Crypto Trading

Get More Profits Through the Application of Technical Analysis in Crypto Trading

Trading
• Digitex
April 12, 2021

Technical analysis is among the most useful tools for traders, which especially comes in handy when day trading crypto.

For that reason, incorporating technical analysis into your crypto trading strategies is an excellent way to increase your chances for profits on the digital asset market.

In this article, we will explain what technical analysis is, how it is different from fundamental analysis, and what are the advantages and downsides of using it to discover crypto trading signals.

Let’s dive in!

What Is Technical Analysis And How Is it Different From Fundamental Analysis?

Technical analysis refers to the practice of evaluating investments and identifying trading signals by studying trends related to trading activity (e.g., price movement).

Simply put, it helps traders predict future price movements as well as decide whether to enter a position, when and for how long.

Technical analysis usually involves using multiple charting tools and indicators – such as the Relative Strength Index (RSI), the Money Flow Index (MFI), and the Moving Average Convergence Divergence (MACD) – to spot as well as interpret market trends and signals.

Fundamental analysis focuses on identifying an asset’s true value by analyzing its financial data (e.g., sales and earnings), the industry’s condition, and even general statistics about the economy.

On the other hand, technical analysis aims to find how the supply and demand on the market impact an instrument’s price, volume, and volatility.

Also, while fundamental analysis is best used for mid-to-long-term investments, technical analysis can be incorporated into day trading strategies.

Below, you can find the three fundamental principles of technical analysis in trading:

  1. The market prices everything: From a company’s financial data to market sentiment, everything is priced into an asset, according to technical analysts. The only exception is price movements, which are the products of supply and demand for a certain asset.
  2. Prices move in trends: Technical analysts believe that the market rarely moves erratically. Instead, no matter the timeframe used, they assume that prices exhibit trends.
  3. History often repeats itself: Based on market psychology, price movements regularly repeat themselves throughout time due to emotions like fear, excitement, and greed. Technical analysis evaluates these emotions via chart patterns to understand trends and predict future price movements.

What Are the Pros and Cons of Technical Analysis in Crypto?

Technical analysis has been widely popular among traders in the crypto industry. And for a very good reason.

While fundamental analysis works great for general market assets like stocks and bonds, it’s very hard to determine the intrinsic value of cryptocurrencies.

For that reason, technical analysis is a better choice to identify crypto trading signals, especially if we take the high volatility of the asset class into account, which makes it an excellent option for day traders.

Furthermore, technical analysis allows traders to identify and respond to market changes quickly.

With hundreds of indicators to choose from, traders can customize their crypto trading strategies to fit their preferences by leveraging technical analysis.

Combining trading knowledge, practice, and the right tools allows traders to accurately predict future digital asset price movements in most of their trades.

As with every trading practice, technical analysis has its own limitations.

One of its main downsides is related to market behavior, which can be unpredicted on certain occasions. For that reason, technical analysis can’t provide 100% accurate crypto trading signals for users.

Moreover, with so many tools to choose from, it’s hard for beginners to learn the ropes and select the indicators that best fit their crypto trading strategies. Also, some technical analysis tools are more reliable and precise than others.

Closing Thoughts

Along with fundamental analysis, technical analysis is among the most popular practices to evaluate financial decisions.

While the prior evaluates data to calculate the true value of assets to spot the ones trading at a discount, technical analysis is based on an asset’s price charts, identifying patterns to predict future price movements using historical market data and statistics.

However, while it’s nearly impossible to determine the intrinsic value of digital assets, technical analysis tends to work better for crypto traders.

Are you looking to learn more about crypto trading?

Check out the following articles to learn how the Bitcoin volume impacts traders, what the best crypto trading strategies are, and how to profit from scalping futures.

In case you are ready to test your skills, be sure to check out the zero-fee Bitcoin futures exchange Digitex to trade crypto for free!

April 12, 2021
Trading

Get More Profits Through the Application of Technical Analysis in Crypto Trading

Digitex
Crypto Trading

Technical analysis is among the most useful tools for traders, which especially comes in handy when day trading crypto.

For that reason, incorporating technical analysis into your crypto trading strategies is an excellent way to increase your chances for profits on the digital asset market.

In this article, we will explain what technical analysis is, how it is different from fundamental analysis, and what are the advantages and downsides of using it to discover crypto trading signals.

Let’s dive in!

What Is Technical Analysis And How Is it Different From Fundamental Analysis?

Technical analysis refers to the practice of evaluating investments and identifying trading signals by studying trends related to trading activity (e.g., price movement).

Simply put, it helps traders predict future price movements as well as decide whether to enter a position, when and for how long.

Technical analysis usually involves using multiple charting tools and indicators – such as the Relative Strength Index (RSI), the Money Flow Index (MFI), and the Moving Average Convergence Divergence (MACD) – to spot as well as interpret market trends and signals.

Fundamental analysis focuses on identifying an asset’s true value by analyzing its financial data (e.g., sales and earnings), the industry’s condition, and even general statistics about the economy.

On the other hand, technical analysis aims to find how the supply and demand on the market impact an instrument’s price, volume, and volatility.

Also, while fundamental analysis is best used for mid-to-long-term investments, technical analysis can be incorporated into day trading strategies.

Below, you can find the three fundamental principles of technical analysis in trading:

  1. The market prices everything: From a company’s financial data to market sentiment, everything is priced into an asset, according to technical analysts. The only exception is price movements, which are the products of supply and demand for a certain asset.
  2. Prices move in trends: Technical analysts believe that the market rarely moves erratically. Instead, no matter the timeframe used, they assume that prices exhibit trends.
  3. History often repeats itself: Based on market psychology, price movements regularly repeat themselves throughout time due to emotions like fear, excitement, and greed. Technical analysis evaluates these emotions via chart patterns to understand trends and predict future price movements.

What Are the Pros and Cons of Technical Analysis in Crypto?

Technical analysis has been widely popular among traders in the crypto industry. And for a very good reason.

While fundamental analysis works great for general market assets like stocks and bonds, it’s very hard to determine the intrinsic value of cryptocurrencies.

For that reason, technical analysis is a better choice to identify crypto trading signals, especially if we take the high volatility of the asset class into account, which makes it an excellent option for day traders.

Furthermore, technical analysis allows traders to identify and respond to market changes quickly.

With hundreds of indicators to choose from, traders can customize their crypto trading strategies to fit their preferences by leveraging technical analysis.

Combining trading knowledge, practice, and the right tools allows traders to accurately predict future digital asset price movements in most of their trades.

As with every trading practice, technical analysis has its own limitations.

One of its main downsides is related to market behavior, which can be unpredicted on certain occasions. For that reason, technical analysis can’t provide 100% accurate crypto trading signals for users.

Moreover, with so many tools to choose from, it’s hard for beginners to learn the ropes and select the indicators that best fit their crypto trading strategies. Also, some technical analysis tools are more reliable and precise than others.

Closing Thoughts

Along with fundamental analysis, technical analysis is among the most popular practices to evaluate financial decisions.

While the prior evaluates data to calculate the true value of assets to spot the ones trading at a discount, technical analysis is based on an asset’s price charts, identifying patterns to predict future price movements using historical market data and statistics.

However, while it’s nearly impossible to determine the intrinsic value of digital assets, technical analysis tends to work better for crypto traders.

Are you looking to learn more about crypto trading?

Check out the following articles to learn how the Bitcoin volume impacts traders, what the best crypto trading strategies are, and how to profit from scalping futures.

In case you are ready to test your skills, be sure to check out the zero-fee Bitcoin futures exchange Digitex to trade crypto for free!

Latest News

Digitex Futures

Digitex Futures Is Going Strong in 2021 – by CoinCollector

Digitex Futures
Trading
• Digitex
April 8, 2021

With so much action surrounding the price of Bitcoin (BTC) and Ether (ETH) this year, naturally more and more people are interested in profiting from the volatility. Trading futures is an excellent way to do this since you can make money whether the price goes up or down–as long as you make the right call. And, if you trade on a zero-fee exchange, you get to keep all of your profit. 

But don’t just take our word for it. Check out this awesome YouTube video by CoinCollector, a frequent trader from the Digitex community. He explains why he uses Digitex Futures as his platform of choice, and walks through some of the features that make it so unique. Check it out:

Zero Fees

CoinCollector says that he has used many different exchanges for trading cryptocurrency futures but that he always comes back to Digitex because of its zero-fee commission structure. On no other exchange can he actually execute the same type of aggressive scalping strategies that he can on Digitex because the fees prevent him from doing so.

He goes on to say that trading without fees will “change the game of how your trade.” If you are trading with fees, he says, you have to be more careful. Digitex lets you trade more aggressively since you can easily go in and out of trades and even enter or exit your trades at the exact same price without paying any fees. 

