Digitex Futures: Optimizing traders returns by getting rid of commissions

작년

Source

Understanding the role of commissions in trading activities


Every large enough industry has its groups of traders whose goal is to make quick investments in certain projects with the goal of earning a profit. Traders move their money around in the most effective way they can, to receive the higher possible return. Being a good trader in general can be something quite challenging and not everyone is capable of mastering it, this can be seen as a kind of game when having a proper interpretation of current trends and data, can become a very valuable skill because it allows them to take good decisions when deciding which trade to do and which one to ignore.

In order for traders to be able to place their orders and move their money without any hassle, they need to use reputable exchanges that can provide enough liquidity and efficiency when handling the transactions, and since the exchanges need resources to cover their development and maintenance costs, the most effective way to charge for their services is by applying a certain commission to every transaction from the traders. This allows the exchange to receive compensation based on the amount of activity from its users.

Obviously, the more trades there are, the more revenue for the exchange and the easier it gets for them to scale, but for traders it is the opposite, the more active they are the more they will have to pay in commissions, and in cases where their revenue is very little, the fees can even turn a profitable trade into a loss. So far, this was the only way to do trading activities, because there wasn’t a more effective method to fund exchanges than receiving money based on the amount of activity (fees per transactions). Now, with the rise of decentralized platforms, it is possible to offer traders a zero commission exchange, while also making it even easier for the exchange to fund itself, and Digitex is the current pioneer in leveraging the capabilities of blockchain technology to achieve exactly this.

What is Digitex Futures and how it can offer a zero commission exchange?


Digitex, as its name implies is a futures exchange, as the industries grow in value, the same can be said about the sophistication of financial instruments available to traders, in this case, Digitex works with the instrument called futures, which consists in “financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.” | Source Specifically, Digitex will work with Bitcoin, Ethereum, and Litecoin futures.

digitex futures zero trading.png

Digitex design thanks to @hungryhustle

The most important aspect of Digitex and the one that makes it an extremely attractive option for the majority of the people actively trading futures, is that this exchange won’t charge commission to its users. It doesn’t matter how active a particular trader is, his trades will be 100% free of commissions/fees, which means successful traders will finally enjoy the complete benefit of their trading skills without having to reduce their revenue because of annoying fees.

Digitex is able to accomplish this breakthrough innovation through a tokenization strategy only possible thanks to blockchain technology.

The token that will be used in this platform is called DGTX, and traders will need it in order to place orders and interact with the exchange, the value of this token will come from the demand of traders that will be interested in participating in this exchange, which by the way, is the only futures exchange that allows activities to run smoothly without charging transactions fees.

Digitex will cover their first 2 years of operations with their ICO funds, after those initial 2 years, there will be a new token creation event, where each user that is holding the token will decide and vote on how many new tokens should be created to continue with the improvement and development of the exchange.

digitex dgtx token.png

Digitex design thanks to @hungryhustle

This method will empower users more than ever before, because they are going to be the ones finding the sweet spot between too much inflation and too little funds for the project. They will have to take into consideration a lot of information to find out what is the best balance for both users like themselves and developers that are constantly working making sure everything runs smoothly.

Thanks to this mechanism, users will have an unprecedented level of involvement and importance in the project in which they do their trading activities, and this will certainly prove to them that their opinion matters and their needs are always taken into consideration when major changes need to happen so the project can continue forward. As we all know, in most exchanges, users can be left ignored and the company behind the exchange can take actions without taking into consideration the best interest of its users, in Digitex, with the voting mechanism for every token holder, the opinion of everyone involved will count.

How to start participating in Digitex?


Trading activities will begin later this year, and right now, they are running a campaign where people can earn free DGTX tokens,

For people who want to have early access and are interested in airdrops and the bounty campaign, you can find more info here:

http://digitexfutures.com/get-early-access

This is an informative video about the exchange:

More links related to the project:

Feel free to share your thoughts and ask any question you might have about this project!



“DISCLAMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by investing. The following information is for educational and entertainment purposes only.”

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
STEEMKR.COM IS SPONSORED BY
ADVERTISEMENT
Sort Order:  trending

@dedicatedguy

The rise of decentralized exchanges I think is a good thing, traditional trading platforms have been caught selling their users data to high frequency traders like with what happened to Robinhood.

So nothing is free, so to say. Theres no free lunch, and without fees they need to find other ways to make profits of course.

