Considering the evolving ecosystem of cryptocurrencies, especially in the world of trading, zero trading fees are arguably long overdue. The way to global adoption isn’t about following traditional business models or acting as the new intermediate.
Believe it or not, there are pros to having a cryptos futures market. Following conventional economic thought, it’s the next logical step. The emergence of a futures market shows that crypto assets are maturing compared to traditional asset markets. But why does crypto need commission fee? Let’s find out.
Signs of a maturing market
For cryptos to grow, the market size has to develop. Zero trading fee helps to lower the financial barrier of entry for traders. The negligible fee will encourage retail level traders to use the exchange, and that’s exactly what Digitex Futures is trying to bring to the market.
More traders lead to more transactions which are reflected in the market size growing. With enough volume at the retail level, the institutional traders will want to play too.
Additionally, the net worth of Bitcoin’s market cap is currently only $58 billion which is about the net worth of Mark Zuckerberg. Moreover, two of the biggest companies, Amazon and Apple are closer to the total USD in circulation than the total of all cryptos, currently at $202 billion.
Digitex providing commission-free trading is one of the ways to help get the bigger wallets involved.
Make money during the bear market
2018 has been a rough year. However, experienced traders know how to manually trade and make huge profits even when the market is down. Being able to short bitcoin is a way to gain profit in crypto futures contracts. Futures contracts basically refer to betting that the price will go down. You can’t do that with the hard asset. And if short is correct, you gain all the profit because Digitex has no fee or commission expenses.
Brings liquidity to the market
Ever thought what makes liquidity in a crypto market? The traders and the volume of transactions they create. But what brings traders to the exchange? Traders are attracted to the liquidity of the market.
Generally, traders are deterred by low trading volume, transaction fee, and trading fee. So, how does Digitex plan to get both traders and liquidity? It obviously is through commision free trading. The traders are going to be attracted towards zero-trading fees but will stay because of the liquidity. This will be generated by the traders and automated market makers. Instead of worrying about whether someone will be on the other end to match the order, the AMM (Automated Market Makers) will make sure they are on the other end even when another party is not. They are trading bots capitalized with 200M DGTX and are programmed to break even.
Traders will become more competitive when the exchange eliminates trading fees. The traders will become more creative and aggressive with their trading methods. This will help to build liquidity. Bear or bull market, the more successful strategies will be made into templates used by less experienced traders.
Exchanges like BitMEX need some new competition. We’re at the 10-year marker for cryptos, and it’s time for a change simply put. Some platforms have become complacent and are forgetting that traders chose to use them for varying reasons. Digitex will work to make commission-free trading a high priority for all
Crypto market needs a commission-free exchange because it’s about time something new is introduced into the trading space. It was only a natural evolution that trading cryptos would go from hard assets to derivatives. Digitex may not be the first in that particular space but it will lead the way in bringing zero-fee trading to the futures exchange market.
This will lower the barrier to entry for traders and help to garner the attention of those interested in trading, eventually leading to the market size growing and showcasing the maturity of the space. The competition fostered will help lead to mass adoption of cryptos whether through direct or indirect ownership of the hard asset.
PCEX offers you a safe and secure trading platform at only 0.05% transaction fees. With futures and cash delivery, PCEX is a revolutionary crypto-exchange.
What are your views about commission free trading? Drop a comment and let us know.