If you did that on any other exchange you would have to pay a “ton of fees” that would eat up any profit you would have made. “You would be shocked by how much money you can save without paying any fees,” he says.

One-Click Trading Ladder

He also loves the trading ladder interface which is still unique to the crypto space. He shows us how he manages his trades “so easily” on the new UI that was updated last month. “Trading on this exchange is something that is so easy,” he says, as he walks through placing a trade, changing the leverage, and setting a limit order.

He also says that, in the last couple of months, he has taken his account balance from 200K DGTX tokens to a whopping 3.2 million DGTX just from trading. This interface is “super intuitive and a lot of fun,” he enthuses.

The DGTX Token

CoinCollector reminds viewers that all trading on the Digitex exchange takes place in our native exchange token DGTX. So, if you want to participate in our commission-free markets, you must own DGTX tokens first. All profits and losses on the exchange are settled in DGTX, and all account balances are denominated in DGTX. Having our own token for trading on the exchange enables us to sustain a commission-free trading environment for all. You can find out more about DGTX tokenomics here.

Liquidity Mining Program

As well as allowing you to keep all your profit from gains made on the exchange, Digitex pays you to place orders via our Liquidity Mining program. This is something that no other exchange allows you to do. “You can make money by simply providing liquidity to the order book,” CoinCollector explains. 

In order to reward our traders and increase liquidity on the exchange, our system takes a snapshot every minute and pays out DGTX rewards based on how many orders you placed that were close to the spot price at that time. You can easily check your profits by selecting the “Liquidy Mining” tab in the interface. CoinCollector shows you how to do this.

Zero-Fee Spot Markets Coming Soon

Coming very soon to Digitex are the zero-fee spot markets, which will be “very very cool.” This major upgrade will allow you to buy and sell your DGTX directly on the exchange without having to use another platform. You can start trading easier and sell quicker so that you are not exposed to the volatility of the token. 

“I think this will bring some new dynamics to the token,” he says. “This is the main thing that’s missing, it will be cool because you can quickly sell DGTX to USDC and avoid volatility, or you can choose to hold DGTX if you think the price may go up. It’s up to you.”

Wrapping It Up

CoinCollector says that he’s very bullish on the outlook for Digitex for the rest of the year. He points out that in-house trading bots are coming soon to make it even easier to set up a trading bot and maximize your rewards from liquidity mining–and that a DGTX Staking program is also on the roadmap and should be very popular.

He concludes by saying that you will notice how much easier it is to make profit than on other exchanges. “The potential for Digtex is very very huge given how the overall market is riding right now… What better thing to do than to put your trading volume to work on a zero fee exchange?”

A big thank you to CoinCollector for taking the time to make this awesome video. We’re glad to hear that you’re enjoying trading on the platform–and making spectacular gains to boot!

Are you ready to start trading BTC and ETH futures with zero fees and grow your trading balance exponentially like CoinCollector? Sign up for an account here now.

 

April 8, 2021
Digitex Futures
Trading

Digitex Futures Is Going Strong in 2021 – by CoinCollector

Digitex
Digitex Futures

With so much action surrounding the price of Bitcoin (BTC) and Ether (ETH) this year, naturally more and more people are interested in profiting from the volatility. Trading futures is an excellent way to do this since you can make money whether the price goes up or down–as long as you make the right call. And, if you trade on a zero-fee exchange, you get to keep all of your profit. 

But don’t just take our word for it. Check out this awesome YouTube video by CoinCollector, a frequent trader from the Digitex community. He explains why he uses Digitex Futures as his platform of choice, and walks through some of the features that make it so unique. Check it out:

Zero Fees

CoinCollector says that he has used many different exchanges for trading cryptocurrency futures but that he always comes back to Digitex because of its zero-fee commission structure. On no other exchange can he actually execute the same type of aggressive scalping strategies that he can on Digitex because the fees prevent him from doing so.

He goes on to say that trading without fees will “change the game of how your trade.” If you are trading with fees, he says, you have to be more careful. Digitex lets you trade more aggressively since you can easily go in and out of trades and even enter or exit your trades at the exact same price without paying any fees. 

If you did that on any other exchange you would have to pay a “ton of fees” that would eat up any profit you would have made. “You would be shocked by how much money you can save without paying any fees,” he says.

One-Click Trading Ladder

He also loves the trading ladder interface which is still unique to the crypto space. He shows us how he manages his trades “so easily” on the new UI that was updated last month. “Trading on this exchange is something that is so easy,” he says, as he walks through placing a trade, changing the leverage, and setting a limit order.

He also says that, in the last couple of months, he has taken his account balance from 200K DGTX tokens to a whopping 3.2 million DGTX just from trading. This interface is “super intuitive and a lot of fun,” he enthuses.

The DGTX Token

CoinCollector reminds viewers that all trading on the Digitex exchange takes place in our native exchange token DGTX. So, if you want to participate in our commission-free markets, you must own DGTX tokens first. All profits and losses on the exchange are settled in DGTX, and all account balances are denominated in DGTX. Having our own token for trading on the exchange enables us to sustain a commission-free trading environment for all. You can find out more about DGTX tokenomics here.

Liquidity Mining Program

As well as allowing you to keep all your profit from gains made on the exchange, Digitex pays you to place orders via our Liquidity Mining program. This is something that no other exchange allows you to do. “You can make money by simply providing liquidity to the order book,” CoinCollector explains. 

In order to reward our traders and increase liquidity on the exchange, our system takes a snapshot every minute and pays out DGTX rewards based on how many orders you placed that were close to the spot price at that time. You can easily check your profits by selecting the “Liquidy Mining” tab in the interface. CoinCollector shows you how to do this.

Zero-Fee Spot Markets Coming Soon

Coming very soon to Digitex are the zero-fee spot markets, which will be “very very cool.” This major upgrade will allow you to buy and sell your DGTX directly on the exchange without having to use another platform. You can start trading easier and sell quicker so that you are not exposed to the volatility of the token. 

“I think this will bring some new dynamics to the token,” he says. “This is the main thing that’s missing, it will be cool because you can quickly sell DGTX to USDC and avoid volatility, or you can choose to hold DGTX if you think the price may go up. It’s up to you.”

Wrapping It Up

CoinCollector says that he’s very bullish on the outlook for Digitex for the rest of the year. He points out that in-house trading bots are coming soon to make it even easier to set up a trading bot and maximize your rewards from liquidity mining–and that a DGTX Staking program is also on the roadmap and should be very popular.

He concludes by saying that you will notice how much easier it is to make profit than on other exchanges. “The potential for Digtex is very very huge given how the overall market is riding right now… What better thing to do than to put your trading volume to work on a zero fee exchange?”

A big thank you to CoinCollector for taking the time to make this awesome video. We’re glad to hear that you’re enjoying trading on the platform–and making spectacular gains to boot!

Are you ready to start trading BTC and ETH futures with zero fees and grow your trading balance exponentially like CoinCollector? Sign up for an account here now.

 

Latest News

The Best 3 Crypto Trading Strategies for Beginners 1

The Best 3 Crypto Trading Strategies for Beginners

Cryptocurrency
Digitex Futures
Trading
• Digitex

Whether you are holding for the long term or day trading crypto, you need a viable strategy to profit from the current bull market’s price moves.

That said, your crypto trading strategies shouldn’t be overly complex to avoid grave mistakes like misinterpreting signals.

For that reason, we have collected the best three crypto trading strategies both beginners and advanced traders can use to gain exposure to the rapidly-growing digital asset market.

Let’s see them!

1. Momentum Trading

Momentum trading is one of the most beginner-friendly crypto trading strategies out there.

In the financial industry, momentum refers to the speed at which an asset’s value is changing in either direction.

Instead of buying the dip and selling high, momentum traders ride the wave, entering a trade when a cryptocurrency’s price has already grown considerably while exiting their positions at a trend’s peak.

Using both fundamental and technical analysis tools, momentum traders screen the market to find assets that have recently entered into a strong trend. Once they spot one, they open long positions, which they only exit after a trend reversal occurs.

Even after a trend reversal, momentum traders may decide to enter the market again to short the asset if the downtrend is strong enough.

While it may sound counterproductive at first, this type of cryptocurrency trading strategy makes great sense in the digital asset space, where momentum occurs quite often.

For example, in the current bull market, a sudden increase in the demand for an asset, positive news for a project, or even just fear of missing out (FOMO) kicking in can all create strong, rapidly accelerating uptrends.

Momentum traders can take advantage of all the above while leveraging key indicators like market volatility, the Bitcoin trading volume, and timeframe analysis to gather crypto trading signals.

On the other hand, as with all crypto trading strategies, momentum trading also involves some risks. For that reason, effective risk management is crucial to achieving success with this strategy.

2. Swing Trading

Swing trading is also an excellent beginner-friendly crypto trading strategy.

