In my first post, I spoke about the upcoming launch of the Digitex Futures Exchange. What was shared was just the basics of what futures and how Digitex could revolutionize the futures trading platform. Feel free to check it out here . I have decided to look a little further to find out exactly who are Digitex's closer competitors and I came across BitMex. Thus, I think it would be good to look into what both platforms potentially would bring to the futures trading industry. In addition, I will also be writing about how the Digitex Futures Exchange can be used to solve some real life issues especially in the Cryptocurrency industry.
Clash Of Exchanges
Of the two exchanges, Bitmex has been around the longest, actually, since 2014. Being around longer here has its advantages. For one, it has a first mover's advantage, amassing a large client base to trade on it daily. In fact, its daily volume is approximately 3 billion (source). It is claimed to be rather quick and reliable. This shows in its customer base which has stuck around for thus long. However, being the older one here has its disadvantages. That is 'old' way of how exchanges are done.
That old ways refers to fees. Compared to Bitmex, Digitex will be the first fee-less futures exchange. This is revolutionary for one reason, the presence of fees would increase the profits of either the exchange or the trader. For Digitex, they have chosen to distribute these profits back to the traders. For Bitmex, it is paid to the platform and it is understandable. Here is why.
Fees on Bitmex are charged based on two types. The maker fees and the taker fees. Thus, if you are familiar with trading, whenever you place a buy or sell order for a trade on the Bitcoin/USD pair, you will be charged a fee. That fee is called the taker fee. According to the Bitcoinist, this fee is 0.075%. Thus, any trade you place effectively causes you a 0.075% loss by paying the fees. Conversely, if you were to place an order above or below the bid price or above the offer price, you will be getting a rebate of 0.025% if the order is filled. That is if, the order is filled.
That being said, my money is with Digitex. Call me cheap, but 0.075% of fees is still profit lost in my opinion. Thus, being a mediocre trader that I am, I would much rather go to a fee-less platform to increase my chances of profit.
Why Digitex
To be honest, I can think of only two reasons why someone would stay with Bitmex after Digitex's launch in Q4 2018. One is familiarity, the other is liquidity. In terms of liquidity, I think it won't be long before its trades surpasses that of Bitmex. With over a 100,000 potential traders signed up for the waiting list, I think they have a rather strong start. Furthermore, no fees means extra profit and unless Bitmex gets rid of its fees, I don't see why would anyone pick it over Digitex.
However, if you are a creature of habit and would prefer Bitmex, here is another reason to pick Digitex. That is the speed of execution. The Digitex Futures Exchange has an interface that allows for quick decision making. This allows a trader to make trades quickly. Especially in markets where speed is of the utmost importance, Thus, with an interface that is easy to use and convenient for one to make any trade quickly, this, in my opinion makes Digitex the better choice. That is unless if you use trading bots, but that is a topic for another day.
Futures Of Cryptocurrency
Are Futures of Cryptocurrency the future of the market? Now that makes for a great tongue twister. Cryptocurrency futures is what will drive the industry, attracting more investors into the Cryptocurrency space. The Digitex Futures Exchange will offer three kinds of futures, Ethereum, Litecoin and Bitcoin. With the current performance of Ethereum and Litecoin, I believe that after the launch of the platform, we may likely see renewed interest and capital flow into these Cryptocurrencies.
However, there are some out there pointing out how Cryptocurrency futures may tank the price of these currencies simply because it allows traders to short/sell these Cryptocurrencies. While they do present some very valid points, I would argue that there have been many unregulated exchanges trading Bitcoin futures for a while now. That being said, we have only see Bitcoin grow stronger. I think the same goes for Ethereum with the infrastructure and utility it provides. Call it blind faith, but I think more money flowing into Ethereum and Litecoin through its futures will not tank its price like Bitcoin and Digitex will be one of the exchanges that will make this happen.
As such, if you have not signed up yet, do head on to the project website and join the wait list. There are also airdrops and bounty campaigns with links provided below.
Sources and Links:
Project Website: http://digitexfutures.com
Project Whitepaper: https://www.digitexfutures.com/whitepaper/Digitex-Whitepaper.v.1.1.pdf
Airdrops/Bounty Campaigns http://digitexfutures.com/get-early-access
Press Release: https://blog.digitexfutures.com/digitex-futures/digitex-to-present-keynote-demo-futures-exchange-at-malta-blockchain-summit/
Social Media Links:
- Website: http://www.digitexfutures.com
- Twitter: @digitexfutures
- Facebook: @digitexfutures
-Telegram https://t.me/digitexfutureschat
- Reddit https://www.reddit.com/r/DigitexFutures/
Disclaimer:
Many of the findings here are researched but are based on my own opinion. I welcome any debate and discussion but I am no financial adviser. As such, always do your own due diligence before selling your kidney to invest in anything.