A Look at the Best Crypto Trading Strategies 1

A Look at the Best Crypto Trading Strategies

Digitex Futures
Trading
• Dave Reiter
February 11, 2020

In the world of trading and investing, there are two different methods for speculating across all asset classes.

Speculators are divided into one of the following categories: fundamental analysis or technical analysis.

Let’s examine each category and consider how they can be used to develop crypto trading strategies that work.

Fundamental Analysis vs. Technical Analysis

Fundamental analysis is most widely used among stock market traders, particularly those who invest in individual stocks. This particular method focuses on the earnings per share (EPS), price-to-earnings (P/E) ratio, dividend yield, and debt-to-equity ratio.

The main objective of fundamental analysis is to determine the intrinsic value of the individual stock. If the price of the stock is trading below its intrinsic value, an investor may want to buy the stock.

Investors use fundamental analysis with other asset classes such as bonds, commodities, and alternative investments. Regardless of the asset class, the objective is always the same — to determine the intrinsic value of the underlying asset.

If the asset is trading below its intrinsic value, the investor would be inclined to buy the security based on the fact that it’s undervalued. This can be a foundation of day trading futures strategies.

Technical analysis uses a completely different method. It’s a trading approach designed to evaluate investment flows and trading opportunities by analyzing statistical trends.

These statistical trends are gathered from various trading activities, most notably price movement and volume.

Technical analysis makes no effort to determine intrinsic value. Instead, it focuses on patterns derived from price movements and charting tools. These tools are used to appraise the strength or weakness of the underlying security or asset class and determine the day trading strategies for cryptocurrency or other assets.

Although technical analysis can be used with any asset class, it is most widely used among currency and commodity traders. Why?

Because historical research suggests that currencies and commodities generate much better performance results when traders use trend-following tools commonly found in technical analysis to develop their day trading futures strategies.

Do you want to try your hand at trading cryptocurrencies? Check out Digitex, a next-generation crypto trading platform where you can trade Bitcoin derivatives without paying any fees. With a zero-fee trading experience, you can limit your losses and maximize your gains while enjoying the benefits of a robust, beginner-friendly exchange service.

Register An Account At Digitex Now!

Cryptocurrencies Work Best With Technical Analysis

Although cryptocurrencies have only been in existence for 10 years, technical analysis has proven to generate good crypto trading strategies and a better trading experience versus fundamental analysis.

Given the dramatic price fluctuations within the crypto universe, it’s virtually impossible to accurately determine the intrinsic value of any cryptocurrency, including Bitcoin. Therefore, it’s impractical to apply fundamental analysis if the intrinsic value is unavailable. As a result, the best futures trading strategies for crypto incorporate technical indicators.

Cryptocurrencies behave in a similar manner to commodities and foreign currencies (forex). Therefore, using technical indicators is the best course of action.

While there are hundreds of different technical indicators, it can be rather difficult to select the best ones when developing your day trading cryptocurrency strategy. Some simply work better than others.

Let’s review a few of the indicators that have yielded decent results for trading cryptocurrencies. We’ll use Bitcoin in our examples, but keep in mind that the best crypto trading strategy advice can usually be used for any coin.

Pay Attention to Volume

Volume can provide several clues to the underlying strength or weakness of the market. It can give early warning signs concerning a possible change in trend.

That said, many traders don’t pay attention to volume when developing their crypto trading strategies. However, this is a mistake as the indicator provides a “snapshot” picture of how many traders are actually establishing positions at various price levels.

The best way to use this indicator to develop a day trading cryptocurrency strategy is to compare and contrast the daily volume on a big up day or a big down day. If a bullish breakout is not confirmed by record volume, it’s probably a false breakout.

Also, if a bearish breakout is not validated by record volume, the most likely outcome is a false breakout in this case as well.

Let’s take a look at a perfect example of a false breakout that occurred in March 2021.

A Look at the Best Crypto Trading Strategies 2

As you can see in the chart above, a strong resistance level formed at $51,354 on February 24 from previous support. On March 2 at 20:00, BTC entered into a short bull run, in which it surged from $47,450 to $51,681 by March 3.

However, the volume was weak (3,240 BTC divided between four candlesticks). For comparison, users traded 10,748 coins while Bitcoin gained $3,615 between February 16 and 17.

As a result, this turned out to be a false breakout, with the BTC price rolling over to the downside, eliminating all the gains from the cryptocurrency’s bull run in the next few days.

However, those with great crypto trading strategies who followed the volume indicator on March 2 and 3 were able to cut their losses very quickly.

A Look at the Best Crypto Trading Strategies 3

The volume indicator produced another signal on February 22. A sell signal occurred at $54,237 on the heavy daily volume of 17,000 BTC (users traded 3,563 BTC on the previous day).

Traders who identified the crypto trading signal and shorted BTC at $54,237 enjoyed a very profitable trade, in which the digital asset fell down to $45,309 until its price started to increase again. The volume indicator worked incredibly well on this particular trade.

A Look at the Best Crypto Trading Strategies 4

A third signal occurred on March 13. The volume indicator initiated a sell signal at $61,153 as Bitcoin’s strong surge that day was not matched by record volume (only 6,188 BTC). Therefore, this trade resulted in a false breakout, which moved the cryptocurrency’s price down to $51,344 by March 25.

As you can see, volume is a very useful tool in the world of technical analysis. For that reason, you should always pay attention to volume when developing Bitcoin trading strategies as it has the potential to generate very profitable trades.

More importantly, it can identify false breakouts, which will allow you to cut your losses very quickly. For that reason, you should never ignore the volume of the asset you are planning to trade!

Basing Your Bitcoin Trading Strategies on Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that fluctuates between 0 and 100, measuring the speed and change of price movements.

RSI is a fairly popular indicator that can be found on many financial websites and also in day trading strategies for cryptocurrency.

Typically, traders use RSI to determine if a market is overbought or oversold.

The general belief is that a market becomes overbought when RSI exceeds 70. Conversely, a market becomes oversold when RSI drops below 30.

That said, this particular strategy doesn’t work very well in the real world as markets can remain overbought or oversold for extended periods of time. As a result, RSI tends to generate many false signals.

Based on historical research, a more appropriate way to apply RSI is to use it as a confirmation indicator. For example, if Bitcoin is making a new high, RSI should also be making a new high in order to confirm the strength of Bitcoin’s breakout into new territory.

If Bitcoin is making a new low, RSI should also be making a new low to confirm the strength of the cryptocurrency’s breakout into new territory.

A Look at the Best Crypto Trading Strategies 5

The chart above displays a bullish breakout on February 8, 2021 at $46,453. Since the RIS generated a new high along with the BTC price, it confirmed that the breakout is valid, which resulted in a move upward to $57,402 by February 21.

A Look at the Best Crypto Trading Strategies 6

The same outcome occurred on January 6 at $36,843. After testing the resistance line a few times, Bitcoin generated a breakout.

And, like in the previous case, the RSI confirmed the breakout as it jumped to record highs. As a result, traders who placed an order at $36,843 could profit $4,460 as BTC surged to $41,303 before entering into a correction.

The RSI indicator works remarkably well at confirming bullish and bearish breakouts. Traders who have the discipline to follow this indicator will save money by ignoring the trades that are not validated by a new RSI breakout.

Don’t Ignore Money Flow

The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. It uses price and volume to calculate trading pressure.

Arguably, MFI is the surest way to determine the amount of money entering and leaving a particular security or market. And if you’re looking to develop the best crypto trading strategy, you can’t ignore MFI.

Similar to the RSI, the index fluctuates between 0 and 100. In terms of Bitcoin, the best way to apply MFI for great crypto trading strategies is to use it as a validation tool.

For example, if Bitcoin is making a new high, MFI should also be making a new high in order to confirm the strength of Bitcoin’s breakout into new territory.

On the other hand, if Bitcoin is making a new low, MFI should also be making a new low to confirm the strength of BTC’s breakout.

A Look at the Best Crypto Trading Strategies 7

As you can see on the chart above, the MFI invalidated the bullish breakout on January 29, 2021 at 8:00. While Bitcoin surged by a whopping $5,000 that day, the MFI moved just above the levels it was standing eight hours ago.

A Look at the Best Crypto Trading Strategies 8

On the other hand, the MFI did a great job at validating the bullish breakout on March 8. As soon as the BTC price broke through the resistance level, the MFI jumped 10 points while the cryptocurrency’s value surged from $51,000 to $61,218 between March 8 and 13.

True Range Breakout (TRABOS)

The true range breakout indicator (TRABOS) is designed to capture short-term price fluctuations across all asset classes. It generates several buy/sell signals in comparison to most other indicators.

For those who enjoy active crypto trading strategies, TRABOS will be very appealing to your aggressive style of trading. Furthermore, it can also be applied to day trading futures strategies; trading them daily also requires a certain amount of aggression.

The most attractive aspect of TRABOS is based on the fact that it rarely misses a big move. Why? Because trading signals are calculated on a daily basis. Therefore, the indicator is constantly searching for profitable trading opportunities. See below for more information.

Note: A sell signal was generated at $54,663 on February 22, 2021.

The trading rules for TRABOS are rather simple. You can find them below:

1.Calculate the true range (daily high minus daily low).

  1. Buy signal is the closing price plus the true range.
  2. Sell signal is the closing price minus the true range.
  3. If long, the profit target is the daily high on the day of entry.
  4. If long, the protective stop is the low on the day of entry.
  5. If short, the profit target is the daily low on the day of entry.
  6. If short, the protective stop is the high on the day of entry.

A Look at the Best Crypto Trading Strategies 9

Based on the chart above, the TRABOS didn’t generate a signal on February 21.

However, traders could identify a sell signal on February 22 at $54,663. While the BTC price closed at $57,479 on the previous day, the true range was 2,816. For that reason, a bearish signal could be observed on the next day when the cryptocurrency’s value decreased below $54,663.

Putting a protective stop at $57,572, our profit target was the low on the day of entry, which is $47,426.

This turned out to be a very profitable trade because BTC experienced a substantial decline that day and the day after. As a result, we reached our profit target at $47,426 on February 23.

After the trade has been completed, simply calculate a new buy/sell signal for the next day. You can automatically calculate daily TRABOS by using the Average True Range (ATR) indicator and setting its length to 1.

TRABOS creates 2 to 3 trades per week. The key to success is to consistently take every trade for an extended period of time.

Since TRABOS generates a large number of buy/sell signals, it is an excellent indicator for traders on the Digitex Futures platform. As Digitex is 100% commission-free, it doesn’t hurt the profitability of traders by imposing fees on their positions (a 0.10% cost would take away 10% from margin traders using a 100x leverage).

For that reason, trading on Digitex will dramatically reduce the cost of trading for aggressive crypto trading strategies that incorporate indicators like TRABOS.

Crypto Trading Strategies – Wrapping It Up

While they are definitely useful, the four indicators listed in this article are certainly not perfect. However, when taken as a group, they provide an excellent approach to trading cryptocurrencies.

No matter whether cryptocurrencies are bullish or bearish, it’s certainly possible to trade crypto successfully amid any market conditions.

However, it requires patience, discipline, and a handful of reliable indicators. While it’s easy to pick the right indicators, the hard part is being patient, disciplined, and dedicated when leveraging your crypto trading strategies.

That said, developing the best futures trading strategies will take more than just knowledge of these indicators, but they’re a good place to start.

Personal Observations

I’ve been trading commodities for three decades. In 2016, I began trading cryptocurrencies.

Throughout my trading career, I’ve used technical analysis 100% of the time and have found it to be integral to developing the best crypto trading strategy.

Based on my trading results, I’m convinced that certain price patterns are repetitive in nature. I believe in the notion that past trading activity and price movements are valuable indicators of future price direction.

I’m also convinced that technical analysis will generate superior results, particularly if the technical indicators are trend-following in nature.

Leverage Your Crypto Trading Strategies on Digitex

High fees can easily turn the profits of traders into losses.

To avoid hurting your profitability, the revolutionary Bitcoin derivatives trading platform Digitex completely eliminated fees on its platform. As a result, you get more winning trades, more often while leveraging your crypto trading strategies on the Digitex futures exchange.

In addition to keeping 100% of your revenue while utilizing a robust crypto trading platform, Digitex also features multiple rewards programs.

By yield farming the exchange’s native DGTX token on Uniswap, you can benefit from a generous 10.90% APY with the option to multiply your gains by providing liquidity for longer periods.

On top of that, Digitex also rewards users for simply trading cryptocurrency via its liquidity mining program.

In exchange for providing liquidity to the platform with unfilled orders, Digitex traders can earn up to 140 DGTX each minute. The rewards are distributed proportionally between those whose unmatched orders were the closest to the spot price at the time the system randomly takes a snapshot of the order book.

To reap all these benefits, be sure to create an account at the Bitcoin derivatives exchange Digitex.

Gaining 222% in March, DGTX is also a hot asset for both investors and traders, which you can now buy using a credit or a debit card.

Sounds great, huh?

Purchase DGTX Now!

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

February 11, 2020
Digitex Futures
Trading

A Look at the Best Crypto Trading Strategies

Dave Reiter
A Look at the Best Crypto Trading Strategies 10

In the world of trading and investing, there are two different methods for speculating across all asset classes.

Speculators are divided into one of the following categories: fundamental analysis or technical analysis.

Let’s examine each category and consider how they can be used to develop crypto trading strategies that work.

Fundamental Analysis vs. Technical Analysis

Fundamental analysis is most widely used among stock market traders, particularly those who invest in individual stocks. This particular method focuses on the earnings per share (EPS), price-to-earnings (P/E) ratio, dividend yield, and debt-to-equity ratio.

The main objective of fundamental analysis is to determine the intrinsic value of the individual stock. If the price of the stock is trading below its intrinsic value, an investor may want to buy the stock.

Investors use fundamental analysis with other asset classes such as bonds, commodities, and alternative investments. Regardless of the asset class, the objective is always the same — to determine the intrinsic value of the underlying asset.

If the asset is trading below its intrinsic value, the investor would be inclined to buy the security based on the fact that it’s undervalued. This can be a foundation of day trading futures strategies.

Technical analysis uses a completely different method. It’s a trading approach designed to evaluate investment flows and trading opportunities by analyzing statistical trends.

These statistical trends are gathered from various trading activities, most notably price movement and volume.

Technical analysis makes no effort to determine intrinsic value. Instead, it focuses on patterns derived from price movements and charting tools. These tools are used to appraise the strength or weakness of the underlying security or asset class and determine the day trading strategies for cryptocurrency or other assets.

Although technical analysis can be used with any asset class, it is most widely used among currency and commodity traders. Why?

