Top 3 Crypto Arbitrage Strategies for Traders 1

Top 3 Crypto Arbitrage Strategies for Traders

Trading
• Digitex
April 28, 2021

Sometimes, the same asset is priced differently on two separate markets.

This is when arbitrage comes into play, in which traders spot such market inefficiencies and take advantage of them to make a profit on the price differences.

For example, when BTC trades at $50,000 on exchange A and at $50,200 on exchange B, arbitrageurs could purchase the digital asset on the prior platform and move it to the latter service to sell for a profit (in this case, it would result in a $200 profit for one BTC).

Unlike the traditional financial industry where such inefficiencies are hard to find nowadays, the cryptocurrency space often presents excellent arbitrage opportunities.

For that reason, we have collected the best three crypto arbitrage strategies in this article.

Let’s see them!

1. Simple Arbitrage

As its name suggests, simple arbitrage is among the easiest crypto arbitrage strategies out there and is essentially what we described in our previous example.

When you spot an opportunity, you deposit funds to the cryptocurrency exchange with the lower price, purchase the digital asset, and withdraw it to the other platform to sell it for a higher price.

Since you don’t have to perform any other trades than the ones above, this crypto arbitrage strategy can be executed quickly.

However, due to its simplicity, there is a higher chance of other arbitragers spotting and taking advantage of the same opportunity.

2. Triangular Arbitrage

Taking place either across multiple exchanges or on the same platform, triangular arbitrage aims to profit from the inefficiencies across three cryptocurrencies.

For example, an arbitrage opportunity occurs when the BTC/USDC pair is trading at 50,000 USDC, and one ETH equals 2,000 USDC, but the BTC/ETH pair is priced inefficiently at 30 ETH instead of 25 ETH.

In such a scenario, you execute the triangular arbitrage strategy with the following steps:

  1. You deposit funds to the exchange and purchase 1 BTC for 50,000 USDC.
  2. As the second step, you trade the BTC/ETH pair to convert your Bitcoin to 30 ETH.
  3. Finally, you sell the 30 ETH for 60,000 USDC.

As you can see, this opportunity would have generated you 10,000 USDC in profits with a 20% ROI on three trades. This type of opportunity is very infrequent and must be jumped upon immediately before the exchange’s algorithm quickly corrects the error.

3. Yield Arbitrage

Yield arbitrage allows traders to profit on interest rate inefficiencies between two DeFi lending or staking platforms.

Since the decentralized finance industry is quite new – yet growing at a rapid pace – it’s not unusual to spot irregularities related to interest rates or yields.

With yield arbitrage, a trader borrows funds in a stablecoin with a lower annual percentage yield (APY) for borrowing, exchange it to another stablecoin with a higher supply APY, and uses the latter cryptocurrency to lend funds to others.

An example yield arbitrage strategy goes as follows:

  1. On a DeFi lending platform, DAI’s borrowing APY is 5%, while USDC’s supply APY is 10% (both are USD-pegged stablecoins).
  2. You deposit USDC to the platform and use it as collateral to borrow DAI.
  3. After that, you exchange your DAI back to USDC.
  4. As the final step, you lend the USDC to others to make a profit on a 5% spread between the two coin’s APYs.

While this crypto arbitrage strategy can work excellently on a single or across multiple DeFi lending protocols, it is crucial to take gas fees into account, which have been notoriously high on Ethereum lately.

Closing Thoughts

When the right opportunities are identified and executed quickly, arbitrage strategies can provide lucrative profits to traders.

However, it’s important to note that the simplest opportunities are the easiest to discover. For that reason, you need to act fast before they disappear.

Furthermore, while some crypto arbitrage opportunities may seem highly profitable at first glance, other factors (e.g., excessively high trading costs or when an exchange charges a high fee for withdrawals) may decrease your earnings or even lead to losses.

For that reason, you need to take everything into account and research every opportunity extensively before executing your crypto arbitrage strategies.

April 28, 2021
Trading

Top 3 Crypto Arbitrage Strategies for Traders

Digitex
Top 3 Crypto Arbitrage Strategies for Traders 2

Sometimes, the same asset is priced differently on two separate markets.

This is when arbitrage comes into play, in which traders spot such market inefficiencies and take advantage of them to make a profit on the price differences.

For example, when BTC trades at $50,000 on exchange A and at $50,200 on exchange B, arbitrageurs could purchase the digital asset on the prior platform and move it to the latter service to sell for a profit (in this case, it would result in a $200 profit for one BTC).

Unlike the traditional financial industry where such inefficiencies are hard to find nowadays, the cryptocurrency space often presents excellent arbitrage opportunities.

For that reason, we have collected the best three crypto arbitrage strategies in this article.

Let’s see them!

1. Simple Arbitrage

As its name suggests, simple arbitrage is among the easiest crypto arbitrage strategies out there and is essentially what we described in our previous example.

When you spot an opportunity, you deposit funds to the cryptocurrency exchange with the lower price, purchase the digital asset, and withdraw it to the other platform to sell it for a higher price.

Since you don’t have to perform any other trades than the ones above, this crypto arbitrage strategy can be executed quickly.

However, due to its simplicity, there is a higher chance of other arbitragers spotting and taking advantage of the same opportunity.

2. Triangular Arbitrage

Taking place either across multiple exchanges or on the same platform, triangular arbitrage aims to profit from the inefficiencies across three cryptocurrencies.