But since this is a decentralized exchange, everything bought and sold would be on a public ledger I would think. So theres nothing to sell, hah.. great idea! This could get interesting.

Best of luck to this platform.

·

traditional trading platforms have been caught selling their users data

You are completely right, that is another advance that's possible thanks to decentralization.

Thanks for sharing your thoughts mate!

Hey, good post! What i dont understand, they are a dex for futures, who are the issuers of these futures, and are they cash settled or physical?

·

who are the issuers of these futures

Hello @concepskip, in the section 4 of the whitepaper they explain the "main features and benefits" of this exchange.

In there, they mention how they are going to allow the exchange to have enough liquidity and they also mention the presence of the automated market makers. Which makes me think the exchange itself is going to be the one responsible for issueing the futures, although I would have to research a little bit more to confirm this.

are they cash settled or physical

In the whitepaper linked above, they mention and I quote "Tick values of futures contracts are denominated in DGTX tokens, meaning that all profits and losses are settled in DGTX tokens.".

I hope this reply can answer your questions.

Cheers.

·
·

Thx a lot for this very informative response!

hi @dedicatedguy

Interesting choice of topic.

I've never heard about Digitex until now and it seem that they are providing some real solution to those who are interested in trading futures in crypto.
Do I understand right?

Personally Im not much of a trader and I would be to scared to even think about "touching" futures. But I can see real value in your review for those who may be interested with futures.

Resteemed and upvoted :)
Yours
Piotr

·

Thanks mate!

Yes, what digitex is offering is to eliminate transaction fees so traders can enjoy their profits completely, and to fund the development of the exchange they will use their own token sales, tokens that traders will need to use in order to participate in this exchange.

It amazes, the number of possibility being created because cryptocurrency was created. One of the possibilities is Digitex. Thanks to it for making life better for digital traders through its liase with futures.
Nice review on digitex @dedicatedguy
@jodekss

·

Hello @jodekss thanks for sharing your thoughts mate, I really appreciate you taking the time to check the article.

Cheers!

Another decentralised exchange, happy to see it:)

·

This one is kind of special thanks to its zero transaction fee.

Thanks for your comment @freecrypto!

@dedicatedguy Great article my friend. I read about digitex when originalwork introduced it. This is great they will not take any transactions fees and manage operation cost and other things via their own token.

Also the interface looks great. I liked the features as well as the demo they showed in video. This is really great.

Once again great article my friend.

·

Thanks for stopping by mate, I agree, eliminating fees is probably the best thing a trader can ask.

A free cost trading opportunity is always an attractive feature for every crypto trader. Digitex is a nice platform for every trade investor for Futures. I'm still kinda understanding their concept.

·

You are right bud, getting rid of fees means having higher profits, so far this token has been performing very well in 2018 despite the bear market.

this post was found on my discord group https://discord.gg/Ma3VCxj and upvoted by me manually

Hi @dedicatedguy!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.569 which ranks you at #1734 across all Steem accounts.
Your rank has not changed in the last three days.

In our last Algorithmic Curation Round, consisting of 726 contributions, your post is ranked at #95.

Evaluation of your UA score:
  • Some people are already following you, keep going!
  • The readers like your work!
  • Good user engagement!

Feel free to join our @steem-ua Discord server

Hi dedicatedguy.
We (cryptonians) need a pure blockchain exchange that is as nimble as those found on Wall Street. I had heard some good things about Digitex, but have not looked deep into it. Do you believe it will surpass the functionality of some of the major crypto exchanges by this time next year?

·

Do you believe it will surpass the functionality of some of the major crypto exchanges by this time next year?

Digitex is a futures exchange, meaning users will only be able to trade futures. Regarding the functionality I think Digitex has some interesting things to offer, for example its one-click interface can be of great help when improving traders efficiency.

Oh this project has been calling me attention, but today I have a question and it's about the financial aspect of it, I'm not sure if those rounds of tokenization will be effective, but I'm still analyzing it to participate in Digitex.
2do-Pie-de-pagina-Steemit.png

·

I'm not sure if those rounds of tokenization will be effective

I understand, it is a new way of funding an exchange, but the result (zero transaction fees) can be highly attractive to successful traders. We will have to wait and see, so far in 2018 the DGTX is like +200% despite the bear market, which means there is strong interest of this project in a context where major cryptos have been suffering a decrease in their market cap.