Because historical research suggests that currencies and commodities generate much better performance results when traders use trend-following tools commonly found in technical analysis to develop their day trading futures strategies.

Do you want to try your hand at trading cryptocurrencies? Check out Digitex, a next-generation crypto trading platform where you can trade Bitcoin derivatives without paying any fees. With a zero-fee trading experience, you can limit your losses and maximize your gains while enjoying the benefits of a robust, beginner-friendly exchange service.

Register An Account At Digitex Now!

Cryptocurrencies Work Best With Technical Analysis

Although cryptocurrencies have only been in existence for 10 years, technical analysis has proven to generate good crypto trading strategies and a better trading experience versus fundamental analysis.

Given the dramatic price fluctuations within the crypto universe, it’s virtually impossible to accurately determine the intrinsic value of any cryptocurrency, including Bitcoin. Therefore, it’s impractical to apply fundamental analysis if the intrinsic value is unavailable. As a result, the best futures trading strategies for crypto incorporate technical indicators.

Cryptocurrencies behave in a similar manner to commodities and foreign currencies (forex). Therefore, using technical indicators is the best course of action.

While there are hundreds of different technical indicators, it can be rather difficult to select the best ones when developing your day trading cryptocurrency strategy. Some simply work better than others.

Let’s review a few of the indicators that have yielded decent results for trading cryptocurrencies. We’ll use Bitcoin in our examples, but keep in mind that the best crypto trading strategy advice can usually be used for any coin.

Pay Attention to Volume

Volume can provide several clues to the underlying strength or weakness of the market. It can give early warning signs concerning a possible change in trend.

That said, many traders don’t pay attention to volume when developing their crypto trading strategies. However, this is a mistake as the indicator provides a “snapshot” picture of how many traders are actually establishing positions at various price levels.

The best way to use this indicator to develop a day trading cryptocurrency strategy is to compare and contrast the daily volume on a big up day or a big down day. If a bullish breakout is not confirmed by record volume, it’s probably a false breakout.

Also, if a bearish breakout is not validated by record volume, the most likely outcome is a false breakout in this case as well.

Let’s take a look at a perfect example of a false breakout that occurred in March 2021.

A Look at the Best Crypto Trading Strategies 11

As you can see in the chart above, a strong resistance level formed at $51,354 on February 24 from previous support. On March 2 at 20:00, BTC entered into a short bull run, in which it surged from $47,450 to $51,681 by March 3.

However, the volume was weak (3,240 BTC divided between four candlesticks). For comparison, users traded 10,748 coins while Bitcoin gained $3,615 between February 16 and 17.

As a result, this turned out to be a false breakout, with the BTC price rolling over to the downside, eliminating all the gains from the cryptocurrency’s bull run in the next few days.

However, those with great crypto trading strategies who followed the volume indicator on March 2 and 3 were able to cut their losses very quickly.

A Look at the Best Crypto Trading Strategies 12

The volume indicator produced another signal on February 22. A sell signal occurred at $54,237 on the heavy daily volume of 17,000 BTC (users traded 3,563 BTC on the previous day).

Traders who identified the crypto trading signal and shorted BTC at $54,237 enjoyed a very profitable trade, in which the digital asset fell down to $45,309 until its price started to increase again. The volume indicator worked incredibly well on this particular trade.

A Look at the Best Crypto Trading Strategies 13

A third signal occurred on March 13. The volume indicator initiated a sell signal at $61,153 as Bitcoin’s strong surge that day was not matched by record volume (only 6,188 BTC). Therefore, this trade resulted in a false breakout, which moved the cryptocurrency’s price down to $51,344 by March 25.

As you can see, volume is a very useful tool in the world of technical analysis. For that reason, you should always pay attention to volume when developing Bitcoin trading strategies as it has the potential to generate very profitable trades.

More importantly, it can identify false breakouts, which will allow you to cut your losses very quickly. For that reason, you should never ignore the volume of the asset you are planning to trade!

Basing Your Bitcoin Trading Strategies on Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that fluctuates between 0 and 100, measuring the speed and change of price movements.

RSI is a fairly popular indicator that can be found on many financial websites and also in day trading strategies for cryptocurrency.

Typically, traders use RSI to determine if a market is overbought or oversold.

The general belief is that a market becomes overbought when RSI exceeds 70. Conversely, a market becomes oversold when RSI drops below 30.

That said, this particular strategy doesn’t work very well in the real world as markets can remain overbought or oversold for extended periods of time. As a result, RSI tends to generate many false signals.

Based on historical research, a more appropriate way to apply RSI is to use it as a confirmation indicator. For example, if Bitcoin is making a new high, RSI should also be making a new high in order to confirm the strength of Bitcoin’s breakout into new territory.

If Bitcoin is making a new low, RSI should also be making a new low to confirm the strength of the cryptocurrency’s breakout into new territory.

A Look at the Best Crypto Trading Strategies 14

The chart above displays a bullish breakout on February 8, 2021 at $46,453. Since the RIS generated a new high along with the BTC price, it confirmed that the breakout is valid, which resulted in a move upward to $57,402 by February 21.

A Look at the Best Crypto Trading Strategies 15

The same outcome occurred on January 6 at $36,843. After testing the resistance line a few times, Bitcoin generated a breakout.

And, like in the previous case, the RSI confirmed the breakout as it jumped to record highs. As a result, traders who placed an order at $36,843 could profit $4,460 as BTC surged to $41,303 before entering into a correction.

The RSI indicator works remarkably well at confirming bullish and bearish breakouts. Traders who have the discipline to follow this indicator will save money by ignoring the trades that are not validated by a new RSI breakout.

Don’t Ignore Money Flow

The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. It uses price and volume to calculate trading pressure.

Arguably, MFI is the surest way to determine the amount of money entering and leaving a particular security or market. And if you’re looking to develop the best crypto trading strategy, you can’t ignore MFI.

Similar to the RSI, the index fluctuates between 0 and 100. In terms of Bitcoin, the best way to apply MFI for great crypto trading strategies is to use it as a validation tool.

For example, if Bitcoin is making a new high, MFI should also be making a new high in order to confirm the strength of Bitcoin’s breakout into new territory.

On the other hand, if Bitcoin is making a new low, MFI should also be making a new low to confirm the strength of BTC’s breakout.

A Look at the Best Crypto Trading Strategies 16

As you can see on the chart above, the MFI invalidated the bullish breakout on January 29, 2021 at 8:00. While Bitcoin surged by a whopping $5,000 that day, the MFI moved just above the levels it was standing eight hours ago.

A Look at the Best Crypto Trading Strategies 17

On the other hand, the MFI did a great job at validating the bullish breakout on March 8. As soon as the BTC price broke through the resistance level, the MFI jumped 10 points while the cryptocurrency’s value surged from $51,000 to $61,218 between March 8 and 13.

True Range Breakout (TRABOS)

The true range breakout indicator (TRABOS) is designed to capture short-term price fluctuations across all asset classes. It generates several buy/sell signals in comparison to most other indicators.

For those who enjoy active crypto trading strategies, TRABOS will be very appealing to your aggressive style of trading. Furthermore, it can also be applied to day trading futures strategies; trading them daily also requires a certain amount of aggression.

The most attractive aspect of TRABOS is based on the fact that it rarely misses a big move. Why? Because trading signals are calculated on a daily basis. Therefore, the indicator is constantly searching for profitable trading opportunities. See below for more information.

Note: A sell signal was generated at $54,663 on February 22, 2021.

The trading rules for TRABOS are rather simple. You can find them below:

1.Calculate the true range (daily high minus daily low).

  1. Buy signal is the closing price plus the true range.
  2. Sell signal is the closing price minus the true range.
  3. If long, the profit target is the daily high on the day of entry.
  4. If long, the protective stop is the low on the day of entry.
  5. If short, the profit target is the daily low on the day of entry.
  6. If short, the protective stop is the high on the day of entry.

A Look at the Best Crypto Trading Strategies 18

Based on the chart above, the TRABOS didn’t generate a signal on February 21.

However, traders could identify a sell signal on February 22 at $54,663. While the BTC price closed at $57,479 on the previous day, the true range was 2,816. For that reason, a bearish signal could be observed on the next day when the cryptocurrency’s value decreased below $54,663.

Putting a protective stop at $57,572, our profit target was the low on the day of entry, which is $47,426.

This turned out to be a very profitable trade because BTC experienced a substantial decline that day and the day after. As a result, we reached our profit target at $47,426 on February 23.

After the trade has been completed, simply calculate a new buy/sell signal for the next day. You can automatically calculate daily TRABOS by using the Average True Range (ATR) indicator and setting its length to 1.

TRABOS creates 2 to 3 trades per week. The key to success is to consistently take every trade for an extended period of time.

Since TRABOS generates a large number of buy/sell signals, it is an excellent indicator for traders on the Digitex Futures platform. As Digitex is 100% commission-free, it doesn’t hurt the profitability of traders by imposing fees on their positions (a 0.10% cost would take away 10% from margin traders using a 100x leverage).

For that reason, trading on Digitex will dramatically reduce the cost of trading for aggressive crypto trading strategies that incorporate indicators like TRABOS.

Crypto Trading Strategies – Wrapping It Up

While they are definitely useful, the four indicators listed in this article are certainly not perfect. However, when taken as a group, they provide an excellent approach to trading cryptocurrencies.

No matter whether cryptocurrencies are bullish or bearish, it’s certainly possible to trade crypto successfully amid any market conditions.

However, it requires patience, discipline, and a handful of reliable indicators. While it’s easy to pick the right indicators, the hard part is being patient, disciplined, and dedicated when leveraging your crypto trading strategies.

That said, developing the best futures trading strategies will take more than just knowledge of these indicators, but they’re a good place to start.

Personal Observations

I’ve been trading commodities for three decades. In 2016, I began trading cryptocurrencies.

Throughout my trading career, I’ve used technical analysis 100% of the time and have found it to be integral to developing the best crypto trading strategy.

Based on my trading results, I’m convinced that certain price patterns are repetitive in nature. I believe in the notion that past trading activity and price movements are valuable indicators of future price direction.

I’m also convinced that technical analysis will generate superior results, particularly if the technical indicators are trend-following in nature.

Leverage Your Crypto Trading Strategies on Digitex

High fees can easily turn the profits of traders into losses.

To avoid hurting your profitability, the revolutionary Bitcoin derivatives trading platform Digitex completely eliminated fees on its platform. As a result, you get more winning trades, more often while leveraging your crypto trading strategies on the Digitex futures exchange.

In addition to keeping 100% of your revenue while utilizing a robust crypto trading platform, Digitex also features multiple rewards programs.

By yield farming the exchange’s native DGTX token on Uniswap, you can benefit from a generous 10.90% APY with the option to multiply your gains by providing liquidity for longer periods.

On top of that, Digitex also rewards users for simply trading cryptocurrency via its liquidity mining program.

In exchange for providing liquidity to the platform with unfilled orders, Digitex traders can earn up to 140 DGTX each minute. The rewards are distributed proportionally between those whose unmatched orders were the closest to the spot price at the time the system randomly takes a snapshot of the order book.

To reap all these benefits, be sure to create an account at the Bitcoin derivatives exchange Digitex.

Gaining 222% in March, DGTX is also a hot asset for both investors and traders, which you can now buy using a credit or a debit card.

Sounds great, huh?

Purchase DGTX Now!

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

Latest News

The Road to Our Testnet Launch - Latest Development Report 19

The Road to Our Testnet Launch – Latest Development Report

Blockchain
Digitex Futures
• admin
September 6, 2019

The 15-strong team of developers at SmartDec has been leaving no stone unturned. In their previous report, we were excited to receive a launch date for the testnet. On 30 November, we’ll be opening the doors at last and onboarding thousands of traders. But it hasn’t been smooth sailing to get here. This latest update straight from Moscow describes all the challenges and issues they’ve had to overcome to reach this point.

Going through the Dublin Code

If you’re familiar with the Digitex project, you’ll know that development has been our greatest challenge. We started out with a team of programmers in Dublin with experience building systems-critical software in the telecoms industry. 
Our team worked hard and did their best. But as Adam has mentioned in several interviews, they simply didn’t have the experience to build something as challenging as a real-time futures exchange and matching engine capable of handling heavy load. However, they shared their code with SmartDec and although there were several issues with it, it still gave the new team a starting point.
If you want to read in greater depth about the technical issues SmartDec uncovered and the work they put in to ensure the system is robust and fast, check out their latest development report here. In a nutshell, our Dublin team sent SmartDec the web back-end, UI, several databases, message queue, and the futures engine itself. Some of it was functional, but much work is still to be done. 

The Work SmartDec Has Done So Far

When you take a moment to consider the many elements that building a robust, high speed and resilient futures exchange takes, it’s not surprising that we’ve hit a few roadblocks. Adam has high standards and knows what he wants. That takes a team of great minds and innovation to pull it all together. It hasn’t been easy but we’ve finally found that in SmartDec.
From adding functionality to the back end to optimizing and debugging the futures engine and building out the ladder interface, the team has been developing the exchange at lightning speed. Rather than thinking of the simplest examples and user stories, they’ve researched and implemented a full 17 user stories so far for the interface and are extensively testing them all.

Building a Back Office and Implementing the Database

The code that SmartDec received was missing a key element–the back office. The new team extensively researched the best methods for implementing this for the Digitex exchange. They did this through back to back meetings with Adam and also by consulting external third parties more familiar with the issue. 
SmartDec have decided to integrate some third party elements into our back office in order to avoid reinventing the wheel and to cut down on development time. One example of this is the integration of Zendesk. And as SmartDec mentions in their report, “Everything that is not a third party component is now in development.”
The existing database from Dublin included many unused tables. The team quickly set about optimizing the code so that it can achieve super-fast performance and optimal uptime. 

Optimizing and Refactoring The Message Queue System and Futures Engine

By optimizing the existing message queue system SmartDec have taken its capacity from 20,000 messages per second to 500,000 messages per second. And extensive refactoring of the future engine means it is now capable of handling 40,000 transactions per second. One transaction consists of order placement, matching, creating a trade and then communicating this to observers, meaning that one transaction consists of up to 4 messages. With further optimization and testing this capacity is expected to rise.

Wrapping It Up

SmartDec points out that this latest report is a collection of notes from over the summer and that since then development has moved further along. In fact, these reports are always at least 2 weeks behind where they are currently at. The team continues building all the components of the exchange together to run them as a whole–as well as testing, testing, and more testing to deliver a fast, stable, and highly resilient futures exchange.

