blockfarm

Blockfarm: $40,000 BTC Pool Kicks Off on Friday

Digitex
• Digitex
May 19, 2021

Last Friday, we kicked off our very first staking program through our brand-new yield farming platform Blockfarm. Users who want to earn a passive income on their crypto holdings can simply stake DGTX and earn generous rewards in various different cryptos. 

We started the program with Ether rewards, and are paying out a total of just over $30,000 worth of ETH (12 ETH) in 30 days–and now we’re stepping up the action! This Friday, we’ll be adding a Bitcoin staking program to the mix, with 1 BTC worth of rewards up for grabs (around $40,000).

If you like the idea of putting your DGTX to use by staking it to earn rewards in BTC, you can prestake now. With 48 hours to go until kickoff, you can secure your place in the queue by completing a quick KYC check and setting up your account.

Stake DGTX and Earn Your Share of 1 BTC in Rewards

Whether you’ve been actively trading or watching on in horror as the crypto markets sell off, we can help you ease the blow. All you have to do (if you haven’t already) is create an account on Digitex, purchase DGTX commission-free on our spot markets and deposit it into your main account, complete a quick KYC check on the Blockfarm platform, and then transfer your DGTX to it. 

The APY will vary depending on how many users take part but the current APY on our ETH staking program on Blockfarm is 56% with more than 114 million DGTX staked over the last few days.

Blockfarm: $40,000 BTC Pool Kicks Off on Friday 1

We’re excited to be able to bring you staking rewards in the world’s most popular cryptocurrency and we hope that you’ll take advantage of this program as well as our existing ETH staking rewards. We’ll be adding more coins to the program as they get listed on the exchange, so keep your eyes open for further details and, until then, happy staking!

May 19, 2021
Digitex

Blockfarm: $40,000 BTC Pool Kicks Off on Friday

Digitex
blockfarm

Last Friday, we kicked off our very first staking program through our brand-new yield farming platform Blockfarm. Users who want to earn a passive income on their crypto holdings can simply stake DGTX and earn generous rewards in various different cryptos. 

We started the program with Ether rewards, and are paying out a total of just over $30,000 worth of ETH (12 ETH) in 30 days–and now we’re stepping up the action! This Friday, we’ll be adding a Bitcoin staking program to the mix, with 1 BTC worth of rewards up for grabs (around $40,000).

If you like the idea of putting your DGTX to use by staking it to earn rewards in BTC, you can prestake now. With 48 hours to go until kickoff, you can secure your place in the queue by completing a quick KYC check and setting up your account.

Stake DGTX and Earn Your Share of 1 BTC in Rewards

Whether you’ve been actively trading or watching on in horror as the crypto markets sell off, we can help you ease the blow. All you have to do (if you haven’t already) is create an account on Digitex, purchase DGTX commission-free on our spot markets and deposit it into your main account, complete a quick KYC check on the Blockfarm platform, and then transfer your DGTX to it. 

The APY will vary depending on how many users take part but the current APY on our ETH staking program on Blockfarm is 56% with more than 114 million DGTX staked over the last few days.

Blockfarm: $40,000 BTC Pool Kicks Off on Friday 2

We’re excited to be able to bring you staking rewards in the world’s most popular cryptocurrency and we hope that you’ll take advantage of this program as well as our existing ETH staking rewards. We’ll be adding more coins to the program as they get listed on the exchange, so keep your eyes open for further details and, until then, happy staking!

Latest News

crypto

Review – After the Elon Musk Crypto Crash, Will Markets Go Back Up?

Digitex
• Dave Reiter

On February 8, the Bitcoin (BTC) community received incredibly bullish news when Tesla CEO, Elon Musk announced that his company had purchased $1.5 billion worth of BTC. In the same press release, Musk also revealed that the company would accept BTC as a method of payment for its Tesla automobiles. Immediately following the press release, the price of BTC exploded to the upside, gaining $6,881 (Chart #1).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 3

The announcement by Musk marked the beginning of a massive rally in Bitcoin. Over the course of the next two months, BTC increased 73%.  

Elon Musk quickly became one of the biggest supporters of the Bitcoin ecosystem. Of course, the entire crypto community was more than happy to embrace Musk as its newest member of the “family.” In addition to being CEO of Tesla, he is the wealthiest person on the planet. In fact, Tesla’s purchase of BTC was the major contributing factor to catapulting Musk ahead of Jeff Bezos as the world’s wealthiest person. Therefore, Musk was viewed as the perfect ambassador for the Bitcoin community.

Unfortunately, the happy relationship between Musk and the crypto community was short-lived. What happened? Why did Elon Musk suddenly withdraw his endorsement of the Bitcoin ecosystem? More importantly, how will this affect the future direction of Bitcoin along with the entire cryptocurrency universe? Let’s discuss the details.

Elon Musk Abruptly Changes His View on Bitcoin     

Elon Musk is one of the greatest entrepreneurs in modern American history. Musk rose to fame in the late 1990s during the internet mania, as one of the original founders of PayPal. Over the course of the past two decades, he has been responsible for creating a number of highly successful business ventures.

Musk is most famously known for his affiliation with Tesla, which was launched in July 2003. In addition to Tesla, Musk is also involved in the Boring Company and SpaceX. As mentioned, his entrepreneurial success recently turned Musk into the wealthiest person on the planet, according to Forbes Magazine.      

Over the course of the past few years, he has received an increasing amount of scrutiny from various environmental groups concerning Tesla’s commitment to producing energy-efficient vehicles. Additionally, the company’s automobile plants are closely monitored by several third parties in an effort to determine if Tesla is maintaining an eco-friendly working environment. Tesla promotes itself as an industry leader in using renewable energy to operate its manufacturing facilities. This probably explains why the company is constantly critiqued and observed by independent agencies.     

Bitcoin has come under frequent and repeated attack by a number of environmentally-friendly research groups concerning its potential damage to the environment, particularly as it relates to Bitcoin mining. These research groups claim that the Bitcoin mining process consumes a great deal of non-renewable energy and emits an ever-increasing amount of carbon into the atmosphere. They question whether Bitcoin’s damage to the environment is outweighed by its benefit as a long-term store of value. This has been an ongoing debate between Bitcoiners and environmental groups for the past few years. However, the debate has certainly intensified during the past few months.

This brings us back to Elon Musk and his endorsement of Bitcoin. Given the fact that Tesla is currently struggling with its own environmental issues, Elon and his inner circle of advisors probably determined that Tesla’s involvement with Bitcoin was a poorly-timed decision. Most likely, this explains why Musk withdrew his support of BTC as a medium of exchange.

Musk released his now-famous tweet on May 12, in which he tweeted that Tesla would no longer accept Bitcoin as a method of payment for its automobiles.

Musk cited “environmental concerns” as the reason why Tesla suspended its acceptance of Bitcoin. Immediately upon the release of Elon’s tweet, the price of BTC quickly began to roll over to the downside. By the end of the day, BTC had lost 9.5% of its value.

BTC continued to drop for the next three days, as Musk released a few additional negative comments about Bitcoin and many analysts are wondering if the bottom is in yet, after BTC briefly dove below $40,000 on May 19. So, where do we go from here? In order to answer this question, let’s examine Bitcoin based on technical analysis.

Analyzing Bitcoin Based on Technical Analysis

Bitcoin peaked @ 64,789 on April 14. During the past four weeks, BTC had dropped by more than 34% (Chart #2), only to tumble even lower below the $40,000 mark on May 19.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 4

How does this sell-off compare with declines from other bull market cycles? Let’s analyze the most recent bull market cycle from 2017. BTC generated a dramatic rally in the second half of 2017, advancing 570% from September through December. However, Bitcoin also experienced two sharp declines of 39.7% and 30.0%, respectively (Chart #3).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 5

Even though the current decline is certainly painful for the Bitcoin bulls, it is quite normal when compared to other historical downturns.

Despite the current decline, the daily chart pattern for Bitcoin continues to remain bullish. The first sign of trouble for the bulls would be a weekly close below 37,409 (Chart #4). The BTC chart pattern will turn decidedly bearish if 37,409 is penetrated on a weekly closing basis.      

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 6  

In terms of the hourly chart, the bears are in control. In order to reverse the bearish momentum, the bulls need a daily close above 59,696 (Chart #5). The most likely scenario over the course of the next few weeks is a trading range.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 7

BTC could easily remain locked in a trading range for the next several weeks. The important numbers to watch are 37,409 and 59,696.

Analyzing Ethereum Based on Technical Analysis

Although Bitcoin has garnered the majority of media attention during the past few days, Elon’s comments have wreaked havoc on the entire cryptocurrency universe. Almost all coins and tokens have suffered brutal declines. Let’s briefly review Ethereum (ETH) from a technical perspective.