Unlike long-term holding or day trading crypto, this strategy aims to make short- to medium-term profits on digital assets’ price movements.

With trades lasting from a couple of days to multiple months, swing traders use a combination of fundamental and technical analysis to spot crypto trading signals.

While increasing the time on the market allows traders to maximize their short-term profit potential, swing trading doesn’t involve as much effort as day trading. Instead of checking charts every day, swing traders enter and exit positions once every few days or weeks.

On the other hand, swing traders have to regularly monitor the market for potential reversals to minimize their risks and increase their profits.

3. Scalping

Scalping is a straightforward, high-frequency crypto day trading strategy in which traders aim to make quick profits on digital assets’ minor price changes.

Since they only focus on extremely short-term price movements, scalpers don’t take an asset’s fundamentals into account. Instead, they rely exclusively on technical analysis to enter many quick trades.

Since the profits are small for each trade, those using this crypto trading strategy usually enter and exit hundreds of positions in a day.

Scalping is based on the following three trading principles:

  • Less exposure to the market limits traders’ risks as the probability is much lower for getting impacted by an adverse event than for longer-term strategies.
  • It’s easier for an asset to make smaller moves than larger ones (e.g., a $10 change in the BTC price is more likely than a $1,000).
  • Smaller moves are much more frequent than bigger ones, even when the market is relatively quiet.

In addition to the above, scalpers must be disciplined while using strict entry and exit strategies to limit their risks since a large loss is enough to take away most of their profits.

It’s also essential for traders utilizing this crypto trading strategy to pick an exchange with cost-efficient fees as high spreads can easily turn their gains into losses.

For that reason, the Digitex exchange is the perfect choice for scalpers and other high-frequency traders as they can enjoy a free crypto trading experience to maximize their profits.

 

April 8, 2021
Cryptocurrency
Digitex Futures
Trading

The Best 3 Crypto Trading Strategies for Beginners

Digitex
The Best 3 Crypto Trading Strategies for Beginners 2

Whether you are holding for the long term or day trading crypto, you need a viable strategy to profit from the current bull market’s price moves.

That said, your crypto trading strategies shouldn’t be overly complex to avoid grave mistakes like misinterpreting signals.

For that reason, we have collected the best three crypto trading strategies both beginners and advanced traders can use to gain exposure to the rapidly-growing digital asset market.

Let’s see them!

1. Momentum Trading

Momentum trading is one of the most beginner-friendly crypto trading strategies out there.

In the financial industry, momentum refers to the speed at which an asset’s value is changing in either direction.

Instead of buying the dip and selling high, momentum traders ride the wave, entering a trade when a cryptocurrency’s price has already grown considerably while exiting their positions at a trend’s peak.

Using both fundamental and technical analysis tools, momentum traders screen the market to find assets that have recently entered into a strong trend. Once they spot one, they open long positions, which they only exit after a trend reversal occurs.

Even after a trend reversal, momentum traders may decide to enter the market again to short the asset if the downtrend is strong enough.

While it may sound counterproductive at first, this type of cryptocurrency trading strategy makes great sense in the digital asset space, where momentum occurs quite often.

For example, in the current bull market, a sudden increase in the demand for an asset, positive news for a project, or even just fear of missing out (FOMO) kicking in can all create strong, rapidly accelerating uptrends.

Momentum traders can take advantage of all the above while leveraging key indicators like market volatility, the Bitcoin trading volume, and timeframe analysis to gather crypto trading signals.

On the other hand, as with all crypto trading strategies, momentum trading also involves some risks. For that reason, effective risk management is crucial to achieving success with this strategy.

2. Swing Trading

Swing trading is also an excellent beginner-friendly crypto trading strategy.

Unlike long-term holding or day trading crypto, this strategy aims to make short- to medium-term profits on digital assets’ price movements.

With trades lasting from a couple of days to multiple months, swing traders use a combination of fundamental and technical analysis to spot crypto trading signals.

While increasing the time on the market allows traders to maximize their short-term profit potential, swing trading doesn’t involve as much effort as day trading. Instead of checking charts every day, swing traders enter and exit positions once every few days or weeks.

On the other hand, swing traders have to regularly monitor the market for potential reversals to minimize their risks and increase their profits.

3. Scalping

Scalping is a straightforward, high-frequency crypto day trading strategy in which traders aim to make quick profits on digital assets’ minor price changes.

Since they only focus on extremely short-term price movements, scalpers don’t take an asset’s fundamentals into account. Instead, they rely exclusively on technical analysis to enter many quick trades.

Since the profits are small for each trade, those using this crypto trading strategy usually enter and exit hundreds of positions in a day.

Scalping is based on the following three trading principles:

  • Less exposure to the market limits traders’ risks as the probability is much lower for getting impacted by an adverse event than for longer-term strategies.
  • It’s easier for an asset to make smaller moves than larger ones (e.g., a $10 change in the BTC price is more likely than a $1,000).
  • Smaller moves are much more frequent than bigger ones, even when the market is relatively quiet.

In addition to the above, scalpers must be disciplined while using strict entry and exit strategies to limit their risks since a large loss is enough to take away most of their profits.

It’s also essential for traders utilizing this crypto trading strategy to pick an exchange with cost-efficient fees as high spreads can easily turn their gains into losses.

For that reason, the Digitex exchange is the perfect choice for scalpers and other high-frequency traders as they can enjoy a free crypto trading experience to maximize their profits.

 

Latest News

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies 3

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies

Cryptocurrency
Crypto Industry
Trading
• Digitex
April 7, 2021

The Bitcoin trading volume is a crucial indicator for both cryptocurrency investors and traders.

According to a CoinDesk Markets survey, trading volume was ranked as the top indicator traders “couldn’t live without,” scoring 38% among all poll respondents.

Currently, the 24-hour BTC trading volume is standing at nearly $73 billion, which is up by 8% since the last day. 

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies 4

But what is the Bitcoin trading volume, what does it tell us about the market, and how does it impact crypto trading strategies Let’s explore the answers to the above questions together in this article!

Bitcoin Trading Volume Explained

The Bitcoin trading volume measures how much BTC has been traded on cryptocurrency exchanges in a certain period of time (the most common timeframe is 24 hours).

For Bitcoin derivatives trading, the volume provides data about the number of futures or options contracts changing hands between buyers and sellers.

When buyers and sellers reach an agreement at a certain price for a trading pair (e.g., BTC/USD), the exchange facilitating the trade records the transaction and uses that data to calculate the trading volume for the digital asset.

For example, suppose Alice sells 1 BTC to Bob at $60,000. In that case, the facilitating exchange records a volume of either $60,000 or 1 BTC for the BTC/USD trading pair based on the currency the service uses for denominating it.

How Does the Bitcoin Trading Volume Impact Crypto Trading Strategies?

Whether you are day trading crypto or holding digital assets for the long-term, you can use the Bitcoin trading volume to gather valuable insights about the market.

For that reason, the Bitcoin trading volume has an impact on crypto trading strategies and the financial decisions of users.

Traders can use volumes to discover the following crypto trading signals:

  1. Confirm trends: During a bull market, a high trading volume with great enthusiasm from buyers is crucial to keep pushing prices upwards. For that reason, it’s usually a bullish signal when both the volume and the price are increasing. On the other hand, when a digital asset’s price is surging, but its trading volume is decreasing, it is a warning sign of an upcoming potential reversal.
  2. Exhaustion moves: Monitoring the trading volume is also an excellent way to identify exhaustion moves. Featuring a sharp move into any direction as well as a significant volume growth, an exhaustion move can indicate a trend’s potential end.
  3. Price reversals: After excessive price movements in either direction, a significantly high volume paired with minor changes in the price can indicate that a reversal is imminent, in which the asset’s value will move in the opposite direction.
  4. Dead projects: While there are over 9,100 cryptocurrencies present on the market, not all of them have active projects behind them. Monitoring the current and historical trading volume of a cryptocurrency is an excellent way to limit your risks by filtering out dead coins with very low daily volumes.

Closing Thoughts

When investing for the long term or day trading crypto, incorporating the Bitcoin trading volume in your strategy helps you discover crucial market trends and gather signals that support you to make the right decisions.

For that reason, it’s essential to adjust your crypto trading strategy to include the Bitcoin trading volume as part of your fundamental and technical analysis.

In the meantime, be sure to leverage your new digital asset trading strategies at the next-generation futures trading platform Digitex to trade crypto for free while enjoying the benefits of a robust exchange solution.

Also, you shouldn’t forget to check out DGTX, Digitex’s native exchange token, which you can buy now with a credit card

 

April 7, 2021
Cryptocurrency
Crypto Industry
Trading

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies

Digitex
4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies 5

The Bitcoin trading volume is a crucial indicator for both cryptocurrency investors and traders.

According to a CoinDesk Markets survey, trading volume was ranked as the top indicator traders “couldn’t live without,” scoring 38% among all poll respondents.

