Check Out All the Ways to Earn on Digitex.io 1

Check Out All the Ways to Earn on Digitex.io

Digitex
• Digitex
May 18, 2021

With Digitex.io now live for just over a month, we’ve been introducing more utility for the DGTX token–and more ways for you to earn while using the exchange. From zero-fee trading and capitalizing on price fluctuations trading BTC and ETH futures, to Liquidity Mining and earning crypto rewards through Blockfarm, check out all the ways to earn on Digitex.io here.

Commission-Free Trading

Of course, the best way to make money on Digitex.io is simply to open an account and start trading. According to a survey of our traders that we held earlier this month, using the Digitex platform can save you an average of $190 per month simply by not paying commission fees. That becomes a lot more if you’re an active swing or scalp trader using leverage to magnify your gains. And, with crypto’s insane volatility, there’s no better place to make money on the smallest of price movements.

Digitex makes it possible to carry out trading strategies that you simply can’t elsewhere. You can enter and exit trades without being penalized and keep 100% of your profit when the market goes your way. 

With our two flagship futures markets, BTCUSD and ETHUSD, and our six zero-fee spot trading pairs—DGTX/BTC, DGTX/ETH, ETH/BTC, BTC/USDC, ETH/USDC, DGTX/USDC—place your trades, save on fees, and make money at the same time.

Liquidity Mining Rewards

While saving yourself from paying punishing fees, you also get paid to trade thanks to our awesome Liquidity Mining program that lets traders accumulate rewards for lending liquidity to all the markets on Digitex.io. You don’t have to do anything extra to earn, as all traders are included in the program just by trading on the exchange.

How does it work? Every minute at a random time our system takes a snapshot of the order book on all our markets. It then pays out DGTX rewards to those traders whose unmatched orders are closest to the spot price at the time. Not only does this create more active markets and deeper liquidity but it lets us give you something extra for choosing to trade with us.

25 DGTX are paid out every minute to each futures market—so that’s a total of 50 DGTX per minute for both futures markets (BTCUSD and ETHUSD). You can also earn liquidity mining rewards trading on our spot markets, which takes the total to 240 DGTX across our six different spot market pairs. 

Blockfarm Yield Farming Program

Digitex users, particularly those who aren’t interested in pursuing riskier profit-making strategies like futures trading, can now earn a passive income on their crypto holdings by staking DGTX. It couldn’t be easier to earn rewards through our brand-new Blockfarm yield farming program, built right inside the Digitex.io platform.

Rather than letting your DGTX just sit in a hardware wallet, you can earn attractive rewards by staking it in your Blockfarm wallet. We’ve started the program off with ETH, which means that you stake DGTX to earn ETH rewards back. But ETH is just the first of many cryptos coming soon to this program that we hope will prove popular among our users. 

The APY you earn will vary according to the amount of DGTX staked at the time but at the moment it stands at 61%.

We hope you’re enjoying using the exchange and taking advantage of the multiple ways to earn. Please let us know if you have feedback or questions, either by hitting us up on our socials or contacting customer support, we’re always ready to help.

May 18, 2021
Digitex

Check Out All the Ways to Earn on Digitex.io

Digitex
Check Out All the Ways to Earn on Digitex.io 2

With Digitex.io now live for just over a month, we’ve been introducing more utility for the DGTX token–and more ways for you to earn while using the exchange. From zero-fee trading and capitalizing on price fluctuations trading BTC and ETH futures, to Liquidity Mining and earning crypto rewards through Blockfarm, check out all the ways to earn on Digitex.io here.

Commission-Free Trading

Of course, the best way to make money on Digitex.io is simply to open an account and start trading. According to a survey of our traders that we held earlier this month, using the Digitex platform can save you an average of $190 per month simply by not paying commission fees. That becomes a lot more if you’re an active swing or scalp trader using leverage to magnify your gains. And, with crypto’s insane volatility, there’s no better place to make money on the smallest of price movements.

Digitex makes it possible to carry out trading strategies that you simply can’t elsewhere. You can enter and exit trades without being penalized and keep 100% of your profit when the market goes your way. 

With our two flagship futures markets, BTCUSD and ETHUSD, and our six zero-fee spot trading pairs—DGTX/BTC, DGTX/ETH, ETH/BTC, BTC/USDC, ETH/USDC, DGTX/USDC—place your trades, save on fees, and make money at the same time.

Liquidity Mining Rewards

While saving yourself from paying punishing fees, you also get paid to trade thanks to our awesome Liquidity Mining program that lets traders accumulate rewards for lending liquidity to all the markets on Digitex.io. You don’t have to do anything extra to earn, as all traders are included in the program just by trading on the exchange.

How does it work? Every minute at a random time our system takes a snapshot of the order book on all our markets. It then pays out DGTX rewards to those traders whose unmatched orders are closest to the spot price at the time. Not only does this create more active markets and deeper liquidity but it lets us give you something extra for choosing to trade with us.

25 DGTX are paid out every minute to each futures market—so that’s a total of 50 DGTX per minute for both futures markets (BTCUSD and ETHUSD). You can also earn liquidity mining rewards trading on our spot markets, which takes the total to 240 DGTX across our six different spot market pairs. 

Blockfarm Yield Farming Program

Digitex users, particularly those who aren’t interested in pursuing riskier profit-making strategies like futures trading, can now earn a passive income on their crypto holdings by staking DGTX. It couldn’t be easier to earn rewards through our brand-new Blockfarm yield farming program, built right inside the Digitex.io platform.

Rather than letting your DGTX just sit in a hardware wallet, you can earn attractive rewards by staking it in your Blockfarm wallet. We’ve started the program off with ETH, which means that you stake DGTX to earn ETH rewards back. But ETH is just the first of many cryptos coming soon to this program that we hope will prove popular among our users. 

The APY you earn will vary according to the amount of DGTX staked at the time but at the moment it stands at 61%.

We hope you’re enjoying using the exchange and taking advantage of the multiple ways to earn. Please let us know if you have feedback or questions, either by hitting us up on our socials or contacting customer support, we’re always ready to help.

Latest News

futures

ETHUSD Futures Market Tick Size Will Change to $1

Digitex
Trading
• Digitex
May 11, 2021

Heads up, traders! Digitex will be changing the tick size on our ETHUSD futures market from $0.25 to $1. On May 12 at 12:00 UTC, the Digitex exchange will be down for one hour as we make the necessary adjustment. So, please keep in mind that you will not be able to access your account during that time. All orders on the ETHUSD will be settled, so you should close them ahead.

The Rising Price of ETH

As you all know, the price of ETH has been on an absolute tear this year, running circles around Bitcoin and hitting a new all-time high of more than $4,200! Even today, as it’s cooled off slightly, the number one altcoin is still registering a yearly gain of almost 2000%. Of course, this is great for traders, investors, and Ethereum enthusiasts. But, when it comes to trading on a ladder, a tick size of $0.25 on an asset with such a high price makes for a poor user experience as contracts keep jumping off the ladder.

The change in tick size on the ETHUSD market will prevent this from happening and also make it easier for liquidity miners. So, we can expect to see more bids and offers closer to the spot price after we make the switch, making the trading experience on the Digitex exchange better for everyone. 

Keep in mind that, on the Digitex platform, the $1 tick is equivalent to 1 DGTX. So, when you win or lose 1 tick ($1), you win or lose 1 DGTX. The contract value of ETHUSD remains the same as it was.

Take Advantage of ETH Volatility Trading Commission-Free

As always, with ETH’s skyrocketing price and swift corrections, there’s no better time to capitalize on the premier altcoin’s extreme volatility. So, be sure to get trading on the platform now! Digitex is the ONLY exchange that lets you pursue high-frequency trading strategies that allow you to place unlimited trades without paying any transaction fees of any kind. Simply trade and walk away with 100% of your profit.