For example, an arbitrage opportunity occurs when the BTC/USDC pair is trading at 50,000 USDC, and one ETH equals 2,000 USDC, but the BTC/ETH pair is priced inefficiently at 30 ETH instead of 25 ETH.

In such a scenario, you execute the triangular arbitrage strategy with the following steps:

  1. You deposit funds to the exchange and purchase 1 BTC for 50,000 USDC.
  2. As the second step, you trade the BTC/ETH pair to convert your Bitcoin to 30 ETH.
  3. Finally, you sell the 30 ETH for 60,000 USDC.

As you can see, this opportunity would have generated you 10,000 USDC in profits with a 20% ROI on three trades. This type of opportunity is very infrequent and must be jumped upon immediately before the exchange’s algorithm quickly corrects the error.

3. Yield Arbitrage

Yield arbitrage allows traders to profit on interest rate inefficiencies between two DeFi lending or staking platforms.

Since the decentralized finance industry is quite new – yet growing at a rapid pace – it’s not unusual to spot irregularities related to interest rates or yields.

With yield arbitrage, a trader borrows funds in a stablecoin with a lower annual percentage yield (APY) for borrowing, exchange it to another stablecoin with a higher supply APY, and uses the latter cryptocurrency to lend funds to others.

An example yield arbitrage strategy goes as follows:

  1. On a DeFi lending platform, DAI’s borrowing APY is 5%, while USDC’s supply APY is 10% (both are USD-pegged stablecoins).
  2. You deposit USDC to the platform and use it as collateral to borrow DAI.
  3. After that, you exchange your DAI back to USDC.
  4. As the final step, you lend the USDC to others to make a profit on a 5% spread between the two coin’s APYs.

While this crypto arbitrage strategy can work excellently on a single or across multiple DeFi lending protocols, it is crucial to take gas fees into account, which have been notoriously high on Ethereum lately.

Closing Thoughts

When the right opportunities are identified and executed quickly, arbitrage strategies can provide lucrative profits to traders.

However, it’s important to note that the simplest opportunities are the easiest to discover. For that reason, you need to act fast before they disappear.

Furthermore, while some crypto arbitrage opportunities may seem highly profitable at first glance, other factors (e.g., excessively high trading costs or when an exchange charges a high fee for withdrawals) may decrease your earnings or even lead to losses.

For that reason, you need to take everything into account and research every opportunity extensively before executing your crypto arbitrage strategies.

Latest News

The Role of Stablecoins in the Crypto Industry 3

The Role of Stablecoins in the Crypto Industry

Digitex
• Dave Reiter
April 27, 2021

During the past decade, several new innovative products have been created in an effort to disrupt the financial services industry. Arguably, the product that has unleashed the most disruption is stablecoins. The first stablecoin was Tether (USDT), officially launched in October 2014.

Immediately upon its introduction to the crypto industry, Tether became incredibly popular and quite useful. Since the release of Tether, over 200 stablecoins have been announced. However, the majority of these coins are still lingering in the phase of research and development (R&D). Additionally, 10% have been discontinued. Currently, 36 stablecoins are in existence with a market capitalization of $75.7 billion. Let’s examine a list of the top 5 stablecoins.

  • Tether (USDT) – $48.7 billion
  • USD Coin (USDC) – $11.3 billion
  • Binance USD (BUSD) – $5.4 billion
  • Dai – (DAI) $3.6 billion
  • TerraUSD (UST) – $1.8 billion

As you can see, Tether is clearly the leader within the stablecoin universe. In fact, Tether’s market capitalization comprises 64% of the entire industry. The top five coins represent 94% of all stablecoins. Essentially, five coins dominate the entire space.

Stablecoins Versus Traditional Cryptocurrencies

Although stablecoins share many of the same features and characteristics of cryptocurrencies, they were designed to solve some of the problems inherently rooted in cryptocurrencies. Let’s discuss the details.

When Satoshi Nakamoto launched the world’s first cryptocurrency on a decentralized ledger in January 2009, Nakamoto could not possibly have forecasted the substantial price appreciation that would transpire during the first decade of its existence. Of course, the cryptocurrency we are referring to is Bitcoin (BTC).

The dramatic increase in the value of BTC in the years following its release was both a benefit and a curse within the global crypto community. Obviously, Bitcoin’s price increase was a huge benefit because a substantial number of investors enjoyed historic rates of return. However, the extraordinary price appreciation was also a major detriment to Bitcoin investors because these price advances also included a great deal of volatility.

Many people in the crypto community were unaware that Nakamoto’s original concept for Bitcoin was a peer-to-peer payment system. In fact, the initial paragraph of the Bitcoin white paper describes “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

As you can clearly see from the white paper, Nakamoto was enamored with the idea of an electronic P2P payment system without the need for a third-party intermediary. From 2009 through 2017, the vast majority of the crypto community supported Nakamoto’s belief that Bitcoin was designed to be a payment system that would ultimately replace Visa, Mastercard, PayPal, and other payment forms as the preferred method for daily transactions.

Following the historic rally in 2017 and subsequent collapse in early-2018, Bitcoiners came to the realization that BTC was much too volatile to be used as a method of payment for daily transactions. Beginning in 2018, the Bitcoin narrative began to change from “method of payment” to “store of value.” Based on the fact that BTC had substantially outperformed gold and all other major asset classes since its inception in 2009, the best use case for Bitcoin going forward was a store of value.