Currently, the 24-hour BTC trading volume is standing at nearly $73 billion, which is up by 8% since the last day. 

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies 6

But what is the Bitcoin trading volume, what does it tell us about the market, and how does it impact crypto trading strategies Let’s explore the answers to the above questions together in this article!

Bitcoin Trading Volume Explained

The Bitcoin trading volume measures how much BTC has been traded on cryptocurrency exchanges in a certain period of time (the most common timeframe is 24 hours).

For Bitcoin derivatives trading, the volume provides data about the number of futures or options contracts changing hands between buyers and sellers.

When buyers and sellers reach an agreement at a certain price for a trading pair (e.g., BTC/USD), the exchange facilitating the trade records the transaction and uses that data to calculate the trading volume for the digital asset.

For example, suppose Alice sells 1 BTC to Bob at $60,000. In that case, the facilitating exchange records a volume of either $60,000 or 1 BTC for the BTC/USD trading pair based on the currency the service uses for denominating it.

How Does the Bitcoin Trading Volume Impact Crypto Trading Strategies?

Whether you are day trading crypto or holding digital assets for the long-term, you can use the Bitcoin trading volume to gather valuable insights about the market.

For that reason, the Bitcoin trading volume has an impact on crypto trading strategies and the financial decisions of users.

Traders can use volumes to discover the following crypto trading signals:

  1. Confirm trends: During a bull market, a high trading volume with great enthusiasm from buyers is crucial to keep pushing prices upwards. For that reason, it’s usually a bullish signal when both the volume and the price are increasing. On the other hand, when a digital asset’s price is surging, but its trading volume is decreasing, it is a warning sign of an upcoming potential reversal.
  2. Exhaustion moves: Monitoring the trading volume is also an excellent way to identify exhaustion moves. Featuring a sharp move into any direction as well as a significant volume growth, an exhaustion move can indicate a trend’s potential end.
  3. Price reversals: After excessive price movements in either direction, a significantly high volume paired with minor changes in the price can indicate that a reversal is imminent, in which the asset’s value will move in the opposite direction.
  4. Dead projects: While there are over 9,100 cryptocurrencies present on the market, not all of them have active projects behind them. Monitoring the current and historical trading volume of a cryptocurrency is an excellent way to limit your risks by filtering out dead coins with very low daily volumes.

Closing Thoughts

When investing for the long term or day trading crypto, incorporating the Bitcoin trading volume in your strategy helps you discover crucial market trends and gather signals that support you to make the right decisions.

For that reason, it’s essential to adjust your crypto trading strategy to include the Bitcoin trading volume as part of your fundamental and technical analysis.

In the meantime, be sure to leverage your new digital asset trading strategies at the next-generation futures trading platform Digitex to trade crypto for free while enjoying the benefits of a robust exchange solution.

Also, you shouldn’t forget to check out DGTX, Digitex’s native exchange token, which you can buy now with a credit card

 

Latest News

Enjoy Commission Free Crypto Trading With Digitex Futures 7

Enjoy Commission Free Crypto Trading With Digitex Futures

Digitex Futures
Trading
• Digitex
April 6, 2021

Digitex Futures is proudly the world’s first commission-free cryptocurrency futures trading platform. Thanks to its one-of-a-kind feature in the blockchain industry, market participants can pursue high-frequency trading strategies that were impossible to perform before. By disrupting the status quo, anyone can now become a consistently profitable trader. 

Creating the Path to Profitability

After spending most of his professional career on the floor of the London International Financial Futures & Options Exchange (LIFFE), Digitex Futures’ CEO Adam Todd had the vision to create a trading platform that completely eliminates all fees. The idea was to provide the nascent cryptocurrency industry with an enterprise-grade futures exchange that would enable any trader in the world to participate in the blockchain revolution. 

Todd understood that newcomers would not only be discouraged by the lack of sufficient liquidity in the cryptocurrency market and the complexity around handling these digital assets but also by the high fees that can completely remove a trader’s edge. As a result, the British entrepreneur decided to level the playing field for the average futures trader by creating a state-of-the-art, user-friendly, and zero-fee crypto futures exchange

The current core strategy that most of the renowned cryptocurrency futures exchanges in the market use to generate profits was created around the idea that a “middleman” is entitled to a fee or commission to provide its services. For instance, an average taker fee is roughly 0.075%, so traders using 100x leverage have to pay a massive 7.50% commission of their margin on every single trade. 

As the world transitions from centralized finance (CeFI) into decentralized finance (DeFi), such an unjust business model that comes at the expense of traders is now obsolete. 

Digitex Futures operates on a winning formula where all commissions and fees are eliminated, making it easy for traders to make money using high-frequency trading strategies. For the first time ever, cryptocurrency enthusiasts can engage in highly active and short-term trades without being penalized by volume-based commissions that make it impossible to make a profit. Anyone can now take single-tick profits and losses without any edge working against them. 

Instead of taking advantage of active traders, Digitex Futures actually rewards them by removing all maker and taker fees and implementing automated market makers’ software. This breakthrough innovation fundamentally changes the blockchain industry’s dynamics, and sooner rather than later other exchanges will have no choice but to follow suit. 

While others try to catch up with Digitex Futures’ zero-fee business model, market participants are welcome to grind out consistent small profits that do not get eaten up by fees using a rapid-fire trading ladder.

Those who have not signed up yet to Digitex Futures can do so easily by clicking the link here. It is time to start making money on cryptocurrency futures whether the market goes up or down. Sign up and take advantage of the world’s first commission-free cryptocurrency futures trading platform.

April 6, 2021
Digitex Futures
Trading

Enjoy Commission Free Crypto Trading With Digitex Futures

Digitex
Enjoy Commission Free Crypto Trading With Digitex Futures 8

Digitex Futures is proudly the world’s first commission-free cryptocurrency futures trading platform. Thanks to its one-of-a-kind feature in the blockchain industry, market participants can pursue high-frequency trading strategies that were impossible to perform before. By disrupting the status quo, anyone can now become a consistently profitable trader. 

Creating the Path to Profitability

After spending most of his professional career on the floor of the London International Financial Futures & Options Exchange (LIFFE), Digitex Futures’ CEO Adam Todd had the vision to create a trading platform that completely eliminates all fees. The idea was to provide the nascent cryptocurrency industry with an enterprise-grade futures exchange that would enable any trader in the world to participate in the blockchain revolution. 

Todd understood that newcomers would not only be discouraged by the lack of sufficient liquidity in the cryptocurrency market and the complexity around handling these digital assets but also by the high fees that can completely remove a trader’s edge. As a result, the British entrepreneur decided to level the playing field for the average futures trader by creating a state-of-the-art, user-friendly, and zero-fee crypto futures exchange

The current core strategy that most of the renowned cryptocurrency futures exchanges in the market use to generate profits was created around the idea that a “middleman” is entitled to a fee or commission to provide its services. For instance, an average taker fee is roughly 0.075%, so traders using 100x leverage have to pay a massive 7.50% commission of their margin on every single trade. 

As the world transitions from centralized finance (CeFI) into decentralized finance (DeFi), such an unjust business model that comes at the expense of traders is now obsolete. 

Digitex Futures operates on a winning formula where all commissions and fees are eliminated, making it easy for traders to make money using high-frequency trading strategies. For the first time ever, cryptocurrency enthusiasts can engage in highly active and short-term trades without being penalized by volume-based commissions that make it impossible to make a profit. Anyone can now take single-tick profits and losses without any edge working against them. 

Instead of taking advantage of active traders, Digitex Futures actually rewards them by removing all maker and taker fees and implementing automated market makers’ software. This breakthrough innovation fundamentally changes the blockchain industry’s dynamics, and sooner rather than later other exchanges will have no choice but to follow suit. 

While others try to catch up with Digitex Futures’ zero-fee business model, market participants are welcome to grind out consistent small profits that do not get eaten up by fees using a rapid-fire trading ladder.

Those who have not signed up yet to Digitex Futures can do so easily by clicking the link here. It is time to start making money on cryptocurrency futures whether the market goes up or down. Sign up and take advantage of the world’s first commission-free cryptocurrency futures trading platform.

Latest News

bitcoin derivatives

What Are Bitcoin Derivatives and What Benefits Do They Offer for Traders?

Digitex Futures
Cryptocurrency
Trading
• Digitex
April 5, 2021

Bitcoin derivatives trading has been on the rise.

According to a TokenInsight report, the crypto derivatives market featured a $2.7 trillion trading volume in Q3 2020, representing a 25.1% surge from the previous quarter as well as a year-over-year (YoY) growth of nearly 160%.

But what are Bitcoin derivatives, what benefits do they offer, and what is the best crypto trading platform to get started?

