginning is now, and the future is bright for The DFE.

References:

https://www.fool.com/investing/2017/08/17/how-does-bitcoins-market-cap-stack-up-next-to-gold.aspx

https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/

July 24, 2020
Digitex Futures

The Long Range View for DGTX

Sulla Felix
dgtx

This time next week, Digitex Futures will be opening the DFE to the public with a trading extravaganza like no other. The team has over $250,000 of giveaways and rewards for traders participating in the event, and it’s safe to say that the anticipation and excitement for Friday, July 31, 2020, is palpable. But that day is only the very beginning.

This week’s blog post by Ali Martinez verified the community’s anticipation of launch as he analyzed the current price action of the DGTX token, drawing a clear correlation between the DGTX price appreciation and an increase in the total number of addresses with DGTX tokens. It was great to see his metrics as they demonstrate interest is mounting for the DGTX project and what the team is about to achieve: that long-awaited, liquid, commission-free, intuitive trading platform that genuinely takes the house edge out of trading.

With all the current growth and developments, it’s easy to lose sight of the real potential that DGTX offers to not just the crypto market, but ALL markets. At this moment, The DFE is storming up the CMC rankings, achieving daily trading volumes now in excess of $600 million in a single market – Bitcoin perpetual futures.

For those of us who have been supporting this project over the last two and a half years, seeing this vision come to reality feels like Digitex is just one week out from bursting across the finish line. However, the reality couldn’t be further from the truth. Both long term and new investors will soon come to realize that this beast is just getting started.

DGTX Market Roadmap

If we look at what the team has managed to deliver between May 2019 and today, it makes for exhaustive reading. Writing this article, I tried to sit down and create a comprehensive list of functional achievements required to produce such an exchange.

Everything from user security and account settings, developing an intuitive trading ladder, a market maker trading engine, an API, conditional order tools, BTC spot price, contract value dynamics – to name just a few. The list is extensive, and in reality, this complexity is understood by just a few people (namely SmartDec). I define the work to date as Digitex laying its foundations. The support structures have been built, and next up is the utilities.

An unofficial roadmap for The DFE trading markets rollout might look as follows:

The Long Range View for DGTX 7

­­This rollout diagram conveys a simple point – that the BTC/USD market is just the beginning of our DGTX journey. Each of these markets will bring in new interested users who are looking to take advantage of zero-commission trading.

With the current economic conditions, volatility is through the roof or alternatively, through the floor. What trader wouldn’t have signed up to DGTX if it meant they could short crude oil as prices went negative, or long the recovery thereafter?

By utilizing the DGTX token, the Digitex team are able to incorporate some of the largest markets on the planet onto their exchange, a feat that will set them apart from the competition in the coming months. To better gauge the magnitude of this, we will delve into the market size of some of these trading pairs.

Market Size Visualisation

Cryptocurrency – $277 Billion

The above roadmap should not be underestimated when considering the DGTX token utility and potential. To those in the crypto-sphere, it’s fair to say that Bitcoin is the coin against which all others are benchmarked. The belief that other tokens can surpass the reigning champ is laughable to many hardcore hodlers.

Although I don’t care to debate this, there are some considerations whilst benchmarking DGTX against the market leader.

The total market cap for cryptocurrency at the time of writing is $277 Billion with Bitcoin (BTC), ranging between 60-70% market dominance. This means that, in the cryptocurrency sector, BTC is the biggest fish in the pond. It is nearly six times bigger than its closest rival, Ethereum (ETH), and 19 times bigger than both Ripple (XRP) and Tether (USDT).

The cryptocurrency market value is visually represented below, with Bitcoin roughly twice as big as all other cryptocurrencies combined.

The Long Range View for DGTX 8

Gold – $10.9 Trillion

However, comparing the market cap of BTC to that of gold is a humbling realization for the cryptocurrency champion. The metrics show that the current gold cap exceeds Bitcoin by a factor of thirty, not including jewelry and below-ground reserves.  For the DGTX token, the benefit of incorporating the gold market into the DFE is to create a direct link between cryptocurrency trading and traditional commodities.

This will allow users to hedge their cryptocurrency investments against the performance of gold without leaving the blockchain. Worried that crypto is going to go down in value but believe that gold will outperform the market? Then open a long on the DFE.

The Long Range View for DGTX 9

Digitex – A Decacorn?

This week I read a comment from a long-standing DGTX investor that simply read:

“Digitex Futures is a unicorn company.”

A unicorn company can be defined as a privately held start-up company valued at over $1 billion. If we take market cap as the defining metric, the top 18 cryptocurrencies currently maintain this status.

Personally, I’d go one step further and suggest that Digitex has the potential to be a decacorn – a company with a valuation above $10 billion. To achieve this status, the DGTX token would require a price in the region of $10, which recent Telegram polls suggest is the target for many current DGTX supporters.

The Long Range View for DGTX 10

One of the main reasons I see Digitex’s future as a decacorn company is because of its offering of traditional markets that have market capitalizations far exceeding that of just Bitcoin. These include gold, crude oil, and Fortune 500 companies.

Of the Fortune 500, the top five alone dominate with a combined market cap of $5.4Trillion. That’s thirty-one times larger than BTC.

The top 5 represents 24% of the Fortune 500, meaning the total market cap of this powerhouse is in the region of $21 trillion, or 124 times that of BTC.

Now considering the DFE is currently trading daily volumes in excess of $500 million on its BTC/USD market, we can start to get a picture for the DGTX potential if we can convert just a small fraction of traditional markets to use our ladder.

The Long Range View for DGTX 11

We haven’t even touched on the overall size of the global stock markets and indices. Trading the Nasdaq at the moment has higher volatility than the infamous BTC, and I can think of no better place to take advantage of the current price action than the DFE with zero commissions.

With an overall value of $89.5Trillion, these markets command different respect to that of young Bitcoin and its band of merry alt-coins.

The Long Range View for DGTX 12

What all this information represents to me is that even with Bitcoin’s dominance across the crypto-sphere, it is a small player in global finance. Herein lies the punch for the DGTX token – it offers a solution to trade futures in any market and does not restrict itself to the cryptocurrency realm. By offering a solution to trade futures contracts on astronomical markets such as gold, Fortune 500, and indices, Digitex has created a simply unique platform not just for cryptocurrency trading but all trading.

Tune in next time as we discuss the implications that these additional markets will have for the DGTX token and why the beginning is now, and the future is bright for The DFE.

References:

https://www.fool.com/investing/2017/08/17/how-does-bitcoins-market-cap-stack-up-next-to-gold.aspx

https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/

Latest News

hodl

How Do HODLers Affect the Value of DGTX?

Digitex Futures
• Sulla Felix
July 10, 2020

Traders are our core user base, but they aren’t the only stakeholders in the Digitex ecosystem. HODLers, those who buy DGTX and hold them, also have a vested interest in the future of Digitex. But if they aren’t active traders, what’s the impact of HODLers on DGTX and the Digitex ecosystem? 

With the recent performance of the DGTX token, rising over 50% this month, my phone has started ringing.

“What’s happening with Digitex?”

“Any reason this is pumping?”

“Should I buy more?”

“Am I rich yet?”

Most recently, I’ve been very focused on analysing the effects that trading on the Digitex platform will have on the broader Digitex ecosystem, from volume analysis to dynamics of token price. In last week’s blog post we outlined that the most effective positive impact an individual can have on the DGTX token value is to use the exchange.

I do believe that this rings true; however, not everyone understands the mechanics of trading. I would not like to propose that people with little to no understanding of the platform, or trading in general, begin placing trades with their capital.

For those who are like my friends & family, who see the potential of the DGTX token and want to capitalise on its price appreciation, I only suggest buying and holding DGTX for the long run. In the crypto-sphere these investors are commonly referred to as hodlers and they can have an immense effect on the performance of tokens.

The HODLer Effect

A token hodler, or holder, is effectively an investor. Similar to an individual who buys company stocks on a stock exchange, holders see potential in projects and buy their tokens with the anticipation of rising prices. In this way, holders represent a portion of the demand for a token.

In a previous report we outlined that holders play a crucial role in token appreciation and this is for one main reason:

Holders reduce token velocity, which can have a direct impact on token price

In the first Medium article I posted, we introduced the Equation of Exchange and presented an idea for how this theory could potentially be utilised to project the DGTX token price. As a quick recap, the equation of Exchange was derived by John Stuart Mill to show the relationships between money supply, price level, the velocity of money and an index of expenditure.

Today, economists use this theory in multiple ways, one of which is to derive the total demand for money in an economy.

How Do HODLers Affect the Value of DGTX? 13

Where,

P = Average Price Level of Goods

Q  = Index of the real value of aggregated transactions

V = Velocity of money

The velocity of money, V, is simply the average number of times a unit of currency changes hands in a given time frame. This can also be applied to cryptocurrencies as they are a form of money, after all – tokens hold a value which is driven by a demand.

By investing in a token for the sole purpose of price appreciation, holders reduce the average number of times those tokens exchange hands. Therefore, by holding DGTX and not trading it on ETH and BTC markets, simple investors contribute to the token demand by reducing velocity which directly results in an increase in the monetary value of the token.

Why DGTX, Why Now?

With each DGTX touchpoint that I have with friends and family, they all invariably ask the same question:

“Should I buy more?”

Nobody who isn’t a financial adviser should ever give financial advice. So inevitably, my advice often ends up being ambiguous. But more recently when I’ve been asked this question, it’s really got me thinking: Has there ever been a less risky time than right now to invest in Digitex Futures?

Reviewing the history of the DGTX token, as an ICO investor, I’ve never had more confidence that this project is going to succeed than I do now. And the reason for this is a simple quick-fire risk analysis.

Looking at the ICO in hindsight, it’s easy to say that it was a no-brainer investment. At today’s prices you have made a 600% Return on Investment (ROI) and would be dreaming of an opportunity to buy more at the ICO prices. This seems like the obvious choice for the best time to have invested in DGTX, until you consider one key piece of information:

Roughly 90% of ICOs fail or don’t meet expectations.

A quick google search will bring some amazing insights into the success rate of ICOs, or direct yourself to deadcoin websites to check out the list of 1,600+ failed projects. It serves to illustrate that ICO investing is extremely high-risk.

It is my belief that we would not be where we are today had it not been for the initial development issues that led to the Digitex platform delay. From this delay the Digitex team went back to the drawing board and outlined a roadmap to deliver on their promise. Bringing us to today, where Digitex Futures has the following:

  1. A functional platform with over 6,000 users currently invited to register.
  2. A testnet platform which can be utilised for stress testing of new features prior to implementation on the live platform. This ensures bugs can be worked out and prevent any impact for mainnet bad user experiences where it matters the most.
  3. A plethora of exchanges to buy and sell the DGTX token, including the most recent addition Kucoin, which competes as one of the top 5 exchanges currently in the industry.
  4. A platform designed to support additional markets including futures contracts against commodities like gold and other traditional markets.
  5. A team who, despite an initial setback, have proved they can and will deliver.

Is it my belief that Digitex Futures has never looked to be in a stronger position than it is right now. As time moves on, any risk associated with the DGTX token continues to diminish. I hope that this growing strength will bring in more hodlers like my friends and family, to share in what is priming to be one hell of a journey.

