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 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.
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.
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.
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.
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.
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.
With the upcoming launch of the Digitex Futures Exchange, our team has been focused on creating educational material to allow traders and market participants alike to benefit the most from zero-commission trading.
In our beginners’ guide, for instance, we explain the basics of how to trade crypto derivative products and give you a breakdown of the platform.
Now, we want to help you understand how different technical indexes within Digitex Futures can help you time your next trade.
3 Technical Indicators to Supercharge Your Bitcoin Trading
One of the most widely used technical indicators among traders is the Bollinger bands. This analysis tool is defined by a set of two standard deviation lines and a simple moving average. Its popularity relies on the ability to identify that momentum is building up for a period of high volatility.
When the price action of a given asset goes through a stagnation phase, the Bollinger bands tend to squeeze. Squeezes are indicative of periods of low volatility and are typically succeeded by wild price movements. The longer the squeeze, the higher the probability of a strong breakout.
A look at BTC’s 5-min chart reveals that the Bollinger bands are squeezing. Since this technical index does not provide a clear path of where BTC could be headed next, the area between the lower and upper band is a reasonable no-trade zone.
A decisive move above or below this area will determine the direction of the trend.
Nonetheless, when taking into consideration the parabolic stop and reverse, or “SAR,” we can estimate that the direction of Bitcoin is currently bullish despite the low levels of volatility.
Every time the stop and reversal points move below the price of an asset, it is considered to be a positive sign. On the flip side, when the SAR points move above the price of a given asset, it can be viewed as a bearish signal.
By taking in aggregate the Bollinger bands and the stop and reversal system, we can assume that there is a higher probability that Bitcoin will go up when volatility strikes back.
But how high can it go?
To answer this question, we can use the Fibonacci retracement indicator. This metric is based on a sequence of numbers expressed by ratios between the numbers in the series, according to Investopedia.
By plotting two extreme points, which are the most recent swing low at $9,475 and the peak of $9,820, the Fibonacci retracement indicator provides critical ratios that can be considered areas of support and resistance.
A bullish impulse that allows Bitcoin to move above the overhead resistance could see it rise towards the 127.2%, 141.4%, and, most importantly, the 161.8% Fibonacci retracement level. These resistance barriers sit approximately at $9,900, $9,960, and $10,030, respectively.
At press time, we can see that the stop and reversal points accurately predicted that Bitcoin’s trend was bullish despite the consolidation phase. As the bellwether cryptocurrency broke above the resistance represented by the upper Bolliger band, it seems to be marching towards the 127.2%, 141.4%, or 161.8% Fibonacci retracement levels.
Individually, these different technical indicators may seem to provide an ambiguous outlook about future Bitcoin prices. Taken in aggregate, however, they can provide actionable information about when to enter and exit trades on the Digitex Futures Exchange.
With a good dose of patience and high levels of concentration on the charts, it is possible to minimize risk while profiting from Bitcoin’s price action.
We’re pleased to confirm that, right on schedule, we onboarded another 50 traders to the mainnet yesterday. We’ll be reporting back on progress after the weekend, but in the meantime, Cryptrader is back with one of his informative videos. This time, he shares some of his top tips for managing the differences in liquidity on mainnet compared to testnet.
Cryptrader opens this video by explaining the progress in liquidity on the mainnet as we’ve onboarded new traders. Currently, we’re seeing anywhere between $20 million and $40 million in daily volume. We’re also seeing the average liquidity per tick increase to around 1,000. Bearing in mind, this is only the very beginning. Once we have thousands of traders on the ladder, we’re going to see one of the most liquid order books in the crypto space!
However, remember that currently, with only a small group trading, liquidity is far lower than it will be once the DFE launches to the public. Trading in a lower liquidity environment comes with some particular challenges.
So Cryptrader’s tips are aimed at helping traders to understand these challenges and avoid some potential pitfalls.
#1 Don’t Overleverage Yourself
Cryptrader explains that with higher leverage, there’s a greater chance of being liquidated. On the mainnet, leverage is currently limited to 10x. Lower liquidity means there’s less chance of you being able to exit your position when the price moves. So keeping leverage low offsets the risk of your position being liquidated.
Last weekend we saw epic drops in the BTC price. Cryptrader explains that with 10x leverage, a trader could be liquidated within a five-minute candle. So use leverage cautiously, particularly when liquidity is lower.