Prior to the Tesla news, ETH was in the middle of a dramatic rally dating back to the pandemic low in March 2020. ETH recorded a major low on 13 March 2020 @ 89.50. The cryptocurrency preceded to rally 4,783% during the next 14 months, reaching its peak on 12 May @ 4,370.76.

The very next day, Elon Musk released his tweet concerning Tesla’s plan to stop accepting Bitcoin. Although Elon’s tweet was not aimed directly at Ethereum, it nevertheless sparked a brutal sell-off in ETH. Within 72 hours, ETH had declined 28.2% (Chart #6).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 8

In spite of the sharp decline, the Ethereum chart pattern remains persistently bullish. It would take a weekly close below 1,937 to flip the chart from bullish to bearish (Chart #7).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 9

This type of price drop is certainly possible. However, it’s highly unlikely. Going forward, ETH will most likely remain in a trading range for the next several weeks, as it consolidates the recent sharp decline.

As long as the price stays above 1,937, ETH should easily create a new all-time high above 4,370 by the end of 2021.

All Signs Point to Higher Crypto Prices

It’s very easy for crypto traders and investors to become fixated on short-term fluctuations in the crypto markets. Many traders (particularly novice traders) have a tendency to focus only on the negative crypto news while ignoring the long-term bullish outlook.

Bitcoin, Ethereum and other cryptocurrencies have received a tremendous amount of bullish news during the past several months, particularly at the institutional level. A wave of institutional money has flooded into the crypto universe during the past nine months. This is extremely bullish from a “big picture” multi-year perspective.

While it’s certainly possible that Bitcoin and other cryptocurrencies could experience another sharp leg to the downside, this won’t change the bullish outlook from a long-term global perspective. Cryptocurrencies are in the early stages of completely disrupting industries that have been in existence for hundreds of years. There will be several bumps along the way (e.g. Elon Musk’s tweets). However, investors who can tolerate the short-term volatility will be rewarded with long-term success.

 Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

May 19, 2021
Digitex

Review – After the Elon Musk Crypto Crash, Will Markets Go Back Up?

Dave Reiter
crypto

On February 8, the Bitcoin (BTC) community received incredibly bullish news when Tesla CEO, Elon Musk announced that his company had purchased $1.5 billion worth of BTC. In the same press release, Musk also revealed that the company would accept BTC as a method of payment for its Tesla automobiles. Immediately following the press release, the price of BTC exploded to the upside, gaining $6,881 (Chart #1).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 10

The announcement by Musk marked the beginning of a massive rally in Bitcoin. Over the course of the next two months, BTC increased 73%.  

Elon Musk quickly became one of the biggest supporters of the Bitcoin ecosystem. Of course, the entire crypto community was more than happy to embrace Musk as its newest member of the “family.” In addition to being CEO of Tesla, he is the wealthiest person on the planet. In fact, Tesla’s purchase of BTC was the major contributing factor to catapulting Musk ahead of Jeff Bezos as the world’s wealthiest person. Therefore, Musk was viewed as the perfect ambassador for the Bitcoin community.

Unfortunately, the happy relationship between Musk and the crypto community was short-lived. What happened? Why did Elon Musk suddenly withdraw his endorsement of the Bitcoin ecosystem? More importantly, how will this affect the future direction of Bitcoin along with the entire cryptocurrency universe? Let’s discuss the details.

Elon Musk Abruptly Changes His View on Bitcoin     

Elon Musk is one of the greatest entrepreneurs in modern American history. Musk rose to fame in the late 1990s during the internet mania, as one of the original founders of PayPal. Over the course of the past two decades, he has been responsible for creating a number of highly successful business ventures.

Musk is most famously known for his affiliation with Tesla, which was launched in July 2003. In addition to Tesla, Musk is also involved in the Boring Company and SpaceX. As mentioned, his entrepreneurial success recently turned Musk into the wealthiest person on the planet, according to Forbes Magazine.      

Over the course of the past few years, he has received an increasing amount of scrutiny from various environmental groups concerning Tesla’s commitment to producing energy-efficient vehicles. Additionally, the company’s automobile plants are closely monitored by several third parties in an effort to determine if Tesla is maintaining an eco-friendly working environment. Tesla promotes itself as an industry leader in using renewable energy to operate its manufacturing facilities. This probably explains why the company is constantly critiqued and observed by independent agencies.     

Bitcoin has come under frequent and repeated attack by a number of environmentally-friendly research groups concerning its potential damage to the environment, particularly as it relates to Bitcoin mining. These research groups claim that the Bitcoin mining process consumes a great deal of non-renewable energy and emits an ever-increasing amount of carbon into the atmosphere. They question whether Bitcoin’s damage to the environment is outweighed by its benefit as a long-term store of value. This has been an ongoing debate between Bitcoiners and environmental groups for the past few years. However, the debate has certainly intensified during the past few months.

This brings us back to Elon Musk and his endorsement of Bitcoin. Given the fact that Tesla is currently struggling with its own environmental issues, Elon and his inner circle of advisors probably determined that Tesla’s involvement with Bitcoin was a poorly-timed decision. Most likely, this explains why Musk withdrew his support of BTC as a medium of exchange.

Musk released his now-famous tweet on May 12, in which he tweeted that Tesla would no longer accept Bitcoin as a method of payment for its automobiles.

Musk cited “environmental concerns” as the reason why Tesla suspended its acceptance of Bitcoin. Immediately upon the release of Elon’s tweet, the price of BTC quickly began to roll over to the downside. By the end of the day, BTC had lost 9.5% of its value.

BTC continued to drop for the next three days, as Musk released a few additional negative comments about Bitcoin and many analysts are wondering if the bottom is in yet, after BTC briefly dove below $40,000 on May 19. So, where do we go from here? In order to answer this question, let’s examine Bitcoin based on technical analysis.

Analyzing Bitcoin Based on Technical Analysis

Bitcoin peaked @ 64,789 on April 14. During the past four weeks, BTC had dropped by more than 34% (Chart #2), only to tumble even lower below the $40,000 mark on May 19.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 11

How does this sell-off compare with declines from other bull market cycles? Let’s analyze the most recent bull market cycle from 2017. BTC generated a dramatic rally in the second half of 2017, advancing 570% from September through December. However, Bitcoin also experienced two sharp declines of 39.7% and 30.0%, respectively (Chart #3).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 12

Even though the current decline is certainly painful for the Bitcoin bulls, it is quite normal when compared to other historical downturns.

Despite the current decline, the daily chart pattern for Bitcoin continues to remain bullish. The first sign of trouble for the bulls would be a weekly close below 37,409 (Chart #4). The BTC chart pattern will turn decidedly bearish if 37,409 is penetrated on a weekly closing basis.      

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 13  

In terms of the hourly chart, the bears are in control. In order to reverse the bearish momentum, the bulls need a daily close above 59,696 (Chart #5). The most likely scenario over the course of the next few weeks is a trading range.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 14

BTC could easily remain locked in a trading range for the next several weeks. The important numbers to watch are 37,409 and 59,696.

Analyzing Ethereum Based on Technical Analysis

Although Bitcoin has garnered the majority of media attention during the past few days, Elon’s comments have wreaked havoc on the entire cryptocurrency universe. Almost all coins and tokens have suffered brutal declines. Let’s briefly review Ethereum (ETH) from a technical perspective.

Prior to the Tesla news, ETH was in the middle of a dramatic rally dating back to the pandemic low in March 2020. ETH recorded a major low on 13 March 2020 @ 89.50. The cryptocurrency preceded to rally 4,783% during the next 14 months, reaching its peak on 12 May @ 4,370.76.

The very next day, Elon Musk released his tweet concerning Tesla’s plan to stop accepting Bitcoin. Although Elon’s tweet was not aimed directly at Ethereum, it nevertheless sparked a brutal sell-off in ETH. Within 72 hours, ETH had declined 28.2% (Chart #6).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 15

In spite of the sharp decline, the Ethereum chart pattern remains persistently bullish. It would take a weekly close below 1,937 to flip the chart from bullish to bearish (Chart #7).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 16

This type of price drop is certainly possible. However, it’s highly unlikely. Going forward, ETH will most likely remain in a trading range for the next several weeks, as it consolidates the recent sharp decline.

As long as the price stays above 1,937, ETH should easily create a new all-time high above 4,370 by the end of 2021.

All Signs Point to Higher Crypto Prices

It’s very easy for crypto traders and investors to become fixated on short-term fluctuations in the crypto markets. Many traders (particularly novice traders) have a tendency to focus only on the negative crypto news while ignoring the long-term bullish outlook.

