Crypto derivative trading has seen rapid growth in the last few years. A second way to purchase and hold cryptos is to use leverage. It appeals to traders who are looking for the best price movement.
CFD trading can be risky, particularly when dealing with cryptocurrency. Large exchanges were forced to close their doors in 2021 due to regulatory concerns. This left crypto derivatives traders without a place to trade. That’s where Eightcap, a multi-award-winning regulated CFD broker stepped in, with a fresh offering that stood out for its extensive range of crypto coins, crosses and indices, all paired with low spreads. Eightcap derivative traders have quick access to fast withdrawals and multiple funding options.
We sat down with Marcus Fetherston, Head of Operations at Eightcap, to discuss the broker’s award-winning crypto derivative offering, the current trends in crypto, and to delve deeper into the problems derivative traders are facing. He shared his thoughts.
Crypto derivatives are a great option for traders, especially with the increasing volatility of crypto markets.
There hasn’t been a better time for derivative products, especially crypto. The past year has seen cryptocurrency assets slide into downtrends and move sideways. Bitcoin is at all-time highs and crypto coins like Shiba Inu and Cardano have also gained momentum on the markets. The rise in traders eager to profit from the crypto market’s movements has resulted in a large number of them. Crypto derivatives is one way to achieve this. It allows derivative traders to trade long and short. CFD traders can take advantage price movements without needing to invest large sums of capital.
Which are the most pressing problems facing crypto derivative traders?
Trading crypto CFDs has been difficult for crypto derivative traders, and they continue to face many of the same problems. To meet current crypto trading demand, there has been divergence in product offerings. Numerous licensed entities offer crypto CFDs, while still adhering strictly to regulatory regulations. Although there is a wide range of providers of crypto CFDs, many of them offer a limited product selection and have large spreads. So crypto derivative trades aren’t gaining exposure to a varied and extensive suite of crypto CFDs, and they aren’t getting the best price when it comes to trading derivatives. You can also trade on centralized offshore exchanges which offer an extensive range of products. Still, the flip side of the coin is that crypto derivative traders won’t have the peace of mind that they would have when trading with a regulated broker.
Binance was hit by a bug that prevented crypto derivative traders from withdrawing Dogecoin for two consecutive weeks. Binance had stopped operations in certain regions, such as Italy or Hong Kong. The disgruntled traders of crypto derivatives felt worried about the future and were concerned about where to trade them.
Eightcap offered a solution for the issues I mentioned. 252 crypto derivatives were launched in September 2021. This included crypto crosses, coins and indices. As we continue to respond to crypto demand, more coins are being added to our portfolio. Eightcap was awarded Best CryptoBroker at the 2021 AtoZ Markets Annual Awards due to its latest cryptocurrency derivative offering. Our extensive portfolio includes ultra-low spreads.
How does Eightcap’s Crypto derivative offering stand out from what other brokers and exchanges are offering?
Because of our extensive selection of crypto derivatives, we stand out among the market for crypto derivatives. Our crypto derivatives include Dogecoin (Bitcoin), Ethereum, Polkadot. Cardano and Solana. Also, we offer crypto-crosses and crypto indices.
We are dedicated to becoming the home for crypto derivatives traders. With our whole crypto derivatives suite, we aim to offer ultra-low spreads. Clients can trade Bitcoin at spreads as low as 12p/coin. Cardano is available from 0.004 per coin, Dogecoin starts from 0.0002 pecunia, Ether begins at 0.45 pecunia, just to name a few. Our withdrawals are quick and seamless. Our clients who are crypto derivatives have many options to fund their account, such as BTC, Tether and PayPal. Credit/Debit card Skrill. Neteller. Bank Wire transfer. Customers can rest easy knowing that their trading account is managed by a licensed broker. Eightcap is licensed by the Australian Securities and Investments Commission, the Financial Conduct Authority and the Securities Commission of The Bahamas.
The metaverse community has seen a significant increase in its membership. Is it possible to satisfy the trading needs?
It is fascinating to think about the Metaverse. If we go on to an augmented universe, we will see how it can change our daily lives. A virtual world that centres around a fully functioning economy built entirely using blockchain and dApps is a big concept, and we still don’t know what this world will look like. We have tech giants racing for a share in the Metaverse. Facebook stated in June 2021 it would help bring the Metaverse to existence. Decentraland, a company that integrates crypto and its virtual world, is already available. As an award-winning crypto derivatives provider, we are providing products to our derivative traders who are enthusiastic about blockchain’s trending topics. We offer both AXS and Decentraland CFDs, so clients can trade on the price of these new Metaverse topics.
Eightcap is a great resource for those looking to trade Crypto, but don’t know where to begin.
There’s definitely been an influx of new crypto traders that want to take advantage of volatility. We don’t just deliver the products to trade with; we are also focused on building a home for crypto derivatives traders. We have a series of webinars for new derivative traders who aren’t sure where to start. The six-part series consists of six webinars. It starts with a brief explanation about crypto trading and moves on to more complex aspects. BK Forex and we recently collaborated to bring you CryptoFest. It is an annual event that brings together professional traders who share their expertise on a range of topics related to crypto. We also have regular updates on the crypto market and articles that provide information about price movements and other news related to crypto derivatives.
What is the difference between trading Crypto derivatives and other asset classes?
You may not realize it, but there are some similarities between crypto derivatives and traditional asset classes, such as forex. After periods of large-scale volatility, it has been shown that there are support and resistance networks. These moments show how cryptocurrency pricing acts in the same manner as forex twenty years ago, before institutional trading. This provides excellent opportunities for momentum strategies and swing trading. It is easy to see that crypto derivatives trading can be compared with stock derivative trading. The underlying technology and mass adoption are what drive crypto price movements. This allows traders to study these factors in order to determine the potential growth of crypto.
Is there a future for crypto trading, and where does Eightcap fit in?
Crypto trading is a promising area, with NFTs a social phenomenon that has seen a large community embrace the idea of owning art and music using crypto.
Blockchain technology is advancing rapidly, which will allow traders to use it in more industries. Since the introduction of DeFi last year we are also continuing to see more technology introduced that can add value that extends beyond traditional finance – not just in APY rates, but also in trading technology that can add value to derivatives trading. The importance of technical trading will rise as cryptos see more sideways movements and downtrends. Eightcap needs to ensure our product is evolving to match new crypto trends. This is the area we’re focusing right now, and it will be so for next year.
Additionally, we are able to help clients with education by offering resources along with our derivatives.