#2 Be Cautious of Market Executing Orders
Cryptrader explains with lower liquidity on the ladder, market executing orders should be used with caution, particularly if you’re working with a bigger order. Instructing a market executing order can eat through much of the liquidity on the ladder and result in slippage.
He illustrates this risk with a live trade. If you were working with an open position of 25,000 long contracts, and clicked a market executing order, the liquidity on the entire buy-side of the ladder would only be one-tenth what’s needed to close out his position.
Hopefully, these two tips will help newcomers arriving on the mainnet to understand the challenges of trading in a lower liquidity environment.
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.
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.
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.
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’.
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.
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.
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.
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:
Bal: This is the total balance of DGTX tokens that you have in your trading account.
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.
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.
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.
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.
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:
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.
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.
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.
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.
The crypto derivatives market has grown in popularity over the years. As institutional investors flock to the industry, there has been an increasing demand for crypto futures, options, and swaps offerings. Indeed, new volume records are being set constantly due to the interest for such financial products.
Data from Skew reveals that despite the high levels of volatility seen recently as speculation mounted regarding Bitcoin’s halving, the aggregate BTC futures volume today accounts for more than $35 billion.
Huobi is currently leading the charts with a trading volume of $8.2 billion in the past 24 hours. The Singapore-based cryptocurrency exchange is followed by OKEx and Binance, which reported volumes of $7.2 billion and $6.7 billion, respectively.
Once known as the king of the crypto derivatives market, BitMEX has fallen down to the number four spot with BTC futures volumes of $5 billion. This cryptocurrency platform may have put a permanent stain on its reputation after the massive collapse of its liquidation engine during Black Thursday in March.
Regardless, the popularity of all of these industry leaders may enter a downward trajectory as Digitex Futures is set to disrupt the entire crypto derivatives sector.
A New Player on the Block
The new trading platform led by Adam Todd will introduce a zero-fee trading structure into the crypto derivatives market. The commission-free exchange will enable traders and market participants alike to speculate on the future price of a given asset without taking a percentage of their profits.
When taking into consideration the current industry leaders — Huobi, OKEx, Binance, and BitMEX — they all charge considerable trading fees. Although their fee structure may seem meaningless, it makes trading strategies like scalping impossible since profits are slowly eaten up by commission fees.
The world’s largest cryptocurrency exchange by trading volume, Binance, for instance, charges a maker fee of 0.02% and a taker fee of 0.04% on its crypto derivatives trading platform, Binance Futures. While this may not look like much at a first glance, when trades are being made using 100x leverage, that quickly becomes 2% to enter and 4% to exit a position.
These fees are even more significant in Huobi, OKEx, and BitMEX, which are charging 0.2%, 0.1%, and 0.075%, respectively. When added up, these commissions have the ability to wipe out a trader’s small profits.
Unlike any of these cryptocurrency exchanges, Digitex Futures will allow anyone to place as many long or short positions as they wish over and over again without incurring a single fee. This is a clear advantage for traders who want to capitalize even on the smallest market fluctuations. And, it will certainly open the gates to a new wave of demand for the DGTX token, which makes all of the above possible.
Demand for DGTX Is Expected to Rise
Having the possibility to profit in every single movement of the market will even get the average Joe interested in trading. As users of Digitex Futures will rely on DGTX to have access to the platform, the demand for this utility token will likely shoot up.
Such a bullish outlook coincides with what can be seen from a technical perspective.
The Tom Demark (TD) Sequential indicator is currently presenting a buy signal on DGTX’s 1-day chart. The bullish formation developed in the form of a red nine candlestick. Due to the recent price action, however, it transitioned into a green one candle.
The aforementioned technical index estimates that a further increase in the buying pressure behind DGTX will validate the optimistic outlook. If so, this altcoin could be poised to surge for one to four daily candlesticks or begin a new upward countdown.
TD Setup Presents a Buy Signal For DGTX. (Source: TradingView)
Adding credence to the bullish outlook, the corrective phase that DGTX went through since early April allowed it to hit the 50% Fibonacci retracement level. Although DGTX barely touched the 38.2% Fibonacci retracement level as forecasted last week, around the 50% Fibonacci retracement level is where most of the price action took place.
Based on Gann’s 50% retracement theory, this Fibonacci level presents a crucial opportunity to “buy the dip.” If DGTX is able to bounce off this area with enough volume behind it, it could rapidly rise and reach higher highs.