Bitcoin, Ethereum and other cryptocurrencies have received a tremendous amount of bullish news during the past several months, particularly at the institutional level. A wave of institutional money has flooded into the crypto universe during the past nine months. This is extremely bullish from a “big picture” multi-year perspective.

While it’s certainly possible that Bitcoin and other cryptocurrencies could experience another sharp leg to the downside, this won’t change the bullish outlook from a long-term global perspective. Cryptocurrencies are in the early stages of completely disrupting industries that have been in existence for hundreds of years. There will be several bumps along the way (e.g. Elon Musk’s tweets). However, investors who can tolerate the short-term volatility will be rewarded with long-term success.

 Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

Crypto

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Cryptocurrency
• Digitex
April 26, 2021

Since our mainnet launch, Digitex has operated as a Bitcoin derivatives exchange allowing users to buy and sell cryptocurrency futures contracts without any trading fees.

However, as part of Digitex’s evolution, we rolled out our spot exchange last week to provide an optimized trading experience to all traders on the platform.

As a result, you can now enjoy a zero-fee crypto trading experience for digital asset pairs on both the spot and derivatives markets.

In this upgrade, we have also expanded our list with new trading pairs, which means you can now gain exposure to more digital assets on Digitex.

We have collected all the cryptocurrencies you can trade on the next-generation Digitex trading platform in this article. Check them out below.

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

Launched in 2009 by the anonymous Satoshi Nakamoto, Bitcoin is the first cryptocurrency ever created and also the largest by market cap.

Created in the aftermath of the 2007-2008 financial crisis, Bitcoin features a peer-to-peer (P2P) electronic cash system that allows users to hold, receive, and send cryptocurrency without any intermediaries, according to the original BTC whitepaper.

That said, due to its limited supply and the deflationary mechanism that cuts the newly mined BTC supply in half every four years, Bitcoin also serves as an excellent store of value.

On Digitex, you can gain exposure to both spot market and Bitcoin derivatives trading pairs:

  • DGTX/BTC (spot)
  • ETH/BTC (spot)
  • BTC/USDC (spot)
  • BTC/USD (futures)

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

Launched in July 2015, Ethereum has introduced smart contracts – self-executing digital agreements between two or more parties – to the digital asset industry.

As a result, developers can program, deploy, and run their own decentralized applications (DApps) as well as create tokens and launch Initial Coin Offerings (ICOs) on top of the Ethereum blockchain.

For these reasons, Ethereum has been among the most active blockchain networks on the market that facilitated the ICO, decentralized finance (DeFi), and non-fungible token (NFT) booms.

You can trade ETH via the following trading pairs on Digitex:

  • DGTX/ETH (spot)
  • ETH/BTC (spot)
  • ETH/USDC (spot)
  • ETH/USD (futures)

USDC

Rank: 15th

Market capitalization: $11.3 billion

USDC is a stablecoin with a 1:1 peg to the USD’s value.

For that reason, while non-stablecoin cryptocurrencies often experience high levels of volatility with extreme price swings, USDC is able to maintain a relatively stable value.

This allows USDC to retain most of the benefits of cryptocurrencies – such as P2P transfers, cost-efficient fees, and fast transactions – while offering users the ability to trade digital asset pairs without exchanging their funds into fiat currencies.

Launched as the project of the global technology firm Circle, USDC quickly became the second-largest stablecoin by market capitalization just after Tether (USDT).

Digitex offers users the following USDC-based trading pairs on its platform:

  • DGTX/USDC (spot)
  • BTC/USDC (spot)
  • ETH/USDC (spot)

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

DGTX is the native exchange token of the revolutionary crypto trading platform Digitex.

Since raising $5.2 million in 17 minutes during the Digitex token sale in January 2018, DGTX has played a vital role in our ecosystem.

DGTX is the cryptocurrency that allows our users to benefit from zero-fee crypto trading while powering the Digitex liquidity mining and DGTX rewards programs, which both offer traders new ways to earn crypto.

Thanks to our new spot exchange, you can now buy and sell DGTX without using third-party services. We offer traders the following DGTX trading pairs on Digitex:

  • DGTX/BTC (spot)
  • DGTX/ETH (spot)
  • DGTX/USDC (spot)

Enjoy Commission-Free Crypto Trading on Digitex

By introducing our new spot exchange, Digitex users can now trade an increased number of cryptocurrency pairs without any fees.

In addition to the ones currently offered on the exchange platform, we will be gradually adding new trading pairs based on demand and user feedback.

In the meantime, be sure to test your crypto trading strategies on the Digitex spot market.

And don’t forget to grab some DGTX instantly for USDC, ETH, or BTC via our digital asset exchange platform.

April 26, 2021
Digitex
Cryptocurrency

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Crypto

Since our mainnet launch, Digitex has operated as a Bitcoin derivatives exchange allowing users to buy and sell cryptocurrency futures contracts without any trading fees.

However, as part of Digitex’s evolution, we rolled out our spot exchange last week to provide an optimized trading experience to all traders on the platform.

As a result, you can now enjoy a zero-fee crypto trading experience for digital asset pairs on both the spot and derivatives markets.

In this upgrade, we have also expanded our list with new trading pairs, which means you can now gain exposure to more digital assets on Digitex.

We have collected all the cryptocurrencies you can trade on the next-generation Digitex trading platform in this article. Check them out below.

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

Launched in 2009 by the anonymous Satoshi Nakamoto, Bitcoin is the first cryptocurrency ever created and also the largest by market cap.

Created in the aftermath of the 2007-2008 financial crisis, Bitcoin features a peer-to-peer (P2P) electronic cash system that allows users to hold, receive, and send cryptocurrency without any intermediaries, according to the original BTC whitepaper.

That said, due to its limited supply and the deflationary mechanism that cuts the newly mined BTC supply in half every four years, Bitcoin also serves as an excellent store of value.

On Digitex, you can gain exposure to both spot market and Bitcoin derivatives trading pairs:

  • DGTX/BTC (spot)
  • ETH/BTC (spot)
  • BTC/USDC (spot)
  • BTC/USD (futures)

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

Launched in July 2015, Ethereum has introduced smart contracts – self-executing digital agreements between two or more parties – to the digital asset industry.

As a result, developers can program, deploy, and run their own decentralized applications (DApps) as well as create tokens and launch Initial Coin Offerings (ICOs) on top of the Ethereum blockchain.

For these reasons, Ethereum has been among the most active blockchain networks on the market that facilitated the ICO, decentralized finance (DeFi), and non-fungible token (NFT) booms.

You can trade ETH via the following trading pairs on Digitex:

  • DGTX/ETH (spot)
  • ETH/BTC (spot)
  • ETH/USDC (spot)
  • ETH/USD (futures)

USDC

Rank: 15th

Market capitalization: $11.3 billion

USDC is a stablecoin with a 1:1 peg to the USD’s value.

For that reason, while non-stablecoin cryptocurrencies often experience high levels of volatility with extreme price swings, USDC is able to maintain a relatively stable value.

This allows USDC to retain most of the benefits of cryptocurrencies – such as P2P transfers, cost-efficient fees, and fast transactions – while offering users the ability to trade digital asset pairs without exchanging their funds into fiat currencies.

Launched as the project of the global technology firm Circle, USDC quickly became the second-largest stablecoin by market capitalization just after Tether (USDT).

Digitex offers users the following USDC-based trading pairs on its platform:

  • DGTX/USDC (spot)
  • BTC/USDC (spot)
  • ETH/USDC (spot)

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

DGTX is the native exchange token of the revolutionary crypto trading platform Digitex.

Since raising $5.2 million in 17 minutes during the Digitex token sale in January 2018, DGTX has played a vital role in our ecosystem.

DGTX is the cryptocurrency that allows our users to benefit from zero-fee crypto trading while powering the Digitex liquidity mining and DGTX rewards programs, which both offer traders new ways to earn crypto.

Thanks to our new spot exchange, you can now buy and sell DGTX without using third-party services. We offer traders the following DGTX trading pairs on Digitex:

  • DGTX/BTC (spot)
  • DGTX/ETH (spot)
  • DGTX/USDC (spot)

Enjoy Commission-Free Crypto Trading on Digitex

By introducing our new spot exchange, Digitex users can now trade an increased number of cryptocurrency pairs without any fees.

In addition to the ones currently offered on the exchange platform, we will be gradually adding new trading pairs based on demand and user feedback.

In the meantime, be sure to test your crypto trading strategies on the Digitex spot market.