Just please keep in mind that the exchange will be down for around one hour on May 12 at 12:00 UTC while we make the switch. We hope you enjoy the improved trading experience. Any questions at all, please contact our customer support or hit us up on our socials. 

May 11, 2021
Digitex
Trading

ETHUSD Futures Market Tick Size Will Change to $1

Digitex
futures

Heads up, traders! Digitex will be changing the tick size on our ETHUSD futures market from $0.25 to $1. On May 12 at 12:00 UTC, the Digitex exchange will be down for one hour as we make the necessary adjustment. So, please keep in mind that you will not be able to access your account during that time. All orders on the ETHUSD will be settled, so you should close them ahead.

The Rising Price of ETH

As you all know, the price of ETH has been on an absolute tear this year, running circles around Bitcoin and hitting a new all-time high of more than $4,200! Even today, as it’s cooled off slightly, the number one altcoin is still registering a yearly gain of almost 2000%. Of course, this is great for traders, investors, and Ethereum enthusiasts. But, when it comes to trading on a ladder, a tick size of $0.25 on an asset with such a high price makes for a poor user experience as contracts keep jumping off the ladder.

The change in tick size on the ETHUSD market will prevent this from happening and also make it easier for liquidity miners. So, we can expect to see more bids and offers closer to the spot price after we make the switch, making the trading experience on the Digitex exchange better for everyone. 

Keep in mind that, on the Digitex platform, the $1 tick is equivalent to 1 DGTX. So, when you win or lose 1 tick ($1), you win or lose 1 DGTX. The contract value of ETHUSD remains the same as it was.

Take Advantage of ETH Volatility Trading Commission-Free

As always, with ETH’s skyrocketing price and swift corrections, there’s no better time to capitalize on the premier altcoin’s extreme volatility. So, be sure to get trading on the platform now! Digitex is the ONLY exchange that lets you pursue high-frequency trading strategies that allow you to place unlimited trades without paying any transaction fees of any kind. Simply trade and walk away with 100% of your profit.

Just please keep in mind that the exchange will be down for around one hour on May 12 at 12:00 UTC while we make the switch. We hope you enjoy the improved trading experience. Any questions at all, please contact our customer support or hit us up on our socials. 

Latest News

trading

The Pros and Cons of Crypto Investing and Trading

Trading
Cryptocurrency
• Digitex
May 5, 2021

Wondering how to capitalize on the crypto bull market’s gains?

To achieve that, you can choose between two main methods: to invest in digital assets for the long run or day trade crypto to generate short-term profits.

In this article, we will explain the main differences between the two approaches while introducing the pros and cons of each.

What Are the Pros and Cons of Long-Term Crypto Investments?

One of the easiest ways to gain exposure to the crypto market is by investing in digital assets for the long term.

With this strategy, you buy and hold cryptocurrencies for at least several months (or even multiple years) and later sell them for a profit after their prices have increased to a satisfactory level.

While the investment approach doesn’t take short-term price movements into account, it requires investors to leverage fundamental analysis, in which they carefully research digital assets to select the most promising ones.

Since crypto investing is a long-term strategy, it comes with only a few monthly or yearly trades, which can save you time as well as provide tax benefits in some jurisdictions. For the same reason, less paperwork is required to report investment-related income.

Also, it’s easier for beginners to get started as they don’t have to learn how to use various technical analysis tools and implement them into their crypto trading strategies.

Moreover, investment strategies like dollar-cost averaging (DCA) – in which one invests a fixed amount of funds in an asset at regular intervals (e.g., $100 on the first day of each month throughout a year) – can remove the extra legwork needed for attempting to time the market.

On the flip side, investing for the long-term in crypto is not suitable for making regular or a full-time income.

While crypto investment is usually considered safer than day trading, you face higher risks with this strategy if you fail to research projects properly (or if you don’t do any research).

Furthermore, while you can make a decent income in the long run with this strategy, crypto investors usually miss out on multiple short-term profit-making opportunities.

What Are the Pros and Cons of Day Trading Crypto?

Unlike investing, day trading crypto involves entering and exiting positions more frequently with the goal to generate profits on short-term price movements.

For that reason, this approach requires increased time to monitor markets, especially if you are using a high-frequency trading strategy like scalping.

On the other hand, unlike with investing, you can leverage day trading to capitalize on short-term opportunities to make profits.

And, if you are a successful trader, you can even use this strategy to generate regular, potentially full-time, revenue.

Instead of fundamental analysis, traders incorporate multiple technical analysis tools and indicators into their crypto trading strategies to study trends as well as identify and interpret signals.

For that reason, mastering day trading is often a more challenging task than learning how to invest in cryptocurrency in the long run.

Unlike investors who can just wait out short periods of volatility, traders are more affected by emotions like fear, greed, and hope, which often influence their decisions negatively.

Day trading usually involves more risks than long-term holding, so it’s crucial for traders to learn how to manage and minimize them to maintain profitable trades.

That said, with effective risk management and the ability to keep your emotions under control, day trading crypto can become a lucrative strategy to capitalize on the rising digital asset market.

On top of that, day traders can amplify their gains from successful trades by trading Bitcoin with leverage.

Invest and Trade Crypto on Digitex

Both investing and day trading are viable approaches to gain exposure to the fast-growing digital asset market.

While investment focuses on generating long-term revenue, day trading aims to capture profits from numerous short-term trades.

In addition to its Bitcoin futures exchange, the next-generation crypto trading platform Digitex has recently opened access for its users to spot markets as well.

As a result, you can now leverage both investing and day trading strategies to generate potential profits on cryptocurrencies on Digitex.

Oh, and we almost forgot to mention: since Digitex completely eliminates trading fees, you can keep 100% of your profits on the platform.

Sounds fantastic, right?

Open an account at Digitex now!

May 5, 2021
Trading
Cryptocurrency

The Pros and Cons of Crypto Investing and Trading

Digitex
trading

Wondering how to capitalize on the crypto bull market’s gains?

To achieve that, you can choose between two main methods: to invest in digital assets for the long run or day trade crypto to generate short-term profits.

In this article, we will explain the main differences between the two approaches while introducing the pros and cons of each.

What Are the Pros and Cons of Long-Term Crypto Investments?

One of the easiest ways to gain exposure to the crypto market is by investing in digital assets for the long term.

With this strategy, you buy and hold cryptocurrencies for at least several months (or even multiple years) and later sell them for a profit after their prices have increased to a satisfactory level.

While the investment approach doesn’t take short-term price movements into account, it requires investors to leverage fundamental analysis, in which they carefully research digital assets to select the most promising ones.

Since crypto investing is a long-term strategy, it comes with only a few monthly or yearly trades, which can save you time as well as provide tax benefits in some jurisdictions. For the same reason, less paperwork is required to report investment-related income.

Also, it’s easier for beginners to get started as they don’t have to learn how to use various technical analysis tools and implement them into their crypto trading strategies.

Moreover, investment strategies like dollar-cost averaging (DCA) – in which one invests a fixed amount of funds in an asset at regular intervals (e.g., $100 on the first day of each month throughout a year) – can remove the extra legwork needed for attempting to time the market.

On the flip side, investing for the long-term in crypto is not suitable for making regular or a full-time income.

While crypto investment is usually considered safer than day trading, you face higher risks with this strategy if you fail to research projects properly (or if you don’t do any research).

Furthermore, while you can make a decent income in the long run with this strategy, crypto investors usually miss out on multiple short-term profit-making opportunities.

What Are the Pros and Cons of Day Trading Crypto?

Unlike investing, day trading crypto involves entering and exiting positions more frequently with the goal to generate profits on short-term price movements.

For that reason, this approach requires increased time to monitor markets, especially if you are using a high-frequency trading strategy like scalping.

On the other hand, unlike with investing, you can leverage day trading to capitalize on short-term opportunities to make profits.