Bitcoin Derivatives Trading Explained

With rising popularity in both the crypto industry and traditional finance, derivatives are financial contracts between two or more parties that derive their values from one or a basket of underlying assets.

Bitcoin derivatives products follow the BTC price, allowing users to trade contracts without owning the digital asset.

Most cryptocurrency derivatives fall into the following two categories:

  • Options contracts: Crypto options refer to an agreement between two parties to buy or sell a digital asset at a fixed price before the expiration date. While buyers (holders) purchase options from sellers (writers) at a premium, the prior parties are not obliged to exercise their rights on the expiry date.
  • Futures contracts: Bitcoin futures contracts are very similar to options as they also feature an agreement between two parties to trade an underlying digital asset at a predetermined price at a future date. However, unlike options contracts, both the buyers and sellers of crypto futures are required to fulfill their commitments.

In addition to what the spot market offers, Bitcoin derivatives trading allows users to:

  1. Trade digital assets on a margin with leverage to increase the potential for profits
  2. Harness the benefits of a bear market by shorting digital assets
  3. Stabilize price fluctuations during times of extreme volatility
  4. Hedge against the risks of the crypto market

Where to Trade Bitcoin Derivatives?

Now that you know the basics let’s see where to trade Bitcoin derivatives.

The best way to gain exposure to digital asset derivatives is via a cryptocurrency exchange that offers the following features to traders:

  1. High liquidity
  2. Reasonable trading fees
  3. Robust and beginner-friendly platform
  4. Access to multiple cryptocurrency derivatives products
  5. Fast deposits and withdrawals

Is There a Way to Trade Crypto Derivatives for Free?

Most cryptocurrency exchanges impose fees on derivatives trading to maintain a profitable business.

While the standard trading fees range around 0.10% at the majority of the providers, the costs can easily add up if you are using leverage. For example, on a 100x leverage, the exchange will deduct 10% of your margin on every single trade.

Doing so hurts your profitability while rendering the crypto trading strategies of many scalpers and high-frequency traders null and void.

But what if we told you that there is a way that allows you to trade crypto derivatives for free?

Meet Digitex, the next-generation futures exchange that offers commission-free cryptocurrency trading for all its users.

What Are Bitcoin Derivatives and What Benefits Do They Offer for Traders? 9

Digitex achieves free crypto trading on its platform by leveraging its native DGTX token.

Denominating all account balances in DGTX and using the cryptocurrency to pay out profits and losses allows the exchange’s users to enjoy a zero-fee trading experience while keeping 100% of their revenue.

In addition to the ability to trade crypto for FREE, Digitex offers the following benefits to its users:

  1. Rewards programs to earn an extra income on your crypto
  2. Enhanced liquidity
  3. Seamless and user-friendly platform
  4. Lightning-fast matching engine with one-click trade submission
  5. Automated crypto trading to maximize revenue and accumulate more DGTX rewards via liquidity mining
  6. 24/7 availability
  7. Peer-to-peer (P2P) trading without intermediaries

Digitex: the Revolutionary Crypto Trading Platform for Bitcoin Derivatives

With zero fees, lightning-fast speed, generous rewards programs, as well as a robust crypto trading platform, Digitex is the right choice for every trader looking to gain easy exposure to digital asset derivatives.

Are you ready to trade Bitcoin derivatives while keeping 100% of your profits? Create an account at Digitex now.

Also, don’t forget to stock up your DGTX bags to benefit from Digitex’s rapid growth and profit from the favorable price movements of the crypto exchanges’ native token (DGTX closed March with an amazing 222% ROI).

 

April 5, 2021
Digitex Futures
Cryptocurrency
Trading

What Are Bitcoin Derivatives and What Benefits Do They Offer for Traders?

Digitex
bitcoin derivatives

Bitcoin derivatives trading has been on the rise.

According to a TokenInsight report, the crypto derivatives market featured a $2.7 trillion trading volume in Q3 2020, representing a 25.1% surge from the previous quarter as well as a year-over-year (YoY) growth of nearly 160%.

But what are Bitcoin derivatives, what benefits do they offer, and what is the best crypto trading platform to get started?

Bitcoin Derivatives Trading Explained

With rising popularity in both the crypto industry and traditional finance, derivatives are financial contracts between two or more parties that derive their values from one or a basket of underlying assets.

Bitcoin derivatives products follow the BTC price, allowing users to trade contracts without owning the digital asset.

Most cryptocurrency derivatives fall into the following two categories:

  • Options contracts: Crypto options refer to an agreement between two parties to buy or sell a digital asset at a fixed price before the expiration date. While buyers (holders) purchase options from sellers (writers) at a premium, the prior parties are not obliged to exercise their rights on the expiry date.
  • Futures contracts: Bitcoin futures contracts are very similar to options as they also feature an agreement between two parties to trade an underlying digital asset at a predetermined price at a future date. However, unlike options contracts, both the buyers and sellers of crypto futures are required to fulfill their commitments.

In addition to what the spot market offers, Bitcoin derivatives trading allows users to:

  1. Trade digital assets on a margin with leverage to increase the potential for profits
  2. Harness the benefits of a bear market by shorting digital assets
  3. Stabilize price fluctuations during times of extreme volatility
  4. Hedge against the risks of the crypto market

Where to Trade Bitcoin Derivatives?

Now that you know the basics let’s see where to trade Bitcoin derivatives.

The best way to gain exposure to digital asset derivatives is via a cryptocurrency exchange that offers the following features to traders:

  1. High liquidity
  2. Reasonable trading fees
  3. Robust and beginner-friendly platform
  4. Access to multiple cryptocurrency derivatives products
  5. Fast deposits and withdrawals

Is There a Way to Trade Crypto Derivatives for Free?

Most cryptocurrency exchanges impose fees on derivatives trading to maintain a profitable business.

While the standard trading fees range around 0.10% at the majority of the providers, the costs can easily add up if you are using leverage. For example, on a 100x leverage, the exchange will deduct 10% of your margin on every single trade.

Doing so hurts your profitability while rendering the crypto trading strategies of many scalpers and high-frequency traders null and void.

But what if we told you that there is a way that allows you to trade crypto derivatives for free?

Meet Digitex, the next-generation futures exchange that offers commission-free cryptocurrency trading for all its users.

What Are Bitcoin Derivatives and What Benefits Do They Offer for Traders? 10

Digitex achieves free crypto trading on its platform by leveraging its native DGTX token.

Denominating all account balances in DGTX and using the cryptocurrency to pay out profits and losses allows the exchange’s users to enjoy a zero-fee trading experience while keeping 100% of their revenue.

In addition to the ability to trade crypto for FREE, Digitex offers the following benefits to its users:

  1. Rewards programs to earn an extra income on your crypto
  2. Enhanced liquidity
  3. Seamless and user-friendly platform
  4. Lightning-fast matching engine with one-click trade submission
  5. Automated crypto trading to maximize revenue and accumulate more DGTX rewards via liquidity mining
  6. 24/7 availability
  7. Peer-to-peer (P2P) trading without intermediaries

Digitex: the Revolutionary Crypto Trading Platform for Bitcoin Derivatives

With zero fees, lightning-fast speed, generous rewards programs, as well as a robust crypto trading platform, Digitex is the right choice for every trader looking to gain easy exposure to digital asset derivatives.

Are you ready to trade Bitcoin derivatives while keeping 100% of your profits? Create an account at Digitex now.

Also, don’t forget to stock up your DGTX bags to benefit from Digitex’s rapid growth and profit from the favorable price movements of the crypto exchanges’ native token (DGTX closed March with an amazing 222% ROI).

 

Latest News

scalping profit

How to Profit from Scalping: A Winning Futures Trading Strategy

Digitex Futures
Trading
• Adam Todd
April 2, 2021

Digitex CEO Adam Todd has made his career on the back of a trading technique called scalping. It’s a highly successful futures trading strategy for short-term traders – under the right conditions. However, when the conditions are right, you can learn to win at scalping in any market. Here, Adam shares his tips and insights for how to implement your own winning scalping trading strategy. 

As a successful futures and sports betting trader, my trading style was always focused more on avoiding losing trades than on riding the winners. And the way I did that was to make my trades as short-term as possible. I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser. 

There seemed to be a direct link between my success, and how little time I held a position before going flat again. The shorter the amount of time in a position, the better chance I had of that trade not being a loser. This was most likely due to the nature of my trade selection process which was to be flat for most of the time, occasionally darting in and out of the market stealing single tick profits from larger moves when momentum picked up.

My scalping strategy basically involved judging when the momentum is high enough to keep the move going for another 30 seconds. If I didn’t get at least a single tick profit within that timeframe there was no reason to stay in that trade.

Successful Scalpers Don’t Get Tied Up in Learning About the Asset

As a young pit trader, I had no idea what a Bund futures contract actually was or why it moved around so much. Later, as a sports betting trader, I wouldn’t even know the name of the horse on which I was placing and laying hundreds of bets. Yet, I would go weeks and sometimes months of full-time trading as a scalper without having a single losing day. 