And don’t forget to grab some DGTX instantly for USDC, ETH, or BTC via our digital asset exchange platform.

Latest News

What Is Margin Trading and Why Should You Trade Bitcoin With Leverage? 17

What Is Margin Trading and Why Should You Trade Bitcoin With Leverage?

Trading
• Digitex
April 13, 2021

Margin trading has become increasingly popular in the digital asset industry.

When you trade Bitcoin with leverage, you can maximize your profit potential while taking more risks with your positions.

Furthermore, it allows users day trading crypto to earn considerable revenue even on smaller price movements.

In this article, we will take a look at margin trading along with its benefits and potential risks involved for those who trade Bitcoin with leverage.

What Is Margin Trading?

Margin refers to the funds borrowed from a crypto exchange or a brokerage firm to long or short a specific asset on the trading platform.

For that reason, margin trading is the practice in which you trade an instrument using money borrowed from third parties (e.g., a broker, exchange, or other traders).

As a result, you have access to greater capital, which you can use to increase your potential profits as well as to amplify the effects of successful trades.

However, borrowing funds to trade Bitcoin with leverage has very different terms than, for example, getting a personal loan at your bank.

While you don’t have to deposit additional funds into your account – as the exchange uses the assets you have in your margin trading account as collateral – the service provider will liquidate your assets without prior consent if you suffer too much losses.

In such a case, when your margin account’s value falls below the exchange’s required amount, a margin call will occur. As a result, you will lose all of your collateral.

And the more leverage you use to trade Bitcoin, the stricter the exchange’s requirements will be for margin traders.

In most cases, you can trade digital assets on a margin with leverage between 2x and 100x. If you hold 0.1 BTC in your exchange account, a 100x margin would mean that you can borrow funds to trade up to 10 BTC.

What Are the Benefits of Trading Bitcoin With Leverage?

Below, we have collected the advantages of margin trading crypto:

  • More profits: When you trade Bitcoin with leverage, you are using more funds than what you have in your account. For that reason, successful trades on a margin will bring you more profits than ones without leverage.
  • Short trades: Without borrowing funds, you can only enter long positions for digital assets. On the other hand, margin trading allows traders to profit from bearish price movements by shorting crypto.
  • Profits on smaller price moves: Traders with short-term trading strategies like scalping aim to generate profits on small price movements very quickly, which they can achieve with margin trading. Moreover, trading Bitcoin with leverage also allows traders to generate income even in times of low volatility.
  • Diversification: With margin trading, traders have access to increased capital, which they can use to diversify their funds into more assets to maximize their gains and limit their risks.

Are There Any Risks of Margin Trading Crypto?

While trading Bitcoin with leverage certainly has its benefits, it also comes with risks for traders.

The first is the most obvious one: the more profits you (potentially) earn, the increased risks you face when trading assets on any market.

For that reason, if the asset’s price you trade takes a significant hit, it could trigger a margin call in which the exchange liquidates all your collateral.

As mentioned before, the risks of margin calls are greater when you are using more leverage for your trades.

As part of your crypto trading strategies, we recommend placing stop-loss orders to minimize the chances of margin calls, limit your losses, and protect your positions when trading Bitcoin with leverage.

Trade Bitcoin With Leverage at Digitex

Margin trading is an excellent practice for traders to diversify their assets, maximize their profits for winning trades, as well as to short cryptocurrencies.

However, margin trading involves more risks than the spot market. Therefore, it requires traders to leverage more disciplined crypto trading strategies that involve handy tactics, such as placing stop-loss orders.

Another great way to reduce the risks of margin trading is to trade crypto for free. By paying less fees, you maximize the chances for winning trades while keeping 100% of the profits.

The good news is that you can do exactly that on the next-generation zero-fee Bitcoin derivatives exchange Digitex.

Sounds great, huh?

Trade Bitcoin with leverage at Digitex now to enjoy a zero-fee margin trading experience!

 

April 13, 2021
Trading

What Is Margin Trading and Why Should You Trade Bitcoin With Leverage?

Digitex
What Is Margin Trading and Why Should You Trade Bitcoin With Leverage? 18

Margin trading has become increasingly popular in the digital asset industry.

When you trade Bitcoin with leverage, you can maximize your profit potential while taking more risks with your positions.

Furthermore, it allows users day trading crypto to earn considerable revenue even on smaller price movements.

In this article, we will take a look at margin trading along with its benefits and potential risks involved for those who trade Bitcoin with leverage.

What Is Margin Trading?

Margin refers to the funds borrowed from a crypto exchange or a brokerage firm to long or short a specific asset on the trading platform.

For that reason, margin trading is the practice in which you trade an instrument using money borrowed from third parties (e.g., a broker, exchange, or other traders).

As a result, you have access to greater capital, which you can use to increase your potential profits as well as to amplify the effects of successful trades.

However, borrowing funds to trade Bitcoin with leverage has very different terms than, for example, getting a personal loan at your bank.

While you don’t have to deposit additional funds into your account – as the exchange uses the assets you have in your margin trading account as collateral – the service provider will liquidate your assets without prior consent if you suffer too much losses.

In such a case, when your margin account’s value falls below the exchange’s required amount, a margin call will occur. As a result, you will lose all of your collateral.

And the more leverage you use to trade Bitcoin, the stricter the exchange’s requirements will be for margin traders.

In most cases, you can trade digital assets on a margin with leverage between 2x and 100x. If you hold 0.1 BTC in your exchange account, a 100x margin would mean that you can borrow funds to trade up to 10 BTC.

What Are the Benefits of Trading Bitcoin With Leverage?

Below, we have collected the advantages of margin trading crypto:

  • More profits: When you trade Bitcoin with leverage, you are using more funds than what you have in your account. For that reason, successful trades on a margin will bring you more profits than ones without leverage.
  • Short trades: Without borrowing funds, you can only enter long positions for digital assets. On the other hand, margin trading allows traders to profit from bearish price movements by shorting crypto.
  • Profits on smaller price moves: Traders with short-term trading strategies like scalping aim to generate profits on small price movements very quickly, which they can achieve with margin trading. Moreover, trading Bitcoin with leverage also allows traders to generate income even in times of low volatility.
  • Diversification: With margin trading, traders have access to increased capital, which they can use to diversify their funds into more assets to maximize their gains and limit their risks.

Are There Any Risks of Margin Trading Crypto?

While trading Bitcoin with leverage certainly has its benefits, it also comes with risks for traders.

The first is the most obvious one: the more profits you (potentially) earn, the increased risks you face when trading assets on any market.

For that reason, if the asset’s price you trade takes a significant hit, it could trigger a margin call in which the exchange liquidates all your collateral.

As mentioned before, the risks of margin calls are greater when you are using more leverage for your trades.

As part of your crypto trading strategies, we recommend placing stop-loss orders to minimize the chances of margin calls, limit your losses, and protect your positions when trading Bitcoin with leverage.

Trade Bitcoin With Leverage at Digitex

Margin trading is an excellent practice for traders to diversify their assets, maximize their profits for winning trades, as well as to short cryptocurrencies.

However, margin trading involves more risks than the spot market. Therefore, it requires traders to leverage more disciplined crypto trading strategies that involve handy tactics, such as placing stop-loss orders.

Another great way to reduce the risks of margin trading is to trade crypto for free. By paying less fees, you maximize the chances for winning trades while keeping 100% of the profits.

The good news is that you can do exactly that on the next-generation zero-fee Bitcoin derivatives exchange Digitex.

Sounds great, huh?

Trade Bitcoin with leverage at Digitex now to enjoy a zero-fee margin trading experience!

 

Latest News

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

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 19

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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

March Market Wrap Up - Bitcoin and Ether 31

March Market Wrap Up – Bitcoin and Ether

Digitex Futures
• Digitex
March 31, 2021

Historically, with the notable exception of ‘Black Thursday’ in 2020, March has been an uneventful month for cryptocurrencies. Yet, a lot has changed in 2021. Bitcoin (BTC) price shot above $60K on two separate occasions this March, and Ether (ETH) has made significant strides as well. Let’s take a look at the last 30 days in the life of BTC and ETH to see what factors influenced their behavior, as well as speculate on what may be coming as we move into a new month. 

Bitcoin (BTC)

March Market Wrap Up - Bitcoin and Ether 32

BTC began the month at around $47K facing some fairly strong headwinds the first few days of March in the shape of a widespread tech sell-off sparked by rising bond yields that tested all risk assets. The sell-off was short-lived with the bulls firmly back in control by March 9, as the yield market began to cool off. In fact, BTC went on to mark its all-time high above $61K by March 14.

