Whether you’re a crypto newbie or a seasoned trader, there are plenty of cryptocurrency exchanges to choose from. The vast majority of new traders enter through the gateway of one of the major fiat-to-crypto exchanges such as Coinbase. However, for those looking to earn a profit, trading derivatives like active futures contracts offer the potential of far higher returns.
Derivatives trading hit an all-time global high in 2018, with more than 30 billion contracts traded on exchanges, and futures trading alone up 15%. The CME reported that Bitcoin futures trading volumes in November 2018 peaked at over 14k, even as the price of BTC plummeted.
Because there’s such an appetite for crypto futures trading, there are now several exchanges providing active futures contracts. But as we count down the weeks to the Digitex Futures public launch, how do we measure up to the competition?
Well, taking into account the major players in the field, a futures platform comparison shows that there’s nothing out there quite like Digitex!
No other exchange offers commission-free trading on crypto and traditional futures markets–or has their interests aligned with their users in the way that we do. Let’s take a look.
BitMEX is the current king of crypto futures with the biggest trading volume in Bitcoin futures, hitting around $4-5 billion on a good day. Like Digitex, the exchange offers 100x leveraged active futures contracts with advanced trading options.
However, BitMEX operates on a maker and taker fee structure, which is on the high side even compared to other exchanges that use a similar structure, and may make it too costly to implement this type of day trading cryptocurrency strategy. Furthermore, BitMEX customers could potentially be losing out to the platform’s trading desk. It has been alleged that the desk is trading against BitMEX users in an attempt to generate profit for the company.
At Digitex, we pride ourselves on offering transparent, zero-fee trading, and being the first exchange whose interests are actually aligned with our users. This puts us in prime position to topple BitMEX once we get up and running!
OKEx sells itself on low fees and a wide variety of token contract types including EOS and XRP. The exchange has been around a long time in crypto-years, with the original OKCoin established in 2014.
It’s currently ranked among the top five exchanges on CoinMarketCap with 20 million users generating a 30-day trading volume of $12.7 billion. It’s also a close runner up of BitMEX for crypto futures trading, with around $1.5 billion of daily trading.
Unlike the DGTX coin which is listed on CoinMarketCap and has both utility and value, the current OKB coin has little inherent value. It’s intended to encourage OKEx users to use it for transaction fees on the exchange by offering rewards and benefits. On the other hand, DGTX is the only means of accessing the exchange.
Digitex has the edge over OKEx in other areas including zero fees and secure decentralized account balances.
Last year, Dutch exchange Deribit started offering perpetual swaps with continuous payouts on active positions. This move was intended to take some of BitMEX’s market share for active futures contracts, given that the latter calculates payouts only every eight hours.
Deribit also offers faster order execution than BitMEX along with a Bounty Program that allows white hat hackers to find vulnerabilities in the exchange’s programming code and get paid for it.
The downside? Deribit only offers futures contracts against a single asset which is Bitcoin, as opposed to Digitex which will offer other crypto futures contracts like Ethereum and Litecoin, and traditional futures markets as well.
Bitfinex is one of the larger crypto exchanges with a 30-day trading volume of $3.5 billion. It’s also one of the oldest given it was founded in 2012. It allows users to lend BTC or USD to others for use as margin on their own positions, however only up to a maximum leverage of 3.3x, which is conservative, to say the least.
Bitfinex offers fantastic customer support, which is just as well considering the user interface isn’t particularly beginner friendly. In contrast, Digitex will launch one-click trading for a user experience so smooth and slick, your grandmother could soon be trading Bitcoin futures!
Cryptofacilities, unlike much of their crypto futures trading competition, is fully regulated by the Financial Conduct Authority in the UK. It offers futures contracts in Bitcoin or XRP, and the interface is user-friendly.
Because it’s regulated, funds are insured by an A-rated insurer also based in the UK. This is necessary because, like many other exchanges, Cryptofacilities keeps funds in cold storage in a custodial arrangement.
Once Digitex implements Plasma technology to provide non-custodial accounts, Digitex will use blockchain technology to hold users’ funds in a smart contract. This means there is no way anyone could steal them from us as we don’t have access to them ourselves.
Singapore-based Huobi offers some innovative features on its main exchange, including OTC trading–P2P trades that don’t go via the exchange as an intermediary. Huobi also opened its derivatives market last year, offering Bitcoin, Ethereum, and EOS futures contracts, with plans to add other altcoin contracts during 2019.
However, while traders on the Digitex network can take advantage of up to 100x leverage on positions, Huobi users are limited to a maximum of 20x.
Bybit only launched its perpetual crypto contract exchange in January, making it one of the newer entrants on this list. It has some pretty impressive features including 24/7 multilingual customer support, 100x leverage, and a platform that can run up to 100k transactions per second.
Bybit is also a low-fee exchange, with rates around 40% lower than the industry average. Even so, that’s still higher than Digitex, which offers completely fee-free trading for our users!
IDAX is a Mongolian exchange, and one of the only ones that are open to U.S. customers. It has a competitive fee structure and reasonably easy-to-navigate user interface.
However, the major drawback of IDAX compared to most other exchanges including Digitex is that it offers no trading on margin. Therefore, if you’re looking for leverage, Digitex has the edge.
The CME and CBoE are the two financial heavyweights of Bitcoin futures trading. Both offer cash-settled futures contracts with the assurance of being fully regulated.
However, these two exchanges are firmly targeted at institutional investors rather than individuals. Unless you’re planning on opening your own hedge fund, Digitex is a better option for you.
Stacked up against all the futures trading competition, it’s clear to see that Digitex is set to take them all on. All other exchanges charge fees to their users, meaning that even the lowest fees can’t compete with our zero-fee trading platform enabled by our DGTX token.
Digitex users will have the benefit of non-custodial accounts, providing an unparalleled assurance of security compared to most exchanges which use a combination of cold storage or reserve funds to ensure their users’ funds are safe.
Digitex users also have the potential for higher gains with up to 100x leverage futures trading. Our one-click trading interface is underpinned by a state-of-the-art order matching engine, providing an ultra-fast service even during peak periods.
We’re also offering traditional futures markets from the get-go, including Forex, indices, metals, and commodities, all with zero fees. Public launch in early quarter two this year will also come with a mobile app for trading on the go and, with the plasma implementation and spot trading to follow, we’re going to set a new standard.
To make sure you’re in on all the news regarding the launch, join one of the world’s biggest and most active Telegram groups over on our channel. And be sure to sign up to the waitlist, which is now more than one million strong!