July 10, 2020
Digitex Futures

How Do HODLers Affect the Value of DGTX?

Sulla Felix
hodl

Traders are our core user base, but they aren’t the only stakeholders in the Digitex ecosystem. HODLers, those who buy DGTX and hold them, also have a vested interest in the future of Digitex. But if they aren’t active traders, what’s the impact of HODLers on DGTX and the Digitex ecosystem? 

With the recent performance of the DGTX token, rising over 50% this month, my phone has started ringing.

“What’s happening with Digitex?”

“Any reason this is pumping?”

“Should I buy more?”

“Am I rich yet?”

Most recently, I’ve been very focused on analysing the effects that trading on the Digitex platform will have on the broader Digitex ecosystem, from volume analysis to dynamics of token price. In last week’s blog post we outlined that the most effective positive impact an individual can have on the DGTX token value is to use the exchange.

I do believe that this rings true; however, not everyone understands the mechanics of trading. I would not like to propose that people with little to no understanding of the platform, or trading in general, begin placing trades with their capital.

For those who are like my friends & family, who see the potential of the DGTX token and want to capitalise on its price appreciation, I only suggest buying and holding DGTX for the long run. In the crypto-sphere these investors are commonly referred to as hodlers and they can have an immense effect on the performance of tokens.

The HODLer Effect

A token hodler, or holder, is effectively an investor. Similar to an individual who buys company stocks on a stock exchange, holders see potential in projects and buy their tokens with the anticipation of rising prices. In this way, holders represent a portion of the demand for a token.

In a previous report we outlined that holders play a crucial role in token appreciation and this is for one main reason:

Holders reduce token velocity, which can have a direct impact on token price

In the first Medium article I posted, we introduced the Equation of Exchange and presented an idea for how this theory could potentially be utilised to project the DGTX token price. As a quick recap, the equation of Exchange was derived by John Stuart Mill to show the relationships between money supply, price level, the velocity of money and an index of expenditure.

Today, economists use this theory in multiple ways, one of which is to derive the total demand for money in an economy.

How Do HODLers Affect the Value of DGTX? 14

Where,

P = Average Price Level of Goods

Q  = Index of the real value of aggregated transactions

V = Velocity of money

The velocity of money, V, is simply the average number of times a unit of currency changes hands in a given time frame. This can also be applied to cryptocurrencies as they are a form of money, after all – tokens hold a value which is driven by a demand.

By investing in a token for the sole purpose of price appreciation, holders reduce the average number of times those tokens exchange hands. Therefore, by holding DGTX and not trading it on ETH and BTC markets, simple investors contribute to the token demand by reducing velocity which directly results in an increase in the monetary value of the token.

Why DGTX, Why Now?

With each DGTX touchpoint that I have with friends and family, they all invariably ask the same question:

“Should I buy more?”

Nobody who isn’t a financial adviser should ever give financial advice. So inevitably, my advice often ends up being ambiguous. But more recently when I’ve been asked this question, it’s really got me thinking: Has there ever been a less risky time than right now to invest in Digitex Futures?

Reviewing the history of the DGTX token, as an ICO investor, I’ve never had more confidence that this project is going to succeed than I do now. And the reason for this is a simple quick-fire risk analysis.

Looking at the ICO in hindsight, it’s easy to say that it was a no-brainer investment. At today’s prices you have made a 600% Return on Investment (ROI) and would be dreaming of an opportunity to buy more at the ICO prices. This seems like the obvious choice for the best time to have invested in DGTX, until you consider one key piece of information:

Roughly 90% of ICOs fail or don’t meet expectations.

A quick google search will bring some amazing insights into the success rate of ICOs, or direct yourself to deadcoin websites to check out the list of 1,600+ failed projects. It serves to illustrate that ICO investing is extremely high-risk.

It is my belief that we would not be where we are today had it not been for the initial development issues that led to the Digitex platform delay. From this delay the Digitex team went back to the drawing board and outlined a roadmap to deliver on their promise. Bringing us to today, where Digitex Futures has the following:

  1. A functional platform with over 6,000 users currently invited to register.
  2. A testnet platform which can be utilised for stress testing of new features prior to implementation on the live platform. This ensures bugs can be worked out and prevent any impact for mainnet bad user experiences where it matters the most.
  3. A plethora of exchanges to buy and sell the DGTX token, including the most recent addition Kucoin, which competes as one of the top 5 exchanges currently in the industry.
  4. A platform designed to support additional markets including futures contracts against commodities like gold and other traditional markets.
  5. A team who, despite an initial setback, have proved they can and will deliver.

Is it my belief that Digitex Futures has never looked to be in a stronger position than it is right now. As time moves on, any risk associated with the DGTX token continues to diminish. I hope that this growing strength will bring in more hodlers like my friends and family, to share in what is priming to be one hell of a journey.

Latest News

DGTX

DGTX: The Numbers Don’t Lie

Digitex Futures
• Sulla Felix
July 3, 2020

Another month has come and gone, and the Digitex Futures Platform continues to grow. With over 1,600 active users now onboarded to the Exchange, volume is starting to ramp up significantly. Every day brings us closer to the anticipated public launch and realization of the full potential that is the Digitex Futures Exchange. 

This time last month, we attempted to quantify this potential by analyzing the first 30 days trading volume on the platform. In the previous report, we used the information available from the phased on-boarding. Mapping the number of registered users with the daily transaction volume of the exchange, we were able to extrapolate this data and estimate the potential 24-hour volume generated by a larger user base. This report estimated that with an arbitrary 5,000 users Digitex could potentially generate $1 Billion USD in daily volume transacted.

We also outlined that this projection was highly speculative, as it was based on only a few data points. It also held the assumption that future traders would operate at the same trading rate as the initial batches of onboarded traders to the DFE. We promised to continue to monitor and amend this projection over the coming weeks, so here we go with a second round, based on another month’s worth of trading data.

64 Days – 1070 Traders

As touched upon above, the phased onboarding of users has allowed us to investigate the relationship between userbase and daily volume. With 9 different onboardings and another month of trading, we now have more than twice as much data available to expand upon the previous analysis. Below are two graphs representing the updated metrics:

DGTX: The Numbers Don't Lie 15

DGTX: The Numbers Don't Lie 16

The first plot overlays the number of traders registered on the Digitex Futures Exchange with the daily 24-hour volumes transacted by that number of users. The second plot groups the daily volumes traded into their respective user brackets to show the range of volumes traded as each additional batch of users are onboarded.

What is immediately evident is that an increase in active traders’ correlates to an increase in 24 Hour Trading Volume. Thus far, with a user base of only 1,020 traders Digitex is generating daily volumes ranging from $100M to $140M.

The trend shown after 64 days is consistent with what we previously projected after 31 days of trading. Updating the projection for a userbase of 5,000 active traders we still see the same trajectory and an estimate of $1 Billion USD daily volume.

DGTX: The Numbers Don't Lie 17

The DGTX Potential

So what does all of this mean for the DGTX token? At the time of writing, the Digitex team is laying the groundwork in preparation for a successful public launch, the extent of which should not be underemphasized. With more than 29,000 test-net users and over 28,000 telegram members, it is evident that a demand exists to trade on this platform.

If Digitex can convert 35% of current testnet users to the mainnet, that would result in a userbase of 10,000 users and potentially generate a daily BTC Perpetual Futures volume of over $2Billion USD. This would place Digitex in the top three perpetual futures exchanges currently in the market.

That alone would promote further adoption – if not mass adoption – as DGTX rises through the rankings.

With a testnet conversion of 75% (20,000 users) we could project from the current data that a daily volume in the region of $4Billion USD is achievable, assuming the same rate of trading amongst future traders that currently exists in our 1,020 mainnet users.

This would place Digitex Futures as the leading Bitcoin Perpetual Futures Exchange on the market.

DGTX: The Numbers Don't Lie 18 DGTX: The Numbers Don't Lie 19

Although this model is still in the early stages of its development, it is based on the current daily volumes that are actually being generated by the current users of the platform, and, the numbers don’t lie.

What this tells me is that there is one simple thing that each of us current DGTX holders should do in order to help our investment succeed:

Sign-Up and use the mainnet when it is available.

The reason this is the single most important thing for the community to do is because it promotes adoption.

Demand and Adoption

When new innovative products are introduced to a market they go through what is known as The Technology Adoption Lifecycle. This is detailed by Geoffrey A. Moore in his book Crossing the Chasm.

In this book, he outlines that the market is split into 5 key market segments that a product must conquer in order to achieve its full potential. These categories exist due to human personalities where Innovators and Early Adopters are higher risk higher reward thinkers who adopt technology because they see its potential and believe in its future. They’re prepared to deal with the kinks of up-and-coming companies because they know that it will have a bright future. If you’re reading this, the chances are you’re in one of the first two categories of the market, accounting for only 16% in total.

The Early and Late Majority of the market account for the majority of the Mainstream Market and 68% of the total market. The Early Majority is the most important market segment to win over. When companies successfully navigate the chasm and are successfully adopted by the mainstream market, they can see exponential growth.

At this moment in time Digitex Futures is preparing to cross the chasm.

DGTX: The Numbers Don't Lie 20

To achieve mainstream adoption, the Early Majority likes to see that the product offers a whole solution, they take advice from other like-minded people and once they see that it is being adopted they will follow suit.

Therefore, the key to unlocking the DGTX potential is to cross the chasm and win the adoption of the mainstream market. To do this, the mainstream market needs to see that the product is in demand and providing a whole solution.

Once the Early Majority see Digitex Futures Daily Volume rising on the CMC rankings, adoption will follow. The best way to achieve this is simply trading on the Exchange.

The DGTX Token Price

The big question – how does this relate to the DGTX token price? In this report, we used the current data to extrapolate the potential volume of Digitex Futures with user adoption. This suggests that Digitex can compete as a top Exchange in the BTC Derivatives markets. The current market-leading exchanges currently have 24 Hour Volumes in the region of $1.7Bn to $4.4Bn which results in 24hr Open Interest ranging from $561M to $1Bn.

 

With open interest being the sum of all open positions on an exchange, it serves as a great indicator of the demand for the DGTX token.

Taking the values above as a base for open interest on the Digitex platform and using the token velocity model previously developed, we can project a price for the DGTX token.

DGTX: The Numbers Don't Lie 21

This projects that if the Digitex Futures Exchange can grow to compete as a top-three BTC Derivatives Exchange, the utility demand for the DGTX token will drive the price to be in the range of $2.00 – $7.00.

Although this model is not perfect, it highlights that using the DGTX token to trade creates a demand for DGTX. As Digitex Trading Volume and Open Interest grows, its limited supply will begin to get throttled. To be able to continuously facilitate such large monetary transactions, with its limited supply, the DGTX token must appreciate in value.

If you’ve been waiting for the DFE to onboard you, then you don’t have to wait much longer. We’re onboarding waitlisted and testnet users over the coming weeks ahead of launch. Before we open to the public, all mainnet users will first need to create a testnet account so we can onboard you. So make sure you’ve signed up to avoid any delays in getting you onto the mainnet. 