Since then, we’ve seen a mixed bag from the number-one cryptocurrency which didn’t stay above the $60K barrier for long. Many analysts point to an inaccurate alert by South Korean blockchain analysis firm CryptoQuant about a huge impending whale dump on Gemini as the trigger for the correction. Others say that price corrections are expected and likely triggered by profit-taking around the psychological $60K level.

Either way, BTC rebounded once more and briefly reached above $60K again on March 20, trying its hardest to close out the month above $60K before falling back to around $58K on March 31 at the time of writing. So, what key events have affected BTC price this month?

Key Events in BTC in March

Apart from the rising yield in U.S. treasuries and a rebounding bond market which typically moves investors away from risk assets, most of the news surrounding BTC in March has been bullish. From the Goldman Sachs and Fidelity Bitcoin ETF filings to Tesla officially announcing that it now accepts payment for cars in BTC, is running its own node, and will be HODLing all the proceeds, March was anything but uneventful.

We had more institutional players announcing moves into Bitcoin, with both Morgan Stanley and JPMorgan offering BTC funds to their wealthiest clients. High-profile Norwegian oil and gas giant Aker ASA revealed the creation of a cryptocurrency arm with an opening $59 million investment, and MicroStrategy’s Michael Saylor (and other bullish investors) continued to buy the dip. 

We also saw a record $6 billion in BTC options expire that many believe will continue to send volatile shock waves through the market as we move into April. Yet, perhaps the most notable developments regarding Bitcoin fundamentals came during the last week of March, taking BTC from a low-point of near $50K to close to re-piercing the $60K barrier as payments giant PayPal announced that it would allow its U.S. customers to make purchases with crypto. 

That wasn’t the only news to give the crypto markets a shot in the arm, as Visa announced its first settlement on the Ethereum blockchain using USDC; a massive development that could serve as the bellwether for mainstream acceptance of crypto-native payment methods. In addition to that, CME announced yesterday that it will be launching micro BTC futures sized at one-tenth of a BTC from May.

All these developments, added to record highs in hashrate, open interest, miner revenue, and increased announcements from institutions definitely suggest more bullish action on the horizon for the months ahead. Added to that the Fed’s announcement about maintaining a loose monetary policy and the passing of a $1.9 trillion stimulus bill, and we have a perfect storm for hard assets. So, where will BTC price go next? 

Bloomberg Intelligence suggests that $400K at the end of the year is not an unrealistic target, while Stock-to-Flow proponent Plan B believes the bull run is just getting started. Trader and market analyst Michaël van de Poppe is looking at the nearer-term, calling for at least a $68K BTC in April — and a surge in altcoins as well. April is historically bullish for Bitcoin with only two bearish Aprils on record. Watch this space.

Ether (ETH)

March Market Wrap Up - Bitcoin and Ether 33

In many ways, the decentralized world computer and backbone of the growing DeFi economy, Ethereum, has had a tougher slog this month compared to BTC. A lot of the narrative in the first half of March surrounded Ethereum’s scaling issues with skyrocketing network fees and congestion problems.

Several competitors began flexing their muscles in the shape of Cardano, Solana, Algorand, Stellar, and Binance Smart Chain (BSC). In fact, Binance’s BNB became a top-three coin in February but was briefly ousted from the spot in March by Cardano’s ADA, touted by many to be an ‘Ethereum killer.’ 

ADA has since dropped several places down to fifth in the ranking since then, and, while there may be a lot of talk about toppling Ethereum, it’s just not that easy to hit network effect right off the bat. On-chain metrics suggest that competitors still have a very long way to go to catch up to Ethereum, which still has by far the largest developer community in the space, the most decentralized applications built on it, and is the enabler of the majority of DeFi projects and protocols. 

Moreover, Ethereum began to address its scaling problems in earnest, with Vitalik Buterin himself admitting that scalability was an urgent issue. He said that the solution was coming soon in the form of rollups that will see the mighty blockchain through until its transition to Proof of Stake and ETH 2.0. 

While ETH price didn’t recoup its all-time highs of above $2K set in February, it also rallied hard in keeping with BTC. And, with the news of Visa using its blockchain to settle payments, the rising NFT craze as Dapper Labs (the company behind CryptoKitties and NBA Topshot) raises $305 million from investors, and the increased popularity of DeFi ETH looks set to make another run at its $2K high any time now.

With the increased institutional interest in ETH, the upcoming Berlin hard fork in April which will go some ways to addressing high gas fees and making the Ethereum blockchain more robust, and increased announcements from Visa and other financial giants, ETH price looks set to have another record-breaking month in April.

Digitex (DGTX)

March Market Wrap Up - Bitcoin and Ether 34

The DGTX token, while still light years away from its all-time high and with a lot more to prove, has experienced its own rally in March, climbing back above 2 cents at its highest point on March 21, and ending the month up 222%. We have also more than doubled the number of new users on the exchange, increased liquidity, and tightened bid/ask spreads thanks to our new Liquidity Mining program on the exchange that pays you to trade, and made significant improvements to the UX/UI.

As we enter the second quarter of 2021, we look forward to more bullish developments. The launching of our zero-fee spot markets is our primary focus and we’ll be rolling out more key updates throughout the same period. 

During that time, be sure to take advantage of the gains to be made during this bull market and its massive volatility by trading BTC and ETH futures zero-fee on Digitex–getting paid DGTX rewards while you trade.

March 31, 2021
Digitex Futures

March Market Wrap Up – Bitcoin and Ether

Digitex
March Market Wrap Up - Bitcoin and Ether 35

Historically, with the notable exception of ‘Black Thursday’ in 2020, March has been an uneventful month for cryptocurrencies. Yet, a lot has changed in 2021. Bitcoin (BTC) price shot above $60K on two separate occasions this March, and Ether (ETH) has made significant strides as well. Let’s take a look at the last 30 days in the life of BTC and ETH to see what factors influenced their behavior, as well as speculate on what may be coming as we move into a new month. 

Bitcoin (BTC)

March Market Wrap Up - Bitcoin and Ether 36

BTC began the month at around $47K facing some fairly strong headwinds the first few days of March in the shape of a widespread tech sell-off sparked by rising bond yields that tested all risk assets. The sell-off was short-lived with the bulls firmly back in control by March 9, as the yield market began to cool off. In fact, BTC went on to mark its all-time high above $61K by March 14.

Since then, we’ve seen a mixed bag from the number-one cryptocurrency which didn’t stay above the $60K barrier for long. Many analysts point to an inaccurate alert by South Korean blockchain analysis firm CryptoQuant about a huge impending whale dump on Gemini as the trigger for the correction. Others say that price corrections are expected and likely triggered by profit-taking around the psychological $60K level.

Either way, BTC rebounded once more and briefly reached above $60K again on March 20, trying its hardest to close out the month above $60K before falling back to around $58K on March 31 at the time of writing. So, what key events have affected BTC price this month?

Key Events in BTC in March

Apart from the rising yield in U.S. treasuries and a rebounding bond market which typically moves investors away from risk assets, most of the news surrounding BTC in March has been bullish. From the Goldman Sachs and Fidelity Bitcoin ETF filings to Tesla officially announcing that it now accepts payment for cars in BTC, is running its own node, and will be HODLing all the proceeds, March was anything but uneventful.

We had more institutional players announcing moves into Bitcoin, with both Morgan Stanley and JPMorgan offering BTC funds to their wealthiest clients. High-profile Norwegian oil and gas giant Aker ASA revealed the creation of a cryptocurrency arm with an opening $59 million investment, and MicroStrategy’s Michael Saylor (and other bullish investors) continued to buy the dip. 

We also saw a record $6 billion in BTC options expire that many believe will continue to send volatile shock waves through the market as we move into April. Yet, perhaps the most notable developments regarding Bitcoin fundamentals came during the last week of March, taking BTC from a low-point of near $50K to close to re-piercing the $60K barrier as payments giant PayPal announced that it would allow its U.S. customers to make purchases with crypto. 

That wasn’t the only news to give the crypto markets a shot in the arm, as Visa announced its first settlement on the Ethereum blockchain using USDC; a massive development that could serve as the bellwether for mainstream acceptance of crypto-native payment methods. In addition to that, CME announced yesterday that it will be launching micro BTC futures sized at one-tenth of a BTC from May.

All these developments, added to record highs in hashrate, open interest, miner revenue, and increased announcements from institutions definitely suggest more bullish action on the horizon for the months ahead. Added to that the Fed’s announcement about maintaining a loose monetary policy and the passing of a $1.9 trillion stimulus bill, and we have a perfect storm for hard assets. So, where will BTC price go next? 