Otherwise, it may present another opportunity for sidelined investors to get back into the market.
DGTX Bounces Off the 50% Fib Level. (Source: TradingView)
With Bitcoin’s halving now written into the history books and Digitex Futures preparing to launch fully to the public this summer, it is just a matter of time before DGTX achieves its upside potential leaving competitors in the dust.
It’s been a whirlwind of a weekend in the crypto markets. After breaking the $10k barrier for the first time since February, Bitcoin crashed in the early hours of Sunday morning UTC, losing nearly 10% of its value in around an hour.
Despite that Bitcoin lost, the move proved to be a valuable one for Digitex. First off, some of our traders absolutely killed it on the shorts. Check out this screenshot from Sniper Trades:
65,000 DGTX is a profit of around $2,500, which is an outstanding trading session by any measure.
A Bug Came Out of Hiding
The stress of a sudden, sharp market movement also revealed a design issue with the mainnet platform that wasn’t previously apparent.
Our trader Floyd best sums it up in the message below:
The net result was that a couple of our traders couldn’t close their positions on the ladder, meaning they ended up losing out. As we don’t yet have a stop-loss feature available, the losses couldn’t be contained until the price stabilized enough for the ladder to adjust.
Of course, sudden volatility in Bitcoin is always going to produce winners and losers on a futures exchange where people are speculating on the price. However, in this case, our traders ended up losing out due to the issue. Therefore, we made the decision to reimburse those few traders who were affected, which has now been done.
The developers are already working to fix the issue in the ladder design, along with implementing stop-loss as a matter of priority. This has been well-received by traders in the group:
It underscores that the development team has made the right decision in onboarding users incrementally, as it could have been a far bigger issue if we were already open to the public.
Overall, the new group is having a blast with trading on the mainnet, as you can see from Nic, who was reveling in the weekend’s volatility.
Based on our most recent poll, the overall consensus is overwhelmingly positive, and the sudden appearance of a bug hasn’ deterred the enthusiasm for the DFE from our trading group:
Traders have also been tweeting about the mainnet, with Tamas describing the experience as a “scalping paradise”:
I doubled my initial balance of 1000dgtx in 3 days with 1tick scalps. Digitex is a scalping paradise,trading with ZERO FEE is gamechanger. It will disrupt the futures industry.Practise on the Testnet and get ready for the Mainnet when the time comes.#Dgtx#ZeroFees#GameChangerpic.twitter.com/JIfyFVTpNM
We’d like to thank all of our traders, not just for their kind words, but also for being our guinea pig group who help to root out the last remaining issues with the platform so we can get it ready for a public launch.
Stick with us, and together we’ll make sure that Digitex is the best crypto futures exchange in the world!
If you’ve been reading all about the Digitex mainnet and have been dying to take a look for yourself, then your wait is over. Cryptrader is one of the first 20 traders using the DFE on mainnet, and in this video, he showcases some of the live trades that happened over the first week since we opened the doors.
Cryptrader opens the video by saying that the platform has worked exceptionally well, with zero-lag or freeze times over around 18-20 trading hours in the first week.
We’re also seeing crazy volume considering there are only 20 traders online, upwards of $10 million each day. So, once we start onboarding more and more users, you can see how the volume will quickly start to rival some of Digitex’s biggest competitor exchanges.
Cryptrader explains that with the small number of traders, he has been limiting his position sizes to make sure his orders get filled efficiently. Nevertheless, he still turned a profit of 13,800 DGTX in the first week – around $600, representing a gain of over 27%.
Scalping Profits on the DFE – in Action
We then dive into some of the videos shared by the live traders in the last week. Blocks of Freedom demonstrates how scalp trading can be used to ride a wave of price action. With an initial long position of around 3,000 contracts, he takes full advantage of zero-fee trading by continuing to buy low and sell high, scalping out gains along the way. In this way, he reaped more profits than he would have done by only buying and holding the same long position.
WhyLose is next up, using similar tactics in a short trade to generate a fast $150 in profit. He also opts for a bare-bones setup with only the ladder and his own trades visible on the screen.
Cryptrader then shares one of his own sessions, with his preferred setup showing a lot more information such as order flow and charts. He also demonstrates a short trade, waiting for a head-and-shoulders pattern to break down so he can start scalping profits from the order.