Although the Bitcoin community had successfully changed the BTC narrative in 2018, they still had to deal with the fact that cryptocurrencies were inherently volatile. In order to solve this problem, stablecoins were rolled out on a large-scale basis. Stablecoins are an excellent vehicle for performing day-to-day transactions because they are simplistic, stable, scalable, and secure. Stablecoins fulfilled the role of Nakamoto’s original intent for Bitcoin, which was a peer-to-peer payment system.

Unlike cryptocurrencies, stablecoins are not prone to dramatic price fluctuations because each stablecoin is linked to a fiat currency like the US Dollar or Euro. It is collateralized by the value of the underlying asset. Additionally, each stablecoin is pegged at a 1:1 ratio with the underlying asset. This explains how stablecoins are able to maintain price stability even if other cryptocurrencies are experiencing dramatic volatility.

Types of Stablecoins

Stablecoins can be placed in four different categories. Let’s briefly review each category.

Fiat-collateralized – The vast majority of stablecoins are fiat-collateralized. This means that the stablecoins are backed by fiat currencies like US Dollar, Euro, British Pound and other fiat currencies. As we previously mentioned, stablecoins are linked at a 1:1 ratio with the underlying fiat currency. For each stablecoin in existence, fiat currency is held in a bank account as collateral. When a trader initiates a stablecoin withdrawal, the crypto exchange transfers fiat currency to the trader’s bank account and the corresponding stablecoin is taken out of the trader’s crypto account and removed from circulation.

Commodity-collateralized – As the name implies, commodity-collateralized stablecoins are supported by interchangeable assets such as commodities. The most popular asset in this category is precious metals, specifically gold. In addition to gold, other assets include silver, crude oil and even real estate. The most attractive feature of commodity-collateralized stablecoins is that the owners of these coins hold a tangible asset with real value. This is in stark contrast to other cryptocurrencies, which typically have no tangible value.

Crypto-collateralized – These stablecoins are backed 100% by other cryptocurrencies. Many crypto investors don’t support fiat-collateralized stablecoins because they are linked to the legacy financial services industry through fiat money. Instead, these investors prefer 100% decentralized stablecoins, with all transactions conducted on the blockchain. Even though crypto-collateralized stablecoins are inherently more volatile, there is a growing list of supporters who are willing to tolerate the volatility in exchange for a purely decentralized transaction.

Non-collateralized – Even though stablecoins have been in existence since 2014, very few non-collateralized stablecoins have been issued. The demand for such a coin is relatively small because it carries the greatest amount of risk among all stablecoins. Despite its inherent risk, there is a small group of crypto investors who prefer this type of stablecoin because it is the most decentralized and independent form of stablecoin. Its decentralization stems from the fact that the coin is not collateralized to any other asset. Therefore, it avoids dealing with centralized assets such as fiat money and commodities.

Use Cases for Stablecoins

Even though stablecoins have only been in existence for six years, crypto experts have discovered several different use cases. Let’s review a few of the ways stablecoins are being used within the cryptocurrency ecosystem.

Without question, the most common use case for stablecoins is the ability of crypto traders to easily transfer their funds between various crypto assets. Prior to the introduction of stablecoins, traders were unable to move their crypto assets to a safe and secure coin. Instead, they were forced to liquidate their cryptocurrencies, convert the proceeds back to a fiat currency and also remove their funds from the crypto exchange. Thanks to the introduction of stablecoins, traders have the option of liquidating their cryptocurrencies and parking the proceeds in a stablecoin. This allows all funds to remain in the cryptocurrency ecosystem. Thanks to stablecoins, traders and investors can completely avoid the fiat system.

As stablecoins continue to gain widespread acceptance, the retail community could ultimately become the biggest beneficiary. As we previously discussed, Satoshi Nakamoto’s original use case for Bitcoin was a medium of exchange for day-to-day transactions. However, the daily use of BTC never gained widespread adoption because Bitcoin was simply too volatile. Stablecoins have solved the volatility problem. Therefore, stablecoins have the potential to be used as a daily medium of exchange, finally realizing Nakamoto’s original use case for Bitcoin.

Another use case for stablecoins involves smart contracts. During the past few years, several industries have explored the idea of using smart contracts in an effort to lower their costs by removing third party intermediaries. However, companies have been reluctant to use smart contracts because the payment method usually involved a volatile cryptocurrency like Bitcoin or Ethereum. Thanks to stablecoins, several industries are reexamining the use of smart contracts because the problem of volatility has been solved.

Crypto experts believe that we are just beginning to scratch the surface in terms of how stablecoins will be used as a bridge to connect the old legacy financial services industry with a new system based on decentralized finance. Stablecoins could easily become the fastest growing sector within the cryptocurrency universe.

 

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

April 27, 2021
Digitex

The Role of Stablecoins in the Crypto Industry

Dave Reiter
The Role of Stablecoins in the Crypto Industry 4

During the past decade, several new innovative products have been created in an effort to disrupt the financial services industry. Arguably, the product that has unleashed the most disruption is stablecoins. The first stablecoin was Tether (USDT), officially launched in October 2014.

Immediately upon its introduction to the crypto industry, Tether became incredibly popular and quite useful. Since the release of Tether, over 200 stablecoins have been announced. However, the majority of these coins are still lingering in the phase of research and development (R&D). Additionally, 10% have been discontinued. Currently, 36 stablecoins are in existence with a market capitalization of $75.7 billion. Let’s examine a list of the top 5 stablecoins.

