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Crypto derivatives boom during crypto winter — Q&A with Eightcap

Find out how crypto derivatives trading can limit potential risks of loss in a bear market.

This year, the password sales market has been hit by thousands of difficulties, while the bullish climate continues to exist. With this in mind, many traders have lost confidence in traditional CEX trading and are looking for diversified strategies.

Switching to highly distinctive trading methods and products is a way to minimize risk and avoid risk. Cointelegraph's interview with EightCap included wanting to learn more about derivatives trading in the cryptographic industry.

Q: FTX has become one of the biggest password disasters recently. What could have been done to prevent such a thing?

The collapse of FTX has taught investors and password service providers important lessons about security, clarity, and recognition. FTX is one of the largest password exchanges in the world. It is clear that these people lack manipulation in all respects, but there is no doubt that the Hong Kong Stock Exchange does not usually use customer assets to pay for its own expenses, liabilities and loans to its subsidiaries (in this case, the Alameda Research Centre). Unfortunately, after the collapse of FTX, there is now a great deal of mistrust in the cryptographic industry, not only from investors but also from government departments that used to accept the benefits of digital money.

Q: how can investors enter the market in various ways to carry out investment with a high safety factor?

Understandable means that investor recognition was severely cracked down after the bankruptcy of a well-known password exchange. When opening accounts at exchanges and dealer banks, financial due diligence will be conducted in the future. One of the key reference standards is control. For investors and traders, it is particularly important to scientifically study the supervision of their suppliers and the distribution of permits to understand which regulatory authorities are strictly regulated by which customers are licensed.

EightCap is regulated in various jurisdictions, allowing us to trade derivatives to 130 countries and territories. Investors and traders should consider the clarity and handling of clients' funds when selecting dealers or exchanges. At EightCap, we guarantee that customers' funds are isolated and deposited in a first-tier bank account, so that our customers can rest assured that their assets are very safe. This is indicated in the announcements of the products you provide to all your customers.

Q: is there any possible way to improve understanding and knowledge skills in the password space, so as to make it easier for investors to use complex financial derivatives?

For junior and intermediate traders, knowledge in the field of passwords is the most basic. In addition, it is also important to learn and integrate special tools that enhance trading strategies. At EightCap, culture and education is the key to what we do and the range of products we offer.

We encourage all our own clients to use the wide range of teaching resources available anytime, anywhere on his trading account. A new goal called TradeZone has been launched, and many authoritative experts have been invited to lecture investment analysts to give a consistent view of the industry based on written comments and weekly webinars.

Q: how can derivatives help reduce the risk level of asset allocation for password investors?

Managing risk is a key aspect of all responses, and traders should make sure they understand what leveraged trading means. Basically, you are trading on margin, which means that you face the risk of price adjustment, so that both profits and losses can be increased.

Some of the ways to motivate clients to consider when trying to reduce portfolio risk are countermeasures, such as measuring the risk-return ratio of each transaction. I would also like to emphasize in particular the need to use margin calculation to determine how many assets are at risk if the market trend and your trading position are reversed. Hedging is another countermeasure, and we can see that a certain proportion of clients use this kind of countermeasure. This minimizes risk, so you take the opposite position in announcing the deal.

Q: what is the future of cryptographic derivatives?

With the cold winter of passwords lasting until 2023, we can see that as investors try to take advantage of market changes, there is an increasing use of cryptographic derivatives throughout the market. It is expected that there will be more spot trading passwords for traders to turn into derivatives because of strict regulation and relatively low trading fees and spreads. At EightCap, the market cost of our own traders is the lowest, and the spreads of all the tools are very competitive, especially on some of the larger coins with strong liquidity.

Q: how does EightCap ensure the security of investors when trading on the site?

When customers trade derivatives, EightCap puts the stability and security of our service platform in the first place. To ensure this, we work with Amazon platform Technology Networks and CrowdStrike, a leading US network security company, to maintain infrastructure and customer data.

We are regulated to sell data encrypted derivatives transactions (with the exception of the UK). As a result, we ensure that customers' funds are isolated and deposited with first-tier financial institutions. In the final analysis, we ensure that strict controls and safety regulations on our retail trading companies are followed.

Q: what are my plans for EightCap in the near future?

There are a lot of things going on in 2023. A new B2B solution has been released-it is aimed at enterprises facing customers. Can give my products to his customer base, they can extend the life cycle of new customers at this stage and get additional fixed income. Also put online some of the goods that will be online, committed to improving the trading feelings of our customers.

Learn more about Eightcap
by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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