4 Ways to Benefit From Zero-Fee Spot Trading on Digitex 1

4 Ways to Benefit From Zero-Fee Spot Trading on Digitex

Digitex
Trading
• Digitex
April 30, 2021

Thanks to our latest upgrade on April 15, Digitex traders can enjoy a commission-free crypto trading experience on the spot market.

In this article, we outline the top four ways you can benefit from zero-fee digital asset trading on Digitex’s new spot exchange. Let’s take a look.

1. Increased Profits

Fees are among the worst enemies of traders as they take away a portion of their hard-earned profits.

For example, if an exchange charges 1.5% for crypto trades, you lose $15 when you purchase $1,000 worth of Bitcoin.

And, after you sell your BTC at $1,500 to make a profit, you will pay another $22.50 in commissions.

As a result, you make $37.50 less profits than without fees, with commissions eating up nearly 7.3% of your earnings (you would earn $515 without trading costs instead of $477.5).

This is the exact reason we have introduced zero-fee trading on both the Digitex futures and spot exchanges.

Without commissions or any other hidden costs, traders can take home 100% of their profits, which they can choose to use to multiply their earnings via compounding interest.

2. Better Chances of Winning Trades

No matter how negligible trading fees are on a crypto exchange, they will always decrease your chances of winning trades when they are present.

As you are entering every trade with a loss, the price of the asset you are holding has to climb up higher than usual to compensate for the amount trading fees took away.

While this issue becomes more significant when you trade Bitcoin with leverage on the futures market, it also has a negative impact on spot traders.

For high-frequency traders utilizing short-term crypto trading strategies like scalping, trading fees pose a great problem as they limit the opportunities traders have to quickly enter and exit trades to make quick profits.

3. Get DGTX Directly to Trade Crypto Futures

Zero-fee trading on Digitex’s Bitcoin futures exchange is achieved by denominating account balances in DGTX and using the platform’s native token to pay out profits and losses as well.

For that reason, Digitex traders have to stock up on DGTX before they can trade cryptocurrency futures on the platform.

However, for a long time, our users had to use third-party services to get the DGTX they needed for trading.

But now, with the launch of our new spot exchange, traders can purchase DGTX directly from us with zero-fee, instant transactions.

Check out this page to buy DGTX for trading Bitcoin, Ethereum, or USDC in only a few seconds.

4. Free Withdrawals

Withdrawal fees are often the caveat of many spot cryptocurrency exchanges in the industry.

While some providers offer low commissions for trading digital assets, they charge excessively high costs for withdrawing coins to other services.

As a result, even though they entered profitable positions, traders face decreased earnings or even losses due to the high costs of withdrawals.

To avoid a scenario like the above, Digitex introduced zero withdrawal fees on both its futures and spot exchanges.

This way, you are free to move your hard-earned profits and the coins you have just bought to external wallets or other services without spending a dime on transaction fees on Digitex.

Trade Crypto on the Digitex Spot Exchange With Zero Fees

With the new zero-fee Digitex spot exchange, you benefit from more profits, increased chances of winning trades, free withdrawals, as well as commission-free and instant DGTX trades.

As a result, while you don’t have to stress about fees eating up your profits, your ROI is enhanced as you keep 100% of what you have rightfully earned while trading crypto on Digitex.

Sounds amazing, right?

Create an account to trade crypto with zero fees on the Digitex spot exchange!

 

April 30, 2021
Digitex
Trading

4 Ways to Benefit From Zero-Fee Spot Trading on Digitex

Digitex
4 Ways to Benefit From Zero-Fee Spot Trading on Digitex 2

Thanks to our latest upgrade on April 15, Digitex traders can enjoy a commission-free crypto trading experience on the spot market.

In this article, we outline the top four ways you can benefit from zero-fee digital asset trading on Digitex’s new spot exchange. Let’s take a look.

1. Increased Profits

Fees are among the worst enemies of traders as they take away a portion of their hard-earned profits.

For example, if an exchange charges 1.5% for crypto trades, you lose $15 when you purchase $1,000 worth of Bitcoin.

And, after you sell your BTC at $1,500 to make a profit, you will pay another $22.50 in commissions.

As a result, you make $37.50 less profits than without fees, with commissions eating up nearly 7.3% of your earnings (you would earn $515 without trading costs instead of $477.5).

This is the exact reason we have introduced zero-fee trading on both the Digitex futures and spot exchanges.

Without commissions or any other hidden costs, traders can take home 100% of their profits, which they can choose to use to multiply their earnings via compounding interest.

2. Better Chances of Winning Trades

No matter how negligible trading fees are on a crypto exchange, they will always decrease your chances of winning trades when they are present.

As you are entering every trade with a loss, the price of the asset you are holding has to climb up higher than usual to compensate for the amount trading fees took away.

While this issue becomes more significant when you trade Bitcoin with leverage on the futures market, it also has a negative impact on spot traders.

For high-frequency traders utilizing short-term crypto trading strategies like scalping, trading fees pose a great problem as they limit the opportunities traders have to quickly enter and exit trades to make quick profits.