Short-term scalping requires no fundamental knowledge of the underlying instrument on which you’re trading. As soon as you have entered a position you’re looking to exit it, hopefully with a one or two tick profit but willing to scratch it or lose a tick without any emotional attachment to the trade. 

This style of ultra short term, manual trading is labor-intensive and requires the full concentration and attention of the trader. You can’t be checking emails and looking on Facebook and reading random crypto trading articles while you’re scalping to win. 

Besides, you don’t need to know what’s going on out there. It doesn’t matter why a price is moving when you’re a scalp trader because whichever way it goes you’re going to be following it. 

Scalping shouldn’t be a contrary style of trading because the active approach means you can get yourself in a huge mess very quickly. The safest style of scalping is simply following the price, jumping in when momentum is at its highest and then getting out quickly. 

It’s actually better to have no opinion or knowledge of the long term price direction of the underlying instrument so that it doesn’t affect your ability to go against that opinion in these short term scalp trades.

How Fees Ravage Profits

The scalping style of trading described here is the easiest to learn, requires no specialized knowledge about the underlying instrument and will give you steadier, less volatile results. But the big problem is that this style of trading is particularly susceptible to the ravages of the maker and taker fee model of crypto futures exchanges. 

It was possible for me to successfully scalp trade traditional futures markets in this manner because the futures tick value of one tick on the Bund was 25 Deutsch Marks and the commission to buy and sell one futures contract was less than 3 Deutsch Marks and I got a scratch trade rebate every time I bought and sold at the same price. 

All I had to do was make one tick for every 10 round turns to break even, and anything I made over that was profit. It was a lot harder than it sounds. But it was possible because the commission fee to buy and sell one futures contract was one-tenth of the value of one tick. 

However, the taker fee model used on every other crypto futures exchange has established commissions that are astronomically high. Currently, my style of short term scalping to win is literally impossible. The commission cost of buying and selling one futures contract with a taker order is more like ten times the value of one tick. 

That’s absolutely crazy. It’s literally impossible to beat odds like that running against you. At the exact moment you enter a trade, you’re ten ticks offside already. There’s a built-in mechanical edge that you cannot beat, and which guarantees you will lose over the long run. 

On Bitmex, the taker fee is 0.075% of the notional value of the underlying instrument. That may look small, but if you’re trading with 100x leverage that’s actually 7.5% of the margin you put down to enter the trade. If you exit the trade with a Taker order then your trading fees are 15% of the order value! 

For example, total fees on a $1,000 trade with 100x leverage are $150 [100 x $1,000 x 0.00075 x 2]. How can you ever expect to beat a 15% edge working against you?

A typical trade for a short term scalper might go like this: the price starts moving fast so I enter a trade quickly with a taker order that either smash the bid or lifts the offer. Then I immediately place a maker order to join the bid or offer to get out. If it’s not filled within seconds then I’ll cancel that and lift the offer or hit the bid with another taker order to exit the trade. 

I entered the trade with a taker order so now I need to make ten ticks just to break even. And if I exit the trade with a taker order I’ve got to make 20 ticks profit just to break even. That’s just impossible for a short-term scalp trade. 

I can still place trades as maker orders only but it’s impossible to trade profitably when you’re limited to only maker orders. This is especially true in very volatile markets – like crypto – and you will constantly not be getting filled on the good moves. 

Simply put, the maker fee and taker fee model generate large commissions for the exchange and makes it impossible for profitable short-term scalping. A huge number of traders are unable to participate and the massive liquidity they would provide is suffocated by the exchange’s need to charge high fees on turnover. 

As a scalper, I shouldn’t be paying a percentage of the notional value of the underlying instrument. I’m providing liquidity and should be encouraged, not squeezed out of the market entirely.

How Digitex Enables Profitable Scalp Trading

The Digitex Futures exchange is a short-term trader’s paradise. With absolutely no trading fees of any kind on taker orders, traders are free to pursue day trading futures strategies like scalping that are not viable anywhere else, creating massive liquidity in the process. 

That liquidity isn’t constantly drained by the exchange in the form of commissions. Instead, it continues to churn around in the trading ecosystem until it is won by the better traders. As a result, the chances of becoming a winning scalp trader on Digitex are far higher because we’re not siphoning off commission fees as percentages of the notional value of traded contracts. 

The viral marketing potential of a futures exchange that doesn’t have any built-in mechanical edge working against its traders is massive. The effective deployment of user-generated content combined with viral marketing techniques is starting to create a very large and active userbase, further increasing liquidity. 

Living a Traders Dream

Successful trading is a dream of many millions of people and Digitex wants to help make many of those dreams come true. We hope that many thousands of people will experience the unbridled freedom and excitement of becoming a profitable short-term trader who gets to live a lifestyle that most people will only dream of. 

Imagine if you can consistently make $50 a day or $200 a day or $500 a day from trading? How much would that change your life and the lives of everyone around you for the better? 

If you want to start implementing your own successful scalp trading strategy with zero fees, sign up for an account now and start living the trader’s dream.

April 2, 2021
Digitex Futures
Trading

How to Profit from Scalping: A Winning Futures Trading Strategy

Adam Todd
scalping profit

Digitex CEO Adam Todd has made his career on the back of a trading technique called scalping. It’s a highly successful futures trading strategy for short-term traders – under the right conditions. However, when the conditions are right, you can learn to win at scalping in any market. Here, Adam shares his tips and insights for how to implement your own winning scalping trading strategy. 

As a successful futures and sports betting trader, my trading style was always focused more on avoiding losing trades than on riding the winners. And the way I did that was to make my trades as short-term as possible. I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser. 

There seemed to be a direct link between my success, and how little time I held a position before going flat again. The shorter the amount of time in a position, the better chance I had of that trade not being a loser. This was most likely due to the nature of my trade selection process which was to be flat for most of the time, occasionally darting in and out of the market stealing single tick profits from larger moves when momentum picked up.

My scalping strategy basically involved judging when the momentum is high enough to keep the move going for another 30 seconds. If I didn’t get at least a single tick profit within that timeframe there was no reason to stay in that trade.

Successful Scalpers Don’t Get Tied Up in Learning About the Asset

As a young pit trader, I had no idea what a Bund futures contract actually was or why it moved around so much. Later, as a sports betting trader, I wouldn’t even know the name of the horse on which I was placing and laying hundreds of bets. Yet, I would go weeks and sometimes months of full-time trading as a scalper without having a single losing day. 

Short-term scalping requires no fundamental knowledge of the underlying instrument on which you’re trading. As soon as you have entered a position you’re looking to exit it, hopefully with a one or two tick profit but willing to scratch it or lose a tick without any emotional attachment to the trade. 

This style of ultra short term, manual trading is labor-intensive and requires the full concentration and attention of the trader. You can’t be checking emails and looking on Facebook and reading random crypto trading articles while you’re scalping to win. 

Besides, you don’t need to know what’s going on out there. It doesn’t matter why a price is moving when you’re a scalp trader because whichever way it goes you’re going to be following it. 

Scalping shouldn’t be a contrary style of trading because the active approach means you can get yourself in a huge mess very quickly. The safest style of scalping is simply following the price, jumping in when momentum is at its highest and then getting out quickly. 

It’s actually better to have no opinion or knowledge of the long term price direction of the underlying instrument so that it doesn’t affect your ability to go against that opinion in these short term scalp trades.

How Fees Ravage Profits

The scalping style of trading described here is the easiest to learn, requires no specialized knowledge about the underlying instrument and will give you steadier, less volatile results. But the big problem is that this style of trading is particularly susceptible to the ravages of the maker and taker fee model of crypto futures exchanges. 

It was possible for me to successfully scalp trade traditional futures markets in this manner because the futures tick value of one tick on the Bund was 25 Deutsch Marks and the commission to buy and sell one futures contract was less than 3 Deutsch Marks and I got a scratch trade rebate every time I bought and sold at the same price. 

All I had to do was make one tick for every 10 round turns to break even, and anything I made over that was profit. It was a lot harder than it sounds. But it was possible because the commission fee to buy and sell one futures contract was one-tenth of the value of one tick. 

However, the taker fee model used on every other crypto futures exchange has established commissions that are astronomically high. Currently, my style of short term scalping to win is literally impossible. The commission cost of buying and selling one futures contract with a taker order is more like ten times the value of one tick. 

That’s absolutely crazy. It’s literally impossible to beat odds like that running against you. At the exact moment you enter a trade, you’re ten ticks offside already. There’s a built-in mechanical edge that you cannot beat, and which guarantees you will lose over the long run. 

