As crypto investors contend with a “bearish” market, one trading platform believes options and futures could be the way forward.
A new blockchain asset trading platform says it is determined to help investors navigate the “bearish” cryptocurrency market – and says options could enable traders to protect and grow their assets.
Options are a form of financial derivative where buyers have a right to buy or sell a financial asset at an agreed-upon price for a set amount of time. However, as part of these contracts, they are not obligated to complete a transaction.
According to JEX, the platform which is bringing options trading to the cryptocurrency world, this method helps investors to limit their losses while maximizing their potential profits – of course, this is not to say that there are no significant risks involved.
At present, the company believes there are issues in the token trading market. JEX’s executives argue that there is a disappointing lack of variety in the products available to investors, inadequate leverage and a dearth of short-selling mechanisms.
JEX selects the underlying assets used for options based on three requirements. First, there needs to be trading pairs between a cryptocurrency and USDT – and these need to be available on large trading platforms with adequate levels of liquidity.
Emphasis on simplicity and usability
JEX says its goal is to ensure that the products on offer are simple to understand – as this enables ordinary investors to participate on its platform.
The website has established a range of training courses to help those who are new to the crypto world understand how options work – and texts, videos, and comics are also available. Any users with burning questions can also access explanations from a team of professional instructors. JEX has also made trial trading accounts available to first-time investors, enabling them to experience a real-world environment and see how the decisions they make correlate into profits and losses.
Keeping trading costs low is also a stated priority for JEX, and this is why the platform has launched a dedicated token for its platform. Investors who use this token have the opportunity to receive discounts on the fees they pay when completing a trade.
Other services are also available on the derivatives trading platform. Among them are cryptocurrency spot trading, as well as index trading. JEX says that futures trading is one of the services it plans to roll out in the future – and applicants have been invited to participate in beta testing, where they receive virtual funds to play with. Rewards are being offered to anyone who spots bugs or suggests improvements to the contract.
The company currently employs 50 people – and many members of its core team used to work for OKCoin.
JEX says its staff has extensive experience in designing, developing and operating trading platforms for blockchain assets and derivatives – adding that its infrastructure provides users with a “safe, steady and reliable” service.
The startup recently completed a round of financing with angel investors – Huobi and Node Capital among them.
As well as offering weekly reports on its platform via Medium, and posting regular price and market analysis on Twitter, JEX has Telegram groups in three languages: English, Japanese, Russian and Korean. The company is based in Hong Kong.
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