Bloomberg Intelligence suggests that $400K at the end of the year is not an unrealistic target, while Stock-to-Flow proponent Plan B believes the bull run is just getting started. Trader and market analyst Michaël van de Poppe is looking at the nearer-term, calling for at least a $68K BTC in April — and a surge in altcoins as well. April is historically bullish for Bitcoin with only two bearish Aprils on record. Watch this space.

Ether (ETH)

March Market Wrap Up - Bitcoin and Ether 37

In many ways, the decentralized world computer and backbone of the growing DeFi economy, Ethereum, has had a tougher slog this month compared to BTC. A lot of the narrative in the first half of March surrounded Ethereum’s scaling issues with skyrocketing network fees and congestion problems.

Several competitors began flexing their muscles in the shape of Cardano, Solana, Algorand, Stellar, and Binance Smart Chain (BSC). In fact, Binance’s BNB became a top-three coin in February but was briefly ousted from the spot in March by Cardano’s ADA, touted by many to be an ‘Ethereum killer.’ 

ADA has since dropped several places down to fifth in the ranking since then, and, while there may be a lot of talk about toppling Ethereum, it’s just not that easy to hit network effect right off the bat. On-chain metrics suggest that competitors still have a very long way to go to catch up to Ethereum, which still has by far the largest developer community in the space, the most decentralized applications built on it, and is the enabler of the majority of DeFi projects and protocols. 

Moreover, Ethereum began to address its scaling problems in earnest, with Vitalik Buterin himself admitting that scalability was an urgent issue. He said that the solution was coming soon in the form of rollups that will see the mighty blockchain through until its transition to Proof of Stake and ETH 2.0. 

While ETH price didn’t recoup its all-time highs of above $2K set in February, it also rallied hard in keeping with BTC. And, with the news of Visa using its blockchain to settle payments, the rising NFT craze as Dapper Labs (the company behind CryptoKitties and NBA Topshot) raises $305 million from investors, and the increased popularity of DeFi ETH looks set to make another run at its $2K high any time now.

With the increased institutional interest in ETH, the upcoming Berlin hard fork in April which will go some ways to addressing high gas fees and making the Ethereum blockchain more robust, and increased announcements from Visa and other financial giants, ETH price looks set to have another record-breaking month in April.

Digitex (DGTX)

March Market Wrap Up - Bitcoin and Ether 38

The DGTX token, while still light years away from its all-time high and with a lot more to prove, has experienced its own rally in March, climbing back above 2 cents at its highest point on March 21, and ending the month up 222%. We have also more than doubled the number of new users on the exchange, increased liquidity, and tightened bid/ask spreads thanks to our new Liquidity Mining program on the exchange that pays you to trade, and made significant improvements to the UX/UI.

As we enter the second quarter of 2021, we look forward to more bullish developments. The launching of our zero-fee spot markets is our primary focus and we’ll be rolling out more key updates throughout the same period. 

During that time, be sure to take advantage of the gains to be made during this bull market and its massive volatility by trading BTC and ETH futures zero-fee on Digitex–getting paid DGTX rewards while you trade.

Latest News

What Are the Pros and Cons of Altcoin Trading? 39

What Are the Pros and Cons of Altcoin Trading?

Cryptocurrency
• Digitex
March 12, 2021

In 2009 when the anonymous Satoshi Nakamoto launched Bitcoin, BTC ruled the market for a few years as the only cryptocurrency.

Later on, crypto projects launched their own altcoins, offering alternative digital asset solutions to users.

While Bitcoin remained the top cryptocurrency, altcoins possess over 44% share in the industry with a combined market cap of $843 billion.

What Are the Pros and Cons of Altcoin Trading? 40

But what are alternative cryptocurrencies, how are they different from Bitcoin, and what are the pros and cons of altcoins for traders?

What Are Altcoins and How Do They Differ From Bitcoin?

Altcoins or alternative cryptocurrencies refer to coins other than Bitcoin. For that reason, all digital assets launching after BTC are considered altcoins.

While Bitcoin is generally viewed as the original cryptocurrency, altcoins provide alternative digital asset solutions to users (hence their name).

As per the original BTC whitepaper, Bitcoin is a peer-to-peer (P2P) electronic cash system that features a decentralized blockchain network while facilitating digital asset transactions between users without intermediaries.

While Satoshi described Bitcoin as a currency used for everyday payments, most users utilize the cryptocurrency as a store of value due to its deflationary mechanism – the BTC halving – that cuts the new supply generated with each mined block into half every four years.

On the other hand, altcoins focus on providing cryptocurrency solutions in other areas, such as smart contracts, decentralized finance (DeFi), digital identity, and supply chain management. As a result, they empower the crypto space with more use-cases.

In terms of investment and trading, BTC is considered the safest choice among digital assets due to the high Bitcoin trading volume as well as the fact that it is the largest cryptocurrency by market cap with the longest history of operation.

However, lower risks usually mean less potential returns. And this is where altcoins excel since high-quality altcoins often beat BTC in terms of profit during bull markets.

The Pros of Altcoin Trading

Now that you know the basics let’s see what the advantages of trading altcoins are.

  1. Increased profit potential: Since altcoins have much lower market capitalizations than Bitcoin, they have more room for growth. For that reason, trading altcoins usually comes with increased potential for greater profits.
  2. Cheaper transfer fees: While Bitcoin often struggles with low scalability, some altcoin projects feature enhanced network speed and throughput. As a result, such digital assets have lower transaction fees with rapid processing times, which comes in handy when depositing or withdrawing funds from crypto exchanges.
  3. Exposure to multiple industries: Covering a wide range of sectors, there are over 9,100 altcoins present on the market. For that reason, you can trade altcoins to gain exposure to numerous industries (being) disrupted by cryptocurrency solutions.
  4. Diversification: In addition to BTC, you can invest or trade altcoins to diversify your cryptocurrency portfolio, which is a good way to limit your risks and increase your potential returns.

The Cons of Altcoin Trading

In addition to its benefits, altcoin trading may also involve some disadvantages, such as:

  1. Limited liquidity: While major altcoins are listed on many cryptocurrency exchanges, traders often struggle to gain exposure to the ones with very low market capitalizations. And, even when they find a platform to trade them, such digital assets often face issues with limited liquidity.
  2. Higher risks: Altcoins feature lower trading volumes and market capitalizations than Bitcoin. While this allows them to have better growth potential, it also comes with higher risks for traders, especially in terms of volatility.
  3. Threats of pump and dump schemes and dishonest projects: Small-cap altcoins are often subject to pump and dump schemes, presenting increased risks for traders. Furthermore, some of the new altcoin projects are run by fraudsters operating exit scams.

Altcoins: Increased Profit Potential in Exchange for More Risks

While Bitcoin offers tremendous benefits to users, altcoin traders can take advantage of alternative digital assets to increase their potential Return on Investment (ROI).

However, since altcoins feature significantly lower market caps and trading volumes than Bitcoin, investing in them comes with increased risks for users.

That said, by extensively researching assets doing your own diligence before trading them, you can eliminate most of the risks that are associated with altcoins.

If you are looking to gain easy exposure to altcoins, create an account at the next-generation, zero-fee digital asset exchange Digitex is an excellent way to get started.

When you are there, be sure to trade the ETH/USD futures trading pair and purchase Digitex’s native exchange token DGTX!

March 12, 2021
Cryptocurrency

What Are the Pros and Cons of Altcoin Trading?

Digitex
What Are the Pros and Cons of Altcoin Trading? 41

In 2009 when the anonymous Satoshi Nakamoto launched Bitcoin, BTC ruled the market for a few years as the only cryptocurrency.

Later on, crypto projects launched their own altcoins, offering alternative digital asset solutions to users.

While Bitcoin remained the top cryptocurrency, altcoins possess over 44% share in the industry with a combined market cap of $843 billion.

What Are the Pros and Cons of Altcoin Trading? 42

But what are alternative cryptocurrencies, how are they different from Bitcoin, and what are the pros and cons of altcoins for traders?

What Are Altcoins and How Do They Differ From Bitcoin?

Altcoins or alternative cryptocurrencies refer to coins other than Bitcoin. For that reason, all digital assets launching after BTC are considered altcoins.

While Bitcoin is generally viewed as the original cryptocurrency, altcoins provide alternative digital asset solutions to users (hence their name).

As per the original BTC whitepaper, Bitcoin is a peer-to-peer (P2P) electronic cash system that features a decentralized blockchain network while facilitating digital asset transactions between users without intermediaries.

While Satoshi described Bitcoin as a currency used for everyday payments, most users utilize the cryptocurrency as a store of value due to its deflationary mechanism – the BTC halving – that cuts the new supply generated with each mined block into half every four years.

