In the early days of cryptocurrency, new users to the space were happy just to get their hands on a few tokens via traditional echanges and watch as their money grew and grew. However, things have changed, matured, and gotten a little more sophisticated.
There are hundreds, if not thousands, of exchanges for digital assets across the world now, mostly all offering the same or similar services. However, the savvy crypto investor is no longer simply interested in accumulating this digital asset – they are looking for more.
Because of the close ties to investing, with the added digital benefits, there has been a lucrative market growing for those looking to do some leveraged crypto trading, and after the boom of 2017 wore off, it has become a good avenue of generating profit.
One such exchange offering more than a simple trading of asset service is Pukkamex, which is offering leveraged crypto trading to further enhance the profit making nature of this speculative and often exciting marketplace.
Following the trends
CEO of Pukkamex Ahmad Sharkatly explains that in today’s fast moving crypto ecosystem, companies have to do a lot more to stay on top than just offer the basics.
“It is very true what they say; one week in crypto is equivalent to a year in traditional markets and we are now experiencing this first hand since we started Pukkamex,” said Sharkatly.
“The evolution of the crypto exchange is no different, we started with very straightforward exchanges. Today we continuously see shifts in trends, the latest trend to hit the market is the IEO, with most of the top exchanges now fighting to list top projects and innovating their platforms for easier use.”
“What interests us most however is leveraged trading. In traditional markets 90%+ of volume is traded on leverage, this includes all traditional assets from commodities to stocks and indices.”
“As the crypto market continues to mature we are starting to see the same shift; today Bitmex, the leveraged trading exchange with the biggest volume, accounts for about 6x the daily trading volume on Binance.”
Leverage trading in a volatile market
As crypto looks to become more adopted and mainstream, it continuously has to fight to be an enticing and exciting offering. As an asset, it already has a lot of volatility which makes traders excited, but pushing towards the favoured leveraging makes it even more open to traditional investors.
“Trading on leverage can be used for speculation and hedging,” explains Sharkatly. “It allows speculators to take on bigger positions than their initial equity would otherwise allow, to amplify the potential gains. I must stress though this does not come without additional risk. Perhaps more relevant today, it also allows traders to make money in a bear market.”
“As for hedging, a trader can decide to hedge the dollar value of their assets by entering an opposing side of the spot position they are in. Since the 20k Bitcoin crash, for example, a crypto hodler could have preserved the USD value of their BTC holdings by shorting bitcoin on leverage on Pukkamex with a 1:1 ratio.”
“I mentioned earlier that more than 90% of trading volume happens on leverage in traditional markets. As crypto matures expect more volume to be put in on leveraged exchanges. Since our PUX token distributes revenue to holders based on the platform’s revenue, this means that distributed revenue is directly related to volume traded.”
CEO of Pukkamex: an expert in leveraging and hedging
When dealing with leveraging and hedging, it is important to be able to rely on the services being provided. In the cryptocurrency market, there are very few experts with decades of experience as the space has only existed for the past 10 years.
However, the financial markets side of crypto, and its ability to be traded and used like a traditional asset or commodity, means the likes of Sharkatly can lend some of their financial experience to the space.
“I’ve been in financial markets for about 10 years now. My 9-5 used to be risk management for the Family’s Business where I was responsible for hedging price and currency risk for a number of commodities. I did so using options and futures on the underlying,” explained the CEO.
“In 2016 I moved some of my personal capital into crypto and started trading, I eventually ended up in Bitmex. I hate to admit it, since they are our number 1 competitors but Pukkamex was born after I had a look at their daily volume and thought to myself: ‘shit! it’s happening, in a few years most crypto will be traded on leverage.’”
“So we’ve identified the strengths and weaknesses on many exchanges, in addition to unique features that the market absolutely needs and that's how Pukkamex was born and how our motto, ‘setting the gold standard for the exchange of the future’, came to be.”
Bull run on the way
This form of additional services and options for traders on this exciting ecosystem has helped many get through the 2018 bear market, but what is even more exciting is that there is a feeling that a bull rush is on its way and this could help get more money into crypto.
“This is my personal opinion and not financial advice, but I do personally believe that the crypto market will see an unrelenting bull run once more real soon which will tempt more people to jump back in,” said the CEO.
“It’s quite funny actually when you think about it; back when bitcoin was trading at 20k most people wished they could buy at 3k and 5k but wouldn't touch it now, it's the nature of people I guess.”
“This bear market has been a blessing in disguise for projects, us included, we have the time to build and deliver on our promises, laying what I believe to be the foundation for the upcoming bull run.”