The Merkle

What Is Quedex?

Bitcoin futures and options are two interesting investment vehicles. Both expose people to Bitcoin price volatility without them even having to own the world’s leading cryptocurrency. It is an interesting take on things which seems to work quite well for mainstream investors. Quedex wants to get its share of the pie in this regard. This new platform warrants a closer look, although one always needs to do their own research before using such a service.

An Overview of the Quedex Platform

No one can deny Bitcoin futures are pretty interesting to take note of. They let anyone in the world “gamble” on the Bitcoin price movement without having to buy Bitcoin itself. It is something most mainstream speculators prefer over buying Bitcoin directly, as the latter process can be complicated and time-consuming. Quedex wants to offer even more Bitcoin futures and options to the masses, although it remains to be seen if it can be successful in this venture.

More specifically, Quedex aims to become the world’s first consistent Bitcoin-only futures and options exchange. The company doesn’t seem to have any plans to offer futures for other cryptocurrencies, which makes a lot of sense right now. Although mainstream financial institutions are contemplating integrating Ethereum and even Bitcoin Cash futures, that is not the objective over at Quedex.

According to the company’s website, the platform will let users trade and hedge in both directions at once. It’s an interesting take on things, and it opens up some interesting opportunities moving forward. For speculators wondering how much leverage the platform has to offer, it is possible to margin trade with 25x leverage on Bitcoin futures and 10x on Bitcoin options. Both choices are more than respectable, and they help mitigate most risk associated with Bitcoin price volatility as well.

Perhaps the most interesting aspect of Quedex right now is that there are zero trading fees and zero settlement fees for all operations until January 31, 2018. Furthermore, the company will keep all of its bitcoins in cold storage. Funds are also kept in multisignature wallets, which has become the new normal from a security perspective.

Being able to buy and trade Bitcoin futures with Bitcoin is pretty intriguing. It is something most cryptocurrency enthusiasts would like to give a try. Although a lot of people may already own Bitcoin or a few altcoins, it is always worth finding new ways to spend this currency, and Bitcoin futures and options are as good solutions as any in this regard. Whether or not Quedex will attract a lot of people remains to be seen.

Do keep in mind this platform is still in open beta for the time being. Although no major bugs should be expected, it is always best to err on the side of caution in this regard. For now, the platform isn’t generating too much volume, but that situation may come to change when word gets out about this platform.