September 6, 2019
Blockchain
Digitex Futures

The Road to Our Testnet Launch – Latest Development Report

admin
The Road to Our Testnet Launch - Latest Development Report 20

The 15-strong team of developers at SmartDec has been leaving no stone unturned. In their previous report, we were excited to receive a launch date for the testnet. On 30 November, we’ll be opening the doors at last and onboarding thousands of traders. But it hasn’t been smooth sailing to get here. This latest update straight from Moscow describes all the challenges and issues they’ve had to overcome to reach this point.

Going through the Dublin Code

If you’re familiar with the Digitex project, you’ll know that development has been our greatest challenge. We started out with a team of programmers in Dublin with experience building systems-critical software in the telecoms industry. 
Our team worked hard and did their best. But as Adam has mentioned in several interviews, they simply didn’t have the experience to build something as challenging as a real-time futures exchange and matching engine capable of handling heavy load. However, they shared their code with SmartDec and although there were several issues with it, it still gave the new team a starting point.
If you want to read in greater depth about the technical issues SmartDec uncovered and the work they put in to ensure the system is robust and fast, check out their latest development report here. In a nutshell, our Dublin team sent SmartDec the web back-end, UI, several databases, message queue, and the futures engine itself. Some of it was functional, but much work is still to be done. 

The Work SmartDec Has Done So Far

When you take a moment to consider the many elements that building a robust, high speed and resilient futures exchange takes, it’s not surprising that we’ve hit a few roadblocks. Adam has high standards and knows what he wants. That takes a team of great minds and innovation to pull it all together. It hasn’t been easy but we’ve finally found that in SmartDec.
From adding functionality to the back end to optimizing and debugging the futures engine and building out the ladder interface, the team has been developing the exchange at lightning speed. Rather than thinking of the simplest examples and user stories, they’ve researched and implemented a full 17 user stories so far for the interface and are extensively testing them all.

Building a Back Office and Implementing the Database

The code that SmartDec received was missing a key element–the back office. The new team extensively researched the best methods for implementing this for the Digitex exchange. They did this through back to back meetings with Adam and also by consulting external third parties more familiar with the issue. 
SmartDec have decided to integrate some third party elements into our back office in order to avoid reinventing the wheel and to cut down on development time. One example of this is the integration of Zendesk. And as SmartDec mentions in their report, “Everything that is not a third party component is now in development.”
The existing database from Dublin included many unused tables. The team quickly set about optimizing the code so that it can achieve super-fast performance and optimal uptime. 

Optimizing and Refactoring The Message Queue System and Futures Engine

By optimizing the existing message queue system SmartDec have taken its capacity from 20,000 messages per second to 500,000 messages per second. And extensive refactoring of the future engine means it is now capable of handling 40,000 transactions per second. One transaction consists of order placement, matching, creating a trade and then communicating this to observers, meaning that one transaction consists of up to 4 messages. With further optimization and testing this capacity is expected to rise.

Wrapping It Up

SmartDec points out that this latest report is a collection of notes from over the summer and that since then development has moved further along. In fact, these reports are always at least 2 weeks behind where they are currently at. The team continues building all the components of the exchange together to run them as a whole–as well as testing, testing, and more testing to deliver a fast, stable, and highly resilient futures exchange.

Latest News

Day Trading Strategies For Cryptocurrencies 21

Day Trading Strategies For Cryptocurrencies

Digitex Futures
Trading
• Dave Reiter
September 5, 2019

Day trading dates all the way back to the 1860s although the practice took a major leap forward with the formation of the NASDAQ in 1971 which allowed for rapid dissemination of stock quotes between the exchange, the broker, and the customer. It has become more popular thanks to the rise of personal computers and the internet. Today, day trading is probably the most popular strategy in the crypto space. Let’s review a few day trading strategies for cryptocurrencies below. Continue reading

September 5, 2019
Digitex Futures
Trading

Day Trading Strategies For Cryptocurrencies

Dave Reiter
Day Trading Strategies For Cryptocurrencies 22

Day trading dates all the way back to the 1860s although the practice took a major leap forward with the formation of the NASDAQ in 1971 which allowed for rapid dissemination of stock quotes between the exchange, the broker, and the customer. It has become more popular thanks to the rise of personal computers and the internet. Today, day trading is probably the most popular strategy in the crypto space. Let’s review a few day trading strategies for cryptocurrencies below. Continue reading

Latest News

Wondering How To Buy Futures? Check Out This Quick Guide 23

Wondering How To Buy Futures? Check Out This Quick Guide

Digitex Futures
Trading
• Christina Comben
September 2, 2019

As we announced the launch of our public testnet and inch closer to opening the gates, things are starting to get real at last! You may find yourself wondering how to buy futures or indeed, what futures really are. In this article, we explain the basic concepts, how to buy futures, the types of contracts, and all you need to know to get into stock futures investing.

About Futures 

For a more in-depth overview of futures and futures trading, check out our how-to guide here. However, the basic premise is this: Think of futures contracts as agreements between two parties to trade an asset (in this case Bitcoin) for an agreed-upon price in the future. 
Trading futures has many benefits and started out as a way of allowing large companies, farmers, oil producers, etc. to hedge their commodities’ value against price fluctuations. Say an oil producer believes that the price per barrel will drop significantly in the next six months. He can enter a futures contract to sell at today’s price in six months to secure his profit. Of course, he loses out if the price rises. Trading futures is always a gamble, even more so in the cryptocurrency space.
There are many different types of futures contracts, including physically settled and cash-settled, as well as daily and monthly settled and perpetual swaps. Until Bakkt makes its entrance in September of this year with the first physically settled Bitcoin Futures market, all futures in the crypto space are cash-settled. This means that the traders pay each other the difference instead of physically delivering the underlying asset (Bitcoin). 
While some traders are looking to hedge on price, most modern futures traders are speculators looking to trade on price fluctuations and make cash profits, rather than taking custody of the underlying asset (i.e. barrels of oil, bars of gold, or even bitcoins). This would be a physically-settled contract and is more applicable to institutional space, agricultural or airline industries, for example. 

Perpetual Swaps

What are perpetual swap contracts? Perpetual swaps have no expiration date, unlike daily or monthly settled futures contracts. This makes them easier to understand for retail traders and they will be the main focus of the Digitex Futures exchange. As Adam stated in the AMA about the testnet:
“With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume.”

Futures Markets

The futures market globally is now enormous and growing all the time according to the Futures Industry Association, with futures traded against stocks, Forex, cryptocurrencies, indices, bonds, gold, and more.
If you were asking questions like, what are stock futures, what is day trading futures, and how to buy futures, it helps to have an overview of the different types of markets first–as well as the tools that good futures traders use to magnify their profits.
You can buy futures contracts through a traditional broker or online from an abundance of sites that make trading simpler and easier, cut out intermediaries and lower costs. On the Digitex Futures exchange, you’ll be able to buy cryptocurrency futures with zero commissions on all trades–a first for both the crypto and the futures industry.
Futures traders often use tools like margin and leverage to increase their profit sizes. Borrowing funds from an exchange to take a bigger position can be risky and highly leveraged traders can get blown out in volatile markets. However, leverage does give skilled traders the chance to make a lot of money fast and greatly magnify their winnings. This is why 100x leverage has become so popular in the cryptocurrency markets.

How to Buy Futures on the Digitex Exchange

On the Digitex exchange, you can buy futures using DGTX only. This means that you’ll need to know where to buy ether, first of all, to purchase DGTX and then all your profits and losses will be denominated in DGTX.
As Adam highlighted in his AMA, you will be buying a perpetual swap contract, which will be a dollar’s worth of DGTX tokens and has no expiration date. We are still finalizing the futures contract specifications, however, they will be essentially the same as other major futures exchanges such as BitMEX and Bybit to make it easier for their traders to switch over to Digitex. We want to make it as simple as possible to create winning traders and to allow them to trade successfully. 
Skilled traders are used to trading futures for profit. It takes time and discipline, but even you’re just starting out, earning some extra income from day trading futures is certainly within your reach, especially on a platform that charges no commissions and has no mechanical edge working against you.

September 2, 2019
Digitex Futures
Trading

Wondering How To Buy Futures? Check Out This Quick Guide

Christina Comben
Wondering How To Buy Futures? Check Out This Quick Guide 24

As we announced the launch of our public testnet and inch closer to opening the gates, things are starting to get real at last! You may find yourself wondering how to buy futures or indeed, what futures really are. In this article, we explain the basic concepts, how to buy futures, the types of contracts, and all you need to know to get into stock futures investing.

About Futures 

For a more in-depth overview of futures and futures trading, check out our how-to guide here. However, the basic premise is this: Think of futures contracts as agreements between two parties to trade an asset (in this case Bitcoin) for an agreed-upon price in the future. 
Trading futures has many benefits and started out as a way of allowing large companies, farmers, oil producers, etc. to hedge their commodities’ value against price fluctuations. Say an oil producer believes that the price per barrel will drop significantly in the next six months. He can enter a futures contract to sell at today’s price in six months to secure his profit. Of course, he loses out if the price rises. Trading futures is always a gamble, even more so in the cryptocurrency space.
There are many different types of futures contracts, including physically settled and cash-settled, as well as daily and monthly settled and perpetual swaps. Until Bakkt makes its entrance in September of this year with the first physically settled Bitcoin Futures market, all futures in the crypto space are cash-settled. This means that the traders pay each other the difference instead of physically delivering the underlying asset (Bitcoin). 
While some traders are looking to hedge on price, most modern futures traders are speculators looking to trade on price fluctuations and make cash profits, rather than taking custody of the underlying asset (i.e. barrels of oil, bars of gold, or even bitcoins). This would be a physically-settled contract and is more applicable to institutional space, agricultural or airline industries, for example. 

Perpetual Swaps

What are perpetual swap contracts? Perpetual swaps have no expiration date, unlike daily or monthly settled futures contracts. This makes them easier to understand for retail traders and they will be the main focus of the Digitex Futures exchange. As Adam stated in the AMA about the testnet:
“With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume.”

Futures Markets

The futures market globally is now enormous and growing all the time according to the Futures Industry Association, with futures traded against stocks, Forex, cryptocurrencies, indices, bonds, gold, and more.
If you were asking questions like, what are stock futures, what is day trading futures, and how to buy futures, it helps to have an overview of the different types of markets first–as well as the tools that good futures traders use to magnify their profits.
You can buy futures contracts through a traditional broker or online from an abundance of sites that make trading simpler and easier, cut out intermediaries and lower costs. On the Digitex Futures exchange, you’ll be able to buy cryptocurrency futures with zero commissions on all trades–a first for both the crypto and the futures industry.
Futures traders often use tools like margin and leverage to increase their profit sizes. Borrowing funds from an exchange to take a bigger position can be risky and highly leveraged traders can get blown out in volatile markets. However, leverage does give skilled traders the chance to make a lot of money fast and greatly magnify their winnings. This is why 100x leverage has become so popular in the cryptocurrency markets.

How to Buy Futures on the Digitex Exchange

On the Digitex exchange, you can buy futures using DGTX only. This means that you’ll need to know where to buy ether, first of all, to purchase DGTX and then all your profits and losses will be denominated in DGTX.
As Adam highlighted in his AMA, you will be buying a perpetual swap contract, which will be a dollar’s worth of DGTX tokens and has no expiration date. We are still finalizing the futures contract specifications, however, they will be essentially the same as other major futures exchanges such as BitMEX and Bybit to make it easier for their traders to switch over to Digitex. We want to make it as simple as possible to create winning traders and to allow them to trade successfully. 
Skilled traders are used to trading futures for profit. It takes time and discipline, but even you’re just starting out, earning some extra income from day trading futures is certainly within your reach, especially on a platform that charges no commissions and has no mechanical edge working against you.

Latest News

Digitex Futures Is Back on Track and Making Headlines  25

Digitex Futures Is Back on Track and Making Headlines 

Digitex Futures
• Christina Comben
August 27, 2019

At Digitex Futures, we listen to our community. We know that we’ve set your expectations high and you expect nothing but the best. We over-promised and failed to deliver in the past and that’s why we’re doing things differently this time around. Instead of a full bells-and-whistles launch, we’re going to take the time we need to deliver the beast of a zero-fee futures exchange you deserve. And it seems that our more pragmatic and product-lead approach is paying off judging by the response in the press. Check out the headlines we’ve been making since the news came out.

Digitex Futures Launch Date News in the Press

OK, so we’ll admit it, we thought our community would be more excited about the launch news, but on reflection, we know that trust has to be earned. So, while it’s true that this is a public testnet and not a full-on mainnet launch just yet, we’re still extremely happy to be reaching this point with SmartDec so quickly. 
No great platform or game-changing software has ever been launched without a substantial period of testing prior and just as Adam said in his video on Friday, “the huge thing is for the public to be getting on there, for people to see that it’s real… with the delays that we’ve had in the past, a lot of people doubt that.”
So, while we’ll be opening with one market and in test mode while we continue to fortify the engines, you can be 100 percent sure that when we reach mainnet and add the additional markets and features, this will be a killer of an exchange. 

CityAM

While the crypto press was the first to pick up on the news, Digitex has been reaching wider audiences, too. London-based general news publication CityAM featured a “Spotlight” article covering our launch. The piece tells the story of Adam’s career starting as a London pit trader. It goes on to explain how his experiences in the betting markets led him to develop a ladder trading interface called BetTrader, and ultimately funnel everything he’d learned into the development of Digitex. 
CityAM is London’s most-read financial and business newspaper, and its website has two million unique visitors per month. Our feature is on page 18 of today’s edition

ValueWalk

Investment website ValueWalk published a full feature interview with Adam, with Digitex’s 100x leverage offering as the headline. In it, he describes how his idea for Digitex came to life once he discovered Ethereum and had the idea for the DGTX tokenomic model. Even though Adam had faith in his idea from the beginning, he talks about his disbelief when the Digitex Futures ICO sailed through its hard cap in just 17 minutes. 
Adam also discusses how he expects to see more exchange adopting a provably fair matching engine like the one Digitex will offer, as blockchain could potentially perform a regulatory role in ensuring that the exchange operates in a fair and transparent way. 

CryptoBriefing

Crypto Briefing was among the first to pick up the launch news with their article Digitex Announces Testnet Launch Date For Bitcoin Futures Exchange. This writeup mentions that the testnet will be “the first step to creating” the world’s first zero-commission cryptocurrency futures trading platform. It also talks a little about DGTX tokenomics and how we can offer zero-fee trading, concluding with the fact that development is now firmly on track with SmartDec leading the charge.

