Digitex: Taking the fees out of cryptocurrency exchanges

One of the major complaints about banks is how they charge you to use your own money. Oh, you want to withdraw your personal money from this ATM? FEE. Oh, we strategically processed all your spending orders before putting in your paychecks so that you temporarily had a negative balance? FEE. Below the minimum account balance? FEE.

While there are many benefits to cryptocurrencies over traditional banks, these digital currencies come with their own fee problems. Withdrawal fees can turn a slightly profitable trade into one that instead makes you lose money. Moving around and exchanging your currencies shouldn't cut into your profit each time.

That's where Digitex comes in. It's the first blockchain Futures Exchange that is 100% commission free. There are no transaction fees whatsoever. It all begin with Digitex CEO Adam Todd who used to be a trader in London. As he explains, "I dreamed of being able to trade futures with no commissions. Years later, when I discovered cryptocurrency and blockchain technology, that's when it clicked."

For anyone unfamiliar with the term "futures" (which included me until recently), they are an agreement to purchase something on a particular date for a set price. They help to keep markets stable.

So here's how it works.

The exchange's operational costs will be covered by the sales of new currency. Digitex coin holders will vote (or have a trusted authority do so on their behalf) on the amount of new DGTX that should be issued. This way DGTX will always be funded and market growth will make up for all inflationary costs. Holders will strive to keep the ideal balance between an appropriately funded exchange and low inflation costs.

Nothing attracts people quite like the word "free" and I am no exception. Having no fees will surely entice a lot of users to sign up. I'm curious to see how Digitex evolves. They'll be launching at the end of this year.

To learn more, check out their website here

To learn about their @originalworks contest, click here

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