July 3, 2020
Digitex Futures

DGTX: The Numbers Don’t Lie

Sulla Felix
DGTX

Another month has come and gone, and the Digitex Futures Platform continues to grow. With over 1,600 active users now onboarded to the Exchange, volume is starting to ramp up significantly. Every day brings us closer to the anticipated public launch and realization of the full potential that is the Digitex Futures Exchange. 

This time last month, we attempted to quantify this potential by analyzing the first 30 days trading volume on the platform. In the previous report, we used the information available from the phased on-boarding. Mapping the number of registered users with the daily transaction volume of the exchange, we were able to extrapolate this data and estimate the potential 24-hour volume generated by a larger user base. This report estimated that with an arbitrary 5,000 users Digitex could potentially generate $1 Billion USD in daily volume transacted.

We also outlined that this projection was highly speculative, as it was based on only a few data points. It also held the assumption that future traders would operate at the same trading rate as the initial batches of onboarded traders to the DFE. We promised to continue to monitor and amend this projection over the coming weeks, so here we go with a second round, based on another month’s worth of trading data.

64 Days – 1070 Traders

As touched upon above, the phased onboarding of users has allowed us to investigate the relationship between userbase and daily volume. With 9 different onboardings and another month of trading, we now have more than twice as much data available to expand upon the previous analysis. Below are two graphs representing the updated metrics:

DGTX: The Numbers Don't Lie 22

DGTX: The Numbers Don't Lie 23

The first plot overlays the number of traders registered on the Digitex Futures Exchange with the daily 24-hour volumes transacted by that number of users. The second plot groups the daily volumes traded into their respective user brackets to show the range of volumes traded as each additional batch of users are onboarded.

What is immediately evident is that an increase in active traders’ correlates to an increase in 24 Hour Trading Volume. Thus far, with a user base of only 1,020 traders Digitex is generating daily volumes ranging from $100M to $140M.

The trend shown after 64 days is consistent with what we previously projected after 31 days of trading. Updating the projection for a userbase of 5,000 active traders we still see the same trajectory and an estimate of $1 Billion USD daily volume.

DGTX: The Numbers Don't Lie 24

The DGTX Potential

So what does all of this mean for the DGTX token? At the time of writing, the Digitex team is laying the groundwork in preparation for a successful public launch, the extent of which should not be underemphasized. With more than 29,000 test-net users and over 28,000 telegram members, it is evident that a demand exists to trade on this platform.

If Digitex can convert 35% of current testnet users to the mainnet, that would result in a userbase of 10,000 users and potentially generate a daily BTC Perpetual Futures volume of over $2Billion USD. This would place Digitex in the top three perpetual futures exchanges currently in the market.

That alone would promote further adoption – if not mass adoption – as DGTX rises through the rankings.

With a testnet conversion of 75% (20,000 users) we could project from the current data that a daily volume in the region of $4Billion USD is achievable, assuming the same rate of trading amongst future traders that currently exists in our 1,020 mainnet users.

This would place Digitex Futures as the leading Bitcoin Perpetual Futures Exchange on the market.

DGTX: The Numbers Don't Lie 25 DGTX: The Numbers Don't Lie 26

Although this model is still in the early stages of its development, it is based on the current daily volumes that are actually being generated by the current users of the platform, and, the numbers don’t lie.

What this tells me is that there is one simple thing that each of us current DGTX holders should do in order to help our investment succeed:

Sign-Up and use the mainnet when it is available.

The reason this is the single most important thing for the community to do is because it promotes adoption.

Demand and Adoption

When new innovative products are introduced to a market they go through what is known as The Technology Adoption Lifecycle. This is detailed by Geoffrey A. Moore in his book Crossing the Chasm.

In this book, he outlines that the market is split into 5 key market segments that a product must conquer in order to achieve its full potential. These categories exist due to human personalities where Innovators and Early Adopters are higher risk higher reward thinkers who adopt technology because they see its potential and believe in its future. They’re prepared to deal with the kinks of up-and-coming companies because they know that it will have a bright future. If you’re reading this, the chances are you’re in one of the first two categories of the market, accounting for only 16% in total.

The Early and Late Majority of the market account for the majority of the Mainstream Market and 68% of the total market. The Early Majority is the most important market segment to win over. When companies successfully navigate the chasm and are successfully adopted by the mainstream market, they can see exponential growth.

At this moment in time Digitex Futures is preparing to cross the chasm.

DGTX: The Numbers Don't Lie 27

To achieve mainstream adoption, the Early Majority likes to see that the product offers a whole solution, they take advice from other like-minded people and once they see that it is being adopted they will follow suit.

Therefore, the key to unlocking the DGTX potential is to cross the chasm and win the adoption of the mainstream market. To do this, the mainstream market needs to see that the product is in demand and providing a whole solution.

Once the Early Majority see Digitex Futures Daily Volume rising on the CMC rankings, adoption will follow. The best way to achieve this is simply trading on the Exchange.

The DGTX Token Price

The big question – how does this relate to the DGTX token price? In this report, we used the current data to extrapolate the potential volume of Digitex Futures with user adoption. This suggests that Digitex can compete as a top Exchange in the BTC Derivatives markets. The current market-leading exchanges currently have 24 Hour Volumes in the region of $1.7Bn to $4.4Bn which results in 24hr Open Interest ranging from $561M to $1Bn.

 

With open interest being the sum of all open positions on an exchange, it serves as a great indicator of the demand for the DGTX token.

Taking the values above as a base for open interest on the Digitex platform and using the token velocity model previously developed, we can project a price for the DGTX token.

DGTX: The Numbers Don't Lie 28

This projects that if the Digitex Futures Exchange can grow to compete as a top-three BTC Derivatives Exchange, the utility demand for the DGTX token will drive the price to be in the range of $2.00 – $7.00.

Although this model is not perfect, it highlights that using the DGTX token to trade creates a demand for DGTX. As Digitex Trading Volume and Open Interest grows, its limited supply will begin to get throttled. To be able to continuously facilitate such large monetary transactions, with its limited supply, the DGTX token must appreciate in value.

If you’ve been waiting for the DFE to onboard you, then you don’t have to wait much longer. We’re onboarding waitlisted and testnet users over the coming weeks ahead of launch. Before we open to the public, all mainnet users will first need to create a testnet account so we can onboard you. So make sure you’ve signed up to avoid any delays in getting you onto the mainnet. 

Latest News

digitex

Ten Reasons Digitex is Here to Stay

Digitex Futures
• Sulla Felix
June 25, 2020

This summer, Digitex is set to open the doors on the DFE mainnet, marking the first time in history that anyone can implement a profitable scalping strategy trading cryptocurrency futures. It’s been quite the journey to get to this point, but the efforts involved mean that we’ve had ample opportunity to demonstrate that we’re in it for the long game. Here are ten reasons why Digitex is here to stay. 

We Have a Mainnet That Will Revolutionize the Market

The mainnet is due to hit over a thousand users this week and the overall feedback has been exceptionally positive. Traders have loved battling it out on the platform and have used this opportunity to provide feedback to the team. This feedback has been absorbed and is coming through on the platform in improvements so that every new batch of traders is getting a better experience than the last.

Even with a limited number of traders, the mainnet platform has been generating some exceptional volume which is not only a sign of the DGTX token utility but also its fun and ease of use. Traders have found themselves unable to leave their screen, simply glued to the exchange.

With a world-class exchange already running, and a commitment to continuous improvement, the Digitex Futures mainnet looks set to go stellar from here.

Zero-Fee Trading Will Open up to Vast New Audiences of Scalpers and Gamblers Worldwide

Digitex Futures is the only platform to offer zero-fee trading and this is an exceptionally powerful offering. Without fees, a whole host of potential trading strategies become available that would otherwise be unprofitable on another platform. 

Suddenly, small price variation strategies such as one or two tick scalps, have a much higher probability of success as fees are not deducted from profits. Zero fees also facilitate scratch trades that would otherwise have been a loss on another platform. This allows users to exit trades and reverse their position on the same price level without a penalty incurred.

For each losing trade that you cut on the Digitex Exchange you have a saving of 0.075% compared to most other crypto futures platforms. If you maintain tight stops, this can cut your losses significantly and ultimately improve your risk:reward ratio. If you are following a strategy that typically takes a higher number of controlled losses for each gain, then saving fees will contribute to a healthier trading profit and loss over time.

We Have Crypto’s First Trading Ladder Interface That’s Intuitive and Addictive

Digitex Futures offers single-click trading through its ladder trading interface. One click, one order. The Digitex ladder allows quick reactions to price movements and for that reason is preferred by scalpers who operate in volatile markets. It is well known that Bitcoin is famous for its volatility and the ladder complements this volatility beautifully.

With single-click orders and cancelations, the trader never needs to move their mouse away from the ladder interface. In standard exchanges placing orders can be a multi-click process where sudden price swings can leave you fumbling to exit your position. Trading the Digitex ladder gives you a chance to react quickly if the asset moves against you. In just two clicks on the Digitex ladder, you can not only exit your position but reverse your position on the fly.

In addition to ease of use, the ladder interface offers depth of market feedback giving you a visual representation of the order book, including profit and loss values at each tick. You can also easily see the number of contracts at each price level and use the right-click function to neatly close your total position size.

The quick trading that the ladder encourages will create a more liquid market as traders will be looking to scalp at every price increment.

We Have a Visionary CEO

This is not Adam Todd’s first rodeo. In 2004 Adam launched a Betfair trading application which was focused around a ladder trading UI for Betfair’s horse racing. The driving force for this was usability as Adam wanted a more efficient way to place large quantities of bets per day. The software was initially developed for himself, but Adam began to offer this to the market, and before he knew it an app was live, that still runs to this day nearly 16 years later.

With this background, Adam saw an opportunity to present the same to the crypto community, this time packing in the benefit of zero-fees. With a trading background, Adam is acutely aware of the effects of fees on a trader’s profit and loss sheet at the end of the day. By utilizing the DGTX token Adam has created a way for traders to operate without battling against fees, solving another problem on his list, and opening it up to the masses. 

Arguably Adam’s best attribute, and possibly the only reason many of the community stayed throughout, is his attitude to success. Adam will not stop or accept defeat. One year on from an exceptionally difficult announcement of a delay in development, Adam has delivered on his promise, providing a single click ladder interface on a zero fee, perpetual futures trading platform. 

Adam knows that if he is experiencing pain points, so too are others. It is this vision and drive to match that has helped him in the past, got him to the present, and will drive Digitex in the future to come.

We Have a Stellar Team

Adam is open enough to admit that until he started working on the Digitex project, he was a lone wolf. However, part of the journey he’s been on since the ICO is recognizing the benefit of having the right people around him to make Digitex a success. This has recently involved hiring some stellar talent that complement his own style. 

For example, he recently promoted Chris Psallidas to Chief Operations Officer for his efforts in implementing the right back-office systems, tools, and processes to help Digitex grow and scale leading up to the public launch. We now have Yuliya Sporysh providing a business-critical bridge between exchange operations, maintenance, and development. Alex Lozoviuk is heading up all technological matters related to exchange development. 

And not forgetting, Digitex’s longest-standing team member, Adam’s right-hand woman, and a force to be reckoned with, Marketing Director Lidia Yadlos. She’s created a viral marketing and PR machine that can spread the word about Digitex far and wide. 

