The current banking system will not allow the exchange between bitcoin and dollar. A lot of difficulties have emerged from both online and mobile wallet when it comes to the exchange between dollars and bitcoin in many countries. That is where the needs for cryptocurrency exchange arises.
Cryptocurrency has been attracting a lot of interest lately. So, to those that know very little about cryptocurrency, here is an opportunity for you to be enlightened.
A cryptocurrency can be defined as an alternative currency, digital currency or digital asset that is designed to work and serves as a medium of exchange. This features/purposes was achieved using a strong cryptography to secure any financial transactions, control the creation of additional units, and verify the transfer of assets using decentralized control.
The control of each decentralized cryptocurrency works through blockchain that serves as a public financial transaction database.
David Chaum, an American cryptographer introduced ideas about cryptocurrency in the 20th century and created ecash (a cryptographic electronic money). Then comes again in the year 1996, he implemented Digicah so as to allow digital currency not to be traceable by the government, banks or third party.
Bitcoin was the first digital cash created 9 years ago and was first released as open-source software in 2009. Bitcoin is generally considered as the first decentralized cryptocurrency and very unique due to its independence on government or bank created money.No bank or middleman is involved and since the release of Bitcoin, over 4,000 altcoins have been created.
A cryptocurrency exchange is just an online or a mobile platform that is built for trading functionality that allows buying, selling and storing of cryptocurrencies. The cryptocurrency can be bitcoin, ethereum, Neo. etcetera
Many cryptocurrencies exchange such as bittrex, poloniex, Luno etcetera is available on blockchain with rules and regulations guiding them. They are maintained and run based on each charge from the commissions designed for each trading, though may be based on the percentage of each trades.
A blockchain future exchange has been introduced to safe traders from unforeseen losses. This future exchange is called *Digitexfuture exchange.
What is Digitex
Digitex is a decentralized blockchain trading platform that is running a commission and transaction fees free exchange that have its own native cryptocurrency token (DGTX) and are using state channels to settle trading profits and losses. With this, Digitex is able to attain its forefront of using blockchain technology to bring a new revolution to the 200-year-old futures trading industry.
How is this possible?
Digitex will make this possible by
- using blockchain technology to eliminate transaction fees,
- decentralizing the account balances.
- and by governing itself autonomously.
This will allow the traders to be able to buy and sell futures contracts without transaction fees or centralized account balances
Traders speculate on the price of Bitcoin against the US dollar, but their trading profits and losses are paid out in DGTX tokens. This means that traders need DGTX tokens to enter a trade, and this creates demand for DGTX tokens from traders.)
How Digitex is not affected by their commission and transaction fees free exchange.
DGTX token was created by Digitex and will be made available so as to have zero dependence on the transaction fees and commission. Digitex will make sure they cover the cost of running the exchange by creating a certain number of new tokens every year in order to stabilize their exchange platform instead of charging transaction fees on any trades.
How Digitex will change the way crypto users interact with futures.
Digitex will create grounds for crypto users, trading on their platform to participate in liquid and commission free market without any need to trust the exchange in charge of their fund. The crypto users using this future exchange can have control over their account. It allows the traders to eliminate full control of their account balance to a central third party that can potentially freeze/mismanage/lose those funds.
How creating a no fees exchange allow users to gain more from their trade
A commission free exchange will pull more traders to venture into more trading on the platform thereby creating a high market volume which in turn serve high advantage for the traders on the no-fee exchange. This will attract any short-term traders whose trading strategies are not viable on other exchanges due to commissions and creating high volume market. So as cryptocurrency prices rise, percentage based transaction fees on other exchanges will also rise, further increasing the appeal of a commission-free futures exchange. Commission-free markets create demand for DGTX tokens which more than offsets the inflationary cost of creating that demand.
Digitex growth in the subsequent years(2019,2020 and2021) .
As the price of DGTX tokens increases the exchange must create fewer tokens to cover costs, thereby reducing the inflationary cost of creating new tokens. The high liquid commission free future market that has a trustless, stable and fast trading platform will experience a high significant growth over years due to high market volume. When I check for Digitex in the coin market cab, Digitex happened to be one of the stable coins. So tell me why Digitex cannot grow to the pick in the next to three years.
HOW TRADING FEES IS KILLING TRADER PROFIT.
Trading fees are killing the traders' profit in the sense that those traders trading in high volume or with high capital may be eligible to lower exchange fees through a membership and/or commission structure through negotiations with their broker. Given the level of interaction between traders, brokerages, and exchanges, futures market participants incur fees on a per
contract basis. The trading fees affect low income traders compared to whale traders.
Reference materials
Digitex website
Digitex whitepaper
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- RashidatAyobami
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