  • Tether (USDT) – $48.7 billion
  • USD Coin (USDC) – $11.3 billion
  • Binance USD (BUSD) – $5.4 billion
  • Dai – (DAI) $3.6 billion
  • TerraUSD (UST) – $1.8 billion

As you can see, Tether is clearly the leader within the stablecoin universe. In fact, Tether’s market capitalization comprises 64% of the entire industry. The top five coins represent 94% of all stablecoins. Essentially, five coins dominate the entire space.

Stablecoins Versus Traditional Cryptocurrencies

Although stablecoins share many of the same features and characteristics of cryptocurrencies, they were designed to solve some of the problems inherently rooted in cryptocurrencies. Let’s discuss the details.

When Satoshi Nakamoto launched the world’s first cryptocurrency on a decentralized ledger in January 2009, Nakamoto could not possibly have forecasted the substantial price appreciation that would transpire during the first decade of its existence. Of course, the cryptocurrency we are referring to is Bitcoin (BTC).

The dramatic increase in the value of BTC in the years following its release was both a benefit and a curse within the global crypto community. Obviously, Bitcoin’s price increase was a huge benefit because a substantial number of investors enjoyed historic rates of return. However, the extraordinary price appreciation was also a major detriment to Bitcoin investors because these price advances also included a great deal of volatility.

Many people in the crypto community were unaware that Nakamoto’s original concept for Bitcoin was a peer-to-peer payment system. In fact, the initial paragraph of the Bitcoin white paper describes “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

As you can clearly see from the white paper, Nakamoto was enamored with the idea of an electronic P2P payment system without the need for a third-party intermediary. From 2009 through 2017, the vast majority of the crypto community supported Nakamoto’s belief that Bitcoin was designed to be a payment system that would ultimately replace Visa, Mastercard, PayPal, and other payment forms as the preferred method for daily transactions.

Following the historic rally in 2017 and subsequent collapse in early-2018, Bitcoiners came to the realization that BTC was much too volatile to be used as a method of payment for daily transactions. Beginning in 2018, the Bitcoin narrative began to change from “method of payment” to “store of value.” Based on the fact that BTC had substantially outperformed gold and all other major asset classes since its inception in 2009, the best use case for Bitcoin going forward was a store of value.

Although the Bitcoin community had successfully changed the BTC narrative in 2018, they still had to deal with the fact that cryptocurrencies were inherently volatile. In order to solve this problem, stablecoins were rolled out on a large-scale basis. Stablecoins are an excellent vehicle for performing day-to-day transactions because they are simplistic, stable, scalable, and secure. Stablecoins fulfilled the role of Nakamoto’s original intent for Bitcoin, which was a peer-to-peer payment system.

Unlike cryptocurrencies, stablecoins are not prone to dramatic price fluctuations because each stablecoin is linked to a fiat currency like the US Dollar or Euro. It is collateralized by the value of the underlying asset. Additionally, each stablecoin is pegged at a 1:1 ratio with the underlying asset. This explains how stablecoins are able to maintain price stability even if other cryptocurrencies are experiencing dramatic volatility.

Types of Stablecoins

Stablecoins can be placed in four different categories. Let’s briefly review each category.

Fiat-collateralized – The vast majority of stablecoins are fiat-collateralized. This means that the stablecoins are backed by fiat currencies like US Dollar, Euro, British Pound and other fiat currencies. As we previously mentioned, stablecoins are linked at a 1:1 ratio with the underlying fiat currency. For each stablecoin in existence, fiat currency is held in a bank account as collateral. When a trader initiates a stablecoin withdrawal, the crypto exchange transfers fiat currency to the trader’s bank account and the corresponding stablecoin is taken out of the trader’s crypto account and removed from circulation.

Commodity-collateralized – As the name implies, commodity-collateralized stablecoins are supported by interchangeable assets such as commodities. The most popular asset in this category is precious metals, specifically gold. In addition to gold, other assets include silver, crude oil and even real estate. The most attractive feature of commodity-collateralized stablecoins is that the owners of these coins hold a tangible asset with real value. This is in stark contrast to other cryptocurrencies, which typically have no tangible value.

Crypto-collateralized – These stablecoins are backed 100% by other cryptocurrencies. Many crypto investors don’t support fiat-collateralized stablecoins because they are linked to the legacy financial services industry through fiat money. Instead, these investors prefer 100% decentralized stablecoins, with all transactions conducted on the blockchain. Even though crypto-collateralized stablecoins are inherently more volatile, there is a growing list of supporters who are willing to tolerate the volatility in exchange for a purely decentralized transaction.

Non-collateralized – Even though stablecoins have been in existence since 2014, very few non-collateralized stablecoins have been issued. The demand for such a coin is relatively small because it carries the greatest amount of risk among all stablecoins. Despite its inherent risk, there is a small group of crypto investors who prefer this type of stablecoin because it is the most decentralized and independent form of stablecoin. Its decentralization stems from the fact that the coin is not collateralized to any other asset. Therefore, it avoids dealing with centralized assets such as fiat money and commodities.

Use Cases for Stablecoins

Even though stablecoins have only been in existence for six years, crypto experts have discovered several different use cases. Let’s review a few of the ways stablecoins are being used within the cryptocurrency ecosystem.

Without question, the most common use case for stablecoins is the ability of crypto traders to easily transfer their funds between various crypto assets. Prior to the introduction of stablecoins, traders were unable to move their crypto assets to a safe and secure coin. Instead, they were forced to liquidate their cryptocurrencies, convert the proceeds back to a fiat currency and also remove their funds from the crypto exchange. Thanks to the introduction of stablecoins, traders have the option of liquidating their cryptocurrencies and parking the proceeds in a stablecoin. This allows all funds to remain in the cryptocurrency ecosystem. Thanks to stablecoins, traders and investors can completely avoid the fiat system.