There are too many others to name them all individually. But suffice to say, there are now close to 70 people working on Digitex, and we’re still hiring. Every single one is working hard to bring the zero-fee trading vision to life. 

We Have a Large and Loyal Community

The Digitex community has become one of the most resilient in the cryptocurrency space, never losing sight of the potential that the Digitex Futures Exchange will offer its users. Having suffered setbacks, true believers of a zero-fee trading platform have taken the chance to not only fill their bags but also contribute to the growth of this project. 

Between creating trading tutorials to help new users, administering community Telegram groups, and providing feedback on exchange operations, the Digitex community has banded together to support in whatever way they can to keep this vision alive.

With full public access getting closer by the day, the anticipation is evident across all social platforms. Over 28,000 Telegram members and 65,000 Twitter followers are tuning in to every announcement waiting to hear those magic words, and once they do, that is just the beginning.  

We have a Sustainable Funding Source via the Treasury

Two years since the Digitex Futures ICO in January 2018 and the Digitex Treasury has proven to be a very sustainable source of funding for the development of the platform. With the quarterly release of 10 million DGTX tokens, Digitex Futures has a secure investment source to continue development and operations going forward. With the final planned smart contract release sale scheduled for June 1st 2021, the Digitex team will be kept busy continuously developing and improving the exchange to ensure it is here to stay.  

Ten Reasons Digitex is Here to Stay 29

We’re in a Rapidly Growing Industry

As a futures trading platform, Digitex will be competing for market share of futures for each individual market that it offers users on the platform. With BTC as the first perpetual market that has been listed on the exchange, it makes sense to first look at the current market competitors metrics. Below are two graphs showing some daily volume and open interest metrics for current Bitcoin Futures Exchanges. From these, it’s evident that both volume transacted and open interest in Bitcoin perpetuals is growing, even despite recent difficult market conditions.

Ten Reasons Digitex is Here to Stay 30 Ten Reasons Digitex is Here to Stay 31

Soon Digitex will offer other crypto-currency trading pairs such as Ethereum. Following a similar trajectory as Bitcoin, it is evident that the Ethereum Futures market continues to grow.

Ten Reasons Digitex is Here to Stay 32 Ten Reasons Digitex is Here to Stay 33

(Source for all charts – Skew.com)

As Digitex lists each new market and begins to offer traditional trading pairs such as gold, oil, indices, and stocks, users of the platform will have a one-stop-shop for a large variety of equities.  Meaning, that even if one equity ‘goes under’ Digitex has other markets which traders can still access.

We Have a Token With Real Utility

The most important thing a company can do is supply a solution to a demand. A demand can come from anything, whether people want to binge-watch television, store their personal information in the cloud or just chill out on a beach. Where demand exists, so too does a group of companies hoping to provide their solution, known as the market. The reason a market develops where demand exists is because people are willing to pay for the solutions these companies are offering.

In the crypto space, these demands are satisfied in the form of cryptographic solutions. Trustless transactions, secure payments, cloud computing resourcing, and zero-commission trading to name just a few. Solutions to these demands are presented in the market as cryptographic tokens, which are developed for a specific use case to fulfill these demands.

When ICO mania hit, the word utility suddenly became the key term in understanding if your tokens could appreciate in value. It became apparent that many either didn’t fulfill a demand or didn’t have the utility to be useful in solving the problem. Digitex Futures, however, is proving its utility every day on its mainnet platform.

Utility can be defined as ‘a state of being useful, profitable or beneficial’. Digitex Futures has offered the crypto market a place to trade futures contracts with zero commissions by buying and using the DGTX token. In previous blog posts, we have presented the financial advantage that zero-fee trading offers its users. As the only company in the crypto marketplace offering zero-fee trading, Digitex is presenting value to its users who can now turn unprofitable scalping strategies into profit. In this way, the DGTX tokens real utility is in offering a cost-saving advantage to traders.

Perhaps the most powerful aspect of the DGTX tokens utility is its flexibility to stretch across multiple markets, not only adding value to crypto traders but also targeted at fulfilling this need across other markets in commodities, indices, and traditional stock. With each opening market will come more usefulness of the DGTX token as it presents the only solution to the demand of zero-fee trading.   

We Have Insane Liquidity Even With Only a Few Hundred Traders 

Since the soft launch on April 27th, Digitex Futures has now onboarded 870 users, from which over $100M USD of daily volume is generated on an on-going basis. During the weekend we saw around 12% volume growth when compared with weekday activity, and today’s traded volume reached a new record high of $132M USD in the last 24 hours. This, with only 870 traders, highlights the liquidity potential that Digitex Futures truly has. A quick look at the top BTC derivatives markets highlights that with only 870 onboarded traders, the exchange is achieving a daily volume comparable to that of BTSE and Deribit leaving Digitex competing in the top 10.  

Ten Reasons Digitex is Here to Stay 34

In a previous report, we outlined and estimated the potential daily volume achievable by the Digitex Futures Platform. This projected that with 5,000 users DGTX could generate a daily volume in the region of $1BN USD, which would make Digitex the fourth largest of the derivative exchanges currently leading the BTC market. Currently sitting in fourth is Bybit where comparably Bybit boasts a user base of 400,000 strong!  

Digitex has created an exchange which promotes fast and frequent transactions, gives the edge to the trader and wraps it up within an exceptionally easy to use UI. Once DGTX opens its doors for full public launch, the trading volume on the Digitex Futures Exchange could very easily exceed any other exchange on the market.

June 25, 2020
Digitex Futures

Ten Reasons Digitex is Here to Stay

Sulla Felix
digitex

This summer, Digitex is set to open the doors on the DFE mainnet, marking the first time in history that anyone can implement a profitable scalping strategy trading cryptocurrency futures. It’s been quite the journey to get to this point, but the efforts involved mean that we’ve had ample opportunity to demonstrate that we’re in it for the long game. Here are ten reasons why Digitex is here to stay. 

We Have a Mainnet That Will Revolutionize the Market

The mainnet is due to hit over a thousand users this week and the overall feedback has been exceptionally positive. Traders have loved battling it out on the platform and have used this opportunity to provide feedback to the team. This feedback has been absorbed and is coming through on the platform in improvements so that every new batch of traders is getting a better experience than the last.

Even with a limited number of traders, the mainnet platform has been generating some exceptional volume which is not only a sign of the DGTX token utility but also its fun and ease of use. Traders have found themselves unable to leave their screen, simply glued to the exchange.

With a world-class exchange already running, and a commitment to continuous improvement, the Digitex Futures mainnet looks set to go stellar from here.

Zero-Fee Trading Will Open up to Vast New Audiences of Scalpers and Gamblers Worldwide

Digitex Futures is the only platform to offer zero-fee trading and this is an exceptionally powerful offering. Without fees, a whole host of potential trading strategies become available that would otherwise be unprofitable on another platform. 

Suddenly, small price variation strategies such as one or two tick scalps, have a much higher probability of success as fees are not deducted from profits. Zero fees also facilitate scratch trades that would otherwise have been a loss on another platform. This allows users to exit trades and reverse their position on the same price level without a penalty incurred.

For each losing trade that you cut on the Digitex Exchange you have a saving of 0.075% compared to most other crypto futures platforms. If you maintain tight stops, this can cut your losses significantly and ultimately improve your risk:reward ratio. If you are following a strategy that typically takes a higher number of controlled losses for each gain, then saving fees will contribute to a healthier trading profit and loss over time.

We Have Crypto’s First Trading Ladder Interface That’s Intuitive and Addictive

Digitex Futures offers single-click trading through its ladder trading interface. One click, one order. The Digitex ladder allows quick reactions to price movements and for that reason is preferred by scalpers who operate in volatile markets. It is well known that Bitcoin is famous for its volatility and the ladder complements this volatility beautifully.

With single-click orders and cancelations, the trader never needs to move their mouse away from the ladder interface. In standard exchanges placing orders can be a multi-click process where sudden price swings can leave you fumbling to exit your position. Trading the Digitex ladder gives you a chance to react quickly if the asset moves against you. In just two clicks on the Digitex ladder, you can not only exit your position but reverse your position on the fly.

In addition to ease of use, the ladder interface offers depth of market feedback giving you a visual representation of the order book, including profit and loss values at each tick. You can also easily see the number of contracts at each price level and use the right-click function to neatly close your total position size.

The quick trading that the ladder encourages will create a more liquid market as traders will be looking to scalp at every price increment.

We Have a Visionary CEO

This is not Adam Todd’s first rodeo. In 2004 Adam launched a Betfair trading application which was focused around a ladder trading UI for Betfair’s horse racing. The driving force for this was usability as Adam wanted a more efficient way to place large quantities of bets per day. The software was initially developed for himself, but Adam began to offer this to the market, and before he knew it an app was live, that still runs to this day nearly 16 years later.

With this background, Adam saw an opportunity to present the same to the crypto community, this time packing in the benefit of zero-fees. With a trading background, Adam is acutely aware of the effects of fees on a trader’s profit and loss sheet at the end of the day. By utilizing the DGTX token Adam has created a way for traders to operate without battling against fees, solving another problem on his list, and opening it up to the masses. 

Arguably Adam’s best attribute, and possibly the only reason many of the community stayed throughout, is his attitude to success. Adam will not stop or accept defeat. One year on from an exceptionally difficult announcement of a delay in development, Adam has delivered on his promise, providing a single click ladder interface on a zero fee, perpetual futures trading platform. 

Adam knows that if he is experiencing pain points, so too are others. It is this vision and drive to match that has helped him in the past, got him to the present, and will drive Digitex in the future to come.

We Have a Stellar Team

Adam is open enough to admit that until he started working on the Digitex project, he was a lone wolf. However, part of the journey he’s been on since the ICO is recognizing the benefit of having the right people around him to make Digitex a success. This has recently involved hiring some stellar talent that complement his own style. 

For example, he recently promoted Chris Psallidas to Chief Operations Officer for his efforts in implementing the right back-office systems, tools, and processes to help Digitex grow and scale leading up to the public launch. We now have Yuliya Sporysh providing a business-critical bridge between exchange operations, maintenance, and development. Alex Lozoviuk is heading up all technological matters related to exchange development. 

And not forgetting, Digitex’s longest-standing team member, Adam’s right-hand woman, and a force to be reckoned with, Marketing Director Lidia Yadlos. She’s created a viral marketing and PR machine that can spread the word about Digitex far and wide. 

There are too many others to name them all individually. But suffice to say, there are now close to 70 people working on Digitex, and we’re still hiring. Every single one is working hard to bring the zero-fee trading vision to life. 

We Have a Large and Loyal Community

The Digitex community has become one of the most resilient in the cryptocurrency space, never losing sight of the potential that the Digitex Futures Exchange will offer its users. Having suffered setbacks, true believers of a zero-fee trading platform have taken the chance to not only fill their bags but also contribute to the growth of this project. 

Between creating trading tutorials to help new users, administering community Telegram groups, and providing feedback on exchange operations, the Digitex community has banded together to support in whatever way they can to keep this vision alive.

With full public access getting closer by the day, the anticipation is evident across all social platforms. Over 28,000 Telegram members and 65,000 Twitter followers are tuning in to every announcement waiting to hear those magic words, and once they do, that is just the beginning.  