3. Get DGTX Directly to Trade Crypto Futures

Zero-fee trading on Digitex’s Bitcoin futures exchange is achieved by denominating account balances in DGTX and using the platform’s native token to pay out profits and losses as well.

For that reason, Digitex traders have to stock up on DGTX before they can trade cryptocurrency futures on the platform.

However, for a long time, our users had to use third-party services to get the DGTX they needed for trading.

But now, with the launch of our new spot exchange, traders can purchase DGTX directly from us with zero-fee, instant transactions.

Check out this page to buy DGTX for trading Bitcoin, Ethereum, or USDC in only a few seconds.

4. Free Withdrawals

Withdrawal fees are often the caveat of many spot cryptocurrency exchanges in the industry.

While some providers offer low commissions for trading digital assets, they charge excessively high costs for withdrawing coins to other services.

As a result, even though they entered profitable positions, traders face decreased earnings or even losses due to the high costs of withdrawals.

To avoid a scenario like the above, Digitex introduced zero withdrawal fees on both its futures and spot exchanges.

This way, you are free to move your hard-earned profits and the coins you have just bought to external wallets or other services without spending a dime on transaction fees on Digitex.

Trade Crypto on the Digitex Spot Exchange With Zero Fees

With the new zero-fee Digitex spot exchange, you benefit from more profits, increased chances of winning trades, free withdrawals, as well as commission-free and instant DGTX trades.

As a result, while you don’t have to stress about fees eating up your profits, your ROI is enhanced as you keep 100% of what you have rightfully earned while trading crypto on Digitex.

Sounds amazing, right?

Create an account to trade crypto with zero fees on the Digitex spot exchange!

 

Latest News

bitcoin

$300K Bitcoin by 2022? Veteran TA Says It’s Possible, Here’s Why

Digitex Futures
• Dave Reiter
April 9, 2021

Bitcoin (BTC) has been in existence since Jan 3, 2009, when Satoshi Nakamoto mined the first 50 bitcoins into existence. Today, it seems almost impossible to believe that BTC was practically worthless for the first two years of its existence. Of course, even the most bullish Bitcoin enthusiasts were completely unprepared for the spectacular price increase that would occur over the course of the next decade.

Even though BTC has advanced exponentially since 2009, many crypto experts are forecasting substantially higher prices for the remainder of this decade. Will Bitcoin continue to grind its way higher despite the fact that prices have already increased over 400% during the past six months? Let’s take a closer look.

Obviously, accurately determining the future price of any asset class is incredibly difficult. However, we can improve our forecasting results by examining price patterns from previous bull market cycles. Bitcoin is a difficult asset to analyze because it has only been in existence for a relatively short period of time. Consequently, we have a fairly small sample of data to analyze.

It’s much easier to forecast a market with 100 years of data in comparison to an asset class like cryptocurrencies, with only 10 years of historical data. Despite the fact that BTC has a limited supply of historical data, there does appear to be a reliable price pattern that has emerged within the past decade. Let’s review the data.

Bitcoin Halving Is The “Key” To Future Price Direction

Basic economics teaches us that the price of goods and services is directly influenced by its underlying supply. As the supply increases, prices will decline. Conversely, as the supply decreases, prices will rise. This basic formula is known as the law of supply and demand, which was made famous by Adam Smith in his book, The Wealth of Nations, first published in 1776.

By examining Bitcoin’s price pattern during the past decade, it becomes quite clear that BTC has been heavily influenced by the law of supply and demand since its inception in 2009. For those who follow BTC on a regular basis, you are probably aware that all Bitcoin transactions must be verified prior to being permanently added to the blockchain.

Miners are responsible for verifying the legitimacy of each transaction. In exchange for their work, miners are rewarded with Bitcoin. When Satoshi Nakamoto released the original Bitcoin white paper in October 2008, she/he included a detailed report outlining the reward schedule for Bitcoin miners.

Based on Nakamoto’s white paper, the mining reward would be systematically reduced approximately once every four years. By lowering the mining reward, Nakamoto was essentially shrinking the number of Bitcoin in circulation. Remember, prices will rise as the underlying supply is reduced.

The reduction of mining rewards in the Bitcoin ecosystem is known as a “halving.” So far, the Bitcoin community has experienced three halving cycles since Nakamoto launched BTC in January 2009. The initial mining reward in 2009 was 50 BTC. The reward has been diminished by 50% following each halving date. The current mining reward is 6.25 BTC. This number will be reduced to 3.125 BTC on May 13, 2024.

Did the halving cycles follow Adam Smith’s law of supply and demand by pushing up the price of BTC in the wake of a supply reduction? Let’s review the results.

Halving Dates and Mining Rewards:

  • November 28, 2012 – mining reward reduced to 25 BTC
  • July 9, 2016 – mining reward reduced to 12.5 BTC
  • May 11, 2020 – mining reward reduced to 6.25 BTC
  • May 13, 2024 – mining reward reduced to 3.125 BTC

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 3

As you can see from the table, the first halving date occurred on November 28, 2012. The price on the halving date was $12.25. 18 months later, BTC had risen to $582.88. In percentage terms, Bitcoin increased by 4,658%. Clearly, the first halving cycle was extremely bullish for BTC.

