We recently published an article called Digitex vs the Competition, comparing our soon-to-launch futures exchange against nine competitor exchanges including BitMEX, OKEx, and Deribit. We wanted to find out if any of them can beat our unique value propositions of zero-fee trading for crypto and traditional futures, together with lightning-fast settlements and non-custodial accounts. (Spoiler alert – none of them can!)
The Futures Market Is Growing
In a futures market growing at a rate of 20% in 2018, it’s no surprise that the demand for exchanges is also growing fast. Our recent article prompted many requests from our community members. You asked us for some further analysis of how Digitex measures up to other exchanges which weren’t featured in our first comparison.
So, in response to popular demand from the Digitex community, here we take on a new round of challengers! Let’s see what they have to offer and how they measure up.
Chinese-based Gate.io frequently reaches the top 50 exchanges by trading volume as ranked by CoinMarketCap. Part of the reason for its relative popularity is the opportunity to trade a wide range of altcoins. This exchange offers more than 356 coin pairings, including tokens for some of the more obscure projects.
Gate.io also has an extensive range of perpetual contracts, with contracts for Monero (XRM) and XRP perpetual contracts among the latest additions. These contracts are similar to traditional futures; however, they have no expiry or settlement date.
The exchange uses a maker and taker fee structure for its perpetual contracts. The taker pays a 0.075% fee, and the maker receives a 0.025% trading fee as an incentive for adding liquidity. While this fee structure is more generous than some other exchanges, it’s still aligned in favor of the house.
On the other hand, Digitex operates a zero-fee trading model. Traders can submit maker or taker orders at any time under any circumstances and never pay fees.
CoinFLEX is a new entrant to the exchange market, as it only launched in January this year. However, it’s already flexing some muscle (get it?) with backing from crypto veteran Roger Ver and a software partnership with Trading Technologies.
The latter has enabled CoinFLEX to implement a ladder trading interface, as will Digitex at launch. CoinFLEX is also among the first to market with physically settled Bitcoin futures, in a move to compete with Bakkt.
CoinFLEX also offers up to 20x leverage on its futures contracts, in contrast with 100x leverage on Digitex. And once again, Digitex’s zero-fee model wins out as CoinFLEX also operates a maker and taker fee structure. Zero fees combined with higher leverage will give Digitex traders an opportunity for better returns.
Bibox is a Chinese exchange offering perpetual contracts, alongside traditional cryptocurrency pairings. It operates its own ERC-20 token called BIX. The token works in a similar way to the Binance coin, offering users a sliding-scale discount on trading fees as well as a share of trading fee profits. Also akin to Binance’s plans for a decentralized exchange, BIX will be fuel for decentralized transactions on the platform.
Discounts on fees are great but not as great as no fees whatsoever! DGTX tokens are not just a loyalty scheme – they are the only means by which users can access the exchange. While exchanges like Bibox and Binance have to put measures in place to protect the value of the token, DGTX will derive value from user demand for zero-fee trading.
Our zero-fee model is enabled by the supply and demand economics of the DGTX token. Digitex’s unique zero-fee model means we’re the only exchange with interests aligned to our users: we both want the price to go up, period.
Developed on the NEO blockchain, Nash is a new decentralized exchange (DEX) offering users the opportunity of cross-chain trades. This isn’t typically seen in decentralized exchanges, where users can often only trade in pairs of tokens developed on the same platform as the exchange.
Of course, one of the main selling points of decentralized exchanges is that the accounts are non-custodial. In a DEX, users can be sure that their fund balance is recorded securely on-chain while retaining complete control over their own private keys. Digitex users will have the same security benefits once we go live with the Plasma protocol in Q3 2019, enabling decentralized account balances for our user.
While users of Nash will have the option of trading a few cryptocurrency pairs at the point of launch, Digitex users will have access to a portfolio of assets including crypto futures markets and traditional futures for Forex, metals, indices, and commodities. Furthermore, Nash isn’t offering margin trading, in contrast with Digitex offering up to 100x leverage on contracts.
Every single position you take on PrimeXBT is at 100x leverage. There is no variable, so this is not an exchange for rookie traders. It’s relatively new, but has a fair few things going for it. So far, an easy-to-use interface combined with a fast trading platform and low fees are proving popular with users.
However, PrimeXBT is a centralized exchange. Although it prides itself on security and the website alludes to the majority of assets held in cold storage, it cannot contend with the security of Digitex’s non-custodial account balances coming later this year. Also, with pure crypto trading, PrimeXBT users miss out on the option of futures trading across a range of other markets.
Overbit is a brand-new exchange originating in Japan. It offers cross-market trading with leverage, using Bitcoin as the underlying asset. Among its products are perpetual contracts for BTC (against USD or JPY) and ETH, XRP, LTC, and EOS among others (against BTC).
Overbit states that it receives most of its compensation for services through spread. However, given that spread can vary, it also requires users to check the exact profit calculation in each perpetual contract document.
Spreads are recalculated to account for minimum slippage during periods of volatility, meaning that unlike Digitex, zero-fee trading on Overbit is not guaranteed in all scenarios.
Digitex Keeps the Top Spot!
Against each of these new competitors and despite some pretty hot competition, Digitex still has the edge! None of these exchanges can match our guaranteed no-fee trading model, combined with the promise of non-custodial accounts, 100x leverage, and an easy-to-use, one-click ladder trading interface.
And in case you missed it, we confirmed our public launch date! From 30th April, Digitex will open the doors to all these trading features, available exclusively to holders of the DGTX token. If you’re not yet among the million subscribers to our waitlist, then sign up now! You can also find plenty of lively pre-launch chat in our Telegram group.