We have a Sustainable Funding Source via the Treasury

Two years since the Digitex Futures ICO in January 2018 and the Digitex Treasury has proven to be a very sustainable source of funding for the development of the platform. With the quarterly release of 10 million DGTX tokens, Digitex Futures has a secure investment source to continue development and operations going forward. With the final planned smart contract release sale scheduled for June 1st 2021, the Digitex team will be kept busy continuously developing and improving the exchange to ensure it is here to stay.  

Ten Reasons Digitex is Here to Stay 35

We’re in a Rapidly Growing Industry

As a futures trading platform, Digitex will be competing for market share of futures for each individual market that it offers users on the platform. With BTC as the first perpetual market that has been listed on the exchange, it makes sense to first look at the current market competitors metrics. Below are two graphs showing some daily volume and open interest metrics for current Bitcoin Futures Exchanges. From these, it’s evident that both volume transacted and open interest in Bitcoin perpetuals is growing, even despite recent difficult market conditions.

Ten Reasons Digitex is Here to Stay 36 Ten Reasons Digitex is Here to Stay 37

Soon Digitex will offer other crypto-currency trading pairs such as Ethereum. Following a similar trajectory as Bitcoin, it is evident that the Ethereum Futures market continues to grow.

Ten Reasons Digitex is Here to Stay 38 Ten Reasons Digitex is Here to Stay 39

(Source for all charts – Skew.com)

As Digitex lists each new market and begins to offer traditional trading pairs such as gold, oil, indices, and stocks, users of the platform will have a one-stop-shop for a large variety of equities.  Meaning, that even if one equity ‘goes under’ Digitex has other markets which traders can still access.

We Have a Token With Real Utility

The most important thing a company can do is supply a solution to a demand. A demand can come from anything, whether people want to binge-watch television, store their personal information in the cloud or just chill out on a beach. Where demand exists, so too does a group of companies hoping to provide their solution, known as the market. The reason a market develops where demand exists is because people are willing to pay for the solutions these companies are offering.

In the crypto space, these demands are satisfied in the form of cryptographic solutions. Trustless transactions, secure payments, cloud computing resourcing, and zero-commission trading to name just a few. Solutions to these demands are presented in the market as cryptographic tokens, which are developed for a specific use case to fulfill these demands.

When ICO mania hit, the word utility suddenly became the key term in understanding if your tokens could appreciate in value. It became apparent that many either didn’t fulfill a demand or didn’t have the utility to be useful in solving the problem. Digitex Futures, however, is proving its utility every day on its mainnet platform.

Utility can be defined as ‘a state of being useful, profitable or beneficial’. Digitex Futures has offered the crypto market a place to trade futures contracts with zero commissions by buying and using the DGTX token. In previous blog posts, we have presented the financial advantage that zero-fee trading offers its users. As the only company in the crypto marketplace offering zero-fee trading, Digitex is presenting value to its users who can now turn unprofitable scalping strategies into profit. In this way, the DGTX tokens real utility is in offering a cost-saving advantage to traders.

Perhaps the most powerful aspect of the DGTX tokens utility is its flexibility to stretch across multiple markets, not only adding value to crypto traders but also targeted at fulfilling this need across other markets in commodities, indices, and traditional stock. With each opening market will come more usefulness of the DGTX token as it presents the only solution to the demand of zero-fee trading.   

We Have Insane Liquidity Even With Only a Few Hundred Traders 

Since the soft launch on April 27th, Digitex Futures has now onboarded 870 users, from which over $100M USD of daily volume is generated on an on-going basis. During the weekend we saw around 12% volume growth when compared with weekday activity, and today’s traded volume reached a new record high of $132M USD in the last 24 hours. This, with only 870 traders, highlights the liquidity potential that Digitex Futures truly has. A quick look at the top BTC derivatives markets highlights that with only 870 onboarded traders, the exchange is achieving a daily volume comparable to that of BTSE and Deribit leaving Digitex competing in the top 10.  

Ten Reasons Digitex is Here to Stay 40

In a previous report, we outlined and estimated the potential daily volume achievable by the Digitex Futures Platform. This projected that with 5,000 users DGTX could generate a daily volume in the region of $1BN USD, which would make Digitex the fourth largest of the derivative exchanges currently leading the BTC market. Currently sitting in fourth is Bybit where comparably Bybit boasts a user base of 400,000 strong!  

Digitex has created an exchange which promotes fast and frequent transactions, gives the edge to the trader and wraps it up within an exceptionally easy to use UI. Once DGTX opens its doors for full public launch, the trading volume on the Digitex Futures Exchange could very easily exceed any other exchange on the market.

Latest News

Support

Complete Beginners Guide Now Live on Support Pages

Digitex Futures
• Sulla Felix
June 19, 2020

What an amazing journey Digitex Futures has had since January 2018 and most importantly, what a vibrant community has been built as a result. With its first 570 users onboarded and daily Volume averaging above $100,000,000, the Digitex Futures Exchange is starting to deliver its promises in the form of products. 

In the recent development update, we presented some awesome news on the roadmap, including working hard to get markets in new contracts such as ETH, gold, and oil live this summer. Digitex doesn’t just want to offer the most innovative cutting-edge exchange but also the most user-friendly platform on the market, proving that its users and community are priority number one. 

Many community members have followed Digitex through thick and thin, for which the team at Digitex can only extend the warmest gratitude and continue working tirelessly to deliver for those who have supported this project throughout this amazing journey. 

Preparing for Adoption

With such a strong community behind us, there is little doubt that adoption will follow shortly after public opening. Many of those joining will be first-time users gaining exposure to the exchange, with little previous knowledge of what we are offering and trying to achieve. 

To prepare for this, we have been developing a ‘Beginners Guide to Digitex Futures’ that we hope will help ease the learning curve. Not only for those who have no exposure to Digitex but also for those who have recognized the value of holding DGTX, and now need some guidance to start their trading journey.  

In this Guide, we have tried to cover everything that a new user needs to set up an account with Digitex Futures regardless of previous trading experience. We hope to help our users navigate the Exchange with ease and provide answers and understanding to some of the more difficult questions:

What is a Perpetual Futures Contract?

How does Leverage work and how is it linked to Margin and Liquidation?

Where do I get the DGTX token and how do I place trades on the Exchange?

We hope this guide can serve as the starting point for anyone and everyone with any questions about the Digitex Futures Exchange, what it is, and, how to use it. 

The Digitex Futures Guide aims to ensure that users have all the information required to provide complete clarity in how the platform is designed. Understanding the Exchange and its tools is the vital first step that users should take to give themselves the highest chance of success from their very first trade.  

The Guide is now live on our Support section, available to all.

Share It Far and Wide! 

This guide might not be required by everyone. But we all know someone who might benefit from this as an initial starting point.  Now, I would like to raise a call to arms – to those amazing supporters, please share the Guide with your friends and family who are interested in learning what Digitex is and has to offer. If you see others struggling, hopefully this Guide can serve as a starting point to help them along their way.

This journey has highlighted that the Digitex community is like no other when it comes to supporting one another. One year ago, how many of us would dare to believe that the first 570 traders would generate a daily volume of over $100,000,000. Now consider what we might achieve with another year of the same camaraderie. Let us continue to celebrate together, support each other, and strive for future success.

June 19, 2020
Digitex Futures

Complete Beginners Guide Now Live on Support Pages

Sulla Felix
Support

What an amazing journey Digitex Futures has had since January 2018 and most importantly, what a vibrant community has been built as a result. With its first 570 users onboarded and daily Volume averaging above $100,000,000, the Digitex Futures Exchange is starting to deliver its promises in the form of products. 

In the recent development update, we presented some awesome news on the roadmap, including working hard to get markets in new contracts such as ETH, gold, and oil live this summer. Digitex doesn’t just want to offer the most innovative cutting-edge exchange but also the most user-friendly platform on the market, proving that its users and community are priority number one. 

Many community members have followed Digitex through thick and thin, for which the team at Digitex can only extend the warmest gratitude and continue working tirelessly to deliver for those who have supported this project throughout this amazing journey. 

Preparing for Adoption

With such a strong community behind us, there is little doubt that adoption will follow shortly after public opening. Many of those joining will be first-time users gaining exposure to the exchange, with little previous knowledge of what we are offering and trying to achieve. 

To prepare for this, we have been developing a ‘Beginners Guide to Digitex Futures’ that we hope will help ease the learning curve. Not only for those who have no exposure to Digitex but also for those who have recognized the value of holding DGTX, and now need some guidance to start their trading journey.  

In this Guide, we have tried to cover everything that a new user needs to set up an account with Digitex Futures regardless of previous trading experience. We hope to help our users navigate the Exchange with ease and provide answers and understanding to some of the more difficult questions:

What is a Perpetual Futures Contract?

How does Leverage work and how is it linked to Margin and Liquidation?

Where do I get the DGTX token and how do I place trades on the Exchange?

We hope this guide can serve as the starting point for anyone and everyone with any questions about the Digitex Futures Exchange, what it is, and, how to use it. 

The Digitex Futures Guide aims to ensure that users have all the information required to provide complete clarity in how the platform is designed. Understanding the Exchange and its tools is the vital first step that users should take to give themselves the highest chance of success from their very first trade.  

The Guide is now live on our Support section, available to all.

Share It Far and Wide! 

This guide might not be required by everyone. But we all know someone who might benefit from this as an initial starting point.  Now, I would like to raise a call to arms – to those amazing supporters, please share the Guide with your friends and family who are interested in learning what Digitex is and has to offer. If you see others struggling, hopefully this Guide can serve as a starting point to help them along their way.

This journey has highlighted that the Digitex community is like no other when it comes to supporting one another. One year ago, how many of us would dare to believe that the first 570 traders would generate a daily volume of over $100,000,000. Now consider what we might achieve with another year of the same camaraderie. Let us continue to celebrate together, support each other, and strive for future success.

Latest News

mainnet

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket

Trading
• Sulla Felix
May 28, 2020

It’s been a month since Digitex Futures opened its doors by onboarding the initial batch of 20 mainnet users. Since then the team has steadily been adding more traders and using their feedback to improve the exchange in preparation for the public launch this summer. Soon, every trader on the planet will be able to have the opportunity to profit from a zero-fee exchange. Here, we explain how this translates into a highly liquid exchange, with volumes likely to far outpace our competitors. 

Zero fees opens up opportunities for traders that do not exist on other exchanges. As discussed in last week’s blog post, a zero-fee model means you can generate profit from trades with much smaller movements in asset prices. This enables higher-frequency trading strategies to operate without penalty. Thus, facilitating traders to trade more frequently than is possible on other platforms.

In today’s report, I am going to analyze the volume generated by the current traders who have been on-boarded to the exchange and use these values to extrapolate the potential liquidity that the Digitex Futures Exchange will facilitate as its adoption grows.

One Month – 220 Traders

In the first month since mainnet launch, we have seen a phased onboarding approach from the Digitex Futures team. So far, there have been four batches of traders granted access to the exchange – the initial 20, the second batch of 50, a third batch of 50, and the most recent batch of 100. These traders have been on-boarded starting April 27th and then weekly from May 7th onward.