And, if you are a successful trader, you can even use this strategy to generate regular, potentially full-time, revenue.

Instead of fundamental analysis, traders incorporate multiple technical analysis tools and indicators into their crypto trading strategies to study trends as well as identify and interpret signals.

For that reason, mastering day trading is often a more challenging task than learning how to invest in cryptocurrency in the long run.

Unlike investors who can just wait out short periods of volatility, traders are more affected by emotions like fear, greed, and hope, which often influence their decisions negatively.

Day trading usually involves more risks than long-term holding, so it’s crucial for traders to learn how to manage and minimize them to maintain profitable trades.

That said, with effective risk management and the ability to keep your emotions under control, day trading crypto can become a lucrative strategy to capitalize on the rising digital asset market.

On top of that, day traders can amplify their gains from successful trades by trading Bitcoin with leverage.

Invest and Trade Crypto on Digitex

Both investing and day trading are viable approaches to gain exposure to the fast-growing digital asset market.

While investment focuses on generating long-term revenue, day trading aims to capture profits from numerous short-term trades.

In addition to its Bitcoin futures exchange, the next-generation crypto trading platform Digitex has recently opened access for its users to spot markets as well.

As a result, you can now leverage both investing and day trading strategies to generate potential profits on cryptocurrencies on Digitex.

Oh, and we almost forgot to mention: since Digitex completely eliminates trading fees, you can keep 100% of your profits on the platform.

Sounds fantastic, right?

Open an account at Digitex now!

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

How Does Zero-Fee Crypto Trading Impact Your ROI? 3

How Does Zero-Fee Crypto Trading Impact Your ROI?

Trading
• Digitex

Nearly all cryptocurrency exchanges on the market charge fees for each trade on their platform to keep their business profitable.

While it’s a viable business model used by many brokers in the traditional finance industry, trading costs hurt the profitability of traders even when they seem very low.

For that reason, the next-generation cryptocurrency exchange Digitex has entirely eliminated trading costs on its platform to offer a zero-fee experience for its traders both on the spot and Bitcoin derivatives markets.

In this article, we will show how zero-fee trading impacts our users’ ROI.

More Profits Per Trade

All types of trading fees – such as spreads and commissions – take away a portion of your hard-earned profits.

For example, suppose a cryptocurrency exchange charges 0.15% per trade. In that case, it will take 0.15% from your initial amount when you open a trade, and you will pay another 0.15% after the value your order gets filled at when exiting your position.

While the initial 0.15% hurts your chances of winning trades (more on this later), the second fee takes away a part of your profits (or increases your losses if your ROI is in the negative).

In reality, this works out as follows:

  • You enter and exit 100 positions to trade one BTC futures contract for $1,000 each time, from which you win 60 and lose 40
  • You make a $30 profit on each of your winning trades ($1,800 in total)
  • You lose $20 on the other 40 trades ($800)

As a result, your gross profit equals $1,000. However, since the crypto exchange charges a 0.15% fee on each of your trades, your net profits will decrease to $848.50 ($1000 – $1,545 x 60 + $1.47 x 40).

While a 0.15% fee doesn’t seem like much at first, the exchange ate over 15% of your profits in the above example, which effectively decreases your ROI. Imagine if you were using leverage! That fee would also be increased proportionally as well, which is a huge chunk of your profit.

On the other hand, if you trade on Digitex with zero fees, you will keep 100% of your gains, which would save you $151.50.

Moreover, in the above example, we didn’t even take compound interest into account, which is a powerful financial technique investor legend Warren Buffet used to achieve success on the market.

By compounding interest, you continuously reinvest your trading profits to generate an even better ROI in the long run.

Increased Chances of Winning Trades

In addition to making more profits, zero-fee trading also improves your chances of scoring winning trades.

Since Digitex doesn’t impose a fee when you enter a new position (and won’t be charging any other costs at all), you will start every trade with a 50-50% chance of winning or losing.

For example, as part of your crypto trading strategy, you will exit profitable trades after Bitcoin’s price goes up 1%.

On the other hand, you place a stop-loss order for each of your positions, which will automatically get triggered after the BTC price decreases by 1%.

Say there’s always a 50% chance that the BTC price will surge by at least 1% and also a 50% chance that it will move down by a minimum of 1% with every additional 0.1% gains or losses decreasing the probability by 2%.

On a zero-fee crypto trading platform, this would look like the following:

Realized Profit and Loss (minimum) Probability
+1.1% 48%
+1% 50%
-1% 50%
-1.1% 48%

As you can see, since there are no costs involved, the trader has a real 50% chance to win or lose trades in the above example.

Now, let’s see how this would work out on a digital asset exchange where traders enter every trade with a 0.1% loss due to trading costs.

Realized Profit and Loss (minimum) Probability
+1.1% 46%
+1% 48%
+0.9% 50%
-0.9% 54%
-1% 52%
-1.1% 50%

Since you paid 0.1% to the exchange for entering the position and started with a loss, your odds of scoring a winning trade have decreased to 48%, while the chances for losing one increased to 52%.

And this leads to an even worse scenario if you use a high-frequency crypto trading strategy like scalping, where you aim to take even smaller profits than in the above examples.

Let’s say that you seek to make a profit of 0.2% while triggering a stop-loss each time your realized PnL decreases by 0.2%. Like in the above example, you would have the same 50-50% chance of winning/losing at a zero-fee platform like Digitex with scalping.

On the other hand, you would face serious losses on a crypto exchange that takes a 0.1% cut from traders:

Realized Profit and Loss (minimum) Probability
+0.2% 30%
+0.15% 40%
+0.1% 50%
-0.1% 90%
-0.15% 80%
-0.2% 70%
-0.25% 60%
-0.3% 50%

As you can see from the table above, a 0.1% trading fee would lead to only a 30% chance of winning trades.

For that reason, since the risk/reward ratio was 1:1 in our example, trading at a crypto exchange with such costs will result in serious losses with this crypto trading strategy.

Supercharge Your ROI With Zero-Fee Trading at Digitex

By now, it has become clear that zero-fee trading is an excellent way to boost your ROI on the cryptocurrency market.

Eliminating trading costs not only leads to scoring more profits on your trades but also increases your chances of winning them.

Are you ready to supercharge your ROI while enjoying a zero-fee trading experience on both the crypto spot and futures markets?

Sign up for an account at Digitex now!

April 26, 2021
Trading

How Does Zero-Fee Crypto Trading Impact Your ROI?

Digitex
How Does Zero-Fee Crypto Trading Impact Your ROI? 4

Nearly all cryptocurrency exchanges on the market charge fees for each trade on their platform to keep their business profitable.

While it’s a viable business model used by many brokers in the traditional finance industry, trading costs hurt the profitability of traders even when they seem very low.

For that reason, the next-generation cryptocurrency exchange Digitex has entirely eliminated trading costs on its platform to offer a zero-fee experience for its traders both on the spot and Bitcoin derivatives markets.

In this article, we will show how zero-fee trading impacts our users’ ROI.

More Profits Per Trade

All types of trading fees – such as spreads and commissions – take away a portion of your hard-earned profits.

For example, suppose a cryptocurrency exchange charges 0.15% per trade. In that case, it will take 0.15% from your initial amount when you open a trade, and you will pay another 0.15% after the value your order gets filled at when exiting your position.

While the initial 0.15% hurts your chances of winning trades (more on this later), the second fee takes away a part of your profits (or increases your losses if your ROI is in the negative).

In reality, this works out as follows:

  • You enter and exit 100 positions to trade one BTC futures contract for $1,000 each time, from which you win 60 and lose 40
  • You make a $30 profit on each of your winning trades ($1,800 in total)
  • You lose $20 on the other 40 trades ($800)

As a result, your gross profit equals $1,000. However, since the crypto exchange charges a 0.15% fee on each of your trades, your net profits will decrease to $848.50 ($1000 – $1,545 x 60 + $1.47 x 40).