On Bitmex, the taker fee is 0.075% of the notional value of the underlying instrument. That may look small, but if you’re trading with 100x leverage that’s actually 7.5% of the margin you put down to enter the trade. If you exit the trade with a Taker order then your trading fees are 15% of the order value! 

For example, total fees on a $1,000 trade with 100x leverage are $150 [100 x $1,000 x 0.00075 x 2]. How can you ever expect to beat a 15% edge working against you?

A typical trade for a short term scalper might go like this: the price starts moving fast so I enter a trade quickly with a taker order that either smash the bid or lifts the offer. Then I immediately place a maker order to join the bid or offer to get out. If it’s not filled within seconds then I’ll cancel that and lift the offer or hit the bid with another taker order to exit the trade. 

I entered the trade with a taker order so now I need to make ten ticks just to break even. And if I exit the trade with a taker order I’ve got to make 20 ticks profit just to break even. That’s just impossible for a short-term scalp trade. 

I can still place trades as maker orders only but it’s impossible to trade profitably when you’re limited to only maker orders. This is especially true in very volatile markets – like crypto – and you will constantly not be getting filled on the good moves. 

Simply put, the maker fee and taker fee model generate large commissions for the exchange and makes it impossible for profitable short-term scalping. A huge number of traders are unable to participate and the massive liquidity they would provide is suffocated by the exchange’s need to charge high fees on turnover. 

As a scalper, I shouldn’t be paying a percentage of the notional value of the underlying instrument. I’m providing liquidity and should be encouraged, not squeezed out of the market entirely.

How Digitex Enables Profitable Scalp Trading

The Digitex Futures exchange is a short-term trader’s paradise. With absolutely no trading fees of any kind on taker orders, traders are free to pursue day trading futures strategies like scalping that are not viable anywhere else, creating massive liquidity in the process. 

That liquidity isn’t constantly drained by the exchange in the form of commissions. Instead, it continues to churn around in the trading ecosystem until it is won by the better traders. As a result, the chances of becoming a winning scalp trader on Digitex are far higher because we’re not siphoning off commission fees as percentages of the notional value of traded contracts. 

The viral marketing potential of a futures exchange that doesn’t have any built-in mechanical edge working against its traders is massive. The effective deployment of user-generated content combined with viral marketing techniques is starting to create a very large and active userbase, further increasing liquidity. 

Living a Traders Dream

Successful trading is a dream of many millions of people and Digitex wants to help make many of those dreams come true. We hope that many thousands of people will experience the unbridled freedom and excitement of becoming a profitable short-term trader who gets to live a lifestyle that most people will only dream of. 

Imagine if you can consistently make $50 a day or $200 a day or $500 a day from trading? How much would that change your life and the lives of everyone around you for the better? 

If you want to start implementing your own successful scalp trading strategy with zero fees, sign up for an account now and start living the trader’s dream.

Latest News

Trade

Expert Tips: Common Practices Before Entering a Trade

Trading
• Ali Martinez
March 28, 2021

Despite the popular belief that trading is easy, the truth of the matter is that it takes a lot of practice and know-how to become a successful trader. There is a widely known statistic that says that 90% of traders are not profitable. 

So, over time, 80% of those who enter into this profession lose money, 10% usually break even, and 10% percent are able to generate returns from the price action in the markets.

For this reason, Digitex is doing everything in its power to help traders around the world reach their financial goals. This time, we want to provide you with different practices that you can employ before entering a trade to minimize losses and maximize profits.

The Power of Knowledge

First and foremost, it is very important to have a clear picture of what you are getting into. In trading as any other profession, education is what separates those who are able to reach their goals from those who do not.

It is essential for traders to not only be aware of the developments around the market and the cryptocurrency of their choice but also focus on learning something new every day. Technical indicators can provide guidance regarding what the future may hold for a given digital asset, but on-chain metrics can help identify what the so-called “market makers” are doing.

With the vast amount of data that blockchain technology provides to investors, it is important to consider diving into these metrics before entering a trade.

Protect Your Capital

People are usually optimistic and tend to discourage the potential of adverse market conditions. But with the unpredictability of the cryptocurrency market, wild price movements can be triggered at any second. Now that the market is in the midst of an extremely bullish cycle, having capital to deploy is a must.

Before going long or short on any cryptocurrency, it is critical to assess the risks that are involved. Having a good idea of where to place your stop-loss order before even thinking about the profits, is a great way to stay afloat in such a volatile market.

As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any single trade, and hedge fund managers usually risk less than this amount, according to Investopedia.

Keep Calm and Stick to Your Plan

The final and most important practice to have in mind before entering any trade is to stay relaxed and have a solid plan of action. If you were supposed to enter a trade at a certain price and you missed your entry point, don’t worry about it. A new opportunity will likely present itself in the near future.

Chasing trades is one of the best ways to put your capital at risk. Therefore, staying true to your trading plan and maintaining a solid risk management strategy will help you minimize your losses.

Remember that you don’t need to win every trade. Indeed, many traders, including 45-year trading veteran Peter Brandt, only win 50% to 60% of their trades. However, they make sure that their winning trades are bigger than what they lose by implementing stop-losses.

So before you enter into your next trade make sure to be aware of what is happening in the market, prioritize your stop-loss order over anything else, avoid trading when you’re not in the right mind frame, and keep calm.

Digitex’s zero-fee model introduces a unique opportunity to try out new scalping strategies on Bitcoin futures that wouldn’t be profitable on other exchanges. So if you’re ready to start making money on bitcoin futures whether the market goes up or down, sign up for our zero-fee trading platform now.

March 28, 2021
Trading

Expert Tips: Common Practices Before Entering a Trade

Ali Martinez
Trade

Despite the popular belief that trading is easy, the truth of the matter is that it takes a lot of practice and know-how to become a successful trader. There is a widely known statistic that says that 90% of traders are not profitable. 

So, over time, 80% of those who enter into this profession lose money, 10% usually break even, and 10% percent are able to generate returns from the price action in the markets.

For this reason, Digitex is doing everything in its power to help traders around the world reach their financial goals. This time, we want to provide you with different practices that you can employ before entering a trade to minimize losses and maximize profits.

The Power of Knowledge

First and foremost, it is very important to have a clear picture of what you are getting into. In trading as any other profession, education is what separates those who are able to reach their goals from those who do not.

It is essential for traders to not only be aware of the developments around the market and the cryptocurrency of their choice but also focus on learning something new every day. Technical indicators can provide guidance regarding what the future may hold for a given digital asset, but on-chain metrics can help identify what the so-called “market makers” are doing.

With the vast amount of data that blockchain technology provides to investors, it is important to consider diving into these metrics before entering a trade.

Protect Your Capital

People are usually optimistic and tend to discourage the potential of adverse market conditions. But with the unpredictability of the cryptocurrency market, wild price movements can be triggered at any second. Now that the market is in the midst of an extremely bullish cycle, having capital to deploy is a must.

Before going long or short on any cryptocurrency, it is critical to assess the risks that are involved. Having a good idea of where to place your stop-loss order before even thinking about the profits, is a great way to stay afloat in such a volatile market.

As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any single trade, and hedge fund managers usually risk less than this amount, according to Investopedia.

Keep Calm and Stick to Your Plan

The final and most important practice to have in mind before entering any trade is to stay relaxed and have a solid plan of action. If you were supposed to enter a trade at a certain price and you missed your entry point, don’t worry about it. A new opportunity will likely present itself in the near future.

Chasing trades is one of the best ways to put your capital at risk. Therefore, staying true to your trading plan and maintaining a solid risk management strategy will help you minimize your losses.

Remember that you don’t need to win every trade. Indeed, many traders, including 45-year trading veteran Peter Brandt, only win 50% to 60% of their trades. However, they make sure that their winning trades are bigger than what they lose by implementing stop-losses.

So before you enter into your next trade make sure to be aware of what is happening in the market, prioritize your stop-loss order over anything else, avoid trading when you’re not in the right mind frame, and keep calm.

Digitex’s zero-fee model introduces a unique opportunity to try out new scalping strategies on Bitcoin futures that wouldn’t be profitable on other exchanges. So if you’re ready to start making money on bitcoin futures whether the market goes up or down, sign up for our zero-fee trading platform now.

Latest News

Digitex

Check Out the Improved Stop Loss Order + Other Updates at Digitex

Trading
• Digitex
March 25, 2021

Hey, Digitex community! It’s been a busy week so far and we’re continuing to listen to your feedback and make additional improvements to the exchange. Today, we’re pleased to let you know that we have upgraded our stop loss order. As some of you have been requesting this for a while now, we think you’re going to love it. Read on to find out what’s changed and for other updates at Digitex this week as well. 