On the other hand, altcoins focus on providing cryptocurrency solutions in other areas, such as smart contracts, decentralized finance (DeFi), digital identity, and supply chain management. As a result, they empower the crypto space with more use-cases.

In terms of investment and trading, BTC is considered the safest choice among digital assets due to the high Bitcoin trading volume as well as the fact that it is the largest cryptocurrency by market cap with the longest history of operation.

However, lower risks usually mean less potential returns. And this is where altcoins excel since high-quality altcoins often beat BTC in terms of profit during bull markets.

The Pros of Altcoin Trading

Now that you know the basics let’s see what the advantages of trading altcoins are.

  1. Increased profit potential: Since altcoins have much lower market capitalizations than Bitcoin, they have more room for growth. For that reason, trading altcoins usually comes with increased potential for greater profits.
  2. Cheaper transfer fees: While Bitcoin often struggles with low scalability, some altcoin projects feature enhanced network speed and throughput. As a result, such digital assets have lower transaction fees with rapid processing times, which comes in handy when depositing or withdrawing funds from crypto exchanges.
  3. Exposure to multiple industries: Covering a wide range of sectors, there are over 9,100 altcoins present on the market. For that reason, you can trade altcoins to gain exposure to numerous industries (being) disrupted by cryptocurrency solutions.
  4. Diversification: In addition to BTC, you can invest or trade altcoins to diversify your cryptocurrency portfolio, which is a good way to limit your risks and increase your potential returns.

The Cons of Altcoin Trading

In addition to its benefits, altcoin trading may also involve some disadvantages, such as:

  1. Limited liquidity: While major altcoins are listed on many cryptocurrency exchanges, traders often struggle to gain exposure to the ones with very low market capitalizations. And, even when they find a platform to trade them, such digital assets often face issues with limited liquidity.
  2. Higher risks: Altcoins feature lower trading volumes and market capitalizations than Bitcoin. While this allows them to have better growth potential, it also comes with higher risks for traders, especially in terms of volatility.
  3. Threats of pump and dump schemes and dishonest projects: Small-cap altcoins are often subject to pump and dump schemes, presenting increased risks for traders. Furthermore, some of the new altcoin projects are run by fraudsters operating exit scams.

Altcoins: Increased Profit Potential in Exchange for More Risks

While Bitcoin offers tremendous benefits to users, altcoin traders can take advantage of alternative digital assets to increase their potential Return on Investment (ROI).

However, since altcoins feature significantly lower market caps and trading volumes than Bitcoin, investing in them comes with increased risks for users.

That said, by extensively researching assets doing your own diligence before trading them, you can eliminate most of the risks that are associated with altcoins.

If you are looking to gain easy exposure to altcoins, create an account at the next-generation, zero-fee digital asset exchange Digitex is an excellent way to get started.

When you are there, be sure to trade the ETH/USD futures trading pair and purchase Digitex’s native exchange token DGTX!

Latest News

Will the Next Bitcoin Halving Unleash a New Crypto Bull Market? 43

Will the Next Bitcoin Halving Unleash a New Crypto Bull Market?

Crypto Industry
Digitex Futures
Trading
• Dave Reiter
February 27, 2020

With the exception of May and June, 2019 was a rather uneventful year for Bitcoin and the entire crypto universe. Bitcoin traded sideways-to-lower following its price peak on 26 June (see Chart #1 below). Although the number-one cryptocurrency has started 2020 with a bang representing a 44% rate of return so far this year, cryptocurrencies still need some type of event to serve to reestablish a new bull market. It wasn’t the launch of Bakkt, so could it be the next Bitcoin halving?

The Next Crypto Bull Market

Many traders and investors within the crypto community expected the launch of Bakkt to generate a new wave of buying pressure for BTC and other cryptocurrencies. However, buying never materialized. In fact, Bitcoin was much lower shortly afterward in comparison to the Bakkt launch date on 23 September (see Chart #2 below). 

What will it take to unleash a new crypto bull market? Has it already begun? Many cryptocurrency traders are convinced that the next Bitcoin halving in May 2020 will create a powerful new bull market. But what is the Bitcoin halving and why could it generate a new run? Let’s explore the details.

Bitcoin Halving Has a Perfect Track Record for Launching Bull Markets       

Arguably, Bitcoin’s greatest feature is the fact that Satoshi Nakamoto only created 21 million coins. There will never be more than 21 million bitcoins in circulation. It was pure “genius” for Nakamoto to strictly limit the supply of BTC. This is what separates BTC from fiat currencies. Without having a limited amount of bitcoins, cryptocurrencies would be no better than paper currencies.

BTC and other cryptos would eventually become worthless in terms of purchasing power. Of course, this is exactly what has befallen fiat currencies. Their purchasing power has slowly eroded over the course of the past several decades. By restricting the number of bitcoins, cryptocurrency investors will never have to deal with this decline in purchasing power. This is what makes cryptocurrencies an excellent store of value.

As you know, bitcoins are entered into circulation through the process of mining. Essentially, BTC mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. Added together, these past transactions create a chain of blocks, known as a blockchain. Miners are rewarded when a new block is discovered. Currently, the reward is 12.5 BTC.

In addition to limiting the number of bitcoins to 21 million, Nakamoto made a brilliant decision to gradually reduce the mining reward as new bitcoins were added into circulation. The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, which should occur approximately every four years. Ultimately, this will result in a total of 21 million Bitcoins in circulation.                 

The Importance of Capping Bitcoin’s Supply

Why was Nakamoto’s decision to reduce the mining reward such a brilliant decision? Because it dramatically increases the odds of a steady increase in the price of Bitcoin well into the future. A reduction in the BTC mining reward is known as a “Bitcoin halving.” 

Whenever a halving occurs, it automatically reduces the BTC mining reward by 50%. As discussed earlier, the current Bitcoin mining reward is 12.5 bitcoins for the discovery of a new block. The next Bitcoin halving is scheduled for May 2020, when the mining reward will be cut in half to 6.25 BTC. 

What has happened to the price of BTC during previous Bitcoin halving occurrences? Let’s examine the data.

Pssst… It isn’t just Bitcoin that’s got sky’s the limit potential… If you want to get involved in the next revolution in crypto derivatives trading, you can buy our native exchange token DGTX by clicking on the button below. You’ll get an instant transaction with zero slippage buying directly from the Digitex Treasury including a 10% bonus airdropped into your account upon the mainnet launch.

BUY DGTX
BTC Price After Bitcoin Halving

The first Bitcoin halving occurred on 28 November 2012, when the mining reward was reduced to 25 bitcoins. At the time of the halving, the price of BTC was approximately $11. Over the course of the next 12 months, Bitcoin enjoyed a dramatic bull market. BTC reached a peak of $1,135 on 29 November 2013. 

This represents an amazing price increase of 10,218%. 

The next Bitcoin halving occurred on 16 July 2016. The mining reward was reduced to 12.5 bitcoins per block. What happened to the price of BTC following the reduction in the mining reward? Initially, nothing. 

In fact, for several months after the mining reward was reduced, BTC was locked in a boring trading range between $500 and $800. The trading range continued for five months, July through December 2016.

Many traders in the crypto community began to doubt whether the 2016 halving would generate a substantial rally similar to the 2012 halving. Finally, on 21 December 2016, BTC generated a bullish breakout, when the price penetrated $800. The halving rally was underway! 

Bitcoin exploded to the upside throughout the next 12 months. The final top was obtained on 18 December 2017 @ $19,862. In percentage terms, BTC enjoyed a rally of 2,847%. Please review the following table. 

Bitcoin Halving

2012 – 2016 

Halving Date         Bitcoin Price          Price Peak             Peak Date  % Increase

 

28 Nov 2012          11                           1,135                      29 Nov 2013  10,218%

 

16 Jul 2016            674                         19,862                   18 Dec 2017  2,847%

 

Source  Forbes Magazine

Will the May 2020 Bitcoin Halving Unleash a Bull Market? 

Of course, it’s impossible to predict the future direction of any speculative asset. However, based on previous Bitcoin halving occurrences, it’s fairly safe to assume that BTC will generate some type of rally following the May 2020 halving. Let’s attempt to calculate an educated guess regarding the size of the rally.

Unfortunately, we only have two previous Bitcoin halving episodes. Therefore, our data sample is very small. Let’s assume that BTC is trading near its current price of $7,400 in May 2020. Given the fact that BTC is trading at a substantially higher price compared to the 2012 halving and 2016 halving, it’s highly unlikely that Bitcoin will enjoy such a dramatic percentage price increase for the May 2020 halving.