CryptoSlate

CryptoSlate also ran with the news shortly afterward, posting an article entitled Futures trading platform Digitex prepares for public testnet, announces release date. The text is very matter-of-fact and simply states that we will be launching the public testnet with one market, starting with BTC/USD perpetual swap contracts. The writer also mentions the impact that zero fees and non-custodial accounts will have on the cryptocurrency futures market, which is expanding all the time as Bakkt is slated for launch next month with its physically settled Bitcoin futures contracts.

CryptoDaily

Also noticing the launch announcement was UK-based CryptoDaily in their article Digitex Announces Testnet Launch Date. The writer talks about commission-free trading and how Digitex will remove the fees from all transactions. He also mentions that this is different from all other exchanges on the market:

“Digitex is different in that it will require users to trade exclusively with Digitex Futures (DGTX) tokens”

He also goes into some depth about the Digitex one-click trading ladder interface that will also shake up the way that people trade for good–as well as the fact that we are working with the prime researchers for Ethereum’s scalability solutions to bring traders non-custodial accounts as soon as the technology is ready.

Bitcoin.com

We also picked up a mention in Bitcoin.com’s piece about “The Changing Face of Cryptocurrency Trading in 2019.” The article discusses how the cryptocurrency markets are maturing, and starting to resemble the traditional financial markets in the breadth of different products. 
It goes on to talk about some of the major players in the crypto derivatives space, such as Bybit, Huobi, and of course, Digitex. Describing Digitex as “highly anticipated” the piece mentions our zero-fee model and innovative funding mechanism using the DGTX token

Coverage in International Press 

We’re also really excited that our efforts to reach out to foreign markets are starting to pay off. Not only did Digitex make the English-speaking press, but we also got dedicated write-ups in major international publications as well. 
Some of the key ones were China’s Jinse and Bihu, the number-one Japanese crypto publication Naver, South Korea’s ETNews, CEO Magazine, and Morning News, and Mexico-based AMBCrypto Spanish.

Wrapping It Up

We’re extremely grateful to all the press who covered the launch date news and we’ll be sharing all articles with you as they come in. 
What’s the key takeaway from all of this? As Adam stated simply in the video:

“The Digitex Futures exchange is launching!” We finally have a date to work toward and all the components of our team are coming together. We’re getting closer to making commission-free trading a reality and, no matter the current reaction, that’s epic in itself.

Got questions? Adam will be hosting a live AMA at 11 am EST (4 pm CET) on Wednesday to answer any doubts or concerns. Be sure to tune in and let him hear your thoughts about the latest news and respond to your comments. Thank you for all your continued support!

August 27, 2019
Digitex Futures

Digitex Futures Is Back on Track and Making Headlines 

Christina Comben
Digitex Futures Is Back on Track and Making Headlines  26

At Digitex Futures, we listen to our community. We know that we’ve set your expectations high and you expect nothing but the best. We over-promised and failed to deliver in the past and that’s why we’re doing things differently this time around. Instead of a full bells-and-whistles launch, we’re going to take the time we need to deliver the beast of a zero-fee futures exchange you deserve. And it seems that our more pragmatic and product-lead approach is paying off judging by the response in the press. Check out the headlines we’ve been making since the news came out.

Digitex Futures Launch Date News in the Press

OK, so we’ll admit it, we thought our community would be more excited about the launch news, but on reflection, we know that trust has to be earned. So, while it’s true that this is a public testnet and not a full-on mainnet launch just yet, we’re still extremely happy to be reaching this point with SmartDec so quickly. 
No great platform or game-changing software has ever been launched without a substantial period of testing prior and just as Adam said in his video on Friday, “the huge thing is for the public to be getting on there, for people to see that it’s real… with the delays that we’ve had in the past, a lot of people doubt that.”
So, while we’ll be opening with one market and in test mode while we continue to fortify the engines, you can be 100 percent sure that when we reach mainnet and add the additional markets and features, this will be a killer of an exchange. 

CityAM

While the crypto press was the first to pick up on the news, Digitex has been reaching wider audiences, too. London-based general news publication CityAM featured a “Spotlight” article covering our launch. The piece tells the story of Adam’s career starting as a London pit trader. It goes on to explain how his experiences in the betting markets led him to develop a ladder trading interface called BetTrader, and ultimately funnel everything he’d learned into the development of Digitex. 
CityAM is London’s most-read financial and business newspaper, and its website has two million unique visitors per month. Our feature is on page 18 of today’s edition

ValueWalk

Investment website ValueWalk published a full feature interview with Adam, with Digitex’s 100x leverage offering as the headline. In it, he describes how his idea for Digitex came to life once he discovered Ethereum and had the idea for the DGTX tokenomic model. Even though Adam had faith in his idea from the beginning, he talks about his disbelief when the Digitex Futures ICO sailed through its hard cap in just 17 minutes. 
Adam also discusses how he expects to see more exchange adopting a provably fair matching engine like the one Digitex will offer, as blockchain could potentially perform a regulatory role in ensuring that the exchange operates in a fair and transparent way. 

CryptoBriefing

Crypto Briefing was among the first to pick up the launch news with their article Digitex Announces Testnet Launch Date For Bitcoin Futures Exchange. This writeup mentions that the testnet will be “the first step to creating” the world’s first zero-commission cryptocurrency futures trading platform. It also talks a little about DGTX tokenomics and how we can offer zero-fee trading, concluding with the fact that development is now firmly on track with SmartDec leading the charge.

CryptoSlate

CryptoSlate also ran with the news shortly afterward, posting an article entitled Futures trading platform Digitex prepares for public testnet, announces release date. The text is very matter-of-fact and simply states that we will be launching the public testnet with one market, starting with BTC/USD perpetual swap contracts. The writer also mentions the impact that zero fees and non-custodial accounts will have on the cryptocurrency futures market, which is expanding all the time as Bakkt is slated for launch next month with its physically settled Bitcoin futures contracts.

CryptoDaily

Also noticing the launch announcement was UK-based CryptoDaily in their article Digitex Announces Testnet Launch Date. The writer talks about commission-free trading and how Digitex will remove the fees from all transactions. He also mentions that this is different from all other exchanges on the market:

“Digitex is different in that it will require users to trade exclusively with Digitex Futures (DGTX) tokens”

He also goes into some depth about the Digitex one-click trading ladder interface that will also shake up the way that people trade for good–as well as the fact that we are working with the prime researchers for Ethereum’s scalability solutions to bring traders non-custodial accounts as soon as the technology is ready.

Bitcoin.com

We also picked up a mention in Bitcoin.com’s piece about “The Changing Face of Cryptocurrency Trading in 2019.” The article discusses how the cryptocurrency markets are maturing, and starting to resemble the traditional financial markets in the breadth of different products. 
It goes on to talk about some of the major players in the crypto derivatives space, such as Bybit, Huobi, and of course, Digitex. Describing Digitex as “highly anticipated” the piece mentions our zero-fee model and innovative funding mechanism using the DGTX token

Coverage in International Press 

We’re also really excited that our efforts to reach out to foreign markets are starting to pay off. Not only did Digitex make the English-speaking press, but we also got dedicated write-ups in major international publications as well. 
Some of the key ones were China’s Jinse and Bihu, the number-one Japanese crypto publication Naver, South Korea’s ETNews, CEO Magazine, and Morning News, and Mexico-based AMBCrypto Spanish.

Wrapping It Up

We’re extremely grateful to all the press who covered the launch date news and we’ll be sharing all articles with you as they come in. 
What’s the key takeaway from all of this? As Adam stated simply in the video:

“The Digitex Futures exchange is launching!” We finally have a date to work toward and all the components of our team are coming together. We’re getting closer to making commission-free trading a reality and, no matter the current reaction, that’s epic in itself.

Got questions? Adam will be hosting a live AMA at 11 am EST (4 pm CET) on Wednesday to answer any doubts or concerns. Be sure to tune in and let him hear your thoughts about the latest news and respond to your comments. Thank you for all your continued support!

Latest News

Changing the Fundamentals of Futures Trading 27

Changing the Fundamentals of Futures Trading

Digitex Futures
Trading
• Dave Reiter
August 12, 2019

As a general rule, people struggle with change. The futures trading industry is a perfect example of a business that isn’t known for its ability to reshape itself. It’s continued to operate more or less in the same manner since its inception in 1848. That is, until now. Digitex is working to bring unprecedented disruption to the futures markets, and here’s how. 
The Chicago Board of Trade (CBOT) was founded 170 years ago, on April 3, 1848. Over the years since then, the futures industry has experienced very little disruption. However, thanks to blockchain technology, smart contracts, and digital currencies, the futures industry is on the verge of undergoing a radical transformation. In fact, the entire financial services sector will experience major adjustments as blockchain technology transitions into our daily lives.  
One of the more exciting changes to occur within the financial futures market is the world-first launch of commission-free trading by Digitex Futures exchange. Digitex is pioneering the use of its own native currency (DGTX) combined with Ethereum technology to create a zero-fee trading environment. 
On the Digitex exchange, all customers will use DGTX to buy and sell crypto futures contracts. Furthermore, DGTX offers a “double bonus” to traders who use the Digitex Exchange. In addition to serving as a token to facilitate trades on the Digitex exchange, we also expect that DGTX will rise in value based on increased demand from Digitex traders. 
Therefore, the DGTX token is the magic ingredient which enables Digitex to offer the first-ever commission-free exchange. This sets us apart from all other futures exchanges that have come and gone over the last 170 years.

The “Traditional” Role of The Broker is Being Eliminated    

The DGTX token economy model isn’t the only reason that the futures industry is on the verge of undergoing a radical transformation. As Digitex forges ahead with a commission-free exchange, it’s likely that the role of the broker within the futures industry will eventually become redundant. 
The traditional role of the broker is to serve as the “middleman” between the customer and the brokerage firm. This particular model has been in place since the CBOT was established in 1848.    
The majority of customers who have a brokerage account are “introduced” to the brokerage firm by a broker who has an “Introducing Broker Agreement” with the brokerage firm. These brokers are known as introducing brokers (IB). Essentially, the IB is responsible for onboarding the new customer to the brokerage firm’s trading platform. 
Additionally, the IB is charged with the task of handling all customer service related questions. In exchange for providing these services, the IB receives a percentage of the commission paid by the customer to the brokerage firm. Generally speaking, the IB receives 20% of the gross commission collected by the brokerage firm.
Thanks to the peer-to-peer connectivity of blockchain technology and digital currencies, brokerage firms are slowly beginning to realize that using a broker as an intermediary will no longer be profitable going forward. In fact, a few brokerage firms have eliminated their existing Introducing Broker Agreements. They are removing brokers from the equation as they attempt to reduce their expenses.
As a general rule, the brokerage industry has a history of resisting change. This explains why the broader futures industry has remained largely unchanged for the past several decades. 
Beginning in the mid-1990s, the commodity brokerage industry was forced to face the fact that pit trading would be replaced by electronic trading. Of course, the industry was not in favor of this transformation. But, despite a great deal of pushback, electronic trading eventually took precedence over pit traders and floor brokers.
However, it took almost 10 years for the entire transformation to occur. It should come as no big surprise that electronic trading has proven to be exponentially superior to the old method of using pit traders. This example illustrates why it’s never a good idea to resist the forward progress of technology.  

Digitex is Blazing a New Trail             

Not only is Digitex abandoning the traditional model of the brokerage industry, but we are also introducing the next generation of electronic trading. Digitex will offer a completely new platform with a cutting edge, intuitive one-click trading interface. 
As you can see, all of these new features introduced by Digitex are incredibly customer friendly. The entire Digitex team is laser-focused on creating the most trader-friendly experience possible.
A commission-free platform will completely alter the way traders and exchanges interact with one another in terms of trading activity and trading duration. Adam Todd, the founder, and CEO of Digitex, has always wanted to create a commission-free exchange that will level the playing field for profitable trading among short-term traders and day traders. 
Adam has a history of successful day trading. However, he always felt that long-term traders had a disproportionate advantage over day traders due to excessive fees and commissions that stack up for frequent traders.
This model actually penalizes those traders who are providing more liquidity, and more business to the exchange. Effectively, it’s a practice of charging your best and most loyal customers more. This is what inspired Adam to launch Digitex.

Digitex Continues to Move Forward  

Officially, Digitex has been in existence since its ICO on 15 January 2018. During the past 18 months, Digitex has experienced some setbacks, which is common for any start-up company. Despite its setbacks, the entire Digitex team continues to drive towards the goal of becoming the first zero-fee crypto futures exchange.
Being the first at anything is never easy because there’s no playbook to follow. Digitex must do all of the heavy liftings to build a commission-free exchange from the ground up. 
In addition to the hard-working Digitex team, the company is working with Moscow-based SmartDec for developing and programming the futures exchange and trading platform. SmartDec is a highly successful company specializing in software development, smart contract development, and software auditing. Now, Adam and other members of the Digitex team are working side-by-side with SmartDec in Moscow to ensure a seamless lead up to launch. 
We’re continuing to pioneer many brand-new concepts even within the cryptocurrency space. Digitex is one of the only blockchain startups to implement a Treasury, which ensures a continuous, sustainable stream of funding for our exchange over the next two years. We’re also implementing the Digitex DAO, so our users, DGTX token holders, will have voting rights over the exchange.
So our message to the futures industry – watch out! Digitex is on a path to disrupt the status quo. We’re providing traders with every incentive to break with tradition and enjoy the benefits of commission-free trading on a cutting-edge platform. And where we lead, others will surely follow. 
Check out our handy guide and learn to trade futures.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

August 12, 2019
Digitex Futures
Trading

Changing the Fundamentals of Futures Trading

Dave Reiter
Changing the Fundamentals of Futures Trading 28

As a general rule, people struggle with change. The futures trading industry is a perfect example of a business that isn’t known for its ability to reshape itself. It’s continued to operate more or less in the same manner since its inception in 1848. That is, until now. Digitex is working to bring unprecedented disruption to the futures markets, and here’s how. 
The Chicago Board of Trade (CBOT) was founded 170 years ago, on April 3, 1848. Over the years since then, the futures industry has experienced very little disruption. However, thanks to blockchain technology, smart contracts, and digital currencies, the futures industry is on the verge of undergoing a radical transformation. In fact, the entire financial services sector will experience major adjustments as blockchain technology transitions into our daily lives.  
One of the more exciting changes to occur within the financial futures market is the world-first launch of commission-free trading by Digitex Futures exchange. Digitex is pioneering the use of its own native currency (DGTX) combined with Ethereum technology to create a zero-fee trading environment. 
On the Digitex exchange, all customers will use DGTX to buy and sell crypto futures contracts. Furthermore, DGTX offers a “double bonus” to traders who use the Digitex Exchange. In addition to serving as a token to facilitate trades on the Digitex exchange, we also expect that DGTX will rise in value based on increased demand from Digitex traders. 
Therefore, the DGTX token is the magic ingredient which enables Digitex to offer the first-ever commission-free exchange. This sets us apart from all other futures exchanges that have come and gone over the last 170 years.