As any seasoned trader knows, stop loss orders are essential for trading to minimize your losses and effectively manage your risk. With that in mind, we’ve made the Digitex stop loss order much more effective and easy to use in three simple steps:

  1. Press the Buy or Sell select button
  2. Type in the trigger price that will trigger the stop (always keep in mind that this number is based on the spot price, not the futures price)
  3. Type in the quantity
  4. Press the button “Set buy stop” or “Set sell stop”

Check Out the Improved Stop Loss Order + Other Updates at Digitex 11

What Is a Stop Loss Order and What Is it For?

For those of you who are new to trading, fear not, there are no stupid questions. A stop loss order is an order that you place to buy or sell automatically once the asset in question reaches a certain price. Effectively, this means that you can take a break from trading with the peace of mind that, in the event of high volatility or the market going against you, you are protected from suffering major losses. 

So, say, for example, that you decide you don’t want to hold your long position if Bitcoin (BTC) falls by more than $100. You simply set your stop loss order at $100 below the price you bought at. If BTC falls to this price, you will automatically sell, and curtail your losses rather than potentially suffering far greater losses.

Since it costs nothing to set up your stop loss, it allows you to trade more efficiently knowing that you’ll never be further out of pocket than your risk appetite can tolerate. It also means that you can keep your emotions out of trading. Especially when you’re new to the market, it’s easy to ride the hype and let emotions cloud your judgement. This almost always leads to delays triggering a sale, higher losses, or even liquidation.

We hope you like the improvements to the stop loss order on Digitex. If you have more requests for UX/UI upgrades and additions, please share them on any of our socials or contact our support, and we’ll review them with the internal team.

What Else Is New at Digitex?

If you’ve been trading on our platform, you’ve probably already noticed that the spreads have gotten a lot tighter, even during really volatile markets as the price of BTC and ETH have plummeted this week. This (the tight spreads, not the price tanks!) is thanks to our new Liquidity Mining program. We’re really pleased to see that its purpose is taking full effect because it means that your orders are more likely to get filled. Traded volumes on the exchange are much higher this week due to this — $128 million 24-hour traded volume on the BTC futures market, and $31 million on ETH futures market.

Another really great piece of news is that the number of active traders on the exchange has doubled this week alone–and continues to rise daily. Since this is only week one of releasing the first of many upgrades to come on Digitex, we’re taking this as a good sign of what’s to come and happy to be back on track.

Last but not least, we understand that a lot of you have questions about the internal team and workings of Digitex. We made some very important organizational and workflow changes at the start of this year that have allowed us to kick things off again at a much faster, smoother, and more efficient pace–and with a far higher standard of quality. 

This is our primary goal for the rest of the year ahead. As we approach the second quarter of 2021 already, we plan to bring you many more pleasant surprises and upgrades, so be sure to stay tuned.

March 25, 2021
Trading

Check Out the Improved Stop Loss Order + Other Updates at Digitex

Digitex
Digitex

Hey, Digitex community! It’s been a busy week so far and we’re continuing to listen to your feedback and make additional improvements to the exchange. Today, we’re pleased to let you know that we have upgraded our stop loss order. As some of you have been requesting this for a while now, we think you’re going to love it. Read on to find out what’s changed and for other updates at Digitex this week as well. 

As any seasoned trader knows, stop loss orders are essential for trading to minimize your losses and effectively manage your risk. With that in mind, we’ve made the Digitex stop loss order much more effective and easy to use in three simple steps:

  1. Press the Buy or Sell select button
  2. Type in the trigger price that will trigger the stop (always keep in mind that this number is based on the spot price, not the futures price)
  3. Type in the quantity
  4. Press the button “Set buy stop” or “Set sell stop”

Check Out the Improved Stop Loss Order + Other Updates at Digitex 12

What Is a Stop Loss Order and What Is it For?

For those of you who are new to trading, fear not, there are no stupid questions. A stop loss order is an order that you place to buy or sell automatically once the asset in question reaches a certain price. Effectively, this means that you can take a break from trading with the peace of mind that, in the event of high volatility or the market going against you, you are protected from suffering major losses. 

So, say, for example, that you decide you don’t want to hold your long position if Bitcoin (BTC) falls by more than $100. You simply set your stop loss order at $100 below the price you bought at. If BTC falls to this price, you will automatically sell, and curtail your losses rather than potentially suffering far greater losses.

Since it costs nothing to set up your stop loss, it allows you to trade more efficiently knowing that you’ll never be further out of pocket than your risk appetite can tolerate. It also means that you can keep your emotions out of trading. Especially when you’re new to the market, it’s easy to ride the hype and let emotions cloud your judgement. This almost always leads to delays triggering a sale, higher losses, or even liquidation.

We hope you like the improvements to the stop loss order on Digitex. If you have more requests for UX/UI upgrades and additions, please share them on any of our socials or contact our support, and we’ll review them with the internal team.

What Else Is New at Digitex?

If you’ve been trading on our platform, you’ve probably already noticed that the spreads have gotten a lot tighter, even during really volatile markets as the price of BTC and ETH have plummeted this week. This (the tight spreads, not the price tanks!) is thanks to our new Liquidity Mining program. We’re really pleased to see that its purpose is taking full effect because it means that your orders are more likely to get filled. Traded volumes on the exchange are much higher this week due to this — $128 million 24-hour traded volume on the BTC futures market, and $31 million on ETH futures market.

Another really great piece of news is that the number of active traders on the exchange has doubled this week alone–and continues to rise daily. Since this is only week one of releasing the first of many upgrades to come on Digitex, we’re taking this as a good sign of what’s to come and happy to be back on track.

Last but not least, we understand that a lot of you have questions about the internal team and workings of Digitex. We made some very important organizational and workflow changes at the start of this year that have allowed us to kick things off again at a much faster, smoother, and more efficient pace–and with a far higher standard of quality. 

This is our primary goal for the rest of the year ahead. As we approach the second quarter of 2021 already, we plan to bring you many more pleasant surprises and upgrades, so be sure to stay tuned.

Latest News

Market Makers

Monday Madness — Market Makers Will Lose 1 Million DGTX in 24 Hours

Trading
• Digitex
October 4, 2020

If you’ve been thinking about trading on the DFE lately, there’s never been a better time. This Monday, for 24 hours only, our automated market makers will lose a staggering total of 1 million DGTX. All the market makers on our new $1 tick size BTC/USD futures market will be programmed to lose during our “Monday Madness” campaign which kicks off at 14:00 UTC on Monday, October 5, 2020, and ends at 14:00 UTC on Tuesday, October 6, 2020.

Monday Madness – What’s In It for Traders?

With the market makers programmed to lose so much DGTX in a short space of time, all traders’ orders on the DFE will be easily filled in this ultra-liquid market. This will be a true scalpers’ paradise in which many more traders will win serious funds. So, what’s the reason behind this decision?

We’ve always said that we want to create more winning traders on the Digitex exchange and, after such a bumpy ride last week with the unexpected exchange outage and the unfortunate KuCoin hack (which, rest assured, we are still working on to bring to an adequate resolution), we wanted to start out next week on a better foot, give back to our traders and let them know how much we value them.

For the purpose of transparency, Adam will be sharing his screenshots of his PnL in our Telegram group as the day progresses to show exactly how much has been lost by the market makers–and how much has been won by traders. This is a fun, impromptu promotion, which will last for 24 hours only and we invite ALL our traders to participate.

See you there soon! If you have any additional questions, please connect with our admins in Telegram or via our 24/7 live chat feature and we’ll answer them for you there.

October 4, 2020
Trading

Monday Madness — Market Makers Will Lose 1 Million DGTX in 24 Hours

Digitex
Market Makers

If you’ve been thinking about trading on the DFE lately, there’s never been a better time. This Monday, for 24 hours only, our automated market makers will lose a staggering total of 1 million DGTX. All the market makers on our new $1 tick size BTC/USD futures market will be programmed to lose during our “Monday Madness” campaign which kicks off at 14:00 UTC on Monday, October 5, 2020, and ends at 14:00 UTC on Tuesday, October 6, 2020.

Monday Madness – What’s In It for Traders?

With the market makers programmed to lose so much DGTX in a short space of time, all traders’ orders on the DFE will be easily filled in this ultra-liquid market. This will be a true scalpers’ paradise in which many more traders will win serious funds. So, what’s the reason behind this decision?

We’ve always said that we want to create more winning traders on the Digitex exchange and, after such a bumpy ride last week with the unexpected exchange outage and the unfortunate KuCoin hack (which, rest assured, we are still working on to bring to an adequate resolution), we wanted to start out next week on a better foot, give back to our traders and let them know how much we value them.

For the purpose of transparency, Adam will be sharing his screenshots of his PnL in our Telegram group as the day progresses to show exactly how much has been lost by the market makers–and how much has been won by traders. This is a fun, impromptu promotion, which will last for 24 hours only and we invite ALL our traders to participate.

See you there soon! If you have any additional questions, please connect with our admins in Telegram or via our 24/7 live chat feature and we’ll answer them for you there.

Latest News