Let’s examine the second halving date, which officially arrived on July 9, 2016. BTC was trading at $647.62. Once again, the reduction in mining rewards had an incredibly bullish impact on the price, as Bitcoin increased 2,146% over the course of the next 18 months.

The third halving arrived approximately 11 months ago on May 11, 2020, with a Bitcoin price tag of $8,638.11. The 18-month window will close on January 11, 2022. Will the halving cycle create another explosion in the price of Bitcoin? So far, the answer appears to be “Yes.”

BTC has advanced approximately 550% since the halving occurred in May 2020. The average price increase during the previous two halving events was 3,402%.

If Bitcoin follows the same path as the previous two halving cycles, the price will be hovering near $302,500 in January 2022.

Based on the fact that BTC is currently trading at $58,500 this price forecast seems to be wildly optimistic. However, since its inception in January 2009, Bitcoin has recorded several spectacular price increases. Therefore, it’s certainly possible that BTC could be approaching  $300K in early-2022.

The fourth BTC halving cycle is scheduled to commence on 13 May 2024, which will reduce the mining reward to 3.125 BTC. Financial historians and investment professionals have noted on several occasions that Bitcoin is the only major asset class that experiences a reduction in the circulating supply on a pre-determined basis.

This explains why BTC has achieved such an explosive price move following each halving date. Professional economists point to the Bitcoin halving cycle as verifiable proof that the law of supply and demand still works as long as speculative markets are allowed to be freely traded without being manipulated by a third party.

Examining Bitcoin with Technical Analysis

Bitcoin’s price action has been extremely bullish over the course of the past several months. Let’s examine a few popular technical indicators in an effort to determine the future price direction of BTC.

Chart 1 below covers six months of recent price action. As you can see from the chart, Bitcoin has generated a series of higher highs dating back to October 2020. This is a classic sign of a bull market. Whenever a speculative asset continues to make a series of higher highs, this is a clear indication that the underlying momentum is heavily in favor of the bulls.

The most recent high was recorded on March 15 @ 61,749. Therefore, in order to maintain the bullish momentum, BTC must penetrate 61,749 within the next few weeks.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 4

Chart 2 includes approximately seven months of historical data. The green line on the chart represents the 50-day simple moving average (SMA) of Bitcoin. In terms of technical analysis, moving averages are one of the most popular indicators within the trading community. They have been used by traders and investors for 120 years, dating back to 1901.

Moving averages can be divided into several different time frames. In regard to Bitcoin, the 50-day SMA has generated the most consistent results based on historical testing.

As you can see from the chart, a buy signal was generated on October 12, 2020, when BTC moved above the 50-day SMA @ 11,093. Bitcoin has remained above its 50-day SMA for six consecutive months. As long as the price stays above the green line on the chart, BTC will continue to remain bullish.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 5

Chart 3 displays four months of recent price activity. Bitcoin is currently trading well above the trendline. In order to drop below the bullish trendline, the price must fall below 48,609. At least for now, this type of price decline is highly unlikely.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 6

Chart 4 contains intraday price action for the past two weeks. BTC has struggled to penetrate 60K. In fact, Bitcoin has made six unsuccessful attempts to exceed 60,000 since March 18. Most likely, BTC will successfully push above 60K within the next few weeks. The momentum is still clearly in favor of the bulls.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 7

Chart 5 includes a list of the important Fibonacci support levels. BTC is currently trading comfortably above the Fib support levels. The first sign of trouble for the Bitcoin bulls would be a daily close below 50,595. It’s certainly possible for BTC to drop below the Fib support level. However, the most likely scenario is a continuation of higher prices.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 8

Based on technical analysis, Bitcoin is clearly in the middle of a raging bull market. All of the major technical indicators are currently forecasting higher prices. At least for now, the path of least resistance is to the upside.

April 9, 2021
Digitex Futures

$300K Bitcoin by 2022? Veteran TA Says It’s Possible, Here’s Why

Dave Reiter
bitcoin

Bitcoin (BTC) has been in existence since Jan 3, 2009, when Satoshi Nakamoto mined the first 50 bitcoins into existence. Today, it seems almost impossible to believe that BTC was practically worthless for the first two years of its existence. Of course, even the most bullish Bitcoin enthusiasts were completely unprepared for the spectacular price increase that would occur over the course of the next decade.

Even though BTC has advanced exponentially since 2009, many crypto experts are forecasting substantially higher prices for the remainder of this decade. Will Bitcoin continue to grind its way higher despite the fact that prices have already increased over 400% during the past six months? Let’s take a closer look.

Obviously, accurately determining the future price of any asset class is incredibly difficult. However, we can improve our forecasting results by examining price patterns from previous bull market cycles. Bitcoin is a difficult asset to analyze because it has only been in existence for a relatively short period of time. Consequently, we have a fairly small sample of data to analyze.

It’s much easier to forecast a market with 100 years of data in comparison to an asset class like cryptocurrencies, with only 10 years of historical data. Despite the fact that BTC has a limited supply of historical data, there does appear to be a reliable price pattern that has emerged within the past decade. Let’s review the data.