He finishes up by saying that he’s blown away by the profitability he can achieve on the DFE. This is exactly what we had hoped to hear from our traders as it fulfills the Digitex vision – to create more winning traders.
Cryptrader is live streaming many of his own trading sessions, so if you want to see more action from inside the mainnet, you can follow along on his YouTube channel.
And if you don’t yet have an account on testnet, then sign up now to make sure you’re on the mainnet waitlist!
As Adam mentioned on his most recent AMA, Digitex has been hiring. One of our newcomers is Ali Martinez, a longtime trader and experienced analyst, who will be a regular voice on the blog going forward. For his first post, Ali tells us about his background and experience, and shares some of his own analysis of the DGTX token.
My name is Ali Martinez, I’m a Boston native who became involved in the cryptocurrency industry in early 2014. I started as a day trader in the foreign exchange (forex) market in 2012, but the high levels of volatility within the cryptocurrency market made me change my strategy.
By the time I came across Bitcoin’s whitepaper, I was a profitable trader who was not emotionally attached to any particular asset. However, the idea of a decentralized, borderless, and censorship-resistant currency was so fascinating that I began stacking satoshis.
During the ICO mania of 2017, my investments were already paying off so I began traveling to spread the word about Bitcoin everywhere I went. As the flagship cryptocurrency moved above $5,000 for the first time in its short history, I became too overconfident about the market.
I certainly sold some of my holdings when I saw BTC reaching $17,000 in October 2017 because the signs of a market top were too obvious. But, my belief in the bellwether cryptocurrency was so great that I “hodl’d” the majority of my BTC bags. Then, the inevitable happened: the bubble burst and the bear market began.
While many were affected by the meltdown, I believe that it actually helped me become a better trader. I started perfecting my trading strategies and studying a handful of technical indices in full detail. I shared my analyses via Twitter and Instagram to help educate others about trading.
In early 2019, CryptoInsider became aware of my work and contacted me to start writing technical analyses for them. Shortly after, I joined CryptoSlate, CCN.com, Crypto Briefing, and NewsBTC to share my views on the future market valuation of different digital assets.
DGTX – An Exchange Token with a Difference
Now, I have joined the Digitex content team to help users and subscribers benefit from what it has to offer. This is one of the first mainstream futures exchanges designed to work with zero fees and allowing you to trade with up to 100x leverage. Long gone are the days when a third party is entitled to a percentage of your profits.
As a trader, I’m excited about this commission-free cryptocurrency futures exchange, but its native cryptocurrency, DGTX, is what interests me the most.
With the upcoming official launch of the Digitex exchange, demand for DGTX is expected to increase rapidly. Since traders will rely on this token to have access to the platform, the buying pressure behind it will be likely to rise, pushing prices further up.
DGTX Is Poised for a Significant Price Movement
Following the recent market crash on March 12, DGTX skyrocketed 267% recovering all the losses incurred during the marketwide downturn. This altcoin went from trading at a low of $0.015 to reaching a high of $0.055 approximately 27 days later. Since then, it is consolidating within a narrow trading range.
This consolidation area is defined by the upper and lower Bollinger bands that sit at $0.050 and $0.040, respectively. As the Bollinger bands squeeze on DGTX’s 1-day chart, one could expect that a period of high volatility is once again on the works.
The inability to determine the direction of the breakout makes the range between $0.050 and $0.040 a reasonable no-trade zone. A daily candlestick close above resistance or below support will confirm where DGTX is headed next.
Breaking above the $0.050 resistance level would likely be followed by a spike in the buying pressure behind DGXT that allows it to test the recent high of $0.055. A further increase in demand for this altcoin around this price level may have the strength to send it towards a new yearly high of $0.066 or higher.
Nonetheless, moving below the $0.040 support level could open a range of opportunities for sidelined investors to get back into the market. Such a downward impulse might see DGTX fall to the 38.2% Fibonacci retracement level that sits at $0.030.
Here, IntoTheBlock’s “In/Out of the Money Around Price” model estimated that 1,000 addresses bought more than 40 million DGTX. This massive supply barrier could serve as a rebound zone that sends this cryptocurrency to higher highs.
As Bitcoin’s halving approaches, the cryptocurrency market is expected to enter a period of exuberance and extreme volatility. This erratic behavior can present highly profitable opportunities for those trading DGTX.
