Digitex is a futures exchange where three contracts viz BTCUSD ETHUSD and LTCUSD can be traded.It offers a high leverage of 100 and it does not charge transaction fees, rather the users are required to buy a coin called DGTX coin which is the base currency of digitex. The O&M cost of running the exchange shall be fulfilled by creating new coins which is scheduled to happen in Jan 2021 and every year thereafter.
The platform is designed in such a way that it will attract more users and that will create the demand for the coin and as the price of coin will rise the inflation will go down. The new coin issuance for the O&M cost shall be decided by the coin owners.
It enable users to experience very fast and reliable trading and when it comes to account balances it remains decentralized. So the overall picture of digitex is very promising and it can pioneer in the space of an ideal futures exchange.
Main features and benefits of digitex are :-
- Zero Trading Fees
- Decentralized Account Balances
- Highly Liquid Futures Markets
- Automated Market Makers
- Digitex Native Currency
- Token Issuance Revenue Model
- Bitcoin, Ethereum & Litecoin Futures
- One Click Ladder Trading Interface
- Large Tick Sizes
- High Leverage
- No Auto Deleveraging
- Sub-Millisecond Order Matching
- Off-Chain Price Discovery, On-Chain Settlement
- Decentralized Governance by Blockchain
- Complete Privacy
- Blockchain Driven
So far traders with conventional futures exchanges are trading with centralized exchanges and for that they are transferring their cryptocurreny to a central authority and then they are doing their trade and paying transaction fees for every transaction. There is a comprehensive understanding in crypto futures exchange that traders wish to participate in highly liquid exchange and that is the reason why they are putting their fund in centralized exchange even after knowing that their fund is at risk. Some people are also trading in decentralized exchanges, but they do feel the liquidity issue even though their fund is secure.
So traders trading in centralized exchanges are feeling the risk of keeping their fund in centralized exchange and traders trading in decentralized exchanges are feeling less motivated because of liquidity issue.
Digitex has come with a solution to offer that space of trading to both of the above category and the issues of the traders as mentioned above is sorted out with digitex platform.
Until now intraday traders are finding it difficult to optimize their trading strategy to gain maximum profit, because hefty transaction fees always have been the constraint for them. The existing futures exchanges are charging commission for every trade and it varies from 0.075% to 0.25%. Intraday traders usually open and close their position within the day and tries to scalp out a decent profit. But when a part of their profit is intercepted by the transaction fees imposed by the exchanges, their net profit gets reduced significantly.
Digitex charges zero transaction fees to enable a trader to optimize their trading strategy and make more profit than other exchanges.
Many exchanges like Bitmex, Cryptofacilities, Kraken, Gdax charge transaction fees ranging from 0.075% to 0.26% for every single transaction. Therefore for a intraday trader, it becomes difficult to make a decent profit by scalping as every time it gets intercepted by the transaction fees. So the profit is always cut short on account of transaction fees.
When there is no transaction in exchanges like digitex, then the profit of a trader becomes more prominent and more profound and gives a sense of freedom to the trader and the trader also feels motivated and can focus more on his trading skills and strategy.
The profit becomes highest when there is zero transaction fees and lowest when the transaction fees is high. Sometimes higher transaction fees leads to losses in tight scalping.
As there is no transaction fees in digitex there is no question intercepting a trader's profit, hence trader will feel more freedom and use even more trading strategy to make more profit.
If the graph of digitex futures be looked at then one can ascertain that people have already started paying attention to digitex and because of its characteristics features it is gaining more popularity in the domain of futures exchange.
The rise from 0.01 to 0.03 usd within the period from 24th May 2018 to 18th September 2018 is appreciable. This is appreciable because during this period the whole market is reeling though blood bath and having bullish momentum under such a bearish environment is one of the sign that people are really very keen to participate in digitex.
Digitex platform is formulated in such a way that it will attract more organic and potential participants from other exchanges, as it has sorted out the issues of both centralized and decentralized exchanges making it a viable exchange alternative in 2018 and the quest of digitex as a futures exchange will carry forward into 2019 and 2020 and by the time we reach the first minting of new coins, digitex would have grown up much more beyond the expectations.
The exchanges and transaction processors are always the winner regardless of the trader's profit or loss. The reason being whether trader makes profit or get stopped out, every time he pays a certain amount fees to the exchange.
As per Bloomberg Survey the front line exchanges are making as high as 3 million usd in fees per day and all these fees are being extracted from traders.
Unlike other exchanges who just make profit by imposing high transaction fees, digitex does not impose any such fees. In reality the fees charged by other exchanges is much more than the actual cost required to run an exchange. So digitex is not aimed at making profit from its users and it is trying to frame a self sustainable exchange where the traders who trade in digitex are the real owners.
You may ask how ?
Traders are not charged any fees, the only condition is that they have to buy the native coin which is DGTX coin and all the operation will be calculated on the basis of DGTX coins.
For running of the exchange digitex will mint new tokens starting from 2021 and every year thereafter and till 2021 the cost of running the exchange shall be borne by ico sales.
The number of new coins to be minted will be decided by the coin owners and that much coin will be minted which will be required to run the exchange for next one year. So digitex is giving that authority and power to the users of digitex, and as far as possible the inflation will be kept on lower side.
A study reveals that before going into 2021 when the first set of coins will be minted, the demand for DGTX token would have enough that the inflation will be very very marginal and will not affect the eco system of digitex. Even the price of DGTX coin shows that it's gaining popularity in broader segment and that is why it has reached 0.03 usd at the time of writing, so there is a gain of 270% so far.
What will be effect on the value of DGTX coin if more users will join digitex and how it will affect the inflation ?
If there will be more users registering into digitex, then they will have to buy DGTX coin for being able to trade in digitex. This will pump the price of DGTX coin to a higher level. So the price action of DGTX coin is directly proportional number of users in digitex.
Coming to inflation of DGTX coins, the first minting will be done in 2021. The number of coins to be minted will be based on the estimated yearly cost of running the exchange. So by that time if the price of DGTX will be high, then less number of coins will be minted and vice versa. So inflation is inversely proportional to the value of DGTX coin.
References
- Digitex Website
- Digitex WhitePaper
- Digitex Blog
- Digitex Telegram
- Digitex Reddit
- Digitex Facebook
- Digitex Twitter
- Digitex YouTube