Bitcoin Halving Is The “Key” To Future Price Direction

Basic economics teaches us that the price of goods and services is directly influenced by its underlying supply. As the supply increases, prices will decline. Conversely, as the supply decreases, prices will rise. This basic formula is known as the law of supply and demand, which was made famous by Adam Smith in his book, The Wealth of Nations, first published in 1776.

By examining Bitcoin’s price pattern during the past decade, it becomes quite clear that BTC has been heavily influenced by the law of supply and demand since its inception in 2009. For those who follow BTC on a regular basis, you are probably aware that all Bitcoin transactions must be verified prior to being permanently added to the blockchain.

Miners are responsible for verifying the legitimacy of each transaction. In exchange for their work, miners are rewarded with Bitcoin. When Satoshi Nakamoto released the original Bitcoin white paper in October 2008, she/he included a detailed report outlining the reward schedule for Bitcoin miners.

Based on Nakamoto’s white paper, the mining reward would be systematically reduced approximately once every four years. By lowering the mining reward, Nakamoto was essentially shrinking the number of Bitcoin in circulation. Remember, prices will rise as the underlying supply is reduced.

The reduction of mining rewards in the Bitcoin ecosystem is known as a “halving.” So far, the Bitcoin community has experienced three halving cycles since Nakamoto launched BTC in January 2009. The initial mining reward in 2009 was 50 BTC. The reward has been diminished by 50% following each halving date. The current mining reward is 6.25 BTC. This number will be reduced to 3.125 BTC on May 13, 2024.

Did the halving cycles follow Adam Smith’s law of supply and demand by pushing up the price of BTC in the wake of a supply reduction? Let’s review the results.

Halving Dates and Mining Rewards:

  • November 28, 2012 – mining reward reduced to 25 BTC
  • July 9, 2016 – mining reward reduced to 12.5 BTC
  • May 11, 2020 – mining reward reduced to 6.25 BTC
  • May 13, 2024 – mining reward reduced to 3.125 BTC

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 9

As you can see from the table, the first halving date occurred on November 28, 2012. The price on the halving date was $12.25. 18 months later, BTC had risen to $582.88. In percentage terms, Bitcoin increased by 4,658%. Clearly, the first halving cycle was extremely bullish for BTC.

Let’s examine the second halving date, which officially arrived on July 9, 2016. BTC was trading at $647.62. Once again, the reduction in mining rewards had an incredibly bullish impact on the price, as Bitcoin increased 2,146% over the course of the next 18 months.

The third halving arrived approximately 11 months ago on May 11, 2020, with a Bitcoin price tag of $8,638.11. The 18-month window will close on January 11, 2022. Will the halving cycle create another explosion in the price of Bitcoin? So far, the answer appears to be “Yes.”

BTC has advanced approximately 550% since the halving occurred in May 2020. The average price increase during the previous two halving events was 3,402%.

If Bitcoin follows the same path as the previous two halving cycles, the price will be hovering near $302,500 in January 2022.

Based on the fact that BTC is currently trading at $58,500 this price forecast seems to be wildly optimistic. However, since its inception in January 2009, Bitcoin has recorded several spectacular price increases. Therefore, it’s certainly possible that BTC could be approaching  $300K in early-2022.

The fourth BTC halving cycle is scheduled to commence on 13 May 2024, which will reduce the mining reward to 3.125 BTC. Financial historians and investment professionals have noted on several occasions that Bitcoin is the only major asset class that experiences a reduction in the circulating supply on a pre-determined basis.

This explains why BTC has achieved such an explosive price move following each halving date. Professional economists point to the Bitcoin halving cycle as verifiable proof that the law of supply and demand still works as long as speculative markets are allowed to be freely traded without being manipulated by a third party.

Examining Bitcoin with Technical Analysis

Bitcoin’s price action has been extremely bullish over the course of the past several months. Let’s examine a few popular technical indicators in an effort to determine the future price direction of BTC.

Chart 1 below covers six months of recent price action. As you can see from the chart, Bitcoin has generated a series of higher highs dating back to October 2020. This is a classic sign of a bull market. Whenever a speculative asset continues to make a series of higher highs, this is a clear indication that the underlying momentum is heavily in favor of the bulls.

The most recent high was recorded on March 15 @ 61,749. Therefore, in order to maintain the bullish momentum, BTC must penetrate 61,749 within the next few weeks.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 10

Chart 2 includes approximately seven months of historical data. The green line on the chart represents the 50-day simple moving average (SMA) of Bitcoin. In terms of technical analysis, moving averages are one of the most popular indicators within the trading community. They have been used by traders and investors for 120 years, dating back to 1901.

Moving averages can be divided into several different time frames. In regard to Bitcoin, the 50-day SMA has generated the most consistent results based on historical testing.

As you can see from the chart, a buy signal was generated on October 12, 2020, when BTC moved above the 50-day SMA @ 11,093. Bitcoin has remained above its 50-day SMA for six consecutive months. As long as the price stays above the green line on the chart, BTC will continue to remain bullish.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 11

Chart 3 displays four months of recent price activity. Bitcoin is currently trading well above the trendline. In order to drop below the bullish trendline, the price must fall below 48,609. At least for now, this type of price decline is highly unlikely.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 12

Chart 4 contains intraday price action for the past two weeks. BTC has struggled to penetrate 60K. In fact, Bitcoin has made six unsuccessful attempts to exceed 60,000 since March 18. Most likely, BTC will successfully push above 60K within the next few weeks. The momentum is still clearly in favor of the bulls.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 13

Chart 5 includes a list of the important Fibonacci support levels. BTC is currently trading comfortably above the Fib support levels. The first sign of trouble for the Bitcoin bulls would be a daily close below 50,595. It’s certainly possible for BTC to drop below the Fib support level. However, the most likely scenario is a continuation of higher prices.