The “Traditional” Role of The Broker is Being Eliminated    

The DGTX token economy model isn’t the only reason that the futures industry is on the verge of undergoing a radical transformation. As Digitex forges ahead with a commission-free exchange, it’s likely that the role of the broker within the futures industry will eventually become redundant. 
The traditional role of the broker is to serve as the “middleman” between the customer and the brokerage firm. This particular model has been in place since the CBOT was established in 1848.    
The majority of customers who have a brokerage account are “introduced” to the brokerage firm by a broker who has an “Introducing Broker Agreement” with the brokerage firm. These brokers are known as introducing brokers (IB). Essentially, the IB is responsible for onboarding the new customer to the brokerage firm’s trading platform. 
Additionally, the IB is charged with the task of handling all customer service related questions. In exchange for providing these services, the IB receives a percentage of the commission paid by the customer to the brokerage firm. Generally speaking, the IB receives 20% of the gross commission collected by the brokerage firm.
Thanks to the peer-to-peer connectivity of blockchain technology and digital currencies, brokerage firms are slowly beginning to realize that using a broker as an intermediary will no longer be profitable going forward. In fact, a few brokerage firms have eliminated their existing Introducing Broker Agreements. They are removing brokers from the equation as they attempt to reduce their expenses.
As a general rule, the brokerage industry has a history of resisting change. This explains why the broader futures industry has remained largely unchanged for the past several decades. 
Beginning in the mid-1990s, the commodity brokerage industry was forced to face the fact that pit trading would be replaced by electronic trading. Of course, the industry was not in favor of this transformation. But, despite a great deal of pushback, electronic trading eventually took precedence over pit traders and floor brokers.
However, it took almost 10 years for the entire transformation to occur. It should come as no big surprise that electronic trading has proven to be exponentially superior to the old method of using pit traders. This example illustrates why it’s never a good idea to resist the forward progress of technology.  

Digitex is Blazing a New Trail             

Not only is Digitex abandoning the traditional model of the brokerage industry, but we are also introducing the next generation of electronic trading. Digitex will offer a completely new platform with a cutting edge, intuitive one-click trading interface. 
As you can see, all of these new features introduced by Digitex are incredibly customer friendly. The entire Digitex team is laser-focused on creating the most trader-friendly experience possible.
A commission-free platform will completely alter the way traders and exchanges interact with one another in terms of trading activity and trading duration. Adam Todd, the founder, and CEO of Digitex, has always wanted to create a commission-free exchange that will level the playing field for profitable trading among short-term traders and day traders. 
Adam has a history of successful day trading. However, he always felt that long-term traders had a disproportionate advantage over day traders due to excessive fees and commissions that stack up for frequent traders.
This model actually penalizes those traders who are providing more liquidity, and more business to the exchange. Effectively, it’s a practice of charging your best and most loyal customers more. This is what inspired Adam to launch Digitex.

Digitex Continues to Move Forward  

Officially, Digitex has been in existence since its ICO on 15 January 2018. During the past 18 months, Digitex has experienced some setbacks, which is common for any start-up company. Despite its setbacks, the entire Digitex team continues to drive towards the goal of becoming the first zero-fee crypto futures exchange.
Being the first at anything is never easy because there’s no playbook to follow. Digitex must do all of the heavy liftings to build a commission-free exchange from the ground up. 
In addition to the hard-working Digitex team, the company is working with Moscow-based SmartDec for developing and programming the futures exchange and trading platform. SmartDec is a highly successful company specializing in software development, smart contract development, and software auditing. Now, Adam and other members of the Digitex team are working side-by-side with SmartDec in Moscow to ensure a seamless lead up to launch. 
We’re continuing to pioneer many brand-new concepts even within the cryptocurrency space. Digitex is one of the only blockchain startups to implement a Treasury, which ensures a continuous, sustainable stream of funding for our exchange over the next two years. We’re also implementing the Digitex DAO, so our users, DGTX token holders, will have voting rights over the exchange.
So our message to the futures industry – watch out! Digitex is on a path to disrupt the status quo. We’re providing traders with every incentive to break with tradition and enjoy the benefits of commission-free trading on a cutting-edge platform. And where we lead, others will surely follow. 
Check out our handy guide and learn to trade futures.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

digite -futures development

The Latest Digitex Development Report — Testing, Testing & More Testing!

Blockchain
Digitex Futures
• admin
August 9, 2019

While most of the northern hemisphere is enjoying their summer vacation, Smartdec continues to beaver away in Moscow. Our colleagues there are hard at work building the Digitex futures exchange. Right on time, they’ve now issued the fifth bi-weekly report on the Digitex development progress. Check out all the details below! 
During the last two weeks, the Smartdec team has been focused on the testing and further development of the Digitex Futures exchange engine, the technical specifications for the back office, and the specifications for the user interface. 

Rigorously Testing the Digitex Futures Exchange Engine

The majority of progress during the last two weeks has been in working to improve the exchange engine, testing and re-testing the individual features. Although it may not sound like the most exciting activity, it’s a critical part of the development process and ensures we have a clean, bug-free futures exchange at launch. 
Because market data doesn’t exist within the Ethereum blockchain environment, the exchange engine needs a source of pricing information. 
So, in the last two weeks, Smartdec has been working at implementing an oracle, which will import BTC/USD quotes into the system. The team is currently in the process of connecting the oracle, and soon, testing will be completed. 
Smartdec is using trading robots to simulate real-life trading, and development work on these is now completed. The team finished a back-test on these robots, and have implemented three different trading strategies, which will help to stress-test the exchange engine. They’ve also created a strategy for market-making, which is necessary to ensure liquidity. 
With security in mind, the exchange engine now also features two-factor authorization, which the team will put through testing. 
As mentioned in the previous report, the team have also been developing three libraries in different programming languages. These are now well underway and will also soon be ready for testing. 
Finally, there is now an API for broadcasting market data from the Digitex exchange, which will also need to undergo testing. 
Although rigorous testing still takes time, it’s a necessary process to catch any bugs or glitches before the exchange launches to live users. However, it’s excellent news that all these long-awaited features are now becoming a reality. 

Back Office Support System Integration

The last report referred to the setup of the back office, which is the part of the exchange that handles all user account management. If a trader needs to raise an issue, then they’ll open a support request which will be handled by an external system called ZenDesk. Smartdec is currently working through the options for integrating the Zendesk ticket processing system to the exchange.
Due to the size of our waitlist, we know we’re going to have a throng of traders online as soon as we launch. Therefore, it’s paramount that we ensure there’s a fast and efficient support system in place. SmartDec has been working closely with Adam to integrate a system that connects our support team directly to the exchange itself. 

User Interface Specifications

We want the user interface (UI) to be as intuitive and easy-to-use as possible, so traders can focus on what matters – trading. The Smartdec team are now working with a designer to develop the existing user interface. Together, they’ve selected a set of pages that need to be drawn and matched. 
Adam’s vision of a clear ladder trading platform is finally coming to fruition, with the specification now completed and given the stamp of approval by the man himself. Now, Smartdec can start working on implementing the ladder trading interface to the exchange functionality and UI. 
So, that’s it for now, but as you can see, Smartdec is making some serious headway in the development process. Although we don’t yet have a confirmed launch date, our latest Q&A with Digitex CMO Lidia Yadlos drops a pretty heavy hint that it’s tantalizingly close. If you haven’t already, check out her update with all the latest from Moscow! 

August 9, 2019
Blockchain
Digitex Futures

The Latest Digitex Development Report — Testing, Testing & More Testing!

admin
digite -futures development

While most of the northern hemisphere is enjoying their summer vacation, Smartdec continues to beaver away in Moscow. Our colleagues there are hard at work building the Digitex futures exchange. Right on time, they’ve now issued the fifth bi-weekly report on the Digitex development progress. Check out all the details below! 
During the last two weeks, the Smartdec team has been focused on the testing and further development of the Digitex Futures exchange engine, the technical specifications for the back office, and the specifications for the user interface. 

Rigorously Testing the Digitex Futures Exchange Engine

The majority of progress during the last two weeks has been in working to improve the exchange engine, testing and re-testing the individual features. Although it may not sound like the most exciting activity, it’s a critical part of the development process and ensures we have a clean, bug-free futures exchange at launch. 
Because market data doesn’t exist within the Ethereum blockchain environment, the exchange engine needs a source of pricing information. 
So, in the last two weeks, Smartdec has been working at implementing an oracle, which will import BTC/USD quotes into the system. The team is currently in the process of connecting the oracle, and soon, testing will be completed. 
Smartdec is using trading robots to simulate real-life trading, and development work on these is now completed. The team finished a back-test on these robots, and have implemented three different trading strategies, which will help to stress-test the exchange engine. They’ve also created a strategy for market-making, which is necessary to ensure liquidity. 
With security in mind, the exchange engine now also features two-factor authorization, which the team will put through testing. 
As mentioned in the previous report, the team have also been developing three libraries in different programming languages. These are now well underway and will also soon be ready for testing. 
Finally, there is now an API for broadcasting market data from the Digitex exchange, which will also need to undergo testing. 
Although rigorous testing still takes time, it’s a necessary process to catch any bugs or glitches before the exchange launches to live users. However, it’s excellent news that all these long-awaited features are now becoming a reality. 

Back Office Support System Integration

The last report referred to the setup of the back office, which is the part of the exchange that handles all user account management. If a trader needs to raise an issue, then they’ll open a support request which will be handled by an external system called ZenDesk. Smartdec is currently working through the options for integrating the Zendesk ticket processing system to the exchange.
Due to the size of our waitlist, we know we’re going to have a throng of traders online as soon as we launch. Therefore, it’s paramount that we ensure there’s a fast and efficient support system in place. SmartDec has been working closely with Adam to integrate a system that connects our support team directly to the exchange itself. 

User Interface Specifications

We want the user interface (UI) to be as intuitive and easy-to-use as possible, so traders can focus on what matters – trading. The Smartdec team are now working with a designer to develop the existing user interface. Together, they’ve selected a set of pages that need to be drawn and matched. 
Adam’s vision of a clear ladder trading platform is finally coming to fruition, with the specification now completed and given the stamp of approval by the man himself. Now, Smartdec can start working on implementing the ladder trading interface to the exchange functionality and UI. 
So, that’s it for now, but as you can see, Smartdec is making some serious headway in the development process. Although we don’t yet have a confirmed launch date, our latest Q&A with Digitex CMO Lidia Yadlos drops a pretty heavy hint that it’s tantalizingly close. If you haven’t already, check out her update with all the latest from Moscow! 

Latest News

Futures vs. Options - Which Should You Trade? 29

Futures vs. Options – Which Should You Trade?

Digitex Futures
Trading
• Sarah Rothrie
August 5, 2019

Futures and options are both financial derivatives traded by institutions and individuals, either to turn a profit or to hedge against current investments. Some traders like to trade both, while some have a preference for one over the other. When you weigh up your own trading choices between futures vs. options, you must understand the pros and cons of each. 
That’s where we come in. In this guide, we’ll deep-dive into the features of futures and options contracts, take a look at how they originated and how today’s traders across different markets use them. We’ll also compare the opportunities and risks of both stock futures trading and options contracts and examine the current state of the crypto-derivatives markets. 

What is a Futures Contract? 

When you hear the terms “futures” and “futures contract,” they mean one and the same thing. A futures contract is a simple legal agreement between two parties that a particular asset or commodity will be sold at a pre-agreed price on a specific date in the future. 
Futures are one of the oldest forms of derivatives, and their origins offer a simple way of explaining how futures work. Futures emerged as a means of farmers hedging against the future value of their crops. At the start of the growing season, the farmers couldn’t predict whether or not they would have a good or a bad harvest, as it would depend on factors such as the weather.
Similarly, imagine a baker buying the wheat from the farmer on the other side of the transaction – they were subject to the same uncertainty. So, the farmers and the bakers would agree on a price for the harvest at the start of the season.
According to the laws of supply and demand, a good harvest would increase supply, and push down the price of the wheat. Conversely, a poor harvest creates a shortage, driving demand, and wheat prices high. By entering into a futures contract, the farmers and the bakers could hedge their overall risk by agreeing on the harvest price upfront.
Although the markets have evolved, the nature of futures contracts remains the same. Today’s futures markets consist of hedgers and speculators. Hedgers are the parties with commodities or assets to sell who want to secure an agreed price. Speculators are those trade futures contracts against the value of the asset without ever planning to take custody of the asset itself. 
The financial markets are filled with jargon, so you may come across different terms and be left wondering “what are stock futures?” or “what are forex futures?” Rest assured that the explainer given here applies to any futures market, whether the underlying asset is stocks, fiat currencies, cryptocurrencies, or commodities like oil, metals, or utilities. 
So now that you’ve had a futures contract explained, how does an options contract work? 

What is an Options Contract?

A critical difference between futures and options is that an options contract doesn’t represent a legal agreement to buy or sell. An options contract creates a right, not an obligation, to enter into a trade before a fixed date at which the contract expires. 
Options contracts are of two types. A call option is a contract that allows the trader to buy a particular asset at a fixed price, called the strike price before the contract expires. Let’s say someone opens a call option to buy BTC at $10k with an expiry date at the end of 2020.
If BTC goes up to $15k, the trader can buy the BTC at $10k and immediately sell on the open market at $15k, realizing a $5k profit on the transaction. They could also sell the option contract itself, as it already represents a profit. 
The other type of option is a put option, which works in exactly the same way except it represents a sell transaction rather than a buy transaction. 
Like futures contracts, options contracts have a long and rich history, stretching all the way back to Ancient Greece. Aristotle provides a great example of options contracts in action at the time. He wrote of a poor philosopher called Thales, who made his wealth by forecasting the future year’s olive harvest. 
Thales made agreements with the olive press owners for the option to use their olive presses at a fixed value. The next year, there was a bountiful olive harvest. Due to the increased demand for olive presses, Thales was able to sell his “olive press options” for a profit.  

What is the Difference Between Futures and Options?