We can plot the relationship between the daily trading volume, and weekly increases in mainnet users as follows:

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 41

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 42

Assumptions: It is assumed that every user is active at one point throughout each day and that on-boarding each batch is done in a single day.

The above plots are based on empirical data – that is to say, they have been recorded and are not speculative. The plot on the bottom represents a collection of measurements of 24-hour trading volume achieved by 20, 70, 120, and 220 users. The plot on the top represents the daily volume traded since launch on April 27th with the number of traders on-boarded overlaid in red.

From these charts, it is evident that as more users are on-boarded to the exchange, it correlates to a rise in 24-hour trading volume. It is also evident that as more users are on-boarded, we see a greater range of daily volume. To calculate the range, we consider the difference between highest and lowest daily volume for each subset of traders.

As the initial 20 traders are mostly full-time traders and/or contributors, it is presumed that the increasing range is due to a daily fluctuation in users as every trader on-boarded is no longer full time and may trade less frequently than the initial 20.

5,000 Users – A Projection

Using the gathered data, we can create an estimate of expected 24-hour exchange volume for a larger number of users, assuming future users will trade on the exchange to the same degree as current users.

To extrapolate this, we need to first plot a line of best fit and remove outliers that might skew the data. In the below graph you will see that we have removed the $77m data point and revised the plot.

This gives us a more conservative estimate on trading volume and a greater confidence level.

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 43

Using this relationship, we now project our user base from 20 to 5,000 users.

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 44

This plot extrapolates the average daily trade volume generated versus the number of traders. It projects that 5,000 traders who operate at the same rate as the current 220 traders will produce a daily volume or liquidity in the region of $1,000,000,000 ($1 Billion USD).

At this point, I think it is important to emphasize that we are basing this extrapolation on only four data points. We are assuming that future traders will trade at the same rate as the initial batches of on-boarded traders to the DFE. This projection is representative, and we will continue to monitor and amend over the coming weeks to increase the accuracy of this model as Digitex Futures continues to grow.

However, considering the zero-fee model and ladder interface of the Digitex Futures Exchange, it is not a far stretch to believe that this volume projection is possible. Traders can capitalize on trades with higher frequency across minor market movements that are not profitable on other exchanges.  Therefore, traders can now trade higher volumes, for smaller profits, more frequently to achieve the same targets.

Summary

With only 220 users currently trading on the Digitex Futures Exchange, 24-hour trading volume hit an all-time high of $77,000,000. By recording the daily volume and comparing it to the total number of traders currently granted access to the exchange, we are able to project an estimate for the type of volumes we can expect when full-scale adoption occurs.

By the process of extrapolation, the current data predicts the Digitex Futures Exchange would achieve $1,000,000,000 in daily volume with an active user base of 5,000 users.

Compared to competitor exchanges, this 24-hour volume is exceptional for such a small number of users to date. It seems apparent that such a large transaction volume per user could be due to the Digitex Futures zero-fees model and ladder interface, facilitating high-frequency trading strategies that are not possible on fee-paying exchanges. The net result is a higher 24-hour trading volume per trader, and a market of unparalleled liquidity.

May 28, 2020
Trading

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket

Sulla Felix
mainnet

It’s been a month since Digitex Futures opened its doors by onboarding the initial batch of 20 mainnet users. Since then the team has steadily been adding more traders and using their feedback to improve the exchange in preparation for the public launch this summer. Soon, every trader on the planet will be able to have the opportunity to profit from a zero-fee exchange. Here, we explain how this translates into a highly liquid exchange, with volumes likely to far outpace our competitors. 

Zero fees opens up opportunities for traders that do not exist on other exchanges. As discussed in last week’s blog post, a zero-fee model means you can generate profit from trades with much smaller movements in asset prices. This enables higher-frequency trading strategies to operate without penalty. Thus, facilitating traders to trade more frequently than is possible on other platforms.

In today’s report, I am going to analyze the volume generated by the current traders who have been on-boarded to the exchange and use these values to extrapolate the potential liquidity that the Digitex Futures Exchange will facilitate as its adoption grows.

One Month – 220 Traders

In the first month since mainnet launch, we have seen a phased onboarding approach from the Digitex Futures team. So far, there have been four batches of traders granted access to the exchange – the initial 20, the second batch of 50, a third batch of 50, and the most recent batch of 100. These traders have been on-boarded starting April 27th and then weekly from May 7th onward.

We can plot the relationship between the daily trading volume, and weekly increases in mainnet users as follows:

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 45

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 46

Assumptions: It is assumed that every user is active at one point throughout each day and that on-boarding each batch is done in a single day.

The above plots are based on empirical data – that is to say, they have been recorded and are not speculative. The plot on the bottom represents a collection of measurements of 24-hour trading volume achieved by 20, 70, 120, and 220 users. The plot on the top represents the daily volume traded since launch on April 27th with the number of traders on-boarded overlaid in red.

From these charts, it is evident that as more users are on-boarded to the exchange, it correlates to a rise in 24-hour trading volume. It is also evident that as more users are on-boarded, we see a greater range of daily volume. To calculate the range, we consider the difference between highest and lowest daily volume for each subset of traders.

As the initial 20 traders are mostly full-time traders and/or contributors, it is presumed that the increasing range is due to a daily fluctuation in users as every trader on-boarded is no longer full time and may trade less frequently than the initial 20.

5,000 Users – A Projection

Using the gathered data, we can create an estimate of expected 24-hour exchange volume for a larger number of users, assuming future users will trade on the exchange to the same degree as current users.

To extrapolate this, we need to first plot a line of best fit and remove outliers that might skew the data. In the below graph you will see that we have removed the $77m data point and revised the plot.

This gives us a more conservative estimate on trading volume and a greater confidence level.

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 47

Using this relationship, we now project our user base from 20 to 5,000 users.

After 30 Days of Mainnet, Future DFE Volumes Are Set to Skyrocket 48

This plot extrapolates the average daily trade volume generated versus the number of traders. It projects that 5,000 traders who operate at the same rate as the current 220 traders will produce a daily volume or liquidity in the region of $1,000,000,000 ($1 Billion USD).

At this point, I think it is important to emphasize that we are basing this extrapolation on only four data points. We are assuming that future traders will trade at the same rate as the initial batches of on-boarded traders to the DFE. This projection is representative, and we will continue to monitor and amend over the coming weeks to increase the accuracy of this model as Digitex Futures continues to grow.

However, considering the zero-fee model and ladder interface of the Digitex Futures Exchange, it is not a far stretch to believe that this volume projection is possible. Traders can capitalize on trades with higher frequency across minor market movements that are not profitable on other exchanges.  Therefore, traders can now trade higher volumes, for smaller profits, more frequently to achieve the same targets.

Summary

With only 220 users currently trading on the Digitex Futures Exchange, 24-hour trading volume hit an all-time high of $77,000,000. By recording the daily volume and comparing it to the total number of traders currently granted access to the exchange, we are able to project an estimate for the type of volumes we can expect when full-scale adoption occurs.

By the process of extrapolation, the current data predicts the Digitex Futures Exchange would achieve $1,000,000,000 in daily volume with an active user base of 5,000 users.

Compared to competitor exchanges, this 24-hour volume is exceptional for such a small number of users to date. It seems apparent that such a large transaction volume per user could be due to the Digitex Futures zero-fees model and ladder interface, facilitating high-frequency trading strategies that are not possible on fee-paying exchanges. The net result is a higher 24-hour trading volume per trader, and a market of unparalleled liquidity.

Latest News

fees

Zero Fees – A Mathematical No Brainer

Trading
• Sulla Felix
May 21, 2020

With the Digitex Futures Exchange continuing to onboard more users and showing steady growth in volume and liquidity daily, it’s starting to become evident that it can thrive as the outlier of all Bitcoin Perpetual Futures Exchanges. Being the only place that traders can swap contracts with no fees lost to the house is such a powerful advantage for traders that soon, it won’t make sense to trade anywhere else.

Since Digitex opened its doors on the 27th of April, I have been lucky enough to be one of the early access participants and have had the opportunity to trade with no commissions. I do not consider myself to be a highly experienced trader. Before trading on the Digitex platform, my trading experience sums to perhaps 20 trades total using ByBit and Binance accounts, reading a book or two, and investing in the odd index fund. I barely broke even on my trades and decided the time investment was more than it was worth, so I stopped. 

But in just 15 days of trading on Digitex Futures, I turned my modest initial balance of 3,000 DGTX into 8,100 DGTX, corresponding to an increase in funds of 270%. Although a small balance, it’s a large relative gain and I believe was only achievable due to the potential that zero-fee trading presents to traders. 

Specifically, compounding funds that would otherwise have been spent on fees into growing your trading balance.

Compound Interest

Compound interest is possibly the most powerful financial tool on the planet. Warren Buffet attributes his investing success to this investment technique and Albert Einstein once described it as the 8th wonder of the world.

Compounding is the process of exponentially increasing the value of your investment by reinvesting any profits so that the capital on which you generate profits is continuously growing. As your capital is continuously growing, it generates larger profits which are then added to your capital to generate even larger profits. This is repeated enabling your investment to grow exponentially over the years. If you have no knowledge of compound interest, I highly recommend you spend some time learning about it.

Now, the reason this is important and relevant to the Digitex Futures Exchange, is because of the zero-fee model. Paying no commissions on trades opens up a whole new realm of possibilities when trading.

Keeping Fees vs Paying Fees

I believe the best way to emphasize this point is by playing out a scenario comparing the same trading movements on Digitex, Binance, BitMEX, and ByBit. In this scenario I will compound all profits into the trading balance and use the entire balance for the next trade. Fees will be considered and, for the sake of simplicity and emphasis, all fees will be taker fees at the rates of the respective exchanges. 

The analysis will assume the same trade repeated representing a 0.1% movement in Bitcoin. We are assuming no losing trades for the purposes of comparison.

Because Digitex has a zero-fee structure, this analysis is delving into the benefits of trading small gains, corresponding to two tick movements on the Digitex ladder. In each case, we are starting with an initial trading balance of $1,000. 

365 Trades

A trade a day keeps hunger away. The below comparison tables plots the same, small movement trade repeated 365 times. This could be a daily 2 tick trade or packed into whatever timeline your trading strategy dictates but what is immediately evident is that adding fees to your trading balance instead of losing fees to exchanges can significantly help grow your capital and increase your odds of success.

Zero Fees – A Mathematical No Brainer 49

Zero Fees – A Mathematical No Brainer 50

Both BitMex and ByBit see negative returns while Binance and Digitex Futures are positive. With a starting balance of $1,000, trading this strategy on the Digitex Futures platform would generate 3 times as much profit across 365 trades than its closest competitor.

3,650 Trades

Although across 365 trades, Binance looks like it competes with Digitex, I’m now about to present to you the power of compounding. Over time, small percentages compounded amount to extensive returns. Across 3650 trades, no other platform on the market can keep pace with the potential that Digitex offers its traders. Where both ByBit and BitMex have fed on over 80% of your capital, Digitex has helped you to nearly 40x returns.