$300K Bitcoin by 2022? Veteran TA Says It's Possible, Here's Why 14

Based on technical analysis, Bitcoin is clearly in the middle of a raging bull market. All of the major technical indicators are currently forecasting higher prices. At least for now, the path of least resistance is to the upside.

Latest News

4 Ways that Bitcoin Trading Volumes Impact Crypto Trading Strategies 15

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 16

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 17

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 18

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

digitex

Digitex: A Natural Culmination of My Trading Journey

Crypto Industry
Digitex Futures
• Adam Todd
April 7, 2020

Picture this. It’s the early 1990s in London. A 19-year old rookie is literally thrown into the middle of the Bund futures trading pit. Orders flying around at a dizzying pace. Howls of ridicule and abuse from the merciless pack of 200 traders surrounding him…

Yep, that was me! But starting out like that as an open outcry pit trader gave me a 3D view of the market mechanics and a lasting fascination with the dynamics. Even now that everything is screen-based, I still visualize a futures trading market exactly the same as I always have: a large, baying crowd of aggressive individuals trying to outwit one other and take each other’s money. 

A market is a living, breathing beast with a life of its own that nobody can control. It’s an arena where buy and sell orders fly around, coming from every direction, clashing with each other in apparent chaos. 

For me, coming from this live-action environment means that I know short term trading has almost nothing to do with the fundamentals of the underlying instrument. Rather, successful scalpers have the ability to visualize how that crowd is behaving, in an attempt to predict what they might do in the next few seconds or minutes. Whatever it is that they’re buying and selling is largely irrelevant.

Digitalizing the Pit Experience

When you want to transfer these trading pit dynamics onto a computer screen, it’s imperative that the technology is up to the task. Screen-based traders must be able to submit trades as quickly and easily as shouting “Sold!”, and they must be able to see bids and offers moving in real-time even in the busiest times. 

Fast and reliable technology that works without hiccups or glitches, and that clearly displays exactly what is going on right now, is critical to the success of an exchange. And the large futures exchanges like CME and LIFFE that made the transition from open outcry pit trading to electronic trading did a very good job with the technology. It wasn’t an option – they had to. 

These companies poured millions of dollars into creating highly resilient, robust, lightning-fast systems that were up to the job. As a result, they’ve gone from strength to strength.

The importance of good technology in an electronic trading environment is seared into my brain because I know that a market isn’t just numbers on a screen. The electronic trading pit must offer the same low latency and resilience and speed of execution and speed of communication as a physical crowd of people. Because that’s essentially what it is. Any shortcomings, even in just one of these areas, will have a direct negative effect on liquidity. 

And lack of liquidity is a market-killer. CME knew that, LIFFE knew that, and I know that. 

Winners Never Quit, and Quitters Never Win

It’s with this 3D clarity of purpose that I have approached the development of the Digitex Futures exchange. Our trading platform must be the absolute best that it can be if we want to achieve the level of success that I want and expect. The crypto trading community has shown a massive interest in Digitex and the concept of zero-fee futures trading. I have refused to jeopardize that by releasing a trading platform that is not up to the job. 

I’ve received a lot of criticism for the development delays that we have suffered, and I take full responsibility for that. Mistakes were made in my choice of developers and also in how I managed them. But having made those mistakes I won’t compound them further by accepting what they gave me and releasing a trading platform that doesn’t accurately transfer the dynamics of the trading pit onto your computer screen. 

My only available course of action was to learn from my mistakes. So I carried on and hired the best development team I could find and moved to Moscow to work with them full time. It never crossed my mind to quit. I will continue to execute my vision until I get the exchange I want. 

If We’re Gonna Do This, We’re Gonna Do It Right

The testnet platform that we released on November 30th was the product of my refusal to accept second best. As a trader, you can view real-time price action on an intuitive ladder interface. You have the ability to submit trades instantly, with a single click of the mouse, with no mouse movement or keyboard strokes needed, never taking your eyes from the price action. 

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW

Bids and offers will literally move up and down the trading ladder, enabling you to get in the zone and visualize what’s happening and what might happen next. All relevant market information will be displayed without needing to scroll and you’ll be able to react instantly to any situation with little to no mouse movement. 

Despite heavy load from thousands of active traders pursuing high-frequency trading strategies that aren’t viable on fee-charging exchanges, the Digitex matching engine will be fast and efficient enough to deal with the resulting liquidity. 

A Rare Beast, Waiting to be Unleashed

Ease of use and a matching engine that works under heavy strain sound so simple, right? Like they should be something we can just take for granted. But if you look at the majority of cryptocurrency exchanges that are out there right now, you can see for yourself how rare this level of quality actually is. 