In fact, you can see that there was a dramatic reduction in percentage gains in 2016 versus 2012. Bitcoin’s gain from the 2016 halving was 72% less than the gain from the 2012 halving.

 In an attempt to calculate a price forecast for the upcoming May 2020 halving, let’s assume that the Bitcoin halving rally will be 72% less than the 2016 halving rally. If we use these numbers in our calculation, we can conclude that BTC will enjoy a substantial gain of 797%. 

Based on a price of $7,400, Bitcoin will reach a peak of $58,978 within 12 to 18 months from May 2020. Therefore, the price peak will occur between May 2021 and November 2021.

Of course, nobody should take these forecasts too seriously. Several things can change within the crypto universe before May 2020. Additionally, there is absolutely no guarantee that Bitcoin will rally following the May 2020 halving. There is no rule which says that BTC must rally following each halving. 

However, given the fact that the BTC mining reward will be cut in half, it’s probably safe to assume that there will be at least a modest rally. Without question, it will be very exciting to watch the price of Bitcoin as we approach the May 2020 halving.

JOIN NOW

Full Disclosure: I own BTC on the spot market, BTC futures and BTC exchange-traded notes.  

 

 

February 27, 2020
Crypto Industry
Digitex Futures
Trading

Will the Next Bitcoin Halving Unleash a New Crypto Bull Market?

Dave Reiter
Will the Next Bitcoin Halving Unleash a New Crypto Bull Market? 44

With the exception of May and June, 2019 was a rather uneventful year for Bitcoin and the entire crypto universe. Bitcoin traded sideways-to-lower following its price peak on 26 June (see Chart #1 below). Although the number-one cryptocurrency has started 2020 with a bang representing a 44% rate of return so far this year, cryptocurrencies still need some type of event to serve to reestablish a new bull market. It wasn’t the launch of Bakkt, so could it be the next Bitcoin halving?

The Next Crypto Bull Market

Many traders and investors within the crypto community expected the launch of Bakkt to generate a new wave of buying pressure for BTC and other cryptocurrencies. However, buying never materialized. In fact, Bitcoin was much lower shortly afterward in comparison to the Bakkt launch date on 23 September (see Chart #2 below). 

What will it take to unleash a new crypto bull market? Has it already begun? Many cryptocurrency traders are convinced that the next Bitcoin halving in May 2020 will create a powerful new bull market. But what is the Bitcoin halving and why could it generate a new run? Let’s explore the details.

Bitcoin Halving Has a Perfect Track Record for Launching Bull Markets       

Arguably, Bitcoin’s greatest feature is the fact that Satoshi Nakamoto only created 21 million coins. There will never be more than 21 million bitcoins in circulation. It was pure “genius” for Nakamoto to strictly limit the supply of BTC. This is what separates BTC from fiat currencies. Without having a limited amount of bitcoins, cryptocurrencies would be no better than paper currencies.

BTC and other cryptos would eventually become worthless in terms of purchasing power. Of course, this is exactly what has befallen fiat currencies. Their purchasing power has slowly eroded over the course of the past several decades. By restricting the number of bitcoins, cryptocurrency investors will never have to deal with this decline in purchasing power. This is what makes cryptocurrencies an excellent store of value.

As you know, bitcoins are entered into circulation through the process of mining. Essentially, BTC mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. Added together, these past transactions create a chain of blocks, known as a blockchain. Miners are rewarded when a new block is discovered. Currently, the reward is 12.5 BTC.

In addition to limiting the number of bitcoins to 21 million, Nakamoto made a brilliant decision to gradually reduce the mining reward as new bitcoins were added into circulation. The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, which should occur approximately every four years. Ultimately, this will result in a total of 21 million Bitcoins in circulation.                 

The Importance of Capping Bitcoin’s Supply

Why was Nakamoto’s decision to reduce the mining reward such a brilliant decision? Because it dramatically increases the odds of a steady increase in the price of Bitcoin well into the future. A reduction in the BTC mining reward is known as a “Bitcoin halving.” 

Whenever a halving occurs, it automatically reduces the BTC mining reward by 50%. As discussed earlier, the current Bitcoin mining reward is 12.5 bitcoins for the discovery of a new block. The next Bitcoin halving is scheduled for May 2020, when the mining reward will be cut in half to 6.25 BTC. 

What has happened to the price of BTC during previous Bitcoin halving occurrences? Let’s examine the data.

Pssst… It isn’t just Bitcoin that’s got sky’s the limit potential… If you want to get involved in the next revolution in crypto derivatives trading, you can buy our native exchange token DGTX by clicking on the button below. You’ll get an instant transaction with zero slippage buying directly from the Digitex Treasury including a 10% bonus airdropped into your account upon the mainnet launch.

BUY DGTX
BTC Price After Bitcoin Halving

The first Bitcoin halving occurred on 28 November 2012, when the mining reward was reduced to 25 bitcoins. At the time of the halving, the price of BTC was approximately $11. Over the course of the next 12 months, Bitcoin enjoyed a dramatic bull market. BTC reached a peak of $1,135 on 29 November 2013. 

This represents an amazing price increase of 10,218%. 

The next Bitcoin halving occurred on 16 July 2016. The mining reward was reduced to 12.5 bitcoins per block. What happened to the price of BTC following the reduction in the mining reward? Initially, nothing. 

In fact, for several months after the mining reward was reduced, BTC was locked in a boring trading range between $500 and $800. The trading range continued for five months, July through December 2016.

Many traders in the crypto community began to doubt whether the 2016 halving would generate a substantial rally similar to the 2012 halving. Finally, on 21 December 2016, BTC generated a bullish breakout, when the price penetrated $800. The halving rally was underway! 

Bitcoin exploded to the upside throughout the next 12 months. The final top was obtained on 18 December 2017 @ $19,862. In percentage terms, BTC enjoyed a rally of 2,847%. Please review the following table. 

Bitcoin Halving

2012 – 2016 

Halving Date         Bitcoin Price          Price Peak             Peak Date  % Increase

 

28 Nov 2012          11                           1,135                      29 Nov 2013  10,218%

 

16 Jul 2016            674                         19,862                   18 Dec 2017  2,847%

 

Source  Forbes Magazine

Will the May 2020 Bitcoin Halving Unleash a Bull Market? 

Of course, it’s impossible to predict the future direction of any speculative asset. However, based on previous Bitcoin halving occurrences, it’s fairly safe to assume that BTC will generate some type of rally following the May 2020 halving. Let’s attempt to calculate an educated guess regarding the size of the rally.

Unfortunately, we only have two previous Bitcoin halving episodes. Therefore, our data sample is very small. Let’s assume that BTC is trading near its current price of $7,400 in May 2020. Given the fact that BTC is trading at a substantially higher price compared to the 2012 halving and 2016 halving, it’s highly unlikely that Bitcoin will enjoy such a dramatic percentage price increase for the May 2020 halving.

In fact, you can see that there was a dramatic reduction in percentage gains in 2016 versus 2012. Bitcoin’s gain from the 2016 halving was 72% less than the gain from the 2012 halving.

 In an attempt to calculate a price forecast for the upcoming May 2020 halving, let’s assume that the Bitcoin halving rally will be 72% less than the 2016 halving rally. If we use these numbers in our calculation, we can conclude that BTC will enjoy a substantial gain of 797%. 

Based on a price of $7,400, Bitcoin will reach a peak of $58,978 within 12 to 18 months from May 2020. Therefore, the price peak will occur between May 2021 and November 2021.

Of course, nobody should take these forecasts too seriously. Several things can change within the crypto universe before May 2020. Additionally, there is absolutely no guarantee that Bitcoin will rally following the May 2020 halving. There is no rule which says that BTC must rally following each halving. 

However, given the fact that the BTC mining reward will be cut in half, it’s probably safe to assume that there will be at least a modest rally. Without question, it will be very exciting to watch the price of Bitcoin as we approach the May 2020 halving.

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Full Disclosure: I own BTC on the spot market, BTC futures and BTC exchange-traded notes.  

 

 

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October 27, 2019
Crypto Industry
Digitex Futures

5 Plausible Reasons the Bitcoin Price Exploded on Friday

Christina Comben
5 Plausible Reasons the Bitcoin Price Exploded on Friday 46

You gotta love crypto, right? Just when everything’s doom and gloom and all the indicators are bearish, the markets go on a tear. Bitcoin jumped by as much as 42% on Friday, marking its highest intraday gain since 2011–and the crypto community was elated. We’re pretty sure that you participated in a few lively chats over the king of crypto’s latest run. But did you stop to question what was behind it? Here are five possible reasons for the Bitcoin price pump. Continue reading

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