Digitex vs Major Cryptocurrency Exchanges - How Do We Compare?
During the past two years, cryptocurrency trading has exploded in popularity. Currently, there are more than 2,000 different cryptocurrency tokens trading on 203 different exchanges. In spite of the recent dip, the total market capitalization of all tokens remains over $218 billion. During the next decade, cryptocurrencies could easily become the most tradeable investment vehicle among all asset classes. Against this exciting panorama, in December this year, Digitex Futures will launch its commission-free exchange to the crypto community.
For the first time in the history of the futures markets, traders will be able to buy and sell futures contracts on a commission-free basis!
All transactions will be denominated in DGTX tokens, which is the native cryptocurrency of Digitex. While Digitex is set to lead the way into a new era of futures trading, we're certainly not the only firm to offer cryptocurrency trading.
As mentioned, there are currently 203 cryptocurrency exchanges available to the trading community. How does Digitex “stack up” against the rest? Let’s compare it to a few of the more popular cryptocurrency exchanges.
The Binance cryptocurrency exchange was founded in July 2017. Despite the fact that the exchange has only been in business for 15 months, Binance is definitely one of the more popular exchanges among cryptocurrency traders.
The exchange is constantly at the top of the list in terms of daily trading volume. During the past 30 days, daily volume has averaged $988M, which places Binance ahead of all other cryptocurrency exchanges in terms of volume.
Traders can select from 387 different tokens on the Binance exchange. Despite its popularity within the crypto community, the exchange does not allow trading on margin. All trading is conducted on a spot (cash) basis.
A unique feature which separates Binance from other exchanges is the fact that the exchange offers its own native token. The Binance Coin (BNB) began trading in July 2017. The total supply is 192.4M. The current price is $10.48 per token.
BitMEX has the distinction of being one of the oldest exchanges in the cryptocurrency universe. The exchange was launched in Q1 2014. BitMEX is fairly unique in the fact that it is purely a derivatives exchange. BitMEX is not involved in spot trading.
It does not engage in the activity of exchanging a fiat currency for Bitcoin (or any other cryptocurrency). In fact, Bitcoin is the only cryptocurrency traded on the BitMEX Exchange.
In terms of fees, the BitMEX fee structure is based on maker fees and taker fees. Maker orders receive a small credit of 0.025%. Taker orders pay a fee of 0.075%. BitMEX generates a substantial amount of daily volume. It’s not uncommon for the exchange to generate over $1 billion in daily Bitcoin volume.
Arguably, Coinbase is the most popular cryptocurrency exchange. It opened for business in June 2012. Many first-time cryptocurrency traders use Coinbase because of its fairly simple trading platform and account opening process. However, Coinbase is certainly not designed for active and aggressive traders. Why?
Because the exchange only allows spot trading. Leveraged trades are not available to Coinbase accountholders. Additionally, active traders require a low fee structure in order to successfully implement their trading approach.
Coinbase does not offer low fees. In fact, the fees are fairly high at 1.49% for all purchases and sales. Transactions involving credit cards will increase the fee to 3.99%.
IDEX is a fairly new exchange, launched in September 2017. IDEX is unique because it is the first Ethereum-based decentralized smart contract exchange to support real-time trading. Currently, IDEX is the most advanced Ethereum DEX, supporting limit orders, market orders, gas-free cancels and the ability to fill several trades at once.
In regard to fees, IDEX uses the same fee structure as BitMEX. Traders are charged maker fees and taker fees. The market maker fee is 0.1%. The market taker fee is 0.2%. Additionally, traders are required to pay gas fees to place their orders on the blockchain.
In terms of activity on the IDEX Exchange, the volume is fairly light. The average daily volume for all tokens is $1.2M, which ranks IDEX near 100th place in comparison to other cryptocurrency exchanges.
As a side note, IDEX has experienced a rather difficult time providing a seamless trading environment for its customer base. More specifically, customers are reporting very slow order fills on trades and a lengthy wait time for deposits to post to accounts. Additionally, customers have complained that the IDEX user interface is not very friendly.
The Gemini Exchange was founded in October 2014 by Tyler and Cameron Winklevoss. Gemini is one of the more popular cryptocurrency exchanges, particularly in the United States. However, very similar to Coinbase, the Gemini Exchange is definitely not designed for active and aggressive traders.
The exchange only allows spot trading and the fee structure is rather expensive. Fees are based on a 30-day rolling volume for each trader. However, the fee for most traders is 1.0%.
Gemini allows its users to trade Bitcoin, Ethereum and Zcash. Daily volume on the Gemini Exchange is fairly impressive at approximately $20M.
The Digitex Futures exchange is scheduled to launch in December. Digitex will be one of the most innovative exchanges within the global futures arena. It will be able to solve many of the shortcomings associated with the exchanges listed above.
Very briefly, let’s compare Digitex to the exchanges on our list:
Despite being popular, Binance does not allow trading on margin or futures trading. Digitex solves this problem by offering futures contracts on Bitcoin, Ethereum, and Litecoin. Binance and Digitex both offer a native cryptocurrency. However, only Digitex has commission-free trading.
BitMEX stands out among the crowd because the exchange offers derivatives trading with leverage as high as 100 to 1. Therefore, BitMEX and Digitex are very similar in that regard. However, the exchanges are completely different regarding fees and commissions. BitMEX uses the taker/maker fee structure, whereas Digitex is commission-free.
Coinbase is one of the oldest and more established cryptocurrency exchanges. The exchange is probably a good fit for new users who trade very infrequently. However, Coinbase would be a poor choice for active traders because the fees are relatively high @ 1.49%.
Conversely, Digitex would be a great choice for active traders because the exchange does not charge commissions or trading fees. Additionally, Digitex has a one-click trading interface designed exclusively for active and aggressive traders. Coinbase, on the other hand, employs a trading interface designed for new users who rarely trade.
The IDEX Exchange is the first Ethereum-based decentralized smart contract exchange to support real-time trading. Digitex is similar to IDEX based on the fact that Digitex is also an Ethereum-based smart contract exchange. However, that’s where the similarities end.
Digitex has its own native cryptocurrency, the DGTX token. IDEX does not have a native token. Additionally, Digitex is a commission-free exchange. IDEX charges a maker fee of 0.1% and a taker fee of 0.2%. IDEX traders are required to pay gas fees to place their orders on the blockchain.
The Gemini Exchange is very similar to Coinbase. It’s a decent exchange for new users who rarely trade. However, Gemini is not a good exchange for aggressive traders. Digitex is clearly a better fit for aggressive traders due to its commission-free price structure and advanced user interface.
Digitex Goes Live in December
Digitex is scheduled to begin accepting new customers in December. Traders will be able to buy and sell cryptocurrency futures contracts in Bitcoin, Ethereum and Litecoin. If you want to be one of the first traders to use the Digitex exchange, sign up to join the Early Access Waitlist. Signing up will give you a chance to gain early access and 1,000 FREE DGTX when the exchange is launched in December.
Without question, there are several excellent cryptocurrency exchanges available for active crypto traders. However, Digitex Futures is clearly at the top of the list for those traders who are searching for commission-free trading and a state-of-the-art trading platform.
Check out our guide to answer the question of "What is the difference between different cryptocurrencies?"
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.