There are literally hundreds of examples of shit exchanges with ugly, glitchy trading interfaces. Multiple mouse movements and keyboard strokes to do anything even before you execute a trade. Fragile and badly built matching engines that just don’t work properly. 

This lack of quality doesn’t surprise me. I’ve learned firsthand that it’s very difficult to create a fast and robust exchange with an intuitive interface and a matching engine that can withstand the rigors of thousands of active traders. Most companies fail miserably because they rush to bring a product to market. Once it’s live, they only care about making a quick profit from your trading fees. But in so doing they join the ranks of hundreds of other irrelevant and illiquid exchanges.

The Digitex Futures exchange will stand head and shoulders above the rest. Our platform is well designed, easy to use, and will be a highly liquid exchange with a bulletproof matching engine that just works. We’re taking our inspiration from the trading platforms developed by the likes of CME and LIFFE, not the substandard crypto exchanges that dominate the current market. 

The launch of the testnet was only the very beginning and the mainnet coming up on April 27 will be just the next step. Digitex is the natural culmination of my trading journey so far, and there is so much more that I want to do with it over the coming years. 

Thanks for sticking with us so far. I promise it will be worth the wait.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX
April 7, 2020
Crypto Industry
Digitex Futures

Digitex: A Natural Culmination of My Trading Journey

Adam Todd
digitex

Picture this. It’s the early 1990s in London. A 19-year old rookie is literally thrown into the middle of the Bund futures trading pit. Orders flying around at a dizzying pace. Howls of ridicule and abuse from the merciless pack of 200 traders surrounding him…

Yep, that was me! But starting out like that as an open outcry pit trader gave me a 3D view of the market mechanics and a lasting fascination with the dynamics. Even now that everything is screen-based, I still visualize a futures trading market exactly the same as I always have: a large, baying crowd of aggressive individuals trying to outwit one other and take each other’s money. 

A market is a living, breathing beast with a life of its own that nobody can control. It’s an arena where buy and sell orders fly around, coming from every direction, clashing with each other in apparent chaos. 

For me, coming from this live-action environment means that I know short term trading has almost nothing to do with the fundamentals of the underlying instrument. Rather, successful scalpers have the ability to visualize how that crowd is behaving, in an attempt to predict what they might do in the next few seconds or minutes. Whatever it is that they’re buying and selling is largely irrelevant.

Digitalizing the Pit Experience

When you want to transfer these trading pit dynamics onto a computer screen, it’s imperative that the technology is up to the task. Screen-based traders must be able to submit trades as quickly and easily as shouting “Sold!”, and they must be able to see bids and offers moving in real-time even in the busiest times. 

Fast and reliable technology that works without hiccups or glitches, and that clearly displays exactly what is going on right now, is critical to the success of an exchange. And the large futures exchanges like CME and LIFFE that made the transition from open outcry pit trading to electronic trading did a very good job with the technology. It wasn’t an option – they had to. 

These companies poured millions of dollars into creating highly resilient, robust, lightning-fast systems that were up to the job. As a result, they’ve gone from strength to strength.

The importance of good technology in an electronic trading environment is seared into my brain because I know that a market isn’t just numbers on a screen. The electronic trading pit must offer the same low latency and resilience and speed of execution and speed of communication as a physical crowd of people. Because that’s essentially what it is. Any shortcomings, even in just one of these areas, will have a direct negative effect on liquidity. 

And lack of liquidity is a market-killer. CME knew that, LIFFE knew that, and I know that. 

Winners Never Quit, and Quitters Never Win

It’s with this 3D clarity of purpose that I have approached the development of the Digitex Futures exchange. Our trading platform must be the absolute best that it can be if we want to achieve the level of success that I want and expect. The crypto trading community has shown a massive interest in Digitex and the concept of zero-fee futures trading. I have refused to jeopardize that by releasing a trading platform that is not up to the job. 

I’ve received a lot of criticism for the development delays that we have suffered, and I take full responsibility for that. Mistakes were made in my choice of developers and also in how I managed them. But having made those mistakes I won’t compound them further by accepting what they gave me and releasing a trading platform that doesn’t accurately transfer the dynamics of the trading pit onto your computer screen. 

My only available course of action was to learn from my mistakes. So I carried on and hired the best development team I could find and moved to Moscow to work with them full time. It never crossed my mind to quit. I will continue to execute my vision until I get the exchange I want. 

If We’re Gonna Do This, We’re Gonna Do It Right

The testnet platform that we released on November 30th was the product of my refusal to accept second best. As a trader, you can view real-time price action on an intuitive ladder interface. You have the ability to submit trades instantly, with a single click of the mouse, with no mouse movement or keyboard strokes needed, never taking your eyes from the price action. 

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW

Bids and offers will literally move up and down the trading ladder, enabling you to get in the zone and visualize what’s happening and what might happen next. All relevant market information will be displayed without needing to scroll and you’ll be able to react instantly to any situation with little to no mouse movement. 

Despite heavy load from thousands of active traders pursuing high-frequency trading strategies that aren’t viable on fee-charging exchanges, the Digitex matching engine will be fast and efficient enough to deal with the resulting liquidity. 