While a 0.15% fee doesn’t seem like much at first, the exchange ate over 15% of your profits in the above example, which effectively decreases your ROI. Imagine if you were using leverage! That fee would also be increased proportionally as well, which is a huge chunk of your profit.

On the other hand, if you trade on Digitex with zero fees, you will keep 100% of your gains, which would save you $151.50.

Moreover, in the above example, we didn’t even take compound interest into account, which is a powerful financial technique investor legend Warren Buffet used to achieve success on the market.

By compounding interest, you continuously reinvest your trading profits to generate an even better ROI in the long run.

Increased Chances of Winning Trades

In addition to making more profits, zero-fee trading also improves your chances of scoring winning trades.

Since Digitex doesn’t impose a fee when you enter a new position (and won’t be charging any other costs at all), you will start every trade with a 50-50% chance of winning or losing.

For example, as part of your crypto trading strategy, you will exit profitable trades after Bitcoin’s price goes up 1%.

On the other hand, you place a stop-loss order for each of your positions, which will automatically get triggered after the BTC price decreases by 1%.

Say there’s always a 50% chance that the BTC price will surge by at least 1% and also a 50% chance that it will move down by a minimum of 1% with every additional 0.1% gains or losses decreasing the probability by 2%.

On a zero-fee crypto trading platform, this would look like the following:

Realized Profit and Loss (minimum) Probability
+1.1% 48%
+1% 50%
-1% 50%
-1.1% 48%

As you can see, since there are no costs involved, the trader has a real 50% chance to win or lose trades in the above example.

Now, let’s see how this would work out on a digital asset exchange where traders enter every trade with a 0.1% loss due to trading costs.

Realized Profit and Loss (minimum) Probability
+1.1% 46%
+1% 48%
+0.9% 50%
-0.9% 54%
-1% 52%
-1.1% 50%

Since you paid 0.1% to the exchange for entering the position and started with a loss, your odds of scoring a winning trade have decreased to 48%, while the chances for losing one increased to 52%.

And this leads to an even worse scenario if you use a high-frequency crypto trading strategy like scalping, where you aim to take even smaller profits than in the above examples.

Let’s say that you seek to make a profit of 0.2% while triggering a stop-loss each time your realized PnL decreases by 0.2%. Like in the above example, you would have the same 50-50% chance of winning/losing at a zero-fee platform like Digitex with scalping.

On the other hand, you would face serious losses on a crypto exchange that takes a 0.1% cut from traders:

Realized Profit and Loss (minimum) Probability
+0.2% 30%
+0.15% 40%
+0.1% 50%
-0.1% 90%
-0.15% 80%
-0.2% 70%
-0.25% 60%
-0.3% 50%

As you can see from the table above, a 0.1% trading fee would lead to only a 30% chance of winning trades.

For that reason, since the risk/reward ratio was 1:1 in our example, trading at a crypto exchange with such costs will result in serious losses with this crypto trading strategy.

Supercharge Your ROI With Zero-Fee Trading at Digitex

By now, it has become clear that zero-fee trading is an excellent way to boost your ROI on the cryptocurrency market.

Eliminating trading costs not only leads to scoring more profits on your trades but also increases your chances of winning them.

Are you ready to supercharge your ROI while enjoying a zero-fee trading experience on both the crypto spot and futures markets?

Sign up for an account at Digitex now!

Latest News

digitex

Awesome Community Videos About the Digitex Platform

Digitex Futures
Trading
• Christina Comben
April 14, 2021

We’re thrilled to see the Digitex exchange gaining traction. In a raging bull market with bitcoin (BTC) and ether (ETH) making staggering gains and marking new all-time highs, there really has never been a better time to take advantage of the volatility by trading commission-free. Digitex allows you to keep all your profit and even pays you while you  trade through our Liquidity Mining program. Check out some of these awesome videos to get a better taste of the platform and find out what the community is saying.

Digitex Futures Is the Best 0% Fee Exchange of 2021

Of course, you already know how much we love our platform. But don’t just take our word for it. In this super-bullish video by Danny at UP NEXT CRYPTO, he takes a look at promising meme coin $DOGIRA and then focuses on Digitex (from 08:12), calling it “the best zero-fee exchange of 2021!” Check it out: 

Danny says Bitcoin futures trading is made so simple on Digitex thanks to zero fees, high liquidity, and a one-click interface. He also says that Digitex is one of the most beautiful platforms he has ever seen for trading. “I think this is going to be my daily use platform for trading,” he enthuses. 

He focuses on the interface, and looks at the graphs, charts, order books, contracts, and UI that “is just so clean.” And he briefly shows us where we can see all our open positions and unmatched orders, where to set market, limit, and stop orders, and where to adjust the leverage. 

Danny explains how the exchange is powered by the DGTX token and, as such, you’ll need to own DGTX if you want to trade on the platform. “The zero fees thing is really really important. They’re saving you a lot of money by not having to pay these fees,” he adds. 

He also points out that zero fees let you execute trading strategies that you simply can’t on any other exchange; “not Huobi, not Binance, not Bybit, not BTSE… none of these huge platforms have trading with zero fees.”

Danny loves the benefits of one-click trading, saying that Digitex has “gone above and beyond” to enhance the trading experience. He also speaks about the Liquidity Mining program that pays you to trade, saying, “This is a feature I have not seen before.”

He emphasizes the importance of our “battle tested” matching engine that’s been working since 2019 and proven itself capable of handling over 22 billion contracts in 24 hours on crypto’s first trading ladder interface. 

“This has to be one of my top picks for 2021 for any platform for you guys to start trading on, the cleanest-looking cheapest platform for your trading needs.” 

How to Place Stop Loss on Digitex Futures

Next up, we have another awesome video from Digitex frequent trader CoinCollector, whose latest walkthrough of the Digitex platform we featured last week. In this short informative clip, you can see how to place a stop loss on Digitex Futures. Check it out:

Stop loss orders are extremely important when trading in volatile markets to protect yourself from heavy losses in the event of the price quickly moving against you. CoinCollector says that he has seen a few traders struggling to set up their stop loss on Digitex, even though it is “pretty straightforward.” So he walks us through the steps very simply in his video.

He gives two examples of how to do this, on a long position and on a short position. Starting with a long position, you go into a market long position and then click on “Stop Market” and click on “Sell” — this is because you will want to sell your position at some point to ensure you don’t get liquidated if the market turns bearish.

In his first example, he enters the long position at $58005. So, he will type in the sell price at $57995. He then clicks on “Set Sell Stop” and the order will be automatically  triggered once this price is reached, to get out of the position with a small loss, “saving you from a big loss.”

It’s exactly the same with a short position, except that you place a stop loss to the upside. “We want to protect ourselves if the BTC price rises too high.” To do this, we click on “Buy” and we protect ourselves to the upside. CoinCollector goes in at $57935 and wants to protect himself by buying at $57960. He clicks on “Set Buy Stop.” It’s as simple as that. The order will be triggered if the price goes against you. If you still have questions, CoinCollector says to feel free to type your comments below the video.

Fast, Zero Fees Bitcoin Futures Trading on Digitex | Full Exchange Review

Finally, if you haven’t seen long-time Digitex trader Mika’s video yet on the exchange be sure to check it out. Once again he delivers an enthusiastic and bullish review, walking through the website, the features of the exchange, the trading UI, and the fact that the spot markets are coming soon. 

He places particular focus on the amount of money you can save through our zero-fee model, especially when using leverage. The standard 0.075% quickly becomes a large percent of your profits (7.5%!) which makes short-term scalping extremely hard and even impossible on other exchanges. 

He’s very thoughtfully recorded his video in English and in Russian so you can choose the version that suits you best below.

