Digitex Futures Exchange: A Deep Look Into The Effectiveness Of Zero-Fees Trading

teekingtv (68)in #digitex • 6 years ago (edited)

Exorbitant trading fees have been one of the major setbacks surrounding cryptocurrency right from time. This is a problem that has resulted in loss of several millions of USD by crypto traders across the globe to exchanges. Many experts with technical know-how on cryptocurrency and Blockchain technology have given their views on this problem and how it could be solved. But saddening, many of the theories given are hard to be implemented in real life scenarios. And just when we start to realize how these trading fees are affecting our trading, Digitex Futures comes to our rescue.

I took my time to understand how Digitex Futures work and how the team behind this great platform managed to come out victorious in the battle against trading fees and commission charges while countless other exchanges out there are busy getting defeated in this same battle and hence, charging us for the crypto trade we do on them. Before talking about this and how DGTX token has been the defensive midfielder protecting us against the opponents’ attacks and at the same, feeding our strikers with beautiful passes that can get us the goals to win this trade wars, let us look into trading fees and commission charges in a more general sense.

At press time, the top ten cryptocurrencies in the world have an unbelievable $172,877,168,488 USD market cap altogether with the topmost having $109,416,328,059 USD while the bottommost among them is conveniently controlling $1,689,585,085 market cap. These are Bitcoin and Monero respectively. Those figures show you how much cryptocurrency and Blockchain technology have grown in recent years and the potential they have in taking over the trading world in general. However, if the high trading fees and commission charges are not what they were, we would be seeing at least, multiples of those figures.

How unbelievable transaction fees could be when trading crypto on exchanges

The world economy is evolving around cryptocurrency right now. Advertisement banners of Bitcoin and Altcoin have been seen in banks time without number. Many traders have withdrawn their bank savings, disregarding the interests that their money could bring when it is saved in banks. All eyes are set on cryptocurrency. Everyone wants to trade crypto and make profits. But the high fees we pay for trading crypto on exchanges have brought us nothing but heartaches. A very tiresome one.

I came across this after many findings on Twitter, how crypto traders have been suffering from very high trading fees that can be termed as “insane”. How could I have to pay a whole $16 as a transaction fees for transferring just $25 worth of Bitcoin from Coinbase to Kraken? That is 64% of what I transferred and how unbelievable! I know just how this sounds. And that is why I am giving you a screen grab of this event so you can see for yourself.

See the screen grab below;

Need another scenario to be convinced how unbelievable transaction charges could be when trading crypto on exchanges? Well I will give you one more. Daniel Roberts, another crypto trader shared how he was charged $15 for transferring $100 worth of Bitcoin from his Coinbase wallet to a hardware wallet (Ledger Nano S). That was not as much as Kristian paid but still on the high side if you look at it very well. Especially when you are trading lots of coins. See a screen grab below.

Well, all these happened in 2017 and to be candid, things are getting better when transaction fees are concerned. As at now, trading fees have reduced compared to what they used to be but they are still not to be considered as trivial matter. Using debit card attracts extra charges and as well, those of us trading outside the United States of America have other extra fees to pay. So, adding up, these charges are still on the side and greatly have negative impact on our progress trading crypto as well as the profits we make. Well, while this has negative effect on us as traders, the opposite is just the case for the so-called Bitcoin miners.

Why do exchanges charge us for trading crypto?

In order to understand why exchanges charge us for all the transactions we do on them, we need to understand exactly how Blockchain technology is built and how cryptocurrency transactions network work. There are different operations going on when you are withdrawing and the reason why you are charged is based on these operations. Also, some other things, aside from the operations running on background will determine how high your transaction fees will be.

Like I said earlier, transferring your coins to your wallet, withdrawing or doing other transactions on exchanges might be a pain in the arm for us as regards the trading fees we pay, but the miners are in contrary, the ones laughing when these transactions are done. When there are several transactions going on, the ones with higher charges gain the attention of miners faster than the ones with fewer charges. Hence, it is not a matter of “first come first serve” but “highest charges first serve”. While this is going on, exchanges might opt to increase the transaction fees so as to get more rapid block confirmations.

Another thing that makes exchanges to charge us so high is that when you are withdrawing your tokens, exchanges will have to pay some certain transaction fees with the use of what we call “on-chain” transactions. They will of course want to make profits from this as this is what is expected of every business enterprise – making profits. However, to do that; they will have to add some extra charges which we will have to pay, and from which their profits will be originated.

DGTX token – the power behind Digitex Futures zero-fees trading attribute

Now that you have seen some of the factors responsible for the exorbitant charges we are forced to pay using exchanges, I am guessing that you can understand how Digitex Futures is able to offer us the opportunity of trading crypto with zero fees and no commission charges thanks to the protocol token called DGTX token. I have written a blog that explains the importance of DGTX token on Digitex Futures but I still need to point out some things here.

DGTX token acts as the system that handles account balances, and also covers the profits and losses that come along with crypto trading on Digitex Futures. Profits and losses are denominated in this token and hence we can trade Bitcoin, ETH or Litecoin futures without paying trading fees on Digitex Futures. Digitex Futures is the next generation exchange for futures trading and the benefits we tend to enjoy from using this exchange can never be found somewhere else.