Now that you know which critical levels to watch out for, waiting for confirmation of a break of support or resistance will likely help you benefit from DGTX’s next major price movement.
It’s been one hell of a week for Digitex, so what better way than to end it with a bang by announcing a brand-new exchange listing for the DGTX token! To celebrate the listing, we’re also teaming up with our new exchange partners for a massive giveaway of DGTX to the most active traders. Topping it all off, CEO Adam has once again taken to our YouTube channel to answer all your questions about the mainnet launch.
New Exchange Listing with ProBit
First off, we are absolutely delighted to announce our newest exchange partners – Korean trading platform ProBit! ProBit is a global top 20 exchange in real daily trading volume.
It features over 300 trading pairs, putting at the top of its game for the range of tokens on offer. The exchange is operating in eight key languages and markets and has over 300,000 monthly active users. This increases to 40,000,000 users once all the partnering aggregators and wallets such as CoinMarketCap are factored in.
Starting from today, ProBit is listing the DGTX/ETH token pair, and deposits are already open for ProBit users. Trading will begin from Monday, May 4, at 15:00 KST (0600 UTC).
Trading Contest – Your Chance to Win Up to 25,000 DGTX
As a way to celebrate the ProBit partnership and the opening of the DFE on mainnet, Digitex Futures is launching a give away of more than 85,000 DGTX tokens in prizes for a Trading Competition!
This contest will prove who’s the biggest trader of them all. The users will be ranked in terms of the total DGTX volume traded on their Probit account (including both buy and sell orders) across the DGTX/ETH trading pair during the campaign period.
The Top 10 Traders will be rewarded as follows:
1st Place: 25,000 DGTX
2nd Place: 15,000 DGTX
3rd Place: 10,000 DGTX
4th-10th Place: 5,250 DGTX each
The rewards will be sent to the winners’ wallets within two weeks after the end of the campaign.
ProBit also offers additional incentives to traders. For example, you can get a discount on trading fees as low as 0.03% if you pay in the exchange’s PROB token. You can also earn 10-30% of trading fees if you refer your friends to ProBit.
So if you’ve been killing time waiting for your chance to get on the DFE, this is your chance to trade to win your share of the DGTX prizes!
Mainnet AMA with Adam
Adam opens the AMA by talking about his delight about the mainnet launch and elaborates on some of the challenges leading up to Monday. Even despite everyone having to work remotely, the developers have said we’re seeing no major problems with the platform and we hope to start onboarding more users as soon as possible, maybe even next week.
Adam also gave huge thanks to SmartDec for delivering the DFE, and on time. He explained how we now have a fully trained support desk with four different levels of specialists ready to make sure that all users have help on hand in case of any issues.
We’re also building out a team in Kiev, Ukraine. This includes a Director of Exchange Operations Lead and a Technical Leader of Operations who liaise with SmartDec.
Now, we’re also hiring in Kiev for some more market makers and operations staff. We already have a well-developed marketing and advertising team who can generate up to 1,000 signups per day, that we can turn on and off on demand.
A little teaser of what’s in store. Adam has realized that his job is creating demand for the DGTX token and to do that, he wants to create more utility for the DGTX token. Therefore, we have plans to expand Digitex beyond it’s original functionality, but we’ll be in a position to share more soon. There’s so much to come from Digitex over this year.
However, the focus for now is the Digitex Futures exchange, so Adam starts taking your questions!
By when can we have other markets up on the exchange?
We can’t give a date but we are currently working on ETH and XRP markets.
When will stop-loss and increased leverage be put live?
Work is underway. Unfortunately, the coronavirus interrupted our development schedule but we want to implement this as soon as possible.
When will the API become available?
In about a month.
Is the market maker extra conservative at the moment, to be safe?
Yes, at the moment the market makers are set to lose. The first users have an edge working in their favor to compensate for the fact that there’s only 20 traders on there. We’re currently hiring more market makers for the team in Kiev.
What was the first thing you did when the DFE went live?
Adam says he wasn’t sleeping much so its a bit of a blur!
Many exchanges have been hacked before – how does Digitex plan to prevent this?
We have various different audits happening, internal and external, and are hiring operations staff who will also help to ensure that security is tight.
Do we need to make 50 trades or 50,000 trades to get the airdropped tokens?
10,000 round turns and then you can withdraw your DGTX winnings.