So, now we’ve covered the difference between futures and options on a mechanical level, what are the differences between future and options in a trading scenario?
Buying options offer a more conservative approach to trading. When buying options, the trader can never lose more than their initial investment, known as the premium. The premium value may vary depending on the difference between the option strike price and the actual asset price and the time left before the option expiry.
Regardless of whether the asset price falls way below the premium, the trader doesn’t lose any more than this value. This applies if they can’t sell the option and choose not to exercise their right to buy. 
The option seller faces far more risk, as they must honor the agreement to sell the options at the strike price. Selling (also called writing) options can lead to very high losses in volatile markets and are best left to the most experienced institutional options traders. 
Futures represent a legally binding agreement to buy an asset; therefore, they carry more risk as the trader cannot simply choose not to fulfill the trade. Furthermore, profits and losses are directly linked to the value of the asset with no premium to offset the downside. 
Conversely, though, trading futures offers the opportunity for far higher returns than trading options. Trading futures on margin amplifies the potential for even bigger profits, and losses, with futures trading. 
Options trading can be more complicated to understand than futures trading. However, once the basics are in place, options represent a solid choice for a newer trader. Because the risk exposure on a call option is limited to the premium paid, a trader can get away with understanding less about the market itself. 
On the other hand, experienced traders who know their markets well tend to opt for futures vs. options. If you’ve spent long enough understanding the markets for a particular asset, then you’re more likely to turn a bigger profit using leveraged futures contracts than with options. 

Markets for Futures and Options

You can trade futures and options across a wide variety of markets. These include:

  • Stocks such as Apple, Google or any publicly-traded company
  • Indices such as the S&P 500 or the DJI
  • Foreign currencies
  • Commodities such as precious metals, oil, and gas, or agricultural products
  • Cryptocurrencies such as Bitcoin or Ether

Trading in these markets can happen both over-the-counter and in exchanges. 
In the traditional financial markets, there is an even broader range of financial derivatives, including forwards and swaps covering a variety of assets. However, in the cryptocurrency space, it’s the futures contract that currently reigns supreme. 

The Burgeoning Crypto-Derivative Market

A vast market for cryptocurrency derivatives has emerged over the last year or two. BitMEX first opened its doors in 2014, but the CME and the Cboe started offering bitcoin futures contracts to institutional clients in December 2017. The primary attraction in trading cryptocurrency derivatives is that the markets are more volatile. This volatility provides the opportunity for traders to realize far more significant gains than in traditional markets, which are more stable. Futures trading also provided the first means of going short on bitcoin. 
At this point in 2019, there are more exchanges to choose from if you want to trade cryptocurrency futures. BitMEX still dominates, but there are plenty of other choices, including Deribit, Bybit, and Cryptofacilities. Many existing cryptocurrency exchanges have expanded into futures too, including OKEx, Huobi and soon, Binance. 
Once Digitex launches, we aim for our zero-commission, decentralized futures exchange to outrank each of them on factors including fees, leverage, security, and liquidity. With the crypto futures markets at an all-time high, there’s no better time than now for new entrants to emerge. 
At the time of writing, the only exchange offering cryptocurrency options is Deribit. This makes the market for options far more limited than futures.  
At Digitex, we firmly believe that futures are the superior choice, particularly for more experienced and regular cryptocurrency traders. They were the first crypto-derivative to emerge, they provide the opportunity for the highest returns, and they have strong institutional and retail support. While the prospects for cryptocurrency options trading remain limited, liquidity will continue to be a challenge. Of course, things could change if more exchanges start offering options. 

Knowledge is Power

So, what about newcomers to the markets, or those who don’t trade so regularly? Well, there are no barriers to entry. However, newcomers to all kinds of trading should take steps to ensure they are educating themselves about the futures trading basics, such as types of instruments on offer and the markets for the underlying assets. 
It will also help to gain an understanding of the principles of technical and fundamental analysis which traders use to read and forecast market fluctuations. Furthermore, all traders, whether newcomers or the most experienced, should have an understanding of their own appetite for risk, and know when to exit a losing trade. 
Following these principles will serve you well, whether you choose to trade spot or derivatives, crypto or stocks, want to make a living trading futures or just trade for fun on the side, or engage in day trading or long term investing. If you want to learn more, the Digitex blog is a great place to start. We’ve published many informational articles which explain futures trading in-depth, covering jargon, strategy, analysis, trading versus investing, and much more. In trading as in life, knowledge is power. 
 
 

August 5, 2019
Digitex Futures
Trading

Futures vs. Options – Which Should You Trade?

Sarah Rothrie
Futures vs. Options - Which Should You Trade? 30

Futures and options are both financial derivatives traded by institutions and individuals, either to turn a profit or to hedge against current investments. Some traders like to trade both, while some have a preference for one over the other. When you weigh up your own trading choices between futures vs. options, you must understand the pros and cons of each. 
That’s where we come in. In this guide, we’ll deep-dive into the features of futures and options contracts, take a look at how they originated and how today’s traders across different markets use them. We’ll also compare the opportunities and risks of both stock futures trading and options contracts and examine the current state of the crypto-derivatives markets. 

What is a Futures Contract? 

When you hear the terms “futures” and “futures contract,” they mean one and the same thing. A futures contract is a simple legal agreement between two parties that a particular asset or commodity will be sold at a pre-agreed price on a specific date in the future. 
Futures are one of the oldest forms of derivatives, and their origins offer a simple way of explaining how futures work. Futures emerged as a means of farmers hedging against the future value of their crops. At the start of the growing season, the farmers couldn’t predict whether or not they would have a good or a bad harvest, as it would depend on factors such as the weather.
Similarly, imagine a baker buying the wheat from the farmer on the other side of the transaction – they were subject to the same uncertainty. So, the farmers and the bakers would agree on a price for the harvest at the start of the season.
According to the laws of supply and demand, a good harvest would increase supply, and push down the price of the wheat. Conversely, a poor harvest creates a shortage, driving demand, and wheat prices high. By entering into a futures contract, the farmers and the bakers could hedge their overall risk by agreeing on the harvest price upfront.
Although the markets have evolved, the nature of futures contracts remains the same. Today’s futures markets consist of hedgers and speculators. Hedgers are the parties with commodities or assets to sell who want to secure an agreed price. Speculators are those trade futures contracts against the value of the asset without ever planning to take custody of the asset itself. 
The financial markets are filled with jargon, so you may come across different terms and be left wondering “what are stock futures?” or “what are forex futures?” Rest assured that the explainer given here applies to any futures market, whether the underlying asset is stocks, fiat currencies, cryptocurrencies, or commodities like oil, metals, or utilities. 
So now that you’ve had a futures contract explained, how does an options contract work? 

What is an Options Contract?

A critical difference between futures and options is that an options contract doesn’t represent a legal agreement to buy or sell. An options contract creates a right, not an obligation, to enter into a trade before a fixed date at which the contract expires. 
Options contracts are of two types. A call option is a contract that allows the trader to buy a particular asset at a fixed price, called the strike price before the contract expires. Let’s say someone opens a call option to buy BTC at $10k with an expiry date at the end of 2020.
If BTC goes up to $15k, the trader can buy the BTC at $10k and immediately sell on the open market at $15k, realizing a $5k profit on the transaction. They could also sell the option contract itself, as it already represents a profit. 
The other type of option is a put option, which works in exactly the same way except it represents a sell transaction rather than a buy transaction. 
Like futures contracts, options contracts have a long and rich history, stretching all the way back to Ancient Greece. Aristotle provides a great example of options contracts in action at the time. He wrote of a poor philosopher called Thales, who made his wealth by forecasting the future year’s olive harvest. 
Thales made agreements with the olive press owners for the option to use their olive presses at a fixed value. The next year, there was a bountiful olive harvest. Due to the increased demand for olive presses, Thales was able to sell his “olive press options” for a profit.  

What is the Difference Between Futures and Options?

So, now we’ve covered the difference between futures and options on a mechanical level, what are the differences between future and options in a trading scenario?
Buying options offer a more conservative approach to trading. When buying options, the trader can never lose more than their initial investment, known as the premium. The premium value may vary depending on the difference between the option strike price and the actual asset price and the time left before the option expiry.
Regardless of whether the asset price falls way below the premium, the trader doesn’t lose any more than this value. This applies if they can’t sell the option and choose not to exercise their right to buy. 
The option seller faces far more risk, as they must honor the agreement to sell the options at the strike price. Selling (also called writing) options can lead to very high losses in volatile markets and are best left to the most experienced institutional options traders. 
Futures represent a legally binding agreement to buy an asset; therefore, they carry more risk as the trader cannot simply choose not to fulfill the trade. Furthermore, profits and losses are directly linked to the value of the asset with no premium to offset the downside. 
Conversely, though, trading futures offers the opportunity for far higher returns than trading options. Trading futures on margin amplifies the potential for even bigger profits, and losses, with futures trading. 
Options trading can be more complicated to understand than futures trading. However, once the basics are in place, options represent a solid choice for a newer trader. Because the risk exposure on a call option is limited to the premium paid, a trader can get away with understanding less about the market itself. 
On the other hand, experienced traders who know their markets well tend to opt for futures vs. options. If you’ve spent long enough understanding the markets for a particular asset, then you’re more likely to turn a bigger profit using leveraged futures contracts than with options. 

Markets for Futures and Options

You can trade futures and options across a wide variety of markets. These include:

  • Stocks such as Apple, Google or any publicly-traded company
  • Indices such as the S&P 500 or the DJI
  • Foreign currencies
  • Commodities such as precious metals, oil, and gas, or agricultural products
  • Cryptocurrencies such as Bitcoin or Ether

Trading in these markets can happen both over-the-counter and in exchanges. 
In the traditional financial markets, there is an even broader range of financial derivatives, including forwards and swaps covering a variety of assets. However, in the cryptocurrency space, it’s the futures contract that currently reigns supreme. 

The Burgeoning Crypto-Derivative Market

A vast market for cryptocurrency derivatives has emerged over the last year or two. BitMEX first opened its doors in 2014, but the CME and the Cboe started offering bitcoin futures contracts to institutional clients in December 2017. The primary attraction in trading cryptocurrency derivatives is that the markets are more volatile. This volatility provides the opportunity for traders to realize far more significant gains than in traditional markets, which are more stable. Futures trading also provided the first means of going short on bitcoin. 
At this point in 2019, there are more exchanges to choose from if you want to trade cryptocurrency futures. BitMEX still dominates, but there are plenty of other choices, including Deribit, Bybit, and Cryptofacilities. Many existing cryptocurrency exchanges have expanded into futures too, including OKEx, Huobi and soon, Binance. 
Once Digitex launches, we aim for our zero-commission, decentralized futures exchange to outrank each of them on factors including fees, leverage, security, and liquidity. With the crypto futures markets at an all-time high, there’s no better time than now for new entrants to emerge. 
At the time of writing, the only exchange offering cryptocurrency options is Deribit. This makes the market for options far more limited than futures.  
At Digitex, we firmly believe that futures are the superior choice, particularly for more experienced and regular cryptocurrency traders. They were the first crypto-derivative to emerge, they provide the opportunity for the highest returns, and they have strong institutional and retail support. While the prospects for cryptocurrency options trading remain limited, liquidity will continue to be a challenge. Of course, things could change if more exchanges start offering options. 

Knowledge is Power

So, what about newcomers to the markets, or those who don’t trade so regularly? Well, there are no barriers to entry. However, newcomers to all kinds of trading should take steps to ensure they are educating themselves about the futures trading basics, such as types of instruments on offer and the markets for the underlying assets. 
It will also help to gain an understanding of the principles of technical and fundamental analysis which traders use to read and forecast market fluctuations. Furthermore, all traders, whether newcomers or the most experienced, should have an understanding of their own appetite for risk, and know when to exit a losing trade. 
Following these principles will serve you well, whether you choose to trade spot or derivatives, crypto or stocks, want to make a living trading futures or just trade for fun on the side, or engage in day trading or long term investing. If you want to learn more, the Digitex blog is a great place to start. We’ve published many informational articles which explain futures trading in-depth, covering jargon, strategy, analysis, trading versus investing, and much more. In trading as in life, knowledge is power. 
 
 

Latest News

CMO Lidia Yadlos Reports In From Digitex's New Home in Moscow 31

CMO Lidia Yadlos Reports In From Digitex’s New Home in Moscow

Digitex Futures
• admin
August 2, 2019

As most of you are aware by now, work on developing the Digitex Futures exchange is well underway in Moscow. The SmartDec development team is based there permanently. However, CEO Adam Todd and our Head of Marketing, Lidia Yadlos, are now stationed there full-time to work alongside SmartDec. Here, Lidia shares some of her thoughts and insights about working with the SmartDec team, plans for upcoming marketing activities, and how she’s settling into life in the Russian capital. 

Q: So you’ve been in Moscow over three weeks already, what were your first thoughts as you touched down in Russia?

LY: Well, I flew into Moscow from Barcelona. I was there for a few days to check out the Finance Magnates BTC trading conference, where Adam was invited to present on the topic of zero-fee trading.
My first thoughts on arriving in Moscow? Totally psyched! I like the idea of living in a foreign city, it seems so adventurous. More so, I was really eager to meet the development team. 
Ironically, I had never met any of the previous teams. I’ve always wanted to work more closely with our developers, but typically, they prefer to stick to their programming activities. Unfortunately, I feel that we missed this bridge of communication between the teams in previous marketing campaigns. 
Now, I’m working side-by-side with the SmartDec developers. I’m fully up to speed with the day-to-day progress, which directly feeds into my work planning and communicating with our community. Luckily, everyone at SmartDec has been warm and welcoming.

Q: How are you enjoying it so far?

LY: Honestly, I love it! Never mind the weather, which has been just awful — literally no summer with an average temperature is 60F (around 15C)! Other then that, the team is amazing. Smart, super sharp, but also friendly and welcoming. There’s always yummy treats and chocolate all around the office, which is becoming a bit dangerous! And, everyone speaks some English which helps. I’m Ukrainian, so I can get by in Russian to an extent. 
The office is pretty big, with a total of 57 developers. Everyone comes in at all hours of the day and night so you’ll never actually see everyone all at the same time. 
The mood is extremely positive and I think this motivates us all to push harder. It’s also inspiring to see the white boards in different offices covered with Digitex notes – there’s meetings left and right with all sorts of Digitex development talks. 
Of course, I always get pulled into meetings throughout the day to sit in with Adam, listen in and translate when needed. Multi-tasking my own work is a bit of a challenge!  But I can honestly say, I enjoy coming into work, every single day.

Q: What’s it like working alongside the SmartDec team?