Zero Fees – A Mathematical No Brainer 51

Zero Fees – A Mathematical No Brainer 52

10,000 Trades

The real power of compounding gets ludicrous at upper levels and you’d be lucky to be able to fill enough contracts to do this, but just for fun let’s look at 10,000 successful 0.1% trades. You’ll notice I had to put this on a logarithmic scale to see the other platforms’ performance compared to Digitex.

Enough said really.

Zero Fees – A Mathematical No Brainer 53

Zero Fees – A Mathematical No Brainer 54

Summary

Compounding your investments is a financial tool to facilitate exponential growth in your finances. In trading, compounding your trading balance can have the same effect. When compounding, small percentages amount to huge returns over time. What looks like small trading fees on exchanges such as ByBit, BitMex, and Binance can amount to lost opportunity when considered across a larger time frame.

Digitex Futures allows traders to not only operate but thrive within the margins where other platforms produce a loss due to high fees. If a trader can manage to compound these fees into their trades, they have a significantly higher chance of being successful.

Remember, exchanges aren’t built on winners, they’re built on fees.

Until now.

May 21, 2020
Trading

Zero Fees – A Mathematical No Brainer

Sulla Felix
fees

With the Digitex Futures Exchange continuing to onboard more users and showing steady growth in volume and liquidity daily, it’s starting to become evident that it can thrive as the outlier of all Bitcoin Perpetual Futures Exchanges. Being the only place that traders can swap contracts with no fees lost to the house is such a powerful advantage for traders that soon, it won’t make sense to trade anywhere else.

Since Digitex opened its doors on the 27th of April, I have been lucky enough to be one of the early access participants and have had the opportunity to trade with no commissions. I do not consider myself to be a highly experienced trader. Before trading on the Digitex platform, my trading experience sums to perhaps 20 trades total using ByBit and Binance accounts, reading a book or two, and investing in the odd index fund. I barely broke even on my trades and decided the time investment was more than it was worth, so I stopped. 

But in just 15 days of trading on Digitex Futures, I turned my modest initial balance of 3,000 DGTX into 8,100 DGTX, corresponding to an increase in funds of 270%. Although a small balance, it’s a large relative gain and I believe was only achievable due to the potential that zero-fee trading presents to traders. 

Specifically, compounding funds that would otherwise have been spent on fees into growing your trading balance.

Compound Interest

Compound interest is possibly the most powerful financial tool on the planet. Warren Buffet attributes his investing success to this investment technique and Albert Einstein once described it as the 8th wonder of the world.

Compounding is the process of exponentially increasing the value of your investment by reinvesting any profits so that the capital on which you generate profits is continuously growing. As your capital is continuously growing, it generates larger profits which are then added to your capital to generate even larger profits. This is repeated enabling your investment to grow exponentially over the years. If you have no knowledge of compound interest, I highly recommend you spend some time learning about it.

Now, the reason this is important and relevant to the Digitex Futures Exchange, is because of the zero-fee model. Paying no commissions on trades opens up a whole new realm of possibilities when trading.

Keeping Fees vs Paying Fees

I believe the best way to emphasize this point is by playing out a scenario comparing the same trading movements on Digitex, Binance, BitMEX, and ByBit. In this scenario I will compound all profits into the trading balance and use the entire balance for the next trade. Fees will be considered and, for the sake of simplicity and emphasis, all fees will be taker fees at the rates of the respective exchanges. 

The analysis will assume the same trade repeated representing a 0.1% movement in Bitcoin. We are assuming no losing trades for the purposes of comparison.

Because Digitex has a zero-fee structure, this analysis is delving into the benefits of trading small gains, corresponding to two tick movements on the Digitex ladder. In each case, we are starting with an initial trading balance of $1,000. 

365 Trades

A trade a day keeps hunger away. The below comparison tables plots the same, small movement trade repeated 365 times. This could be a daily 2 tick trade or packed into whatever timeline your trading strategy dictates but what is immediately evident is that adding fees to your trading balance instead of losing fees to exchanges can significantly help grow your capital and increase your odds of success.

Zero Fees – A Mathematical No Brainer 55

Zero Fees – A Mathematical No Brainer 56

Both BitMex and ByBit see negative returns while Binance and Digitex Futures are positive. With a starting balance of $1,000, trading this strategy on the Digitex Futures platform would generate 3 times as much profit across 365 trades than its closest competitor.

3,650 Trades

Although across 365 trades, Binance looks like it competes with Digitex, I’m now about to present to you the power of compounding. Over time, small percentages compounded amount to extensive returns. Across 3650 trades, no other platform on the market can keep pace with the potential that Digitex offers its traders. Where both ByBit and BitMex have fed on over 80% of your capital, Digitex has helped you to nearly 40x returns.

Zero Fees – A Mathematical No Brainer 57

Zero Fees – A Mathematical No Brainer 58

10,000 Trades

The real power of compounding gets ludicrous at upper levels and you’d be lucky to be able to fill enough contracts to do this, but just for fun let’s look at 10,000 successful 0.1% trades. You’ll notice I had to put this on a logarithmic scale to see the other platforms’ performance compared to Digitex.

Enough said really.

Zero Fees – A Mathematical No Brainer 59

Zero Fees – A Mathematical No Brainer 60

Summary

Compounding your investments is a financial tool to facilitate exponential growth in your finances. In trading, compounding your trading balance can have the same effect. When compounding, small percentages amount to huge returns over time. What looks like small trading fees on exchanges such as ByBit, BitMex, and Binance can amount to lost opportunity when considered across a larger time frame.

Digitex Futures allows traders to not only operate but thrive within the margins where other platforms produce a loss due to high fees. If a trader can manage to compound these fees into their trades, they have a significantly higher chance of being successful.

Remember, exchanges aren’t built on winners, they’re built on fees.

Until now.

Latest News

digitex futures

Beginners Guide to Digitex Futures Part 2 – What do All the Numbers Mean?

Trading
• Sulla Felix
May 14, 2020

Last week, we started from the very basics with a guide to buying DGTX tokens for newcomers. In the next post in this series, we’re going to walk through the next steps, covering the essentials of futures trading. And perhaps one of the most daunting parts for newcomers – deciphering all those numbers and charts on the Digitex trading interface. 

With the launch of the Digitex Futures platform and the seamless integration of its first 70 traders, things are gearing up now as Digitex prepares to provide zero-commission trading to the masses of cryptocurrency enthusiasts across the planet. As trust in the traditional financial sectors continues to diminish, cryptocurrencies such as Bitcoin are becoming a favored path for investment amongst the general population. 

With the halvening over and stimulus cheques flowing into Bitcoin, swings in the price of Bitcoin has been a dream for traders and none more so than the lucky few who have access to the Digitex platform at this moment in time. 

Mark my words – the ease of entering and exiting positions using a single click ladder interface is going to set a new standard in this industry. Anyone who has traded on the platform thus far will attest to the value of this for reversing positions on the fly, turning your losing trades into instant winners. 

As much as I would like to delve into the exceptional advantages this exchange offers its users – that comes later. For now, I’d like to present the Digitex Futures Exchange to new traders and outline what all the different numbers they see on the platform actually mean. 

The Digitex Futures Exchange – Bitcoin Perpetual Futures

The first thing to understand is what you are actually trading. In this case, the product is Bitcoin Perpetual Futures contracts. You are essentially betting on the performance of Bitcoin (BTC) versus the U.S. Dollar (USD).

If you think BTC is going to rise in price versus USD then you can open a position of ‘LONG’ contracts. If you think BTC is going to drop in price versus USD then you can open a position of ‘SHORT’ contracts. 

If you open a long contract and BTC goes up in price you can close your position for a profit. If you sell a short contract and BTC goes down in price you can close your contract for a profit. 

However, if BTC goes the opposite direction to what you had bought, you can either close your contract and accept a loss or hold your contract and hope that the price comes back in your favor. If the price runs too far against you, your position can be liquidated, which is discussed in further detail below. When your position is liquidated, this means it is automatically closed for a loss by the exchange. 

So you are not trading actual Bitcoins, you are trading contracts that represent the performance of BTC versus USD.

On the Digitex platform, the currency used to open these contracts is the DGTX token. All contracts are bought using the DGTX token and all winnings and losses are transacted using the DGTX token.

Below is a snip showing the Exchange in action. At first glance, there is a lot going on. So let me break it down into sections. 

Beginners Guide to Digitex Futures Part 2 – What do All the Numbers Mean? 61

A – The Ladder

The ladder is where you open and close your trades. It is the order book and allows you to buy long or short contracts to speculate on the future price of Bitcoin. 

The ladder is comprised of several key components.

    1. Spot Price: The spot price is the current trading price of BTC versus USD on the Digitex Exchange. The spot price is ever-changing and moves up and down the ladder depending on the BTC trading price at that instant in time. The spot price separates long contracts from short contracts. If you buy below the spot price, on the left (green) side of the ladder you are opening a long contract and are hoping that BTC will go up in value from there. Similarly, if you buy above the spot price, on the right (red) side of the ladder you are opening a short contract and are hoping that BTC will go down in value.

 

    1. Bitcoin Price Column: The Bitcoin Price Column is the vertical line of prices in white writing running from the bottom to the top of the ladder in $5 increments. Each of these $5 increments is called a ‘tick’.

 

    1. Entrance Price: Once you buy some contracts, the ladder will now show your entrance price. In the above image I have opened a short position at $8822.55 which is shown by the red line coming out from the ladder price. If I had opened a long at this price this would be green and not red.

 

    1. Profits: When you open a position, the ladder will display profits and losses along the side. This is great as it lets you know an estimate of how many DGTX you will make or lose if you close your contracts at this price. In the above example, you can see that the spot price is in the green, meaning, if I close my position, I will make an estimated profit of 23DGTX for that trade. This is a four-tick trade as the price of BTC has changed by four ticks from where I entered. Remember, a tick is each $5 increment of the BTC price.

 

    1. Orders: Orders from both yourself and other traders can be seen on the ladder. The rows of numbers beside each BTC price (in red and green) are orders placed by other traders who would like to either buy or sell contracts at those specific Bitcoin prices. In the above image you can see that there are two white numbers ‘25’ in the rightmost column of the ladder. These are my orders, specifically my short orders. To make these orders I simply click on the order book beside the BTC price – so I click where other people’s orders are and join the queue.

 

  1. Totals: What I call totals can be seen at the top of the ladder. In this image there are a total of 2384 long contracts and a total of 3395 short contracts currently placed on order in the ladder. 50 of these are mine. These numbers are important as they give you a feel for how much liquidity the ladder has while you’re trading. Essentially, it represents the total number of contracts people are trading at that moment in time and it tells you the balance of long and shorts currently on the exchange.

 

B – Your Trading Position Information

The box highlighted and annotated with the letter ‘B’ shows the position that your trading account is currently in. It has five important pieces of information:

  1. Bal: This is the total balance of DGTX tokens that you have in your trading account.
  1. ABal: This is the available balance of DGTX tokens that you can use to place more trades. If you have open trades, like I do in the above image, then your available balance will be less than your total balance by the number of DGTX you currently have open in trades.
  1. UPnL: This is your Unrealized Profit and Loss. This value will match the profit/loss value on the ladder at the location of the spot price when you have an open position. If you have no open position this will be blank.
  1. PnL: This is your Profit and Loss that has been realized after you have opened and closed a trade. Currently, this resets every 8 hours and it gives you a way to track your performance for your trading sessions.
  1. Open Contracts: The large number in the middle of them all is your total number of currently open contracts. If this is green, you have open longs. If this is red, like mine above, you have open shorts.  

