[ad_1]
While the bearish climate has always been present, the crypto market has been rocked by numerous crises this year. Considering this, many traders have lost faith in their traditional CEX trading and are looking to diversify their strategies.
Looking to alternative trading patterns and instruments is a way to minimize risk and reduce losses. Cointelegraph’s interview with Eightcap contains more details about derivatives trading in the crypto space.
Q: FTX has recently become one of the biggest cryptocurrency disasters. What could have been done to avoid it?
The collapse of FTX has provided important lessons in security, transparency and trust for investors and cryptocurrency providers. FTX is he one of the world’s largest cryptocurrency exchanges. It’s clear they lacked a lot of control across the board, but one thing is for sure, the exchange used customer funds to cover its own expenses, liabilities, and subsidiaries (in this case, his Alameda Research should not have paid the loan. Unfortunately, the demise of FTX has created a great deal of distrust in the crypto space, not only from investors, but also from government agencies that once embraced the benefits of digital currencies.
Q: How can investors approach the market to make safer investments?
Naturally, investor confidence took a hit after a very prominent and well-known cryptocurrency exchange collapsed. Due diligence is still required when opening an account with an exchange or broker. One of the main considerations is regulatory. It is important for investors and traders to research the provider’s regulations and licenses to understand the regulatory bodies that hold the licenses.
Eightcap is regulated in multiple jurisdictions and can offer derivatives trading in over 130 countries. Investors and traders should consider the transparency and handling of client funds when choosing a broker or exchange. Eightcap ensures that client funds are segregated and held in Tier 1 bank accounts, giving clients peace of mind that their funds are safe. This is stated in the product disclosure available to all clients.
Q: What are some ways to increase your understanding and knowledge of the entire crypto space in order to make complex financial tools more accessible to investors?
Knowledge of the world of cryptocurrencies is fundamental for novice traders. It is also important to learn and adapt tools that can enhance your trading strategy. At Eightcap, education is at the heart of what we do and the product range we offer.
We encourage all clients to use the extensive educational resources readily available on their trading account. We have launched a new initiative called TradeZone. The initiative invites a number of expert guest analysts to provide consistent market insight through written commentaries and weekly webinars.
Q: How can derivatives help reduce the risk level of a crypto investor’s overall portfolio?
Managing risk is an important aspect of any strategy and traders should definitely understand what trading with leverage means. This means that both profits and losses can be magnified due to exposure to price fluctuations.
Strategies such as calculating the PnL ratio for each trade are some of the ways you can consider when trying to de-risk your portfolio. I also want to emphasize the importance of using the margin calculator to identify how much capital is at risk if the market moves against your position. is another strategy employed by some of the This minimizes your risk as you are taking opposite positions in open trades.
Q: What does the future of crypto derivatives look like?
As the crypto winter continues into 2023, we are seeing an increase in the adoption of crypto derivatives trading across the industry as investors look to take advantage of market volatility. Due to tight regulation and low transaction fees and spreads, we expect spot crypto traders to move to derivatives. Eightcap offers the lowest fees for traders to enter the market and offers competitive spreads across all products, especially some of the more liquid large coins.
Q: How does Eightcap ensure investor security when trading on the platform?
Eightcap prioritizes platform stability and security when clients trade derivatives. To ensure this, we partner with Amazon Web Services and CrowdStrike, a leading US cybersecurity company, to protect our infrastructure and customer data.
We are regulated to issue crypto derivatives trading (with the exception of the UK). This ensures that your funds are segregated and held in Tier 1 banks. Ultimately, we ensure that we adhere to strict regulatory and security requirements for retail traders.
Q: What are the plans for Eight Cap in the near future?
A lot of work is being done for 2023. We launched a new B2B solution. It is specifically aimed at consumer-facing businesses. Offering our products to our customer base allows us to extend the lifecycle of current and new customers and generate additional revenue streams. We also plan to launch products aimed at improving the trading experience of our customers.
Disclaimer. Cointelegraph does not endorse any content or products on this page. While we aim to provide all material information available, readers should do their own research before taking any action in connection with the Company and take full responsibility for their decisions. Nor should this article be considered investment advice.
[ad_2]
Source link