LY: Working with the team has been interesting, especially since this is my first time working side-by-side with developers. During the first week, I took some time to explain my role and the importance of marketing in making Digitex a success. As I said, developers tend to prioritize their coding activities, but for me, it’s critical that everyone understands how different roles all contribute to making Digitex greater than the sum of its parts. 
Our exchange, being a zero-fee, P2P futures exchange will really be the first of its kind. This alone has the potential to be MASSIVE. I think most people get that once they come across the project, which is why we were so successful at marketing this in the first place. The product sells itself! 
In building the Digitex product, development has always proved to be much more complex than anyone anticipated. Even with the best developers in Dublin (one came from NASA and another from Silicon Valley), we’ve learned that this project requires a highly specialized team of programmers which understands how to develop this sort of product to a high standard. 
I can’t emphasize enough how Digitex is the FIRST and ONLY zero-fee, high leverage, cryptocurrency futures exchange. We have no precedent, so as well as the project being very complex, we are creating so much from scratch. 

Quick side note, our lead project manager was an aircraft engineer, and even he said that with all his experience designing and building airplanes, “this is some complex s***!”

Back to stressing the importance of marketing, we’re all on the same page now. They see that if they do their job and we launch this as planned, we have every reason to become one of the top exchanges in the world. And to be able to achieve such a massive user base, a lot of back work goes into building campaigns and marketing the product. So in three short weeks, we have come to a level playing field, where we understand each other and we’re working towards the same goal.

Q: What are your main goals as far as working out of the Moscow office?

LY: I think I touched on this already – it’s crucial that we bridge communication between marketing and development. Ensuring that we have an aligned understanding of the development roadmap has become my top priority. 
I’ve also learned that we have two teams. There’s the CEX (centralized exchange) team, which is the majority of the developers working on Digitex, plus the DEX (decentralized exchange) team. They work separately but meet twice a week with Adam to review their progress. On the DEX part, the team is doing independent research.
In a short time, I’ve learned so much just listening to both of the team’s research and development, and I’m really looking forward to sharing more of this with our community. 
I’d bet many people know just the bare minimum about Plasma technology and the stage that the research is at globally. Believe it or not, Digitex’s team is at the forefront of this research. Unfortunately, decentralized blockchain technology is still in its infancy. 
I’m meeting with the Lead Developer of the DEX this afternoon to do a Q&A for next week, and to share his insight on Plasma and zkSNARKS technology. Really interesting stuff, and I think our community will get a lot out of knowing more about it.
But back to the general day-to-day progress, it gives me a lot of optimism to see with my own eyes that we have a qualified team that’s diligent enough to successfully launch this exchange.

Q: Can you give us some insights as to Digitex’s marketing plans for the coming weeks and months?

LY: Soooo much is happening! It’s almost overwhelming but still very exciting. I love this company, and despite our setbacks, I’ve never lost any ounce of hope or enthusiasm in marketing Digitex.
That said, one of the things I’ve always wanted to do is localize our campaigns. All of our marketing efforts have always been geared at an English-speaking audience, and it just killed me to think we were missing out on so many potentially vast markets because of the language barrier. So, while we’re taking a few steps back with development and restructuring our team, I thought to myself why not do it now?
So, we’ve translated our website. As of yesterday it’s officially live in Japanese, Chinese, Korean, and updated Russian. We’ll be introducing new social channels in those local languages as well. We’re also working on a new campaign… but can’t say more than that. It’s brewing, and it’ll be here very soon!

Q: Is Russia going to be a large target country for the Digitex exchange?

LY: Russia, but also all of Eastern Europe. I believe there’s so much potential here. There are quite a few big projects based here, as well. Surprisingly, I was getting my nails done and sitting next to me was the personal assistant to the CEO of EOS! Apparently, their office is nearby. Our DGTX listing partners Changelly are also based in Russia. So there’s a buzzing crypto hub here in Russia.
But, I’m even more eager to get the Asian marketing set up. I believe that the Asian markets have so much interest in crypto trading and futures, and this will open us up to a huge new audience. They are going to fall in love with Digitex! It gives me chills thinking about the massive potential there, and we’re right at the cusp of penetrating it.

Q: Why is it important for marketing and development to work closely together?

LY: Unfortunately, I think it’s one of those things we’ve learned the hard way, although I’m pretty sure we aren’t the first company to go through that realization. If marketing and development are working side by side, we have the best possible chance of ensuring that we can provide accurate and timely information to our community. We know we’ve missed our launch dates twice, but close collaboration between marketing and development will be one of the biggest drivers in helping us get past the post this time around.  
I’m here watching everything to make sure all communications accurately reflect the current development status, in real-time. Because of the past, I think our community now realize that we’re very careful about what we say and promise.

Q: What are the main things you’ve learned so far?

LY: Well, I’ve been working alongside Adam for just over a year now. And I’ve learned so much from him personally. About the industry, about the market and its patterns, and about what it’s like running a tech startup. Many people have no idea how difficult it is to sustain a startup. That first year or even two years are the most difficult, and if you survive it then you’re golden. But nine out of ten businesses don’t make it, and I can see why. It’s incredibly tough. 
Seeing how Adam has overcome so many challenges — starting with the 2018 market crash, to the development setbacks, to working remotely, to regulatory issues… There’s always a mountain of tasks at hand and Adam just has this way of being able to tackle any obstacle thrown at him. He makes mistakes, of course, he’s only human, but what’s more impressive is that he always figures a way out. 
He’s not only a great visionary but also a keen businessman. Seeing our team be able to overcome all these challenges just shows me how strong we are and that we can overcome anything. Again, the launch is only the beginning and I still believe that the best is yet to come.

Q: When can we expect to see the new Digitex roadmap?

LY: Soon, for sure. But as eager as I am to spill the beans, it’s best that we let the developers do their thing. Only when they are 1000% confident will we see the product launch roadmap. Until then, we just need to hold on a bit longer. It’ll all be worth the wait!

Q: When launch?

LY: LOL, given everything I’ve just said about confidence, you know I can’t share that! But, coincidentally, I’ve shared my personal perspective as the Head of Marketing for Digitex twice already, just before our previous campaigns. So you can take that as a heavy hint 😉

Closing Thoughts

LY: Cheers guys! A big thank you to everyone who has been so patient and supportive. And to those who have been lost along the way, we hope we’ll win you back soon. We know that we, as a brand, need to prove ourselves. Actions speak louder than words. 
But I’m also confident that we will launch Digitex Futures, and the exchange will be superior in every way to what’s currently available on the market. So not only do I have faith that we’ll win those guys back, but we will also introduce our shiny new product to many new traders. 
Catch you all very soon!

August 2, 2019
Digitex Futures

CMO Lidia Yadlos Reports In From Digitex’s New Home in Moscow

admin
CMO Lidia Yadlos Reports In From Digitex's New Home in Moscow 32

As most of you are aware by now, work on developing the Digitex Futures exchange is well underway in Moscow. The SmartDec development team is based there permanently. However, CEO Adam Todd and our Head of Marketing, Lidia Yadlos, are now stationed there full-time to work alongside SmartDec. Here, Lidia shares some of her thoughts and insights about working with the SmartDec team, plans for upcoming marketing activities, and how she’s settling into life in the Russian capital. 

Q: So you’ve been in Moscow over three weeks already, what were your first thoughts as you touched down in Russia?

LY: Well, I flew into Moscow from Barcelona. I was there for a few days to check out the Finance Magnates BTC trading conference, where Adam was invited to present on the topic of zero-fee trading.
My first thoughts on arriving in Moscow? Totally psyched! I like the idea of living in a foreign city, it seems so adventurous. More so, I was really eager to meet the development team. 
Ironically, I had never met any of the previous teams. I’ve always wanted to work more closely with our developers, but typically, they prefer to stick to their programming activities. Unfortunately, I feel that we missed this bridge of communication between the teams in previous marketing campaigns. 
Now, I’m working side-by-side with the SmartDec developers. I’m fully up to speed with the day-to-day progress, which directly feeds into my work planning and communicating with our community. Luckily, everyone at SmartDec has been warm and welcoming.

Q: How are you enjoying it so far?

LY: Honestly, I love it! Never mind the weather, which has been just awful — literally no summer with an average temperature is 60F (around 15C)! Other then that, the team is amazing. Smart, super sharp, but also friendly and welcoming. There’s always yummy treats and chocolate all around the office, which is becoming a bit dangerous! And, everyone speaks some English which helps. I’m Ukrainian, so I can get by in Russian to an extent. 
The office is pretty big, with a total of 57 developers. Everyone comes in at all hours of the day and night so you’ll never actually see everyone all at the same time. 
The mood is extremely positive and I think this motivates us all to push harder. It’s also inspiring to see the white boards in different offices covered with Digitex notes – there’s meetings left and right with all sorts of Digitex development talks. 
Of course, I always get pulled into meetings throughout the day to sit in with Adam, listen in and translate when needed. Multi-tasking my own work is a bit of a challenge!  But I can honestly say, I enjoy coming into work, every single day.

Q: What’s it like working alongside the SmartDec team?

LY: Working with the team has been interesting, especially since this is my first time working side-by-side with developers. During the first week, I took some time to explain my role and the importance of marketing in making Digitex a success. As I said, developers tend to prioritize their coding activities, but for me, it’s critical that everyone understands how different roles all contribute to making Digitex greater than the sum of its parts. 
Our exchange, being a zero-fee, P2P futures exchange will really be the first of its kind. This alone has the potential to be MASSIVE. I think most people get that once they come across the project, which is why we were so successful at marketing this in the first place. The product sells itself! 
In building the Digitex product, development has always proved to be much more complex than anyone anticipated. Even with the best developers in Dublin (one came from NASA and another from Silicon Valley), we’ve learned that this project requires a highly specialized team of programmers which understands how to develop this sort of product to a high standard. 
I can’t emphasize enough how Digitex is the FIRST and ONLY zero-fee, high leverage, cryptocurrency futures exchange. We have no precedent, so as well as the project being very complex, we are creating so much from scratch. 

Quick side note, our lead project manager was an aircraft engineer, and even he said that with all his experience designing and building airplanes, “this is some complex s***!”

Back to stressing the importance of marketing, we’re all on the same page now. They see that if they do their job and we launch this as planned, we have every reason to become one of the top exchanges in the world. And to be able to achieve such a massive user base, a lot of back work goes into building campaigns and marketing the product. So in three short weeks, we have come to a level playing field, where we understand each other and we’re working towards the same goal.

Q: What are your main goals as far as working out of the Moscow office?

LY: I think I touched on this already – it’s crucial that we bridge communication between marketing and development. Ensuring that we have an aligned understanding of the development roadmap has become my top priority. 
I’ve also learned that we have two teams. There’s the CEX (centralized exchange) team, which is the majority of the developers working on Digitex, plus the DEX (decentralized exchange) team. They work separately but meet twice a week with Adam to review their progress. On the DEX part, the team is doing independent research.
In a short time, I’ve learned so much just listening to both of the team’s research and development, and I’m really looking forward to sharing more of this with our community. 
I’d bet many people know just the bare minimum about Plasma technology and the stage that the research is at globally. Believe it or not, Digitex’s team is at the forefront of this research. Unfortunately, decentralized blockchain technology is still in its infancy. 
I’m meeting with the Lead Developer of the DEX this afternoon to do a Q&A for next week, and to share his insight on Plasma and zkSNARKS technology. Really interesting stuff, and I think our community will get a lot out of knowing more about it.
But back to the general day-to-day progress, it gives me a lot of optimism to see with my own eyes that we have a qualified team that’s diligent enough to successfully launch this exchange.

Q: Can you give us some insights as to Digitex’s marketing plans for the coming weeks and months?

LY: Soooo much is happening! It’s almost overwhelming but still very exciting. I love this company, and despite our setbacks, I’ve never lost any ounce of hope or enthusiasm in marketing Digitex.
That said, one of the things I’ve always wanted to do is localize our campaigns. All of our marketing efforts have always been geared at an English-speaking audience, and it just killed me to think we were missing out on so many potentially vast markets because of the language barrier. So, while we’re taking a few steps back with development and restructuring our team, I thought to myself why not do it now?
So, we’ve translated our website. As of yesterday it’s officially live in Japanese, Chinese, Korean, and updated Russian. We’ll be introducing new social channels in those local languages as well. We’re also working on a new campaign… but can’t say more than that. It’s brewing, and it’ll be here very soon!

Q: Is Russia going to be a large target country for the Digitex exchange?

LY: Russia, but also all of Eastern Europe. I believe there’s so much potential here. There are quite a few big projects based here, as well. Surprisingly, I was getting my nails done and sitting next to me was the personal assistant to the CEO of EOS! Apparently, their office is nearby. Our DGTX listing partners Changelly are also based in Russia. So there’s a buzzing crypto hub here in Russia.
But, I’m even more eager to get the Asian marketing set up. I believe that the Asian markets have so much interest in crypto trading and futures, and this will open us up to a huge new audience. They are going to fall in love with Digitex! It gives me chills thinking about the massive potential there, and we’re right at the cusp of penetrating it.

Q: Why is it important for marketing and development to work closely together?

LY: Unfortunately, I think it’s one of those things we’ve learned the hard way, although I’m pretty sure we aren’t the first company to go through that realization. If marketing and development are working side by side, we have the best possible chance of ensuring that we can provide accurate and timely information to our community. We know we’ve missed our launch dates twice, but close collaboration between marketing and development will be one of the biggest drivers in helping us get past the post this time around.  
I’m here watching everything to make sure all communications accurately reflect the current development status, in real-time. Because of the past, I think our community now realize that we’re very careful about what we say and promise.

Q: What are the main things you’ve learned so far?

LY: Well, I’ve been working alongside Adam for just over a year now. And I’ve learned so much from him personally. About the industry, about the market and its patterns, and about what it’s like running a tech startup. Many people have no idea how difficult it is to sustain a startup. That first year or even two years are the most difficult, and if you survive it then you’re golden. But nine out of ten businesses don’t make it, and I can see why. It’s incredibly tough. 
Seeing how Adam has overcome so many challenges — starting with the 2018 market crash, to the development setbacks, to working remotely, to regulatory issues… There’s always a mountain of tasks at hand and Adam just has this way of being able to tackle any obstacle thrown at him. He makes mistakes, of course, he’s only human, but what’s more impressive is that he always figures a way out. 
He’s not only a great visionary but also a keen businessman. Seeing our team be able to overcome all these challenges just shows me how strong we are and that we can overcome anything. Again, the launch is only the beginning and I still believe that the best is yet to come.

Q: When can we expect to see the new Digitex roadmap?

LY: Soon, for sure. But as eager as I am to spill the beans, it’s best that we let the developers do their thing. Only when they are 1000% confident will we see the product launch roadmap. Until then, we just need to hold on a bit longer. It’ll all be worth the wait!

Q: When launch?

