Interview With Marcus Fetherston, Eightcap’s Head of Operations, on the Current Trends in Crypto Derivatives Trading
December 08 2021 - 8:48AM
NEWSBTC
In the past few years, crypto derivative trading has taken off.
There is another way to buy and hold cryptos that have appealed to
traders who want to make the most out of price movements by using
leverage. However, there are risks associated with CFD trading,
especially when it comes to cryptocurrency. In 2021, large
exchanges had to cease operations due to regulatory issues leaving
crypto derivatives traders with no 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. On
top of that, derivative traders with Eightcap have access to
multiple funding options and super quick withdrawals. 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. This is what he had to say. With increasing
volatility in the crypto market, why should people trade Crypto
derivatives? There hasn’t been a better time for derivative
products, especially crypto. We have seen crypto assets move into
downwards trends and sideways markets over the past year. Bitcoin
has been reaching all-time highs, and we have witnessed crypto
coins such as Dogecoin, Shiba Inu, and Cardano also gain momentum
in the markets. This has brought in an influx of traders who want
to make the most out of crypto market movements. One of the ways to
do this is through crypto derivatives, as it enables derivative
traders to go long or short. Plus, the use of leverage on CFD
accounts allows traders to take advantage of price fluctuations
without the need to place large amounts of capital to enter the
crypto derivatives market. What are the current problems crypto
derivative traders face? There are several problems that crypto
derivative traders have faced and are still facing when trading
crypto CFDs. There has been a divergence of product offerings to
meet the current demand for crypto trading. Many licensed entities
now offer crypto CFDs while adhering to stringent regulatory
requirements. However, even though there are a lot of crypto CFD
providers, most of them have a lackluster product offering paired
with wide 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.
There are also centralized offshore exchanges that offer a great
range of products to trade. 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. More
recently, Binance encountered a glitch, which ultimately led to
crypto derivative traders being unable to withdraw Dogecoin for two
weeks. Earlier in the year, we had also seen Binance cease
operations in regions such as Italy and Hong Kong. This left crypto
derivatives traders feeling disgruntled and worried about their
active trades and questioning where they could go to trade crypto
derivatives. Eightcap stepped in with a solution to the problems I
have mentioned. In September 2021, we rolled out 250 crypto
derivatives, including coins, crypto crosses and indices. We are
continuing to meet crypto demand by adding more and more coins to
our offering. Eightcap has been awarded the Best Crypto Broker at
the 2021 AtoZ Markets annual awards due to our latest crypto
derivative offering. We have an extensive suite, and with this, we
also offer ultra-low spreads. How does Eightcap’s Crypto derivative
offering stand out from what other brokers and exchanges are
offering? Our offering stands out in the crypto derivatives
market because of the extensive range of crypto derivatives
available to our clients. As mentioned before, we have over 250
crypto derivatives and this includes Dogecoin, Bitcoin, Ethereum,
Polkadot, Cardano, Solana and more. We also offer crypto indices
and crypto-crosses. In addition to our award-winning offering, we
are committed to being the new home of crypto derivatives traders.
We aim to deliver ultra-low spreads with our entire crypto
derivatives suite. Our clients can trade Bitcoin with spreads from
12p/coin, Cardano from 0.004 p/coin, Dogecoin from 0.0002 p/coin
and Ether from 0.45 p/coin, to name a few. Additionally, our
withdrawal process is seamless and fast. Crypto derivative clients
have multiple options for funding their trading account with us,
including BTC, Tether, PayPal, Credit/Debit card, Skrill, Neteller,
Bank Wire transfer, and many more. Clients can also rest assured
that they are trading with a regulated broker. Eightcap is
regulated by the Australian Securities and Investments Commission
(ASIC), the Financial Conduct Authority (FCA), the Cyprus
Securities and Exchange Commission (CySEC) and the Securities
Commission of The Bahamas (SCB). There has been substantial growth
in the metaverse community. How are you meeting the needs of the
traders who want to make the most out of this? The Metaverse is a
fascinating concept, and if we move on to an augmented world, it
changes everyday life as we know it. 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. Yet, we have big names in tech already racing to
claim a stake in the Metaverse. Facebook announced in June 2021
that it would be helping to bring the Metaverse to life. We already
have companies such as Decentraland that can integrate crypto with
its virtual world. As an award-winning crypto derivatives provider,
we are providing products to our derivative traders who are
enthusiastic about blockchain’s trending topics. Currently, we
offer CFDs in both Decentraland and AXS, so our clients can
speculate on price as news of this new Metaverse progresses. For
those who want to trade Crypto but are not sure where to start, how
does Eightcap cater to their educational needs? 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. This six-part webinar series starts by
explaining the fundamentals of crypto trading that everyone needs
to know before entering the derivative markets and then builds on
the basics with more technical aspects. We recently partnered with
BK Forex to host CryptoFest, a yearly event where several
professional crypto traders share their knowledge on many
crypto-related topics. Additionally, we have our crypto market
updates and educational articles updated regularly that explain the
latest trends, price movements, and news around crypto derivatives.
How does trading Crypto derivatives differ from the more
traditional asset classes? Believe it or not, there are
similarities between more traditional asset classes and crypto
derivatives, like forex, for example. We have seen the
establishment of rigorous support and resistance channels that form
following periods of high-scale volatility. In these moments, we
can see how crypto pricing behaves in the same way forex did over
twenty years ago before it was dominated by institutional trading.
This creates an excellent opportunity for swing trading, momentum
strategies, and general technical analysis. We can even see how
crypto derivatives trading mirrors stock derivative trading. What
drives crypto prices on a fundamental level is the underlying
technology, mass adoption and social coverage, allowing traders to
analyze growth potential in crypto by studying these factors. What
does the future of crypto trading look like, and how does Eightcap
fit into this vision? With NFTs being a huge social phenomenon
where a growing community has jumped on the idea of owning things
such as art and music in the digital realm using crypto, this is
where crypto trading could be heading next. With further advances
in technology, we are going to see blockchain applied to more
industries giving traders more opportunities and cryptos to trade
on. 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. As
cryptos start to see more sideways movement and downward trends,
the emphasis on technical trading and using derivatives to do so
will increase as well. Therefore, the key is to make sure that we
at Eightcap evolve our offering to meet new crypto trends. That is
what we are focusing on right now and will continue to do so next
year. Furthermore, working on providing resources alongside our
derivative products that educate our clients is also part of how we
can add to the future of crypto trading as an award-winning CFD
provider.
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