As stablecoins continue to gain widespread acceptance, the retail community could ultimately become the biggest beneficiary. As we previously discussed, Satoshi Nakamoto’s original use case for Bitcoin was a medium of exchange for day-to-day transactions. However, the daily use of BTC never gained widespread adoption because Bitcoin was simply too volatile. Stablecoins have solved the volatility problem. Therefore, stablecoins have the potential to be used as a daily medium of exchange, finally realizing Nakamoto’s original use case for Bitcoin.

Another use case for stablecoins involves smart contracts. During the past few years, several industries have explored the idea of using smart contracts in an effort to lower their costs by removing third party intermediaries. However, companies have been reluctant to use smart contracts because the payment method usually involved a volatile cryptocurrency like Bitcoin or Ethereum. Thanks to stablecoins, several industries are reexamining the use of smart contracts because the problem of volatility has been solved.

Crypto experts believe that we are just beginning to scratch the surface in terms of how stablecoins will be used as a bridge to connect the old legacy financial services industry with a new system based on decentralized finance. Stablecoins could easily become the fastest growing sector within the cryptocurrency universe.

 

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

Latest News

Crypto

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Cryptocurrency
• Digitex
April 26, 2021

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

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

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

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

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

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

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

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

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

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

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

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

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

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

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

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

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

USDC

Rank: 15th

Market capitalization: $11.3 billion

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

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

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

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

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

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

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

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

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

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

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

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

Enjoy Commission-Free Crypto Trading on Digitex

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

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

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

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

April 26, 2021
Digitex
Cryptocurrency

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Crypto

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

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

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

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

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

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

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

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

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

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

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

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

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

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

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

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

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

USDC

Rank: 15th

Market capitalization: $11.3 billion

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

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

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

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

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

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

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

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

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

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

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

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

Enjoy Commission-Free Crypto Trading on Digitex

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

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

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

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

Latest News

How Does Zero-Fee Crypto Trading Impact Your ROI? 5

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? 6

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

cryptocurrency

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange?

Digitex
• Digitex
April 23, 2021

As you may already know, we shared some awesome news last week about the launch of our new spot crypto exchange.

Introducing six new trading pairs, the spot exchange offers users the ability to buy, hold, and sell cryptocurrencies without using a third-party platform.

This also applies to the native exchange token DGTX, which you can now buy with ETH, BTC, or USDC directly on Digitex.

In this article, we will guide you through all the steps you need to take to trade cryptocurrency on the Digitex spot exchange.

How to Trade Cryptocurrency on the Digitex Spot Exchange (a Step-by-Step Guide)

Step 1: Create an Account

The first step to start trading crypto on the Digitex spot exchange is to create an account on the platform.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 7

To do that, head to the official website of the cryptocurrency exchange and click either the “Create Account” or the “Sign Up” button near the top right corner of the page.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 8

On the next page, fill in the form with your email and password as well as tick the two boxes to agree to the terms of use, and confirm that you are not a U.S. citizen.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 9

As the final step, Digitex sends a code to your email address, which you have to enter to verify your email.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 10

In exchange for confirming your identity, Digitex offers $25 in DGTX, which you can use to kickstart your trading journey on the cryptocurrency exchange. However, you need to hurry as the promotion is available only for a limited time!

In addition to KYC, we highly recommend enhancing your account’s security by turning on 2-Factor-Authentication (2FA) in the “Account” menu.

After initiating the setup, download the Google Authenticator app on your smartphone, scan the QR code, and type in the code you see on your other device where you have opened the Digitex platform.

Optionally, you can pass a super quick KYC verification by clicking the profile image icon in the top right corner of the page and heading to the “Account” menu.

Step 2: Deposit Funds

You need to deposit funds into your account to start trading on the Digitex spot exchange.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 11

To do so, click the blue “Deposit” button near the top right corner of the page.

After selecting the cryptocurrency (BTC, USDC, ETH, or DGTX), Digitex will show you an ERC-20 address where you have to deposit the digital assets.

Open your (external) crypto wallet, and either copy-paste or use your phone’s camera to scan the QR code of your Digitex address.

Upon ensuring that you send the right cryptocurrency to the correct address, select the amount to transfer, and execute the transaction.

After reaching the necessary network confirmations, your funds will be automatically credited to your Digitex account.

Step 3: Place a Trade

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 12

To start trading, head into the “Wallet” menu and click on the “Transfer” button.

Select the cryptocurrency and the amount to transfer from your main account to your trading account, and click the “Confirm” button when you are ready.

Digitex will automatically move your coins to your trading account so you can start buying and selling cryptocurrency on the platform.

As the next step, select a spot trading pair (e.g., DGTX/USDC) from the top menu.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 13

When you are on the trading page, scroll down to place either a limit or a market order to buy DGTX or any other cryptocurrency available on the Digitex spot exchange.

For market orders, choose the amount of digital assets to purchase – you also need to select the price as well as the type of the order (e.g., Good till canceled) for limit orders – and execute the trade.

Spot Exchange: Digitex’s Next Step in Evolution

Congratulations, you have made your first trade on the Digitex spot exchange!

Be sure to check out Digitex’s futures trading pairs as well to trade Ethereum and Bitcoin derivatives with zero fees and up to 100x leverage.

It’s important to mention that while you don’t need to hold DGTX on the spot exchange, you can only trade futures contracts on Digitex by owning DGTX.

