Everyone’s attention has been on the bear market lately and its rippling adverse effects. But it seems as if the icy winter might be about to thaw. All major coins are in the green today and DGTX has broken back into the top 100 tokens. This goes to show that now, more than ever, the crypto space is craving commission-free trading! Here’s why we’re so optimistic about cryptos and see our futures exchange as adding value to the space, whether in a bear or bull market.
Rent-Seeking Models Are Old
What makes a company go out of business? Most people would say new technology, but it’s not always that simple. We’re not going to do a business and technology course in 60 words. However, the more accurate answer is that new technologies allow for the creation of new business models which in turn allow for one company to gain an advantage over the other.
Blockchain technology has allowed Digitex to create a new model to generate funds covering expenses and continuing to provide commission-free trading on the exchange. Our model is called the token issuance revenue model.
In this model, new tokens (DGTX) will be minted periodically, and the Digitex community (token owners) are the ones who vote on how much. This is unprecedented in the exchange realm. We believe the ability to directly influence the platform will make traders question exchanges using rent-seeking models and the added value they bring.
Not only that, but the DGTX is already providing its holders with value, weeks before the launch among the top 100 tokens on CoinMarketCap again this week, currently in 81st position.
Commission-free Trading Brings Liquidity to the Market
The lifeblood for an exchange is liquidity. For varying reasons, traders choose to utilize one exchange over another. Some traders want easy off-ramping while others like a platform to have advanced trading tools. But every trader looks at liquidity. Because what’s the point of having fancy bells and whistles if there is no liquidity in the exchange?
For Digitex Futures having zero trading fees is a huge part of the equation. Novice and seasoned traders will come to experience keeping 100 percent of their profit on winning trade and not worrying about having to pay for a losing trade.
The other part of the equation is automated market makers, which will help make Digitex a favored futures exchange for traders. These algorithms will work to match orders when live traders aren’t there to pick positions. These trading bots are capitalized with a massive 200M DGTX to ensure liquidity and are programmed to break even.
Shows a Maturing Market
2018 for cryptos has been a roller coaster unlike any other year, mostly with steep and scary drops. It can be argued (depending on your role in the space) that it will more than likely close on a low note. The end of the year is right around the corner, and the Top 10 or Best of 2018 lists are being put together as you read this.
Market maturity is kind of a hot topic for crypto-fundamentalists. But no matter what side you fall on, you have to admit, the market of cryptos needs to grow. Considering only about 1% of the population is use cryptos globally, we’re nowhere near the levels needed to say mass adoption is around the corner. But we are slowly getting there.
So where does the zero trading fees play into this? Simply put, no fees lower the barrier for more retail traders. Growing retail traders mean more transactions and more transactions mean higher volumes. Right now Bitcoin’s market cap is only around $67 billion–that’s about the net worth of Mark Zuckerberg! The total circulation of USD is currently $202 billion.
Looking at those numbers you can see there’s a pretty big gap. However, with the growth of retail traders and higher volumes comes the attention of institutional traders. That’s when the deficit will start to shrink.
Make Money During the Bear Market
One of the most apparent reason cryptos needs zero fee futures trading is that you can still make money in a bear market. More seasoned traders know how to exit trading hard crypto assets and take profits out while the market is going down. In general, whether a new or veteran trader, 2018 has been a rough year.
Being able to short bitcoin through futures contracts evens the playing field for the rookie and sophomore traders. Shorting allows the trader to place a bet that price will go down. So, assuming you make the correct call, you keep 100% of the profit made from the contract when using the Digitex exchange. Now you see how gains can still be made in a bear market.
Exchanges are pretty much giving traders the same features with nothing new to foster competition. The time has come for something new. Digitex feels that eliminating trading fees for traders could be the catalyst to start a crypto trading renaissance.
Matured and new traders will develop more aggressive and creative strategies for trading. When the trades increase so does the volume. Increasing volumes are a healthy sign of competition amongst traders. Traders who have the most effective strategies will develop templates for the more novice traders.
This will also create some competition amongst exchanges. BitMEX will have to step their game up to have traders continue seeing them as the preferred bitcoin futures exchange.
Surmising it All
Digitex Futures may not be the first in the crypto futures market. However, we will be the first to offer commission-free trading. The bottom line is this: it was about time something new was added into the trading space and the benefits are apparent.
This new way of trading will lower the barrier to entry for retail traders, helping to create high volumes of trade and building liquidity in the exchange. This will ultimately show that the cryptos market its maturing and catching up to other assets. And the best part? You can make a profit in a bull run or even if the bear market continues.