Digitex, The futures market of the future ( My entry for the @orig...

Hello dear Steemians, this is my entry for @originalworks sponsored writing contest about DIGITEX

We should start this post, explaining a little bit about what a Futures Exchange is, it is a central marketplace where people can trade standardized future contracts which is referred to a contract to buy specific quantities of a financial instrument or comodity at a specified price with deliveries at a specific time in the future.

So, what is Digitex Futures Exchange?

It is a futures exchange of cryptocurrency , free of commissions with decentralized account balances, yes, as you read it, it is free of commissions, which differentiates it from existing futures exchange since, in spite of its low costs and other benefits as low risks in terms of transfer, storage and others, the transaction rates are still relatively significant since it reduces their potential liquidity, due to the commissions, they are no longer profitable, which would have been otherwise if not for the costs of commissions, leaving a really low margin of profit.

So now, the next question is: How can Digitex Futures exchange afford itself to be transaction fees free?

Transaction fees are eliminated by the creation of the DGTX token, a token based on Ethereum, and using it as the currency of the exchange. Everything will be denominated in the DGTX tokens, the benefits, the losses, the account balances and the margin requirements, the exchange eliminates the transaction fees and the costs will be covered by creating new tokens instead of charging fees, for what traders must own DGTX tokens to participate in the free commission market of Digitex. Perhaps the question arises in your mind of whether the emission of new tokens will cause inflation, it will, but it will be covered by the great demand that will be created by DGTX tokens by subsidizing commission-free futures markets that will attract large numbers of traders who must buy DGTX tokens to participate.

So what do you have to do to buy or sell futures contracts? To buy or sell futures contracts, a trader must have a balance of DGTX margin sufficient to cover his potential losses, the value of each contract being 1 DGTX token, everything will be denominated in DGTX tokens, whether profits or losses. As the trading flow increases, the demand for DGTX will increase simultaneously.

The owner of the DGTX tokens has the possibility of participating in the purchase and sale of liquid futures contracts on the price of Bitcoin, Ethereum or Litecoin against the US dollar, these transactions being completely free, but if he decides to do so through any other exchange, the trader will have to pay the commission costs, being this option logically very little feasible and bringing consequences like losses for the user, being in this case profitable and favorable to do it through Digitex Futures Exchange.

The price of DGTX will be closely related to the demand of DGTX tokens by traders, in the following table issued by Digitex Whitepaper we can see the different scenarios, assumptions and how this affects the price of the tokens.

Due to the fact that a highly liquid market in DGTX tokens is basic to the success of Digitex Futures Exchange, a system will be created where the purchase and sale will be easy, fast and without many difficulties, being the traders capable of converting a great variety of cryptocurrencies in DGTX tokens and vice versa and the best of all being this totally free in terms of transaction fees.

Something characteristic about Digitex Futures Exchange is that it also presents a hybrid mechanism, it is the combination of centralized matching engine and decentralized account balances which replaces the centralized account balances with an independent contract, where they don´t have to trust the exchange with money while at the same time uses the speed and reliability of centralized servers. One of the most important benefits of this hybrid mecanism is that traders don´t have to deal with purely decentralized exchanges problems.

Now I am going to talk briefly about the main and most important benefits of Digitex Futures Exchange.

1. Zero Trading Fees: As I told before, there is absolutely no trading fees and traders can exchange at any moment or circumstances and this is not something that is going to change over the years, so you can confidently trade as much as you want

2. Decentralized Account Balances: Digitex have no access to your money, so they can´t lose, spend, freeze your money and if they get hacked, your money will still be safe, this is because the money will be managed by a decentralized and independent contract on the Ethereum blockchain.

3. Highly Liquid Futures Market: Highly liquid markets are obtained because traders are greatly involved, something that is not viable in other exchanges because of the comissions and the liquidity is enhaced because of the presence of automated market makers, which are automated robots that have the function of breaking even including difficult market conditions.

4. Digitex Native Currency: As spoken above, it has it´s own cryptocurrency called DGTX, where one Digitex futures market is valued in 1 DGTX. All traders must own DGTX tokens because everything will be denominated in that cryptocurrency.

5. Decentralized Governance by Blockchain: Digitex eliminates transaction fees through blockchain technology by manufacturing a small number of new tokens each year, this issuance of tokens will be for the benefit of the traders who will democratically govern this new model, deciding if the new tokens will be issued, the moment and quantity of new tokens to be issued. All this will be done through the decentralized Government of Blockchain.

6. Complete Privacy: One of the best things about Digitex Futures Exchange is that they will protect your privacy absolutely because you don´t even need to submit your name or any kind of identyfing document to start trading, this is specially to protect the user from hackers seeking for personal information.

As you can see, Digitex Futures Market will dominate the market of the future through the use of its cryptocurrency DGTX, because it has multiple benefits that, unlike the markets of the present, care about your privacy, your pocket and your power of choice and decision, in addition to providing security and confidence, protecting you from hackers and robberies, and Guess what! It ensures you profits too. If you decide to invest in Futures Market, decide for Digitex Futures Market, I assure you, you won´t regret it.

Here you can watch a video explaining more about DIGITEX

More Information & Resources:

If you want to participate in this amazing writing contest, please enter to the following link:

@originalworks Sponsored Writing Contest DIGITEX

digitex2018

digitextwitter

Twitter Post

https://twitter.com/Clockworkpriya/status/1042041453206228992
- Clockworkpriya

Posted from my blog with SteemPress : http://clockworkpriya.vornix.blog/2018/09/18/digitex-the-futures-market-of-the-future-my-entry-for-the-originalworks-sponsored-writing-contest/

Digitex, The futures market of the future ( My entry for the @originalworks sponsored writing contest)