However, with the new spot exchange, it’s easier than ever to buy DGTX, which you can do so now by heading to the following page.

April 23, 2021
Digitex

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange?

Digitex
cryptocurrency

As you may already know, we shared some awesome news last week about the launch of our new spot crypto exchange.

Introducing six new trading pairs, the spot exchange offers users the ability to buy, hold, and sell cryptocurrencies without using a third-party platform.

This also applies to the native exchange token DGTX, which you can now buy with ETH, BTC, or USDC directly on Digitex.

In this article, we will guide you through all the steps you need to take to trade cryptocurrency on the Digitex spot exchange.

How to Trade Cryptocurrency on the Digitex Spot Exchange (a Step-by-Step Guide)

Step 1: Create an Account

The first step to start trading crypto on the Digitex spot exchange is to create an account on the platform.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 14

To do that, head to the official website of the cryptocurrency exchange and click either the “Create Account” or the “Sign Up” button near the top right corner of the page.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 15

On the next page, fill in the form with your email and password as well as tick the two boxes to agree to the terms of use, and confirm that you are not a U.S. citizen.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 16

As the final step, Digitex sends a code to your email address, which you have to enter to verify your email.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 17

In exchange for confirming your identity, Digitex offers $25 in DGTX, which you can use to kickstart your trading journey on the cryptocurrency exchange. However, you need to hurry as the promotion is available only for a limited time!

In addition to KYC, we highly recommend enhancing your account’s security by turning on 2-Factor-Authentication (2FA) in the “Account” menu.

After initiating the setup, download the Google Authenticator app on your smartphone, scan the QR code, and type in the code you see on your other device where you have opened the Digitex platform.

Optionally, you can pass a super quick KYC verification by clicking the profile image icon in the top right corner of the page and heading to the “Account” menu.

Step 2: Deposit Funds

You need to deposit funds into your account to start trading on the Digitex spot exchange.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 18

To do so, click the blue “Deposit” button near the top right corner of the page.

After selecting the cryptocurrency (BTC, USDC, ETH, or DGTX), Digitex will show you an ERC-20 address where you have to deposit the digital assets.

Open your (external) crypto wallet, and either copy-paste or use your phone’s camera to scan the QR code of your Digitex address.

Upon ensuring that you send the right cryptocurrency to the correct address, select the amount to transfer, and execute the transaction.

After reaching the necessary network confirmations, your funds will be automatically credited to your Digitex account.

Step 3: Place a Trade

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 19

To start trading, head into the “Wallet” menu and click on the “Transfer” button.

Select the cryptocurrency and the amount to transfer from your main account to your trading account, and click the “Confirm” button when you are ready.

Digitex will automatically move your coins to your trading account so you can start buying and selling cryptocurrency on the platform.

As the next step, select a spot trading pair (e.g., DGTX/USDC) from the top menu.

How to Place a Trade on the Digitex Cryptocurrency Spot Exchange? 20

When you are on the trading page, scroll down to place either a limit or a market order to buy DGTX or any other cryptocurrency available on the Digitex spot exchange.

For market orders, choose the amount of digital assets to purchase – you also need to select the price as well as the type of the order (e.g., Good till canceled) for limit orders – and execute the trade.

Spot Exchange: Digitex’s Next Step in Evolution

Congratulations, you have made your first trade on the Digitex spot exchange!

Be sure to check out Digitex’s futures trading pairs as well to trade Ethereum and Bitcoin derivatives with zero fees and up to 100x leverage.

It’s important to mention that while you don’t need to hold DGTX on the spot exchange, you can only trade futures contracts on Digitex by owning DGTX.

However, with the new spot exchange, it’s easier than ever to buy DGTX, which you can do so now by heading to the following page.

Latest News

Digitex

Digitex.io Zero-Fee Markets by CoinCollector

Digitex
• Digitex
April 21, 2021

What’s up, Digitex community? Today we’re pleased to provide you with another awesome video from prominent Digitex trader and community member CoinCollector. In this informative look at the new spot markets, he shows you how to buy and sell DGTX, walks you through the new interface, and reminds you to take advantage of the Liquidity Mining program that pays you to trade on both our futures and spot markets. Check it out.

CoinCollector opens the video telling viewers that the Digitex spot markets are now live–and that they come with a “ton of advantages” for traders on the exchange. First of all, he says, traders can now “escape the DGTX volatility” if they wish simply and easily by instantly converting to the currency of their choice inside the platform. 

This greatly enhances the trading experience as traders no longer have to visit a third-party exchange, meaning they save time as well as fees. And, unlike any other exchange out there, withdrawals are also entirely free at the moment–on all the cryptocurrencies available. 

CoinCollector then walks us through the spot market interface and how to buy and sell DGTX for BTC, USDC, and ETH–showing us how easy and quick it is to place a trade. “As you will see, this is very very easy,” he says. “It is also very comfortable now to do, all within the same platform.”

Note that the interface for spot markets is still in a classic exchange format. We will be adding the ladder UI later on, as we detail in this Q&A blog post. But we wanted to provide our newer users with an experience they’re used to first.

Make Money through Liquidity Mining

Our Liquidity Mining program pays you while you trade for lending liquidity to our markets. You simply need to place your orders around the spot price and our system will automatically reward the traders that are the closest, randomly every minute. 

“This is a pretty cool way to make some extra income,” says CoinCollector. “We also have it going on now for the spot markets.” He then shows the full range of markets that are available to earn DGTX rewards in the program. In his next video, CoinCollector will be walking us through a step by step guide showing how to maximize your rewards through Liquidity Mining, which is currently paying out around $8,000 of DGTX every single day.