A Rare Beast, Waiting to be Unleashed

Ease of use and a matching engine that works under heavy strain sound so simple, right? Like they should be something we can just take for granted. But if you look at the majority of cryptocurrency exchanges that are out there right now, you can see for yourself how rare this level of quality actually is. 

There are literally hundreds of examples of shit exchanges with ugly, glitchy trading interfaces. Multiple mouse movements and keyboard strokes to do anything even before you execute a trade. Fragile and badly built matching engines that just don’t work properly. 

This lack of quality doesn’t surprise me. I’ve learned firsthand that it’s very difficult to create a fast and robust exchange with an intuitive interface and a matching engine that can withstand the rigors of thousands of active traders. Most companies fail miserably because they rush to bring a product to market. Once it’s live, they only care about making a quick profit from your trading fees. But in so doing they join the ranks of hundreds of other irrelevant and illiquid exchanges.

The Digitex Futures exchange will stand head and shoulders above the rest. Our platform is well designed, easy to use, and will be a highly liquid exchange with a bulletproof matching engine that just works. We’re taking our inspiration from the trading platforms developed by the likes of CME and LIFFE, not the substandard crypto exchanges that dominate the current market. 

The launch of the testnet was only the very beginning and the mainnet coming up on April 27 will be just the next step. Digitex is the natural culmination of my trading journey so far, and there is so much more that I want to do with it over the coming years. 

Thanks for sticking with us so far. I promise it will be worth the wait.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX

Latest News

The Cryptocurrency Market — Dave's Monthly Review 19

The Cryptocurrency Market — Dave’s Monthly Review

Digitex Futures
Trading
• Dave Reiter
August 30, 2019

After enjoying a strong bull market rally during the first six months of 2019, the cryptocurrency market hit a brick wall in July and August. For the second consecutive month, the crypto bulls watched their favorite digital currencies decline in value. All of the major cryptocurrencies generated a loss for the month of August. 
Despite these losses, there was one major “bright spot” in the crypto community. The Digitex native currency (DGTX) managed to end the month in positive territory. For the month of August, DGTX gained 2.6%, while the average loss from the major cryptocurrencies was (20.3%). Why have cryptocurrencies struggled during the past 60 days? Will this trend continue for the remainder of 2019? Let’s examine the details.
The Cryptocurrency Market — Dave's Monthly Review 20

Bakkt Has Been Cleared to Launch

Without question, the biggest piece of news emanating from the crypto community during the month of August was the announcement released by Bakkt on 16 August. After several delays and false starts, Bakkt unveiled its plans to launch a new Bitcoin (BTC) futures product beginning on 23 September.
This will place Bakkt in direct competition with Bitcoin futures products offered by the Chicago Mercantile Exchange (CME). The vast majority of members in the cryptocurrency community are heavily in favor of Bakkt’s entrance into the Bitcoin futures arena. They view the Bakkt news as “bullish” for the long-term direction of BTC and other major cryptocurrencies. 
Contrary to popular belief, Bakkt is not a cryptocurrency futures exchange. Instead the company provides custody services for its physically-delivered Bitcoin futures product.
Essentially, Bakkt is a warehouse. Its parent company, the Intercontinental Exchange (ICE) will provide the necessary infrastructure to allow Bakkt to offer BTC futures. The launching of Bakkt is another example of the unprecedented growth that is occurring in derivatives trading within the cryptocurrency community.
In addition to Bakkt, four other firms are working with regulators to offer similar cryptocurrency derivatives products. The list includes LedgerX, ErisX, Seed CX and trueDigital. Given the dramatic increase in crypto trading volume during the past two years, there’s no doubt that cryptocurrencies will soon be regarded as a major asset class by the global investment community.

Bitcoin is Struggling to Stay Above The $10K Level

On 24 June, BTC pushed above $10K for the first time since March 2018. Bitcoin stayed below $10K for 15 consecutive months. During the past 60 days, BTC has been locked in a narrow trading range (Chart #1). The cryptocurrency has been unable to consistently stay above the $10K level. This is not a good sign for the Bitcoin bulls.
The Cryptocurrency Market — Dave's Monthly Review 21
In a recent article, we discussed the probability that BTC had formed an important top on 26 June @ 13,844. So far, this appears to be the most likely scenario. Bitcoin enjoyed a dramatic rally during the first six months of 2019, rising 276%. However, BTC has been unable to record any additional gains above 13,844. Of course, the recent price action could simply be a period of consolidation prior to another explosive move to the upside.
In order to fully regain its bullish momentum, Bitcoin needs to generate a weekly close above 13,844. Until BTC records a new high for 2019, it is definitely vulnerable to a nasty decline. If Bitcoin begins to roll over to the downside, the important numbers to watch are 4,440 – 5,704 – 6,568 – 8,485 – 9,966. Please review Chart #2.
The Cryptocurrency Market — Dave's Monthly Review 22

Digitex is Moving Forward

Despite a few setbacks along the way, the Digitex Futures exchange continues on its journey to becoming the first zero-fee cryptocurrency futures exchange. In May, Digitex teamed up with SmartDec for help in developing and programming the futures exchange and trading platform. SmartDec is a highly successful company located in Moscow, Russia specializing in software development, smart contract development and software auditing.
Recently, Digitex announced the exciting news that it will launch on the Ethereum public testnet beginning 30 November. This will give traders an opportunity to experience the Digitex trading platform on a real-time basis. Launching on the Ethereum public testnet will allow Digitex the ability to continue testing, modifying and enhancing its state-of-the-art trading platform. The future looks bright for Digitex!