English:

Russian: 

Thanks so much to Danny, CoinCollector, and Mika, and to all the traders who trade on the Digitex platform. We’re so happy to hear you’re loving it and we’re working to make it even better all the time. Many thanks for the amazing videos, and for all your continued support. Don’t forget that you can always let us know if you have any comments or feedback. Until then, happy trading!

April 14, 2021
Digitex Futures
Trading

Awesome Community Videos About the Digitex Platform

Christina Comben
digitex

We’re thrilled to see the Digitex exchange gaining traction. In a raging bull market with bitcoin (BTC) and ether (ETH) making staggering gains and marking new all-time highs, there really has never been a better time to take advantage of the volatility by trading commission-free. Digitex allows you to keep all your profit and even pays you while you  trade through our Liquidity Mining program. Check out some of these awesome videos to get a better taste of the platform and find out what the community is saying.

Digitex Futures Is the Best 0% Fee Exchange of 2021

Of course, you already know how much we love our platform. But don’t just take our word for it. In this super-bullish video by Danny at UP NEXT CRYPTO, he takes a look at promising meme coin $DOGIRA and then focuses on Digitex (from 08:12), calling it “the best zero-fee exchange of 2021!” Check it out: 

Danny says Bitcoin futures trading is made so simple on Digitex thanks to zero fees, high liquidity, and a one-click interface. He also says that Digitex is one of the most beautiful platforms he has ever seen for trading. “I think this is going to be my daily use platform for trading,” he enthuses. 

He focuses on the interface, and looks at the graphs, charts, order books, contracts, and UI that “is just so clean.” And he briefly shows us where we can see all our open positions and unmatched orders, where to set market, limit, and stop orders, and where to adjust the leverage. 

Danny explains how the exchange is powered by the DGTX token and, as such, you’ll need to own DGTX if you want to trade on the platform. “The zero fees thing is really really important. They’re saving you a lot of money by not having to pay these fees,” he adds. 

He also points out that zero fees let you execute trading strategies that you simply can’t on any other exchange; “not Huobi, not Binance, not Bybit, not BTSE… none of these huge platforms have trading with zero fees.”

Danny loves the benefits of one-click trading, saying that Digitex has “gone above and beyond” to enhance the trading experience. He also speaks about the Liquidity Mining program that pays you to trade, saying, “This is a feature I have not seen before.”

He emphasizes the importance of our “battle tested” matching engine that’s been working since 2019 and proven itself capable of handling over 22 billion contracts in 24 hours on crypto’s first trading ladder interface. 

“This has to be one of my top picks for 2021 for any platform for you guys to start trading on, the cleanest-looking cheapest platform for your trading needs.” 

How to Place Stop Loss on Digitex Futures

Next up, we have another awesome video from Digitex frequent trader CoinCollector, whose latest walkthrough of the Digitex platform we featured last week. In this short informative clip, you can see how to place a stop loss on Digitex Futures. Check it out:

Stop loss orders are extremely important when trading in volatile markets to protect yourself from heavy losses in the event of the price quickly moving against you. CoinCollector says that he has seen a few traders struggling to set up their stop loss on Digitex, even though it is “pretty straightforward.” So he walks us through the steps very simply in his video.

He gives two examples of how to do this, on a long position and on a short position. Starting with a long position, you go into a market long position and then click on “Stop Market” and click on “Sell” — this is because you will want to sell your position at some point to ensure you don’t get liquidated if the market turns bearish.

In his first example, he enters the long position at $58005. So, he will type in the sell price at $57995. He then clicks on “Set Sell Stop” and the order will be automatically  triggered once this price is reached, to get out of the position with a small loss, “saving you from a big loss.”

It’s exactly the same with a short position, except that you place a stop loss to the upside. “We want to protect ourselves if the BTC price rises too high.” To do this, we click on “Buy” and we protect ourselves to the upside. CoinCollector goes in at $57935 and wants to protect himself by buying at $57960. He clicks on “Set Buy Stop.” It’s as simple as that. The order will be triggered if the price goes against you. If you still have questions, CoinCollector says to feel free to type your comments below the video.

Fast, Zero Fees Bitcoin Futures Trading on Digitex | Full Exchange Review

Finally, if you haven’t seen long-time Digitex trader Mika’s video yet on the exchange be sure to check it out. Once again he delivers an enthusiastic and bullish review, walking through the website, the features of the exchange, the trading UI, and the fact that the spot markets are coming soon. 

He places particular focus on the amount of money you can save through our zero-fee model, especially when using leverage. The standard 0.075% quickly becomes a large percent of your profits (7.5%!) which makes short-term scalping extremely hard and even impossible on other exchanges. 

He’s very thoughtfully recorded his video in English and in Russian so you can choose the version that suits you best below.

English:

Russian: 

Thanks so much to Danny, CoinCollector, and Mika, and to all the traders who trade on the Digitex platform. We’re so happy to hear you’re loving it and we’re working to make it even better all the time. Many thanks for the amazing videos, and for all your continued support. Don’t forget that you can always let us know if you have any comments or feedback. Until then, happy trading!

Latest News

The Top 5 Mistakes of Beginner Crypto Traders 5

The Top 5 Mistakes of Beginner Crypto Traders

Trading
• Digitex

With an over $2 trillion size, the current cryptocurrency bull market provides great opportunities for many investors and traders.

However, as with other asset classes, crypto is not a get-rich-quick scheme in which you put your money to see over 1,000% returns a day after (it can happen, but it’s highly unlikely).

Instead, you have to research assets to pick the right ones, gather knowledge about the market, as well as create and implement a viable crypto trading strategy to succeed.

That said, many newbies have failed to achieve the above, causing them severe losses after pouring money into digital assets.

For that reason, we have collected the top 5 mistakes of beginner crypto traders and some tips to avoid them in this article.

1. Trading Without the Necessary Knowledge

It’s tempting to jump right into day trading crypto without having the necessary trading or market knowledge.

While you may achieve good returns at first, it’s the result of pure luck in most cases. Even worse, when your luck goes away, you will likely face serious losses.

For you to succeed in day trading crypto, you need at least a basic knowledge of cryptocurrencies, market mechanisms, as well as trading assets in general.

If you have acquired that, you will know how to use fundamental analysis, technical analysis, or the combination of the two to spot crypto trading signals and pick the right ones to make decent returns on your trades.

Fortunately, the digital asset industry has tons of guides, tutorials, and even full-fledged courses that you can use to learn crypto trading.

The Digitex Blog is an excellent starting point to read beginner-friendly articles on crypto trading; we highly recommend checking it out!

2. Lack of Crypto Trading Strategies

Even those who have extensive market knowledge often fail to develop their crypto trading strategies before jumping into a trade.

The lack of a decent plan will lead to impulsive trading, which can be best compared to visiting the supermarket hungry without a grocery shopping list and buying all the food you find there.

While both cases lead to spending significantly more money than you would have planned, impulsive decisions in trading can cause severe financial losses.

For that reason, you need a good crypto trading strategy, which includes strict rules to enter and exit trades, tactics to manage your risks, as well as the tools and indicators to research assets and find decent opportunities to trade.

3. Panic Selling

When you are trading cryptocurrencies – or basically any other asset class –, it’s hard to keep your emotions in control.

Greed, fear, hope, and excitement are some of those emotions that prevent traders from making the right decisions.

If you can’t control your emotions, you will likely face the issue of panic selling, in which traders or investors sell a cryptocurrency as soon as it experiences significant losses.

While it makes sense to cut your losses sometimes, you should remember that you will only lose money on a long trade after selling the asset.

If your crypto trading strategy is a great one, you will know when to enter and exit trades, and you won’t experience the panic that would make you sell your digital asset holdings when prices hit bottom.