After the onboarding process, how long will it take to deliver the spot markets?
Adam wants to get it done by fall of this year but at the moment, it’s difficult to say for certain when it will be ready.
Why not increase the market maker fund to 200 million by printing more tokens? If not in circulation, they won’t affect the market cap.
Adam says this is an idea we’ve been considering. Having the token under our own control is a very powerful tool at our disposal so we’re looking at a lot of different options. Whatever we do has to play into our overall concept and branding, and be unique.
What is the roadmap plan for the next two quarters?
We can’t share it right now. We have a lot of big plans but want to focus on the futures exchange right now.
Could we have a blog post explaining volume on the DFE comparing to volume on exchanges like BitMEX?
Yes, we can do that.
When will you start marketing Digitex to traders on other exchanges such as BitMEX?
We have been getting up to 150 signups per day on testnet, just as a result of some advertising experiments we’ve been running as tests on different platforms. We haven’t been running hard marketing campaigns because we knew the initial onboarding would be in small groups. But we will ramp up marketing as soon as we’re ready for a full opening.
In future, would it be possible to have a CDP and a liquidity pool for DGTX? E.g. Using DAI to borrow DGTX?
Adam has explored this in the past and even wrote a paper describing how to make DGTX into a stablecoin. It does come with various issues, such as exposure to manipulation, but it needs further investigation.
Can you talk about the trading arm of DFE?
The trading arm is just the bots right now, but as we said, we’re bringing in an operations team in Kiev for market-making. Whether they’re bots or human market makers, everything is about creating liquidity and not taking profits from our traders.
Can the team vesting tokens also be sold through the Treasury?
Any tokens sent to the Treasury can get sold. The team can do whatever they like with their tokens once they’re vested.
Can you talk about the funding of the DFE?
We have plenty of funding. We’ve been hiring employees this month – around 14 people so we aren’t running out of money.
Can we have forex markets on the DFE?
Yes, we want to but we don’t yet know when that will be.
Can the developers remove the mainnet restriction when the PnL is negative 100k or more, it’s not possible to open another trade until the next funding event?
Adam says yes we could do that, he will check.
How many hours are you trading on the DFE?
If you consider the market makers, we’re always trading on the DFE. Adam personally is keeping an eye on it constantly.
What is the timeframe interval between onboarding users?
Adam says we’re thinking of opening to another group of 50 next week. Timing is ultimately up to the development team though.
What happens if the insurance fund goes to zero?
Adam explains that in the worst-case scenario, we could potentially mint tokens via a community vote if holders approved. This would be an absolutely worst case scenario though, assuming there is no other alternative for funding.
Can we have a roadmap for the next six months?
We will publish a roadmap soon.
Can we get crypto YouTubers to promote the DFE?
We have plenty of plans for user-generated content.
Any updates on the exchange listing?
Yes, we have a few in the pipeline. We have someone who is only working on exchange listings full-time. See our ProBit announcement!
Since everything in DFE is calculated in DGTX, will the exchange be ranked on CoinMarketCap?
Yes, we need to perform a recalculation into USD so that we can get ranked on CoinMarketCap and other aggregators.
Do you have the funding to manage all of your employees?
Do the market maker bots use leverage or just 1x?
Just 1x right now.
How does SmartDec fit in once the DFE has launched?
We will be working with SmartDec on further development, but once the exchange is live they will hand over to our operations team and only work on future updates.
What’s the biggest thing in the last two years of bringing the DFE to life that stands out for you?
April 27 of this year. Bringing the DFE to mainnet is the defining moment for Adam personally.
What’s your next move with marketing?
There’s a lot happening but we can’t talk about it all yet.
One of the testers reported bugs, but not critical. Can you elaborate?
All testers are helping us find bugs but overall the exchange is running smoothly. There are no major issues.
Have you guys thought about listing rules for alts?
Not right now. We are putting together specs for the spot markets but we haven’t really had the resources to spend on it while we’ve been working on the mainnet launch.
How is the market maker performance for the first 20 traders?
The market makers are losing at a slow but steady pace, and the traders are winning.
How does Digitex store user deposits?
We have a cold and hot multi-sig wallet system in place. We have field experts working on our security.
One of the lead developers mentioned the end of May to complete the onboarding. Is this realistic?
It’s a development-led decision. We want to onboard as quickly as possible but it might be longer than end of May before everyone can get in.
