Digitex, found online at DigitexFutures.com, claims to offer commission-free bitcoin futures trading. Find out how it works today in our review.
What is Digitex?
The platform covers operational costs by minting its own native currency called the DGTX token – not by charging transaction fees on trades. Traders are expected to be attracted to the Digitex platform for its commission-free trades, thereby causing the price of DGTX tokens to rise.
Digitex also aims to replace centralized account balances with an independent, decentralized smart contract on the Ethereum blockchain. That smart contract holds all account balances. This makes Digitex a hybrid centralized/decentralized exchange: the exchange has a centralized matching engine combined with decentralized account balances. Users enjoy the speed and reliability of off-chain price discovery combined with the trustless security of on-chain account settlement.
How Does Digitex Work?
Cryptocurrency futures allow traders to predict the future price of a cryptocurrency. Traders can buy or sell options based on where they believe the price will be at a certain point in the future. Bitcoin futures emerged on traditional futures markets in late 2017. Today, cryptocurrency futures exchanges are opening across the internet.
Traditionally, futures trading involves trading on the price of crops – like soybeans – or commodities – like gold. With Digitex, users can trade cryptocurrency futures. They can trade prices without the high costs and risks of transferring, storing, and paying in full for the actual underlying instrument on which they’re trading.
The main selling feature of Digitex is that transaction fees are eliminated. Digitex has created an Ethereum-based token called the DGTX token. That token is used as the native currency of the exchange, which means all profits, losses, margin requirements, and account balances are denominated in DGTX tokens.
Traders must own DGTX tokens to participate in the commission-free, trustless markets on Digitex. This creates demand for DGTX tokens from traders, thereby causing the price of DGTX tokens to rise and allowing Digitex to avoid charging fees: all the exchange needs to do is release and sell a small number of DGTX tokens each year.
How Do Digitex Tokens Work?
The DGTX token is an ERC-223 token built on the Ethereum blockchain. The “Digitex Protocol Token” allows users to buy or sell futures contracts on the exchange. In order to buy or sell futures contracts, you need to have a margin balance of DGTX sufficient to cover your potential losses. That’s because the tick value of each Digitex futures contract is 1 DGTX token, which means all profits and losses are denominated in DGTX tokens.
As trading volumes and liquidity increase on the Digitex futures market, the demand for DGTX by traders will also increase.
The tick value of every Digitex futures market is 1 DGTX token.
Digitex will create new DGTX tokens approximately every 2 years. It is the creation of such tokens that will allow the exchange to operate without the need for transaction fees.
During the initial token sale, 1 billion DGTX tokens will be created. No new tokens will be created for the first two years after launch. Of the total supply, 700 million (70%) is distributed during the token sale at a price of $0.01 per DGTX token; 200 million (20%) is reserved for Digitex market makers; and 100 million (10%) is reserved for the team.
Digitex will have a pre-defined, democratically-governed inflation model regarding the issuance of new tokens.
Digitex Features and Benefits
Digitex advertises all of the following features and benefits:
No Trading Fees:
Makers and takers pay 0% commissions on all trades forever.
Decentralized Account Balances:
Traders do not need to trust Digitex with holding their account balance in order to trade on the exchange. Your account balance is held by a decentralized, independent smart contract on the Ethereum blockchain.
Highly Liquid Futures Market:
Removing fees leads to a highly liquid market.
Automated Market Makers:
Digitex’s market makers are automated trading bots with algorithms programmed so they break even. They have a trading bank of 20% of the total supply of tokens (200 million DGTX), which helps to create liquid futures markets with tight bid and offer spreads, even in volatile market conditions. Traders have the confidence of always being able to enter and exit positions.
Bitcoin, Ethereum, and Litecoin Futures:
Digitex will have 3 futures markets, including for BTC/USD, ETH/USD, and LTC/USD. Each futures contract has a large tick size, eliminating a lot of noise and allowing prices to be displayed on a one click ladder style trading interface, even in volatile market conditions.
One Click Ladder Trading Interface:
Traders need minimal mouse movement and no keyboard presses to execute a trade. Bids and offers move up and down a central price ladder, allowing traders to visualize the market as the price goes up and down.
Large Tick Sizes:
Digitex’s futures market is distinguished by its large tick size. A “tick”, in futures markets, is the minimum price increment that a futures contract can move up or down. The BTC/USD futures contract, for example, is $5.
Traders enjoy leverage up to 100x, allowing them to realize large percentage gains and losses from relatively small price movements.
No Automated Deleveraging:
Digitex won’t close users out of a winning position to protect itself from losses – say, when a counterparty’s losing trade is stopped out because it was too highly leveraged.
Sub-Millisecond Order Matching:
Digitex is built on the Erlang/OTP stack, the same programming language as WhatsApp. This language was chosen for its real-time updating capabilities and ability to seamlessly handle spikes in activity with low latency. That means traders enjoy trades that take under one millisecond to execute.
Decentralized Blockchain-based Governance:
Traders on Digitex can start trading immediately without the need to submit their name or identifying documents of any kind. Digitex is not bout by KYC/AML regulations.
The DigitexDGTX Token Sale
The Digitex (DGTX) token sale begins on January 15, 2018. There is no whitelist or KYC verification required.
700 million DGTX tokens of the total 1 billion supply will be available. Each token will be priced at $0.01. There’s a 20% bonus available during the first week. The token sale will end on February 14, 2018.
You can participate in the token sale at this page: https://digitexfutures.com/token-sale/
Who’s Behind Digitex?
Digitex was founded by Adam Todd (Founder and CEO). The company is registered to an address in the Seychelles.
Digitex aims to disrupt the cryptocurrency futures exchange market by creating an exchange with zero transaction fees for both makers and takers. Instead of generating revenue through transaction fees, Digitex will generate revenue through the annual release and sale of DGTX tokens. As trading volume on the platform rises, the demand for DGTX tokens is expected to grow.
The token sale for Digitex tokens (DGTX) begins on January 10. To learn more about the platform and project, visit online today at DigitexFutures.com.