4. Revenge Trading

One of the most common mistakes of beginner crypto traders is revenge trading, in which one loses funds in a trade and enters into a new, riskier position in an attempt to recover his losses.

In such a case, the trader takes too much risks while his decision is driven by frustration and fear. For these reasons, it’s very likely to lead to further, more significant losses.

Being disciplined, keeping your emotions in control, and leveraging a decent crypto trading strategy is an excellent way to overcome revenge trading.

5. Paying High Exchange Fees

A common misconception among beginner crypto traders is that you have a 50-50% chance to win or lose a trade.

However, in practice, it’s (almost) never true.

Since crypto exchanges impose fees on your trades right after entering a position, you will start trading crypto with a loss.

And things will get worse when you margin trade crypto – a 0.10% fee becomes 10% in case of a 100x leverage – or pick a service provider that features higher costs than average.

The lower the fees, the higher your chances for winning trades; you should remember that.

At Digitex, our top priority is to offer the best crypto trading experience to our traders. For that reason, we have completely eliminated fees, allowing all our users to have access to free crypto trading.

As a result, you can limit their risks and maximize your chances for winning trades while keeping 100% of the profit you make on the platform.

Start trading crypto on Digitex now!

April 14, 2021
Trading

The Top 5 Mistakes of Beginner Crypto Traders

Digitex
The Top 5 Mistakes of Beginner Crypto Traders 6

With an over $2 trillion size, the current cryptocurrency bull market provides great opportunities for many investors and traders.

However, as with other asset classes, crypto is not a get-rich-quick scheme in which you put your money to see over 1,000% returns a day after (it can happen, but it’s highly unlikely).

Instead, you have to research assets to pick the right ones, gather knowledge about the market, as well as create and implement a viable crypto trading strategy to succeed.

That said, many newbies have failed to achieve the above, causing them severe losses after pouring money into digital assets.

For that reason, we have collected the top 5 mistakes of beginner crypto traders and some tips to avoid them in this article.

1. Trading Without the Necessary Knowledge

It’s tempting to jump right into day trading crypto without having the necessary trading or market knowledge.

While you may achieve good returns at first, it’s the result of pure luck in most cases. Even worse, when your luck goes away, you will likely face serious losses.

For you to succeed in day trading crypto, you need at least a basic knowledge of cryptocurrencies, market mechanisms, as well as trading assets in general.

If you have acquired that, you will know how to use fundamental analysis, technical analysis, or the combination of the two to spot crypto trading signals and pick the right ones to make decent returns on your trades.

Fortunately, the digital asset industry has tons of guides, tutorials, and even full-fledged courses that you can use to learn crypto trading.

The Digitex Blog is an excellent starting point to read beginner-friendly articles on crypto trading; we highly recommend checking it out!

2. Lack of Crypto Trading Strategies

Even those who have extensive market knowledge often fail to develop their crypto trading strategies before jumping into a trade.

The lack of a decent plan will lead to impulsive trading, which can be best compared to visiting the supermarket hungry without a grocery shopping list and buying all the food you find there.

While both cases lead to spending significantly more money than you would have planned, impulsive decisions in trading can cause severe financial losses.

For that reason, you need a good crypto trading strategy, which includes strict rules to enter and exit trades, tactics to manage your risks, as well as the tools and indicators to research assets and find decent opportunities to trade.

3. Panic Selling

When you are trading cryptocurrencies – or basically any other asset class –, it’s hard to keep your emotions in control.

Greed, fear, hope, and excitement are some of those emotions that prevent traders from making the right decisions.

If you can’t control your emotions, you will likely face the issue of panic selling, in which traders or investors sell a cryptocurrency as soon as it experiences significant losses.

While it makes sense to cut your losses sometimes, you should remember that you will only lose money on a long trade after selling the asset.

If your crypto trading strategy is a great one, you will know when to enter and exit trades, and you won’t experience the panic that would make you sell your digital asset holdings when prices hit bottom.

4. Revenge Trading

One of the most common mistakes of beginner crypto traders is revenge trading, in which one loses funds in a trade and enters into a new, riskier position in an attempt to recover his losses.

In such a case, the trader takes too much risks while his decision is driven by frustration and fear. For these reasons, it’s very likely to lead to further, more significant losses.

Being disciplined, keeping your emotions in control, and leveraging a decent crypto trading strategy is an excellent way to overcome revenge trading.

5. Paying High Exchange Fees

A common misconception among beginner crypto traders is that you have a 50-50% chance to win or lose a trade.

However, in practice, it’s (almost) never true.

Since crypto exchanges impose fees on your trades right after entering a position, you will start trading crypto with a loss.

And things will get worse when you margin trade crypto – a 0.10% fee becomes 10% in case of a 100x leverage – or pick a service provider that features higher costs than average.

The lower the fees, the higher your chances for winning trades; you should remember that.

At Digitex, our top priority is to offer the best crypto trading experience to our traders. For that reason, we have completely eliminated fees, allowing all our users to have access to free crypto trading.

As a result, you can limit their risks and maximize your chances for winning trades while keeping 100% of the profit you make on the platform.

Start trading crypto on Digitex now!

Latest News

What Is Margin Trading and Why Should You Trade Bitcoin With Leverage? 7

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? 8

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

Ethereum

The Future Price of Ethereum — Technical Analysis

Digitex Futures
• Dave Reiter
April 12, 2021

Similar to other coins and tokens, Ethereum has generated a substantial rally throughout the past six months. Specifically, ETH has increased 498%, outperforming BTC by approximately 60% during the same time period (see chart 1 below). So, where do we go from here? How will ETH perform for the remainder of 2021 and beyond? Let’s explore the details.

The Future Price of Ethereum — Technical Analysis 9

The Difference Between Ethereum and Ether

In terms of market capitalization, ETH is the second-largest cryptocurrency in the crypto universe. Only Bitcoin has a larger market capitalization. ETH has enjoyed some explosive price moves throughout its brief 6-year history. But, before we analyze the future price direction of ETH, let’s briefly discuss the difference between Ethereum and Ether.

There seems to be some confusion regarding these two crypto terms. Ethereum is a blockchain-based platform used for writing autonomous smart contracts and decentralized applications. Ether is the cryptocurrency that serves as the fuel to power the smart contracts, apps, and other transactions on the Ethereum blockchain.

Although most people in the crypto community (including many crypto websites) use these words interchangeably, they are actually quite different in terms of how they are used in the crypto ecosystem.

Use Cases for Ethereum Blockchain Continue to Expand

In this article, we will be analyzing the price direction of Ether (ETH), the cryptocurrency. However, it’s also important to discuss Ethereum, the blockchain, because it lays the foundation for the current ETH bull market. It seems almost impossible to believe that Ether was trading below $100 per token less than 15 months ago (see chart 2).

The Future Price of Ethereum — Technical Analysis 10

Over the course of the past 15 months, ETH has exploded to the upside by increasing 2,226%. Since March 2020, ETH has been one of the top-performing cryptocurrencies within the entire crypto universe. Ether easily outperformed Bitcoin during this particular time period, 2,226% versus 1,388%.

The majority of Ether’s gains can be attributed to the fact that the total number of use cases for the Ethereum blockchain has increased substantially. Unlike the Bitcoin blockchain, Ethereum can be used for multiple applications across a wide variety of industries. Several of these applications have evolved into legitimate and profitable business enterprises with exponential growth potential. Let’s briefly examine a few of these Ethereum-based businesses.

DeFi (Decentralized Finance)

Without question, the most exciting new business linked to Ethereum is decentralized finance, more commonly known as DeFi. Although DeFi has been in existence for less than four years, it has gained an incredible amount of interest from venture capital firms and angel investors who see the enormous potential in this new space.