Many thanks, as always, to CoinCollector, and remember that Digitex has no withdrawal fees at all at the moment, so, be sure to take advantage by trading on Digitex.io right now.

 

April 21, 2021
Digitex

Digitex.io Zero-Fee Markets by CoinCollector

Digitex
Digitex

What’s up, Digitex community? Today we’re pleased to provide you with another awesome video from prominent Digitex trader and community member CoinCollector. In this informative look at the new spot markets, he shows you how to buy and sell DGTX, walks you through the new interface, and reminds you to take advantage of the Liquidity Mining program that pays you to trade on both our futures and spot markets. Check it out.

CoinCollector opens the video telling viewers that the Digitex spot markets are now live–and that they come with a “ton of advantages” for traders on the exchange. First of all, he says, traders can now “escape the DGTX volatility” if they wish simply and easily by instantly converting to the currency of their choice inside the platform. 

This greatly enhances the trading experience as traders no longer have to visit a third-party exchange, meaning they save time as well as fees. And, unlike any other exchange out there, withdrawals are also entirely free at the moment–on all the cryptocurrencies available. 

CoinCollector then walks us through the spot market interface and how to buy and sell DGTX for BTC, USDC, and ETH–showing us how easy and quick it is to place a trade. “As you will see, this is very very easy,” he says. “It is also very comfortable now to do, all within the same platform.”

Note that the interface for spot markets is still in a classic exchange format. We will be adding the ladder UI later on, as we detail in this Q&A blog post. But we wanted to provide our newer users with an experience they’re used to first.

Make Money through Liquidity Mining

Our Liquidity Mining program pays you while you trade for lending liquidity to our markets. You simply need to place your orders around the spot price and our system will automatically reward the traders that are the closest, randomly every minute. 

“This is a pretty cool way to make some extra income,” says CoinCollector. “We also have it going on now for the spot markets.” He then shows the full range of markets that are available to earn DGTX rewards in the program. In his next video, CoinCollector will be walking us through a step by step guide showing how to maximize your rewards through Liquidity Mining, which is currently paying out around $8,000 of DGTX every single day.

Many thanks, as always, to CoinCollector, and remember that Digitex has no withdrawal fees at all at the moment, so, be sure to take advantage by trading on Digitex.io right now.

 

Latest News

digitex

The New Digitex Spot Exchange Is Live

Digitex
• Digitex
April 15, 2021

We’re thrilled to announce that, after much anticipation, the new Digitex spot exchange is officially live and open for business. Traders can now buy DGTX instantly and securely straight from our exchange without having to go to a third party platform. This will optimize the trading experience when time is of the essence, save traders from paying trading and withdrawal fees elsewhere, and streamline the new user onboarding process, among other benefits.

All in One Exchange

Our zero-fee spot markets also mean that traders on the exchange can choose to convert their earnings into stablecoin USDC if they wish without leaving the exchange. This will be especially attractive to traders with larger positions looking to avoid the volatility of holding their earnings in cryptocurrencies like DGTX. 

Another huge advantage of the spot markets is that it opens our doors to a wider net of users. Digitex is no longer just a futures exchange but a place where spot traders can place as many trades and transactions as they like without incurring a single fee. They can also withdraw their funds completely free of charge unlike any other cryptocurrency exchange on the market.

We’re starting out with six trading pairs — DGTX/BTC, DGTX/ETH, ETH/BTC, BTC/USDC, ETH/USDC, DGTX/USDC — and will be gradually adding more according to demand. 

We’re excited about this significant upgrade to the Digitex exchange for several other reasons as well. The convenience of trading spot and futures from one universal trading wallet with no KYC requirement makes for a superlative UX, which is something, as you probably know, that our CEO Adam has always been tirelessly obsessed about!

“We want to offer our traders an experience they won’t find anywhere else. So not only have we removed ALL fees, zero trading and zero withdrawal fees, but we’ve also really improved our UX and UI on this latest release. By allowing traders to trade cryptocurrencies and futures from one universal wallet, they can interact with our markets in a faster and more convenient way,” Adam enthused. 

“The overall trading experience on Digitex is totally optimized, allowing traders to walk away with real profit. That’s what it’s all about, delivering real value to users.” 

The Evolution of Digitex

The launching of our spot markets marks the latest evolution for Digitex as we expand our user base and improve our exchange constantly — without losing sight of what makes us so special. Digitex, with its unique zero-fee model that uses the DGTX token for all interactions on the exchange, is the only platform that enables high-frequency trading strategies. With the hefty commissions on fee-charging exchanges, taking advantage of small price movements through scalping is simply impossible.

Digitex provides a true zero-fee trading experience creating the most optimal environment for traders to generate and, more importantly, keep their profits. The Digitex matching engine has been battle-hardened on live markets with thousands of real users through extreme BTC volatility since 2019 and has proved itself capable of handling over 22 billion contracts in a 24-hour period — on the crypto industry’s first and only single-click ladder interface.

“You’ve all witnessed my rollercoaster experience trying to develop this platform,” Adam said candidly. “It’s been challenging yet also extremely rewarding. One of the greatest lessons I’ve learned is that my most prized possession is the team I have now. I wouldn’t trade them in for anything. I’m really happy that we’re delivering the high-quality spot exchange at just the start of Q2, because there’s so much more to come for the remainder of the year.” 