Bitcoin Update

This article was written on 28 August. Shortly after the completion of this article, Bitcoin penetrated the important support level @ 9,966. At least for now, BTC has fallen into bearish territory. Most likely, Bitcoin will drop below the next support level @ 8,485. Please review Chart #3.
The Cryptocurrency Market — Dave's Monthly Review 23
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

August 30, 2019
Digitex Futures
Trading

The Cryptocurrency Market — Dave’s Monthly Review

Dave Reiter
The Cryptocurrency Market — Dave's Monthly Review 24

After enjoying a strong bull market rally during the first six months of 2019, the cryptocurrency market hit a brick wall in July and August. For the second consecutive month, the crypto bulls watched their favorite digital currencies decline in value. All of the major cryptocurrencies generated a loss for the month of August. 
Despite these losses, there was one major “bright spot” in the crypto community. The Digitex native currency (DGTX) managed to end the month in positive territory. For the month of August, DGTX gained 2.6%, while the average loss from the major cryptocurrencies was (20.3%). Why have cryptocurrencies struggled during the past 60 days? Will this trend continue for the remainder of 2019? Let’s examine the details.
The Cryptocurrency Market — Dave's Monthly Review 25

Bakkt Has Been Cleared to Launch

Without question, the biggest piece of news emanating from the crypto community during the month of August was the announcement released by Bakkt on 16 August. After several delays and false starts, Bakkt unveiled its plans to launch a new Bitcoin (BTC) futures product beginning on 23 September.
This will place Bakkt in direct competition with Bitcoin futures products offered by the Chicago Mercantile Exchange (CME). The vast majority of members in the cryptocurrency community are heavily in favor of Bakkt’s entrance into the Bitcoin futures arena. They view the Bakkt news as “bullish” for the long-term direction of BTC and other major cryptocurrencies. 
Contrary to popular belief, Bakkt is not a cryptocurrency futures exchange. Instead the company provides custody services for its physically-delivered Bitcoin futures product.
Essentially, Bakkt is a warehouse. Its parent company, the Intercontinental Exchange (ICE) will provide the necessary infrastructure to allow Bakkt to offer BTC futures. The launching of Bakkt is another example of the unprecedented growth that is occurring in derivatives trading within the cryptocurrency community.
In addition to Bakkt, four other firms are working with regulators to offer similar cryptocurrency derivatives products. The list includes LedgerX, ErisX, Seed CX and trueDigital. Given the dramatic increase in crypto trading volume during the past two years, there’s no doubt that cryptocurrencies will soon be regarded as a major asset class by the global investment community.

Bitcoin is Struggling to Stay Above The $10K Level

On 24 June, BTC pushed above $10K for the first time since March 2018. Bitcoin stayed below $10K for 15 consecutive months. During the past 60 days, BTC has been locked in a narrow trading range (Chart #1). The cryptocurrency has been unable to consistently stay above the $10K level. This is not a good sign for the Bitcoin bulls.
The Cryptocurrency Market — Dave's Monthly Review 26
In a recent article, we discussed the probability that BTC had formed an important top on 26 June @ 13,844. So far, this appears to be the most likely scenario. Bitcoin enjoyed a dramatic rally during the first six months of 2019, rising 276%. However, BTC has been unable to record any additional gains above 13,844. Of course, the recent price action could simply be a period of consolidation prior to another explosive move to the upside.
In order to fully regain its bullish momentum, Bitcoin needs to generate a weekly close above 13,844. Until BTC records a new high for 2019, it is definitely vulnerable to a nasty decline. If Bitcoin begins to roll over to the downside, the important numbers to watch are 4,440 – 5,704 – 6,568 – 8,485 – 9,966. Please review Chart #2.
The Cryptocurrency Market — Dave's Monthly Review 27

Digitex is Moving Forward

Despite a few setbacks along the way, the Digitex Futures exchange continues on its journey to becoming the first zero-fee cryptocurrency futures exchange. In May, Digitex teamed up with SmartDec for help in developing and programming the futures exchange and trading platform. SmartDec is a highly successful company located in Moscow, Russia specializing in software development, smart contract development and software auditing.
Recently, Digitex announced the exciting news that it will launch on the Ethereum public testnet beginning 30 November. This will give traders an opportunity to experience the Digitex trading platform on a real-time basis. Launching on the Ethereum public testnet will allow Digitex the ability to continue testing, modifying and enhancing its state-of-the-art trading platform. The future looks bright for Digitex!

Bitcoin Update

This article was written on 28 August. Shortly after the completion of this article, Bitcoin penetrated the important support level @ 9,966. At least for now, BTC has fallen into bearish territory. Most likely, Bitcoin will drop below the next support level @ 8,485. Please review Chart #3.
The Cryptocurrency Market — Dave's Monthly Review 28
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

Latest News