Without going into great detail, DeFi competes head-to-head with the legacy financial services industry, with an estimated value of $26.5 trillion by 2022, according to data gathered by The World Bank. Based on these numbers, the upside potential in DeFi is massive. This is great news if you are an owner of ETH because the overwhelming majority of the DeFi ecosystem operates on the Ethereum blockchain.

NFTs (Non-Fungible Tokens)

Another business venture associated with Ethereum is non-fungible tokens (NFT), which have witnessed a tremendous wave of enthusiasm from investors and speculators during the past few months. Very briefly, non-fungible tokens allow non-fungible assets to possess unique properties that completely change the user and development relationship of these assets.

Examples of non-fungible digital assets include digital collectibles, such as in-game items and characters, virtual pets, and representations of fine art. By attaching unique properties such as immutability and scarcity to non-fungible assets, it substantially increases the value of said assets.

Almost the entire NFT industry operates on the Ethereum blockchain, which is obviously bullish for ETH. Arguably, the most exciting part of NFTs is the fact that young people are heavily involved in this exciting new space. Consequently, this will provide Generation Z with an opportunity to familiarize themselves with cryptocurrencies and other digital assets. This is very bullish from a long-term perspective.

In addition to DeFi and NFT, the Ethereum blockchain is also actively engaged in enterprise software, which is used by organizations, businesses, charities, schools, and governments to handle day-to-day operations across a wide variety of internal departments within each organization.

These daily operations would include such tasks as human resources, supply chain management, database management, CRM, security, and billing systems. Enterprise software companies are using a privatized version of the Ethereum network to provide their services to companies like Microsoft, IBM, JPMorgan Chase, and Deloitte.

These are just a few examples of how the Ethereum blockchain is linked to industries and businesses across the global economy. Of course, this is extremely bullish for ETH because these companies and businesses must purchase ETH in order to pay for their services on the Ethereum blockchain. Many crypto experts believe that the number of use cases for Ethereum will continue to expand as blockchain technology becomes more common throughout the global economy.

Using TA to Forecast the Price of ETH

Technical analysis has been extremely useful in forecasting the future price direction of ETH. Let’s review a few of these indicators.

Arguably, the most reliable technical indicator in modern history was created by a twelfth-century Italian mathematician by the name of Leonardo Fibonacci. The vast majority of mathematical historians consider Fibonacci to be the greatest mathematician of the Middle Ages. In fact, many experts in the field of mathematics claim that Fibonacci was one of the ten greatest mathematicians of all time.

Fibonacci made several important contributions to the field of mathematics throughout his life. However, he will always be most famously known for Fibonacci numbers, which are a sequence of numbers developed by Fibonacci circa 1202.

Fibonacci numbers are used in the study of nature, music, agriculture, computer applications, price forecasting, and several other fields of study. Stock and commodity traders use “Fib” numbers to calculate support and resistance levels.

The most common Fib levels are:

  • .236
  • .382
  • .500
  • .618
  • .786
  • 000

It’s not uncommon for financial assets like cryptocurrencies to fluctuate between Fibonacci support and resistance levels for long periods of time. When a major breakout finally occurs, it usually marks the beginning of a substantial move.

The crypto trading community would love to know the final top in ETH before a new bear market ensues, probably near the end of 2021 or early-2022. Of course, it’s impossible to accurately forecast the final top of any speculative asset. Cryptocurrencies are particularly difficult because we have such a small sample size of historical data. However, we can use Fibonacci numbers to develop an educated forecast concerning the final top for Ether. Please review the calculation on Chart 3 below:

The Future Price of Ethereum — Technical Analysis 11

There are several different ways to use Fib levels as a forecasting device. The most popular format involves calculating the price difference between two important price levels. For this particular calculation, we selected the historic high from January 2018 and the subsequent low achieved in December of the same year.

The majority of Fibonacci experts agree that .618 is the most significant Fib level. Therefore, we will use this number in our calculation. Based on the Fibonacci calculation, the final top for this cycle will be 4,921.73. If ETH follows the same path as the 2017 bull market, the top will occur in late-2021.

Another useful technical indicator is the Relative Strength Index (RSI), which was created by J Welles Wilder Jr, one of the greatest technical analysts in the history of financial markets. RSI is a momentum indicator that measures the overbought or oversold condition of a speculative asset. RSI is typically displayed in an oscillator format, which fluctuates between 0 and 100.

Generally speaking, a market is considered overbought if the RSI reading exceeds 70. Conversely, the market is considered oversold if the RSI reading falls below 30. Many traders will use a reading above 70 as a trigger to generate a sell signal and a reading below 30 will generate a buy signal. However, this is not a good strategy to follow in a momentum-fueled environment like cryptocurrencies. Please review Chart number 4:

The Future Price of Ethereum — Technical Analysis 12

The RSI reading has been above 70 since November 9, 2020, when ETH was trading @ 446.10. Obviously, this was not a good time to sell ETH. In fact, this would have been a great time to buy Ether. Therefore, an argument could be made that the optimum way to use RSI for trending markets like cryptocurrencies is to wait for a bullish breakout above 70 as a buy signal. A bearish breakout below 30 would constitute a sell signal. Trying to pick tops and bottoms in a trending market is a recipe for disaster. As Chart #4 clearly demonstrates, the best course of action is to follow the momentum.

In addition to RSI, another momentum-based indicator is the Money Flow Index (MFI). This indicator measures the inflow and outflow of money into a speculative asset over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular asset class.

Similar to RSI, the index fluctuates between 0 and 100. In terms of trending markets like cryptocurrencies, the best way to apply MFI is to wait for a bullish breakout above 70 or a bearish breakout below 30. MFI is located at the bottom of Chart #5.

The Future Price of Ethereum — Technical Analysis 13

An Ether buy signal was generated @ 509.11 on November 23, 2020, when MFI penetrated the 70 level. MFI has been continuously above 70 for the past five months. This is a perfect example of why it’s best to follow the trend of the market and avoid the temptation to pick a top or bottom.

At least for now, the trend of ETH is clearly in favor of the bulls. The vast majority of technical indicators are forecasting a continuation of the bull market. In addition to technical analysis, the fundamental backdrop for Ether is extremely bullish, as more use cases are being added to the Ethereum blockchain. Eventually, this bullish cycle will end and a new bear cycle will begin. However, this current bullish phase could easily continue for the remainder of 2021.

Don’t forget that whether the price of ETH goes up or down, you can make money trading ETH futures on our zero-fee rapid-fire ladder trading platform. Sign up here to find out how easy it is to profit from even the smallest of price fluctuations when you’re not constantly losing out to commissions. 

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

April 12, 2021
Digitex Futures

The Future Price of Ethereum — Technical Analysis

Dave Reiter
Ethereum

Similar to other coins and tokens, Ethereum has generated a substantial rally throughout the past six months. Specifically, ETH has increased 498%, outperforming BTC by approximately 60% during the same time period (see chart 1 below). So, where do we go from here? How will ETH perform for the remainder of 2021 and beyond? Let’s explore the details.

The Future Price of Ethereum — Technical Analysis 14

The Difference Between Ethereum and Ether

In terms of market capitalization, ETH is the second-largest cryptocurrency in the crypto universe. Only Bitcoin has a larger market capitalization. ETH has enjoyed some explosive price moves throughout its brief 6-year history. But, before we analyze the future price direction of ETH, let’s briefly discuss the difference between Ethereum and Ether.

There seems to be some confusion regarding these two crypto terms. Ethereum is a blockchain-based platform used for writing autonomous smart contracts and decentralized applications. Ether is the cryptocurrency that serves as the fuel to power the smart contracts, apps, and other transactions on the Ethereum blockchain.

Although most people in the crypto community (including many crypto websites) use these words interchangeably, they are actually quite different in terms of how they are used in the crypto ecosystem.

