DigiFinex Review 2023 - All You Need To Know
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The cryptocurrency market is a place buzzing with activity and to thrive, investors and traders need to make thoughtful decisions. These decisions can only be made if an individual has peace of mind.
Then comes the vital question: How can one attain the desired peace of mind? Investors sleep soundly at night if they are sure their investments are well protected. Centralized exchanges (CEX) throughout the world operate similarly to traditional stock markets and provide multiple layers of security to traders together with other benefits.
In this article, we will cover in detail all that you need to know about DigiFinex, a state-of-the-art CEX among the top 10 centralized exchanges in the world.
What Is DigiFinex?
Up until 2017, the crypto industry experienced an exponential increase in the instances of cyberattacks and fraudulent activities. To end this rapidly rising rate of malpractices, Ned Kee decided to lay the foundations of DigiFinex, a highly safe crypto trading platform with a custom-made security system that includes multiple layers of authentication. The project focuses primarily on implementing solutions to the security issues faced by the crypto world.
DigiFinex exchange offers features like spot, leverage trading, perpetual swaps, and the purchase of digital assets using credit cards. The Seychelles-based firm, with its headquarters in Singapore, lists more than 350 cryptocurrencies, including highly sought-after digital assets like Bitcoin, Ethereum, and Solana. Over 500 trading pairs are available in spot trading and 100 in derivative trading.
DigiFinex CEO Ned Kee claims that the most remarkable feature of this pre-eminent exchange is the impenetrable layers of security that the firm offers to help protect user assets. Ned’s claim is supported by the countless invitations that the security experts at DigiFinex receive, requesting them to speak at various security councils and events held throughout the world.
Services and Features Offered by DigiFinex
The success and sustainability of any crypto project or startup depend on how many products and services it offers that are distinct from the competitor’s offerings. Let’s have a closer look at the services offered by DigiFinex.
Buy Crypto with Your Credit Card
Purchasing cryptocurrencies via the use of credit cards is a feature common to all crypto exchanges. DigiFinex allows its users to use Visa and Mastercard to buy the cryptocurrency of their choice. Although the firm imposes a $20,000 limit on crypto purchases, users who go through the advanced KYC (Know Your Customer) verification can break this limitation.
DigiFinex has partnered with leading firms like Simplex, MercuryO, and Wyre. These companies offer online payment processing services in the crypto space, free from sharp practices. All three of these companies support card payments and bank transfers. Still, MercuryO takes a step further and processes the latest payment mechanisms in the market, like Google and Apple Pay.
A User-Oriented Platform
It does not matter if you are a beginner or an advanced-level crypto trader; DigiFinex allows you to adjust the user interface according to your ease. The platform has deployed its crypto charting software, which traders and investors can use to perform technical analysis and make well-calculated decisions. Individuals who like to do a load of calculations and paperwork before investing can switch to Tradingview, which equips users with the necessary tools to draw and annotate charts.
DigiFinex allows users to make rapid transitions between spot and margin trading using the quick-jump menu. The menu also provides a gateway to the complete list of trading pairs. To provide a seamless user experience, the exchange allows the creation of a separate list, where users can keep adding trading pairs of their choice.
When it comes to margin trading, DigiFinex does not have anything special to offer. Like other crypto exchanges, it offers 3 to 5 times leverage. The leverage can be further increased to provide more significant opportunities but with added risk. Here are some things to know about margin trading on DigiFinex:
Margin Trading Pairs: DigiFinex offers margin trading for a variety of cryptocurrency pairs, including BTC/USDT, ETH/USDT, and many more. Each pair has its own maximum leverage ratio, margin requirements, and liquidation price.
Leverage Ratio: Currently, DigiFinex enables trading with up to 3X leverage using five different currencies: BTC, ETH, LTC, EOS, and XRP. This means that for every dollar of your own funds that you invest, you can trade up to three dollars’ worth of the underlying cryptocurrency.
Margin Requirements: DigiFinex requires users to maintain a certain amount of funds in their margin account in order to keep their margin positions open. This is known as the maintenance margin. If the margin level falls below the maintenance margin, the position may be liquidated.
Liquidation: Liquidation occurs when the margin level falls below the liquidation threshold. At this point, the position is automatically closed out and the borrowed funds are returned to the exchange. It’s important to monitor your margin positions closely to avoid liquidation.
DigiFinex is a cryptocurrency exchange that offers derivatives trading alongside spot trading. Derivatives trading involves trading financial instruments whose value is based on the underlying asset, such as cryptocurrencies, without actually owning the underlying asset. On DigiFinex, you can trade perpetual contracts, futures, and options. Here are some things to know about each:
Perpetual Contracts: Perpetual contracts are similar to futures contracts, but without an expiration date. They allow traders to take long or short positions on the price of an underlying asset, such as Bitcoin or Ethereum, with leverage.
