The crypto derivatives market has seen massive amounts of volatility. There has been a rapid increase in new derivative traders wanting to take advantage of price movements in the crypto market.
However, after recent frustrations in the crypto derivatives market, traders want a CFD provider they can count on and one where they can withdraw their funds seamlessly and quickly. Binance, one of the largest exchanges providing crypto derivatives, experienced a glitch recently, which led to traders being unable to withdraw their Dogecoin. This isn’t the first time we’ve seen a large exchange like this encounter problems. This year, Binance also ran into regulatory issues and, as a result, has to cease derivatives trading in various regions across Europe.
When large exchanges run into trouble, it is bound to cause worry and panic for crypto derivative traders. Where can crypto derivative traders go to trade where they don’t have to worry about withdrawing their funds and can have peace of mind knowing that they are dealing with a regulated derivatives provider? This is where Eightcap, a multi-award-winning CFD provider steps in to build a new home for crypto derivative traders.
We had a chat with Eightcap‘s Head of Operations, Marcus Fetherston, to get his thoughts on the future of crypto derivatives and how Eightcap can meet the demands of crypto derivative traders.
Who is Eightcap?
Eightcap is an award-winning FX and CFD broker. We were founded in Melbourne, Australia, in 2009 and have expanded rapidly, meeting the needs of retail traders worldwide. We are regulated in multiple jurisdictions including the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities of Commission of The Bahamas (SCB). Our clients have access to over 400 financial instruments, including over 250 crypto derivatives.
Why should people trade crypto derivatives, especially with the current volatility in the market?
There has been a lot of volatility in the crypto derivatives market. We’ve seen the markets move into downwards trends and move sideways in the past year and with the rise of new coins gaining momentum in the markets, there are opportunities to take advantage of the volatile price fluctuations. One of the popular ways to do this is with derivatives. The inherent risk attached to derivatives however is that losses are magnified, not just profits. Despite this, because of the current volatility in the market, trading derivatives are becoming more popular. Trading with a derivatives provider who can support you is essential. At Eightcap, we ensure that our clients have their dedicated account manager, who is there on a 24/5 basis to answer any questions or help with any issues the trader is having.
What are the current problems that crypto derivative traders face?
There are several issues in the market currently. Many crypto derivatives providers offer the same products but the problem is that there isn’t a varied product range, limiting the options of crypto derivatives to buy and sell. Furthermore, most of these derivative providers offer wide spreads. The other issue is centralised offshore exchanges that have varied product ranges but aren’t licensed, so traders won’t feel as secure as trading with a regulated derivatives provider. .
We wanted to solve both these problems by rolling out one of the largest crypto derivative offerings in the market, and traders can rest assured that they are trading with a regulated derivatives provider. This year, we launched over 250 crypto derivatives, including a wide variety of altcoins, crypto crosses and crypto indices, and we plan to keep adding to our offering, so there’s something for everyone. Our crypto derivatives offering won us Best Crypto Broker at this year’s annual AtoZ Market awards, which was a real testament to what we have created for our crypto derivative traders. Whatsmore, the spreads we offer on our cryptos are ultra-low. We’ve ensured that our clients will be getting competitively low prices on our range of crypto derivatives.
How does Eightcap’s Crypto derivative offering stand out from what other brokers and exchanges offer?
As mentioned earlier, our offering stands out from what other brokers are currently offering in the crypto derivatives market. We have over 250 crypto derivatives, including Dogecoin, Bitcoin, Ethereum, Solana, Polkadot, and many more. We also have crypto-indices and crypto-crosses for traders to speculate on.
Our primary mission is to build a home for crypto derivative traders. Part of this is the ultra-low spreads that we offer. Derivative traders can trade Bitcoin with spreads from 12p/coin, Cardano from 0.004 p/coin, Dogecoin from 0.0002 p/coin and Ether from 0.45 p/coin, to name a few. Our withdrawal and funding process is quick and seamless, and we have multiple payment options such as BTC, Tether, PayPal, Credit/Debit card, Skrill, Neteller, Bank Wire transfer and more.
All these features ensure that we stand out from other derivatives brokers. We have a lot more projects in the pipeline for 2022 to continue meeting the needs of our crypto derivative traders.
There’s a growing number of crypto traders looking to make the most out of NFTs and the Metaverse. The Metaverse, in particular, is an exciting concept. With Facebook renaming itself as Meta and announcing that it will be bringing the Metaverse to life, we are only getting started with this concept of an augmented world. Currently, virtual worlds that exist have online events and goods and services you can pay for with metaverse cryptocurrency or native tokens. At Eightcap, we have already started to provide CFDs in Decentraland and AXS. Both have become increasingly popular and have grown massively over the past month. Decentraland and AXS have an estimated market cap of $9 billion and $8 billion, respectively. Allowing our clients to add Metaverse CFDs to their portfolios is essential as we build a home for their crypto derivative trading.
How does Eightcap cater to the needs of new traders who don’t know much about the market?
Education is integral to our offering. We want to ensure that new traders entering the crypto market are prepared before opening positions. We have a library of educational material available for all our clients. They cover everything from the trading basics like strategy and psychology to crypto-specific content like understanding an IDO.
We also have webinars that take our clients through the essentials of trading cryptocurrency. As well as that, we recently partnered with BKForex to host a yearly event. CryptoFest is an online-only event available for everyone. We held the event for the first time this year, and crypto traders from all over the world tuned in for two days to hear insights, tips and strategies and crypto trade ideas from crypto professionals.
How are Crypto derivatives similar to traditional asset classes?
There are similarities and differences between the traditional asset classes and crypto derivatives. We can see how forex and crypto prices behave similarly during high amounts of volatility, which creates plenty of opportunities for swing traders, traders with momentum strategies, and general technical analysis. With stock CFDs, fundamentals are commonly used to predict future price movements. This is the same for crypto derivatives. We now look at the underlying technology behind crypto and the mass adoption of cryptocurrencies. We all obsessively follow crypto trends and forums in social spaces, and it’s very similar when studying shares.
There are hurdles for crypto derivative traders. Most of this has to do with a lack of product offering, undesirable spreads and ultimately the potential risk of trading with an unlicensed provider. As a regulated broker, we aim to provide a solution and a new home for crypto derivative traders, one where they can continue to trade crypto derivatives without worrying about accessing their funds or a limited product offering.