LY: LOL, given everything I’ve just said about confidence, you know I can’t share that! But, coincidentally, I’ve shared my personal perspective as the Head of Marketing for Digitex twice already, just before our previous campaigns. So you can take that as a heavy hint 😉

Closing Thoughts

LY: Cheers guys! A big thank you to everyone who has been so patient and supportive. And to those who have been lost along the way, we hope we’ll win you back soon. We know that we, as a brand, need to prove ourselves. Actions speak louder than words. 
But I’m also confident that we will launch Digitex Futures, and the exchange will be superior in every way to what’s currently available on the market. So not only do I have faith that we’ll win those guys back, but we will also introduce our shiny new product to many new traders. 
Catch you all very soon!

Latest News

A Basic Guide on How to Trade Futures 33

A Basic Guide on How to Trade Futures

Digitex Futures
Trading
• Sarah Rothrie
August 1, 2019

There was a time, not too long ago, when the only way to learn how to trade futures was by throwing yourself into a trading pit and just doing it. But traders today have a much better chance of success right out of the box. Why? Because the power of the internet means that longtime traders have the platforms to share their experiences and help beginners learn to trade futures – and win. Armed with a solid futures market education, even the newest of newbies can quickly start buying and selling alongside the top futures traders. 
In this article, we’ll walk through the basics of futures contracts and why futures are an excellent option for profitable trading. We’ll also cover the various futures markets, the art of choosing a trading platform and strategy, the benefits of investing in futures, and the mistakes to avoid for profitable futures trading. 

Futures Market Education 101 – About Futures

At the most basic level, a futures contract is a simple agreement to trade an asset at a defined point in the future, for an agreed price. In the first instance, futures emerged as a means of hedging against price fluctuations in the commodities markets. The first futures contracts were based on the agricultural markets, enabling farmers and their buyers to fix prices for harvests before the growing season started and protect against later market fluctuations.
Although commodities markets are still used by traders wanting to hedge on price, modern futures markets rely heavily on speculators. Speculators don’t want to take custody of the underlying asset; instead, they trade on price fluctuations. 
The presence of speculators created the futures markets as they exist today, in which futures contracts cover all kinds of assets beyond commodities. Futures are traded against stocks, indices, foreign currencies, and most recently, cryptocurrencies. 
Futures trading use margin and leverage to enhance the opportunity for profits. By borrowing funds from a broker or an exchange, you can magnify the potential for profits, although it also increases the risk exposure if the markets go against your trade.
Available leverage can vary widely between markets. For example, in the stock markets, leverage is limited to 2x, while in forex markets, it can be significantly higher.  In cryptocurrency futures markets, you can trade with up to 100x leverage. 
If you can learn how to trade futures successfully, they offer fantastic opportunities to make big money compared to other financial products or derivatives. For example, when trading options, there is better loss protection because you pay an up-front premium on an option. However, while options may offer less risk, futures offer a far greater potential for profitability. 
So now that we know all the basics of futures, how do you decide which futures to trade? 

Markets Overview – Which Are the Best Futures to Trade? 

Obviously, deciding on the best futures to trade will depend on the trader. Choosing which markets you want to enter will mean you need to determine your risk appetite and your available resources for trading.  You’ll also need to think about how much time you have for trading each day, which includes time spent on market analysis and evaluation of your results. 
For the beginner individual investor, cryptocurrencies provide some of the best futures trading opportunities. A single BTC or ETH can be split down into tiny increments, so there are very low barriers to entry.
Digitex will be the world’s first commission-free futures trading platform, making it viable to adopt a strategy of scalping profits from multiple lower-value trades. Furthermore, crypto exchanges don’t rely on profit-siphoning brokers, although most of them with the sole exception of Digitex do charge fees. 
The cryptocurrency markets are volatile, which is bad news for long-term investors. But it’s fantastic news for short-term traders in futures contracts, who can use leverage to magnify gains from the volatility. 
Among the rest, forex futures also offer some comparable benefits to cryptocurrency futures, in that you can trade with high leverage and some currencies are volatile enough to provide significant gains. Stocks and indices tend to be far less volatile and offer lower leverage. 

Which is the Best Futures Trading Platform? 

Once you’ve decided which type of markets you want to trade, then the next step is deciding where to trade futures. Many finance websites regularly provide detailed futures trading systems review for all the major platforms. 
However, here are the major points to consider when choosing a futures trading system:

Availability of product

There’s no point in choosing a platform only to find out it doesn’t sell what you want to buy.

Fees and commissions

These will directly eat into your profits. So, the lower the fees, the better your chances of turning a profit. 

User interface

Especially for a beginner, it should be relatively intuitive and easy to use. More advanced traders may appreciate access to more charts and technical analysis tools.

Customer service 

If something goes wrong, or if you get locked out of your trading account, shoddy customer service is the difference between a good trading day and a terrible trading day. 

Security 

If the platform gets hacked, your funds may be at risk. Particularly in the cryptocurrency space, high-profile exchange hacks are all too common. Make sure your chosen exchange places the highest emphasis on fund security.
More often than not, choosing a trading platform means making a trade-off on one or more of these points. At Digitex, we are taking pride in building an exchange that excels on every single one of these criteria.
When Digitex launches, it will be the only free futures trading system where you don’t pay a per-trade commission. That alone puts it in pole position for becoming the best futures trading platform. 
But there’s lots more. Users will have access to our intuitive, one-click ladder trading interface. And we’re currently in the process of setting up a world-class back office to ensure that traders can focus on one thing – trading. 

How to Trade Futures Successfully – Mistakes to Avoid

We will soon publish a post on trading strategies and choosing the best futures trading system that goes into far more detail about specific approaches. So, until then, here are some general tips on how to day trade futures online. 

Failing to Manage Your Emotions

Trading psychology is a topic all by itself. But it’s a fact that if you don’t manage your emotions effectively, you run the risk that they’ll eventually get the better of you.
It’s natural to feel fear if you hear bad news about the markets or think it’s worth hanging onto a position to wring a few more dollars out of it. But basing trading decisions on these feelings is a sure-fire route to losing money.
To successfully day trade futures online, stick to your plan, and leave the emotions out of it. As you learn to trade futures will get easier with experience. 

Deviating from Your Plan

So you’ve created a plan, tested and tested again and now you’re on the live markets. A few losing trades in, and it’s inevitable that you’ll start to question your plan.
While it makes sense in some situations to revisit a plan, especially if new information comes in, don’t feel you need to deviate from a tried and tested plan just because the market has a wobble. If you’re confident that you’ve done your research and testing correctly, hold your nerve and stick to the plan. 

Not Protecting Yourself

If you’re trading longer-term then you should always have a stop-loss in place for every trade. Unless you’re superhuman, it’s impossible to monitor the markets at all times. Especially in the world of cryptocurrency, where trading goes on 24/7, often at a breakneck speed.
A stop-loss will mean that even if the markets perform unexpectedly, you won’t be stuck in a losing position while you’re asleep. But conversely, there’s also danger in taking your eye off the markets. 

Taking Your Eye off the Markets

Although you can’t possibly watch the markets 24/7, top futures traders always keep an eye on the big picture and stay abreast of the news. Make sure you hone your analytical skills, learn to read charts and use technical tools, and if you incorporate all of this into your trading plan, you’ll start to see more good days than bad ones. 
So hopefully, by now, you’ll feel you know enough of the basics to start planning your entry to the futures market! Being a full-time trader is demanding and it’s not always easy to develop futures trading strategies that work, but it’s incredibly rewarding. 
Only DGTX holders will be able to trade on the Digitex Futures exchange, as all trades will be denominated in DGTX tokens. You can buy tokens from one of our exchange partners, or via the Digitex Treasury. Buying from the Treasury is trustless and instant, meaning there’s no price slippage. 

August 1, 2019
Digitex Futures
Trading

A Basic Guide on How to Trade Futures

Sarah Rothrie
A Basic Guide on How to Trade Futures 34

There was a time, not too long ago, when the only way to learn how to trade futures was by throwing yourself into a trading pit and just doing it. But traders today have a much better chance of success right out of the box. Why? Because the power of the internet means that longtime traders have the platforms to share their experiences and help beginners learn to trade futures – and win. Armed with a solid futures market education, even the newest of newbies can quickly start buying and selling alongside the top futures traders. 
In this article, we’ll walk through the basics of futures contracts and why futures are an excellent option for profitable trading. We’ll also cover the various futures markets, the art of choosing a trading platform and strategy, the benefits of investing in futures, and the mistakes to avoid for profitable futures trading. 

Futures Market Education 101 – About Futures

At the most basic level, a futures contract is a simple agreement to trade an asset at a defined point in the future, for an agreed price. In the first instance, futures emerged as a means of hedging against price fluctuations in the commodities markets. The first futures contracts were based on the agricultural markets, enabling farmers and their buyers to fix prices for harvests before the growing season started and protect against later market fluctuations.
Although commodities markets are still used by traders wanting to hedge on price, modern futures markets rely heavily on speculators. Speculators don’t want to take custody of the underlying asset; instead, they trade on price fluctuations. 
The presence of speculators created the futures markets as they exist today, in which futures contracts cover all kinds of assets beyond commodities. Futures are traded against stocks, indices, foreign currencies, and most recently, cryptocurrencies. 
Futures trading use margin and leverage to enhance the opportunity for profits. By borrowing funds from a broker or an exchange, you can magnify the potential for profits, although it also increases the risk exposure if the markets go against your trade.
Available leverage can vary widely between markets. For example, in the stock markets, leverage is limited to 2x, while in forex markets, it can be significantly higher.  In cryptocurrency futures markets, you can trade with up to 100x leverage. 
If you can learn how to trade futures successfully, they offer fantastic opportunities to make big money compared to other financial products or derivatives. For example, when trading options, there is better loss protection because you pay an up-front premium on an option. However, while options may offer less risk, futures offer a far greater potential for profitability. 
So now that we know all the basics of futures, how do you decide which futures to trade? 

Markets Overview – Which Are the Best Futures to Trade? 

Obviously, deciding on the best futures to trade will depend on the trader. Choosing which markets you want to enter will mean you need to determine your risk appetite and your available resources for trading.  You’ll also need to think about how much time you have for trading each day, which includes time spent on market analysis and evaluation of your results. 
For the beginner individual investor, cryptocurrencies provide some of the best futures trading opportunities. A single BTC or ETH can be split down into tiny increments, so there are very low barriers to entry.
Digitex will be the world’s first commission-free futures trading platform, making it viable to adopt a strategy of scalping profits from multiple lower-value trades. Furthermore, crypto exchanges don’t rely on profit-siphoning brokers, although most of them with the sole exception of Digitex do charge fees. 
The cryptocurrency markets are volatile, which is bad news for long-term investors. But it’s fantastic news for short-term traders in futures contracts, who can use leverage to magnify gains from the volatility. 
Among the rest, forex futures also offer some comparable benefits to cryptocurrency futures, in that you can trade with high leverage and some currencies are volatile enough to provide significant gains. Stocks and indices tend to be far less volatile and offer lower leverage. 

Which is the Best Futures Trading Platform? 

Once you’ve decided which type of markets you want to trade, then the next step is deciding where to trade futures. Many finance websites regularly provide detailed futures trading systems review for all the major platforms. 
However, here are the major points to consider when choosing a futures trading system:

Availability of product

There’s no point in choosing a platform only to find out it doesn’t sell what you want to buy.

Fees and commissions

These will directly eat into your profits. So, the lower the fees, the better your chances of turning a profit. 

User interface

Especially for a beginner, it should be relatively intuitive and easy to use. More advanced traders may appreciate access to more charts and technical analysis tools.

Customer service 

If something goes wrong, or if you get locked out of your trading account, shoddy customer service is the difference between a good trading day and a terrible trading day. 

Security 

If the platform gets hacked, your funds may be at risk. Particularly in the cryptocurrency space, high-profile exchange hacks are all too common. Make sure your chosen exchange places the highest emphasis on fund security.
More often than not, choosing a trading platform means making a trade-off on one or more of these points. At Digitex, we are taking pride in building an exchange that excels on every single one of these criteria.
When Digitex launches, it will be the only free futures trading system where you don’t pay a per-trade commission. That alone puts it in pole position for becoming the best futures trading platform. 
But there’s lots more. Users will have access to our intuitive, one-click ladder trading interface. And we’re currently in the process of setting up a world-class back office to ensure that traders can focus on one thing – trading. 

How to Trade Futures Successfully – Mistakes to Avoid

We will soon publish a post on trading strategies and choosing the best futures trading system that goes into far more detail about specific approaches. So, until then, here are some general tips on how to day trade futures online. 

Failing to Manage Your Emotions

Trading psychology is a topic all by itself. But it’s a fact that if you don’t manage your emotions effectively, you run the risk that they’ll eventually get the better of you.
It’s natural to feel fear if you hear bad news about the markets or think it’s worth hanging onto a position to wring a few more dollars out of it. But basing trading decisions on these feelings is a sure-fire route to losing money.
To successfully day trade futures online, stick to your plan, and leave the emotions out of it. As you learn to trade futures will get easier with experience. 

Deviating from Your Plan

So you’ve created a plan, tested and tested again and now you’re on the live markets. A few losing trades in, and it’s inevitable that you’ll start to question your plan.
While it makes sense in some situations to revisit a plan, especially if new information comes in, don’t feel you need to deviate from a tried and tested plan just because the market has a wobble. If you’re confident that you’ve done your research and testing correctly, hold your nerve and stick to the plan. 

Not Protecting Yourself

If you’re trading longer-term then you should always have a stop-loss in place for every trade. Unless you’re superhuman, it’s impossible to monitor the markets at all times. Especially in the world of cryptocurrency, where trading goes on 24/7, often at a breakneck speed.
A stop-loss will mean that even if the markets perform unexpectedly, you won’t be stuck in a losing position while you’re asleep. But conversely, there’s also danger in taking your eye off the markets. 

Taking Your Eye off the Markets

Although you can’t possibly watch the markets 24/7, top futures traders always keep an eye on the big picture and stay abreast of the news. Make sure you hone your analytical skills, learn to read charts and use technical tools, and if you incorporate all of this into your trading plan, you’ll start to see more good days than bad ones. 
So hopefully, by now, you’ll feel you know enough of the basics to start planning your entry to the futures market! Being a full-time trader is demanding and it’s not always easy to develop futures trading strategies that work, but it’s incredibly rewarding. 
Only DGTX holders will be able to trade on the Digitex Futures exchange, as all trades will be denominated in DGTX tokens. You can buy tokens from one of our exchange partners, or via the Digitex Treasury. Buying from the Treasury is trustless and instant, meaning there’s no price slippage. 

Latest News