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How Digitex Futures is increasing competition for cryptocurrency exchanges

Let's take a look at the zero-fee futures exchange Digitex Futures

Digitex Futures is a zero-fee, non-custodial futures exchange with its own currency, the DGTX token. It is a trading platform where traders can buy and sell futures contracts on multiple cryptocurrencies, financial instruments, and commodities.

What makes Digitex different from other exchanges is that there are zero transaction fees on all trades. This attracts a higher quality of active, ultra-short traders who want to create highly liquid markets using strategies that aren’t possible on exchanges with large fees.

The exchange platform claims to be “the cutting edge of blockchain technology” due to its hybrid nature, combining the best parts from both centralised and decentralised systems in one platform.

Traders are able to enjoy the speed and reliability of real-time trading but without the expensive fees. And because of the non-custodial accounts, traders do not have to trust the exchange with their money.

Account balances are kept in an independent smart contract, making the exchange unable to withhold, steal, or lose users’ funds. This is because Digitex does not physically hold users’ private keys. This also makes the exchange less attractive to potential hackers as there aren’t any actual user funds to steal.

The DGTX token

Digitex operates without charging transaction fees on trades. This is due to the token system it uses. DGTX is an ERC-223-complaint token and is an integral element of the Digitex ecosystem. The exchange mints a small number of new DGTX tokens each year. Users that are attracted to this zero-fee trading must buy these DGTX tokens to be able to participate. This then creates a higher demand for the token and boosts the price, which covers much of the exchange’s costs.

All account balances are denominated in the token and traders can win and lose DGTX every time they trade. The owner of any DGTX token can then take part in the purchasing and offering of contracts using Bitcoin, Ethereum, and Litecoin, all against the cost of USD.

Multi-browser compatibility

The platform has many useful features, including multi-browser compatibility. This means the software will be accessible from modern browsers and operating systems such as MacOS and Windows. The Digitex team also noticed that not many other exchanges were supporting the Safari browser. With Digitex, users can use any browser to get an equally seamless experience.

In addition to this, the exchange offers a one-click ladder interface, giving users lightning-fast functionality for manual trading. The platform is also keen on helping beginners learn more about trading. It does this by providing educational materials through the platform to help educate users.

The Digitex ladder

The Digitex ladder software displays prices vertically, allowing customers to see bids and offers by moving these numbers up and down the ladder. Users are able to react to market movements with one simple click. This means profits aren’t lost as users will not have to take their eyes off the price.

Charting

Through the use of advanced software, users are able to view charts in different ways and choose one that is comfortable for them, including traditional charts, bar charts, or tick charts. Again, this is a customisable experience, allowing every trader to have their own personal platform.

Takeaways

These are just some of the features of the Digitex Futures exchange. It is the first ever exchange that allows users to avoid high transaction fees. However, there are some drawbacks that users need to be aware of.

One of these drawbacks is that the DGTX token does not have any external market makers, meaning its liquidity can become an issue. Another key downside of the platform is that there is no KYC process for users. This may seem great at first, but this means that the majority of institutions will not want to operate on an exchange that doesn’t have a KYC system in place.

Digitex is also not able to block US IP addresses from the platform as it is decentralised. This opens the exchange up to regulatory action from authorities and the SEC would have the authority to shut them down.

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