C – Leverage, Liquidation & Margin

At the top, annotated by the letter C, is where you adjust your leverage. If you don’t know what leverage is, you should research it before trading.

To understand leverage you must first know what liquidation and margin are. If you open a contract and the market moves in the opposite way than you had predicted, you risk liquidation. Liquidation is the event where the platform will close your open position at a certain agreed price. This price is based on your chosen leverage. The higher the leverage you trade with, the closer your liquidation price is to your opening position price.

When you increase your leverage, you are decreasing the amount of margin that each contract costs you to buy. Margin is your stake per contract and with no leverage applied it is equal to the contract value seen in box E. Margin is the amount of DGTX that is taken from your Available Balance when you open a contract on the ladder.

The equation for margin is easy, simply divide the contract value by the leverage you choose.

So, as you see from this, higher leverage reduces your margin for each contract. This allows you to trade more contracts with your trading balance, increasing your buying power.

An example:

Your Total Balance is 2000 DGTX. The Contract Value is 200 DGTX.

  •   At Leverage x1, you can buy 10 contracts total.
  •   At Leverage x10, you can buy 100 contracts total.

This sounds amazing but remember, the trade-off is a closer liquidation price and higher risk. Newcomers should proceed with caution and build up their use of leverage based on experience. 

D – Contract Sizes

This section of the platform allows you to adjust your default contract sizes, simply click to cog symbol, and edit the contract sizes to suit your trading strategy and balance.

E – Background Mechanics and Funding

I’m not sure what this section is called but I call it the background mechanics. This shows you:

  1. Contract Value: As we described, this is the value of each contract. The contract value is dependent on the price of Bitcoin and is denominated in DGTX. It is the amount of DGTX that each contract is worth. You can convert this to USD by multiplying the contract value by the price of each DGTX token.
  1. Tick Value: The tick value is how many DGTX you make or lose for every tick (Remember a tick is a $5 movement of the spot price). This, multiplied by the amount of contracts you open, will be what dictates the Profit and Loss Numbers that you see beside the ladder when you open a long or short.
  1. Funding, Payout, In: When the ‘IN’ counter reaches zero, people with open long contracts will pay the percentage seen next to ‘Funding’ (0.01%)  to those with open short contracts. So, if you are holding a long-term long position you must factor this into your strategy.

Summary

I hope this article has given a good breakdown of the Digitex Futures Exchange and what each of the different numbers means. The best way to learn and understand is to get onto the platform and start trading for yourself. It’s not as complicated as it looks! If you just want to practice, check out the testnet where you can trade with play tokens to get a hang of the platform. 

May 14, 2020
Trading

Beginners Guide to Digitex Futures Part 2 – What do All the Numbers Mean?

Sulla Felix
digitex futures

Last week, we started from the very basics with a guide to buying DGTX tokens for newcomers. In the next post in this series, we’re going to walk through the next steps, covering the essentials of futures trading. And perhaps one of the most daunting parts for newcomers – deciphering all those numbers and charts on the Digitex trading interface. 

With the launch of the Digitex Futures platform and the seamless integration of its first 70 traders, things are gearing up now as Digitex prepares to provide zero-commission trading to the masses of cryptocurrency enthusiasts across the planet. As trust in the traditional financial sectors continues to diminish, cryptocurrencies such as Bitcoin are becoming a favored path for investment amongst the general population. 

With the halvening over and stimulus cheques flowing into Bitcoin, swings in the price of Bitcoin has been a dream for traders and none more so than the lucky few who have access to the Digitex platform at this moment in time. 

Mark my words – the ease of entering and exiting positions using a single click ladder interface is going to set a new standard in this industry. Anyone who has traded on the platform thus far will attest to the value of this for reversing positions on the fly, turning your losing trades into instant winners. 

As much as I would like to delve into the exceptional advantages this exchange offers its users – that comes later. For now, I’d like to present the Digitex Futures Exchange to new traders and outline what all the different numbers they see on the platform actually mean. 

The Digitex Futures Exchange – Bitcoin Perpetual Futures

The first thing to understand is what you are actually trading. In this case, the product is Bitcoin Perpetual Futures contracts. You are essentially betting on the performance of Bitcoin (BTC) versus the U.S. Dollar (USD).

If you think BTC is going to rise in price versus USD then you can open a position of ‘LONG’ contracts. If you think BTC is going to drop in price versus USD then you can open a position of ‘SHORT’ contracts. 

If you open a long contract and BTC goes up in price you can close your position for a profit. If you sell a short contract and BTC goes down in price you can close your contract for a profit. 

However, if BTC goes the opposite direction to what you had bought, you can either close your contract and accept a loss or hold your contract and hope that the price comes back in your favor. If the price runs too far against you, your position can be liquidated, which is discussed in further detail below. When your position is liquidated, this means it is automatically closed for a loss by the exchange. 

So you are not trading actual Bitcoins, you are trading contracts that represent the performance of BTC versus USD.

On the Digitex platform, the currency used to open these contracts is the DGTX token. All contracts are bought using the DGTX token and all winnings and losses are transacted using the DGTX token.

Below is a snip showing the Exchange in action. At first glance, there is a lot going on. So let me break it down into sections. 

Beginners Guide to Digitex Futures Part 2 – What do All the Numbers Mean? 62

A – The Ladder

The ladder is where you open and close your trades. It is the order book and allows you to buy long or short contracts to speculate on the future price of Bitcoin. 

The ladder is comprised of several key components.

    1. Spot Price: The spot price is the current trading price of BTC versus USD on the Digitex Exchange. The spot price is ever-changing and moves up and down the ladder depending on the BTC trading price at that instant in time. The spot price separates long contracts from short contracts. If you buy below the spot price, on the left (green) side of the ladder you are opening a long contract and are hoping that BTC will go up in value from there. Similarly, if you buy above the spot price, on the right (red) side of the ladder you are opening a short contract and are hoping that BTC will go down in value.

 

    1. Bitcoin Price Column: The Bitcoin Price Column is the vertical line of prices in white writing running from the bottom to the top of the ladder in $5 increments. Each of these $5 increments is called a ‘tick’.

 

    1. Entrance Price: Once you buy some contracts, the ladder will now show your entrance price. In the above image I have opened a short position at $8822.55 which is shown by the red line coming out from the ladder price. If I had opened a long at this price this would be green and not red.

 

    1. Profits: When you open a position, the ladder will display profits and losses along the side. This is great as it lets you know an estimate of how many DGTX you will make or lose if you close your contracts at this price. In the above example, you can see that the spot price is in the green, meaning, if I close my position, I will make an estimated profit of 23DGTX for that trade. This is a four-tick trade as the price of BTC has changed by four ticks from where I entered. Remember, a tick is each $5 increment of the BTC price.

 

    1. Orders: Orders from both yourself and other traders can be seen on the ladder. The rows of numbers beside each BTC price (in red and green) are orders placed by other traders who would like to either buy or sell contracts at those specific Bitcoin prices. In the above image you can see that there are two white numbers ‘25’ in the rightmost column of the ladder. These are my orders, specifically my short orders. To make these orders I simply click on the order book beside the BTC price – so I click where other people’s orders are and join the queue.

 

  1. Totals: What I call totals can be seen at the top of the ladder. In this image there are a total of 2384 long contracts and a total of 3395 short contracts currently placed on order in the ladder. 50 of these are mine. These numbers are important as they give you a feel for how much liquidity the ladder has while you’re trading. Essentially, it represents the total number of contracts people are trading at that moment in time and it tells you the balance of long and shorts currently on the exchange.

 

B – Your Trading Position Information

The box highlighted and annotated with the letter ‘B’ shows the position that your trading account is currently in. It has five important pieces of information:

  1. Bal: This is the total balance of DGTX tokens that you have in your trading account.
  1. ABal: This is the available balance of DGTX tokens that you can use to place more trades. If you have open trades, like I do in the above image, then your available balance will be less than your total balance by the number of DGTX you currently have open in trades.
  1. UPnL: This is your Unrealized Profit and Loss. This value will match the profit/loss value on the ladder at the location of the spot price when you have an open position. If you have no open position this will be blank.
  1. PnL: This is your Profit and Loss that has been realized after you have opened and closed a trade. Currently, this resets every 8 hours and it gives you a way to track your performance for your trading sessions.
  1. Open Contracts: The large number in the middle of them all is your total number of currently open contracts. If this is green, you have open longs. If this is red, like mine above, you have open shorts.  

C – Leverage, Liquidation & Margin

At the top, annotated by the letter C, is where you adjust your leverage. If you don’t know what leverage is, you should research it before trading.

To understand leverage you must first know what liquidation and margin are. If you open a contract and the market moves in the opposite way than you had predicted, you risk liquidation. Liquidation is the event where the platform will close your open position at a certain agreed price. This price is based on your chosen leverage. The higher the leverage you trade with, the closer your liquidation price is to your opening position price.

When you increase your leverage, you are decreasing the amount of margin that each contract costs you to buy. Margin is your stake per contract and with no leverage applied it is equal to the contract value seen in box E. Margin is the amount of DGTX that is taken from your Available Balance when you open a contract on the ladder.

The equation for margin is easy, simply divide the contract value by the leverage you choose.

So, as you see from this, higher leverage reduces your margin for each contract. This allows you to trade more contracts with your trading balance, increasing your buying power.

An example:

Your Total Balance is 2000 DGTX. The Contract Value is 200 DGTX.

  •   At Leverage x1, you can buy 10 contracts total.
  •   At Leverage x10, you can buy 100 contracts total.

This sounds amazing but remember, the trade-off is a closer liquidation price and higher risk. Newcomers should proceed with caution and build up their use of leverage based on experience. 

D – Contract Sizes

This section of the platform allows you to adjust your default contract sizes, simply click to cog symbol, and edit the contract sizes to suit your trading strategy and balance.

E – Background Mechanics and Funding

I’m not sure what this section is called but I call it the background mechanics. This shows you:

  1. Contract Value: As we described, this is the value of each contract. The contract value is dependent on the price of Bitcoin and is denominated in DGTX. It is the amount of DGTX that each contract is worth. You can convert this to USD by multiplying the contract value by the price of each DGTX token.
  1. Tick Value: The tick value is how many DGTX you make or lose for every tick (Remember a tick is a $5 movement of the spot price). This, multiplied by the amount of contracts you open, will be what dictates the Profit and Loss Numbers that you see beside the ladder when you open a long or short.
  1. Funding, Payout, In: When the ‘IN’ counter reaches zero, people with open long contracts will pay the percentage seen next to ‘Funding’ (0.01%)  to those with open short contracts. So, if you are holding a long-term long position you must factor this into your strategy.

Summary

I hope this article has given a good breakdown of the Digitex Futures Exchange and what each of the different numbers means. The best way to learn and understand is to get onto the platform and start trading for yourself. It’s not as complicated as it looks! If you just want to practice, check out the testnet where you can trade with play tokens to get a hang of the platform. 

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