Futures: Futures contracts are agreements to buy or sell an asset at a predetermined price and date in the future. They allow traders to speculate on the future price of an underlying asset, with leverage.
Options: Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and date in the future. They allow traders to manage risk and speculate on the future price of an underlying asset, with leverage.
Newbie traders in the crypto sector make many mistakes when purchasing and selling assets. This often results in heavy losses for investors. To cull these losses, DigiFinex offers copy trading.
Here individuals who need help with when to purchase and sell assets can select an adept trader of their choice and follow his steps. Evaluation of these traders based on the success of their past trades can be found on the platform. A user can select any trader whom they think is suitable for copy trading.
Numerous crypto enthusiasts turn to mining as a source of income. DigiFinex has introduced an innovative feature that allows you to conduct mining activities without owning a mining ridge. Investors can invest as low as $35 and become a part of mining activities carried out by the firm. The mining ridges are owned by DigiFinex, which saves investors the additional hassle they might have to face otherwise. What’s more, the mining contract is unchangeable and irrefutable, which makes users confident about their investment.
The contract states all the expenses (hosting, hardware, utilities, etc.) that have to be borne by the investor and the share in the mining profits that they will receive. The Annual Percentage Return (APR) expected when investing in mining revolves around 50%. The APR may vary depending on the prevailing price of Bitcoin.
Requirements for Account Creation
To start trading on DigiFinex, individuals first need to register themselves. The following are the requirements for the registration process:
- A valid email address that is functional at all times
- A security pin
Although the Know Your Customer (KYC) verification is not compulsory on DigiFinex, it is necessary if one wants access to the additional benefits and features the firm offers. The following advantages can be reaped from the verification process:
- The daily withdrawal amount jumps to 10,000 USD.
- Members have the chance to collect enticing rewards every day.
- Users can apply for crypto loans.
Trading Bulk and Average Liquidity Score
Every day, the amount of asset exchange in the spot trading category mounts up to $250 million. This makes DigiFinex among the top 60 crypto exchanges with the highest trading volume. This differs from the derivative trading section, which experiences $1.5 billion worth of asset transactions daily. This massive exchange in the derivatives category helps DigiFinex secure a spot in the top 30 crypto exchanges by derivative volume trading.
On the other hand, the fact that DigiFinex has a lower average liquidity score than its competitors is a significant disadvantage. The renowned crypto price-tracking website, CoinMarketCap gives an average liquidity score of 447 out of 1,000 to DigiFinex. This means there is more significant slippage and, thus, higher spread fees when investors place large spot orders.
Enticing Passive Income Opportunities
A passive source of income with a high APR is always highly valued amongst investors. DigiFinex extends four attractive residual income opportunities for its users. These include:
Flexi Earn: Here, users enjoy complete freedom and do not have to lock their assets to secure returns. The APR is somewhere around (3-10) %.
Stable Earn: Assets are locked for three months, but the APR is higher than Flexi Earn. Only single cryptocurrencies are locked.
Advanced Earn: The asset’s locked duration is the same as Stable Earn, but multiple assets are combined to yield returns of as much as 50%.
Special Earn: Investors who wish to avoid high-risk investments can opt for this feature. The risk associated with investing is minimal, and so is the APR.
Native Token of DigiFinex
DFT is the native token of DigiFinex. Possession of this token has many alluring advantages for the users. These include:
Traders who lock their DFT tokens become eligible for significant fee discounts.
Users locking the native tokens receive extra staking rewards.
Holders of DFT are prioritized and offered first-row seats when new projects are being deployed.
Permit for entrance to the DFT Superstar Program (a program with additional benefits).
The DigiFinex platform charges a flat 0.2% fee per trade. This is higher than the fee charged by most of its competitors.
Traders and investors have rated the DigiFinex App 4.9 out of 5. Given that the majority of crypto apps do not earn such high ratings, this is indeed a remarkable accomplishment.
As a cryptocurrency exchange that offers users the ability to trade over a hundred cryptocurrencies, DigiFinex is experiencing rapid growth with more than 4 million registered users in 150 countries in the world.
Overall, DigiFinex has maintained an excellent reputation among traders and investors owing to its state-of-the-art features and enticing earning opportunities. However, the firm has a low average liquidity score and is not regulated.
The editorial content of OriginStamp AG does not constitute a recommendation for investment or purchase advice. In principle, an investment can also lead to a total loss. Therefore, please seek advice before making an investment decision.