What are your thoughts on the Treasury buyback?
The Treasury buyback simply ensures that traders can access DGTX as soon as they log in. It’s designed to make it as frictionless as possible to start trading on DGTX.
Could we introduce a toggle to show the PnL in DGTX or USD?
Yes, please use the support tickets to make suggestions like these in the future. We will assess all of them, and if we like them, they’ll get implemented.
Is a DGTX/stablecoin pair still a solution for traders to avoid the volatility in the price of DGTX?
We have looked at it but it’s not a priority right now.
What if the 10,000 token winners don’t claim their tokens?
I don’t know.
Will there be a PnL ladder button clickable, like some kind of fast way to close out on the ladder?
Again, these kinds of questions can be directed to support.
Will you implement something to show how much has been saved by DFE users in trading fees?
We can do that, it’s a good idea.
Will the DFE be connected to TradingView once the API is released?
We want to connect Digitex everywhere we can.
When will there be a social platform?
Wait and see!
Is there any lending feature in the Digitex exchange in future?
All good ideas are under consideration, so maybe in future.
Adam wraps up the AMA by saying that he couldn’t be happier with the way the first week has gone, and we’ll continue to work and improve the DFE as much as we can. Ultimately, Digitex will become a world-class exchange with a brand to match.
Cryptocurrencies experienced an impressive recovery during the month of April after March’s “Black Thursday”. For the first time since October 2019, all of the major cryptocurrencies generated a positive rate of return. The big winner was Ethereum, recording an impressive 60% rate of return. Is this crypto rally sustainable? Are we in the early stages of a new bull market?
Let’s examine the details.
Excessive Central Bank Money Printing Is Bullish For Crypto
Global central banks are printing unlimited sums of currency units in an effort to reignite economic growth. A large percentage of professional economists, money managers and members of the financial media are forecasting a severe economic recession, with the possibility of a depression. World leaders and global monetary authorities are using unprecedented levels of economic relief to prevent a depressionary outcome.
Arguably, central banks will be successful in resurrecting our global economy. However, it seems unlikely that we can expect a smooth recovery. Central bank money printing has its own set of problems. In fact, many professional money managers claim that excessive money printing could actually be worse than a depression. Maybe the cure is actually worse than the disease.
Please review the chart below.
Prior to the 2008 global financial crisis, the balance sheet of the Federal Reserve was $889 billion. Today, the Fed balance sheet is $6.367 trillion. This represents a staggering increase of 616% in 12 years. Most likely, the balance will exceed $10 trillion within the next few years.
What are the consequences of an expanding Federal Reserve balance sheet? The biggest problem is inflation, which means currencies lose their value. As the Fed continues to expand its balance sheet, these currency units slowly become worthless.
It’s also important to note that the Federal Reserve represents only one central bank. There are several other G-20 central banks that are also aggressively expanding their balance sheets in unison with the Federal Reserve.
So, which assets receive the greatest benefit from aggressive central bank money printing? During periods of extreme money printing, the best strategy is to invest in assets that can’t be printed out of thin air. Bitcoin should be at the top of the list, because BTC is a scarce asset.
When Bitcoin was launched in January 2009, the total supply was pegged at 21 million. Without question, Bitcoin’s most redeeming quality is its limited supply. This is the main ingredient that separates BTC from paper currencies like the US Dollar. Thanks to the limited supply, Bitcoin does a remarkable job of retaining its purchasing power.
At least for now, it appears highly unlikely that global central banks will scale back their aggressive monetary programs. The most likely scenario is a continuation of unlimited currency creation well into the future.
Of course, this is extremely bullish for all cryptocurrencies, particularly Bitcoin. Most financial historians agree that the coronavirus helped create a new cryptocurrency bull market. The entire crypto asset class could be in the early stages of a cyclical bull market, which could push prices much higher for the next few years.
Digitex Makes History
It’s official! Digitex launched its state-of-the art trading platform on 27 April. The first day of the mainnet launch was hugely successful, with 24-hour trading volumes of over a million contracts.
This is just the beginning. Digitex is laying the groundwork to becoming the industry leader in crypto futures trading. In less than two and a half years, Adam Todd successfully transformed a fledgling start-up company into an industry-leading commission-free crypto futures exchange. Eventually, other exchanges will migrate to a commission-free format. Nevertheless, Digitex will always be the first.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.