Liquidity Mining

Our Liquidity Mining program in which we pay traders to act as market makers on our exchange, means that, in addition to making trading gains, we actually pay them while they trade. With unfilled orders, traders are lending liquidity to Digitex’s markets, and keeping our spread tight. 

In exchange for this, we take a snapshot of the order book every minute at a random time, and distribute up to 290 DGTX rewards proportionally to those traders whose unmatched orders are the closest to the spot price at that time. This amounts to a massive 417,600 DGTX paid out daily!

Currently, Digitex traders collectively make over $10,000 worth of DGTX daily through the Liquidity Mining program. Each spot market will pay traders 25 DGTX per minute, which comes to 36,000 DGTX per day per spot market, click this link to learn more about the program, and read the following article on our blog to get started with bot trading to maximize your liquidity mining rewards.

Additional Features

With the upgrade to Digitex.io, we’ll soon be adding another new feature to the exchange that allows users to instantly send crypto to any email address without paying fees. The receiving users don’t even have to have a Digitex account to receive money! 

We’re making it as simple as possible to trade, earn, and send crypto, and we’re looking forward to seeing you on the new exchange! Sign up for an account now and get started right away on the only platform built with its users’ interests in mind.

April 15, 2021
Digitex

The New Digitex Spot Exchange Is Live

Digitex
digitex

We’re thrilled to announce that, after much anticipation, the new Digitex spot exchange is officially live and open for business. Traders can now buy DGTX instantly and securely straight from our exchange without having to go to a third party platform. This will optimize the trading experience when time is of the essence, save traders from paying trading and withdrawal fees elsewhere, and streamline the new user onboarding process, among other benefits.

All in One Exchange

Our zero-fee spot markets also mean that traders on the exchange can choose to convert their earnings into stablecoin USDC if they wish without leaving the exchange. This will be especially attractive to traders with larger positions looking to avoid the volatility of holding their earnings in cryptocurrencies like DGTX. 

Another huge advantage of the spot markets is that it opens our doors to a wider net of users. Digitex is no longer just a futures exchange but a place where spot traders can place as many trades and transactions as they like without incurring a single fee. They can also withdraw their funds completely free of charge unlike any other cryptocurrency exchange on the market.

We’re starting out with six trading pairs — DGTX/BTC, DGTX/ETH, ETH/BTC, BTC/USDC, ETH/USDC, DGTX/USDC — and will be gradually adding more according to demand. 

We’re excited about this significant upgrade to the Digitex exchange for several other reasons as well. The convenience of trading spot and futures from one universal trading wallet with no KYC requirement makes for a superlative UX, which is something, as you probably know, that our CEO Adam has always been tirelessly obsessed about!

“We want to offer our traders an experience they won’t find anywhere else. So not only have we removed ALL fees, zero trading and zero withdrawal fees, but we’ve also really improved our UX and UI on this latest release. By allowing traders to trade cryptocurrencies and futures from one universal wallet, they can interact with our markets in a faster and more convenient way,” Adam enthused. 

“The overall trading experience on Digitex is totally optimized, allowing traders to walk away with real profit. That’s what it’s all about, delivering real value to users.” 

The Evolution of Digitex

The launching of our spot markets marks the latest evolution for Digitex as we expand our user base and improve our exchange constantly — without losing sight of what makes us so special. Digitex, with its unique zero-fee model that uses the DGTX token for all interactions on the exchange, is the only platform that enables high-frequency trading strategies. With the hefty commissions on fee-charging exchanges, taking advantage of small price movements through scalping is simply impossible.

Digitex provides a true zero-fee trading experience creating the most optimal environment for traders to generate and, more importantly, keep their profits. The Digitex matching engine has been battle-hardened on live markets with thousands of real users through extreme BTC volatility since 2019 and has proved itself capable of handling over 22 billion contracts in a 24-hour period — on the crypto industry’s first and only single-click ladder interface.

“You’ve all witnessed my rollercoaster experience trying to develop this platform,” Adam said candidly. “It’s been challenging yet also extremely rewarding. One of the greatest lessons I’ve learned is that my most prized possession is the team I have now. I wouldn’t trade them in for anything. I’m really happy that we’re delivering the high-quality spot exchange at just the start of Q2, because there’s so much more to come for the remainder of the year.” 

Liquidity Mining

Our Liquidity Mining program in which we pay traders to act as market makers on our exchange, means that, in addition to making trading gains, we actually pay them while they trade. With unfilled orders, traders are lending liquidity to Digitex’s markets, and keeping our spread tight. 

In exchange for this, we take a snapshot of the order book every minute at a random time, and distribute up to 290 DGTX rewards proportionally to those traders whose unmatched orders are the closest to the spot price at that time. This amounts to a massive 417,600 DGTX paid out daily!

Currently, Digitex traders collectively make over $10,000 worth of DGTX daily through the Liquidity Mining program. Each spot market will pay traders 25 DGTX per minute, which comes to 36,000 DGTX per day per spot market, click this link to learn more about the program, and read the following article on our blog to get started with bot trading to maximize your liquidity mining rewards.

Additional Features

With the upgrade to Digitex.io, we’ll soon be adding another new feature to the exchange that allows users to instantly send crypto to any email address without paying fees. The receiving users don’t even have to have a Digitex account to receive money! 

We’re making it as simple as possible to trade, earn, and send crypto, and we’re looking forward to seeing you on the new exchange! Sign up for an account now and get started right away on the only platform built with its users’ interests in mind.

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 21

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 22

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? 23

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? 24

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