Use Cases for Ethereum Blockchain Continue to Expand

In this article, we will be analyzing the price direction of Ether (ETH), the cryptocurrency. However, it’s also important to discuss Ethereum, the blockchain, because it lays the foundation for the current ETH bull market. It seems almost impossible to believe that Ether was trading below $100 per token less than 15 months ago (see chart 2).

The Future Price of Ethereum — Technical Analysis 15

Over the course of the past 15 months, ETH has exploded to the upside by increasing 2,226%. Since March 2020, ETH has been one of the top-performing cryptocurrencies within the entire crypto universe. Ether easily outperformed Bitcoin during this particular time period, 2,226% versus 1,388%.

The majority of Ether’s gains can be attributed to the fact that the total number of use cases for the Ethereum blockchain has increased substantially. Unlike the Bitcoin blockchain, Ethereum can be used for multiple applications across a wide variety of industries. Several of these applications have evolved into legitimate and profitable business enterprises with exponential growth potential. Let’s briefly examine a few of these Ethereum-based businesses.

DeFi (Decentralized Finance)

Without question, the most exciting new business linked to Ethereum is decentralized finance, more commonly known as DeFi. Although DeFi has been in existence for less than four years, it has gained an incredible amount of interest from venture capital firms and angel investors who see the enormous potential in this new space.

Without going into great detail, DeFi competes head-to-head with the legacy financial services industry, with an estimated value of $26.5 trillion by 2022, according to data gathered by The World Bank. Based on these numbers, the upside potential in DeFi is massive. This is great news if you are an owner of ETH because the overwhelming majority of the DeFi ecosystem operates on the Ethereum blockchain.

NFTs (Non-Fungible Tokens)

Another business venture associated with Ethereum is non-fungible tokens (NFT), which have witnessed a tremendous wave of enthusiasm from investors and speculators during the past few months. Very briefly, non-fungible tokens allow non-fungible assets to possess unique properties that completely change the user and development relationship of these assets.

Examples of non-fungible digital assets include digital collectibles, such as in-game items and characters, virtual pets, and representations of fine art. By attaching unique properties such as immutability and scarcity to non-fungible assets, it substantially increases the value of said assets.

Almost the entire NFT industry operates on the Ethereum blockchain, which is obviously bullish for ETH. Arguably, the most exciting part of NFTs is the fact that young people are heavily involved in this exciting new space. Consequently, this will provide Generation Z with an opportunity to familiarize themselves with cryptocurrencies and other digital assets. This is very bullish from a long-term perspective.

In addition to DeFi and NFT, the Ethereum blockchain is also actively engaged in enterprise software, which is used by organizations, businesses, charities, schools, and governments to handle day-to-day operations across a wide variety of internal departments within each organization.

These daily operations would include such tasks as human resources, supply chain management, database management, CRM, security, and billing systems. Enterprise software companies are using a privatized version of the Ethereum network to provide their services to companies like Microsoft, IBM, JPMorgan Chase, and Deloitte.

These are just a few examples of how the Ethereum blockchain is linked to industries and businesses across the global economy. Of course, this is extremely bullish for ETH because these companies and businesses must purchase ETH in order to pay for their services on the Ethereum blockchain. Many crypto experts believe that the number of use cases for Ethereum will continue to expand as blockchain technology becomes more common throughout the global economy.

Using TA to Forecast the Price of ETH

Technical analysis has been extremely useful in forecasting the future price direction of ETH. Let’s review a few of these indicators.

Arguably, the most reliable technical indicator in modern history was created by a twelfth-century Italian mathematician by the name of Leonardo Fibonacci. The vast majority of mathematical historians consider Fibonacci to be the greatest mathematician of the Middle Ages. In fact, many experts in the field of mathematics claim that Fibonacci was one of the ten greatest mathematicians of all time.

Fibonacci made several important contributions to the field of mathematics throughout his life. However, he will always be most famously known for Fibonacci numbers, which are a sequence of numbers developed by Fibonacci circa 1202.

Fibonacci numbers are used in the study of nature, music, agriculture, computer applications, price forecasting, and several other fields of study. Stock and commodity traders use “Fib” numbers to calculate support and resistance levels.

The most common Fib levels are:

  • .236
  • .382
  • .500
  • .618
  • .786
  • 000

It’s not uncommon for financial assets like cryptocurrencies to fluctuate between Fibonacci support and resistance levels for long periods of time. When a major breakout finally occurs, it usually marks the beginning of a substantial move.

The crypto trading community would love to know the final top in ETH before a new bear market ensues, probably near the end of 2021 or early-2022. Of course, it’s impossible to accurately forecast the final top of any speculative asset. Cryptocurrencies are particularly difficult because we have such a small sample size of historical data. However, we can use Fibonacci numbers to develop an educated forecast concerning the final top for Ether. Please review the calculation on Chart 3 below:

The Future Price of Ethereum — Technical Analysis 16

There are several different ways to use Fib levels as a forecasting device. The most popular format involves calculating the price difference between two important price levels. For this particular calculation, we selected the historic high from January 2018 and the subsequent low achieved in December of the same year.

The majority of Fibonacci experts agree that .618 is the most significant Fib level. Therefore, we will use this number in our calculation. Based on the Fibonacci calculation, the final top for this cycle will be 4,921.73. If ETH follows the same path as the 2017 bull market, the top will occur in late-2021.

Another useful technical indicator is the Relative Strength Index (RSI), which was created by J Welles Wilder Jr, one of the greatest technical analysts in the history of financial markets. RSI is a momentum indicator that measures the overbought or oversold condition of a speculative asset. RSI is typically displayed in an oscillator format, which fluctuates between 0 and 100.

Generally speaking, a market is considered overbought if the RSI reading exceeds 70. Conversely, the market is considered oversold if the RSI reading falls below 30. Many traders will use a reading above 70 as a trigger to generate a sell signal and a reading below 30 will generate a buy signal. However, this is not a good strategy to follow in a momentum-fueled environment like cryptocurrencies. Please review Chart number 4:

The Future Price of Ethereum — Technical Analysis 17

The RSI reading has been above 70 since November 9, 2020, when ETH was trading @ 446.10. Obviously, this was not a good time to sell ETH. In fact, this would have been a great time to buy Ether. Therefore, an argument could be made that the optimum way to use RSI for trending markets like cryptocurrencies is to wait for a bullish breakout above 70 as a buy signal. A bearish breakout below 30 would constitute a sell signal. Trying to pick tops and bottoms in a trending market is a recipe for disaster. As Chart #4 clearly demonstrates, the best course of action is to follow the momentum.

In addition to RSI, another momentum-based indicator is the Money Flow Index (MFI). This indicator measures the inflow and outflow of money into a speculative asset over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular asset class.

Similar to RSI, the index fluctuates between 0 and 100. In terms of trending markets like cryptocurrencies, the best way to apply MFI is to wait for a bullish breakout above 70 or a bearish breakout below 30. MFI is located at the bottom of Chart #5.

The Future Price of Ethereum — Technical Analysis 18

An Ether buy signal was generated @ 509.11 on November 23, 2020, when MFI penetrated the 70 level. MFI has been continuously above 70 for the past five months. This is a perfect example of why it’s best to follow the trend of the market and avoid the temptation to pick a top or bottom.

At least for now, the trend of ETH is clearly in favor of the bulls. The vast majority of technical indicators are forecasting a continuation of the bull market. In addition to technical analysis, the fundamental backdrop for Ether is extremely bullish, as more use cases are being added to the Ethereum blockchain. Eventually, this bullish cycle will end and a new bear cycle will begin. However, this current bullish phase could easily continue for the remainder of 2021.

Don’t forget that whether the price of ETH goes up or down, you can make money trading ETH futures on our zero-fee rapid-fire ladder trading platform. Sign up here to find out how easy it is to profit from even the smallest of price fluctuations when you’re not constantly losing out to commissions. 

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

Latest News

Crypto Trading

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

Trading
• Digitex

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