The moment you've been waiting for is here! Our hardworking dev team is excited to present the new version 1.171 of the CVEX Testnet. This is a major update with many significant and minor improvements. Let’s take a closer look at what’s in store:

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• CVEX Lite Version
• New Batch of Achievements
• Trading Streaks
• Position Sharing
• And much more!

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CVEX Lite Version

We know that trading can be tough and sometimes overwhelming. So why get bogged down with unfamiliar terms and numbers? Let’s just trade!

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If that sounds like you, then our new CVEX version with a lightweight interface is just what you need. Less noise, more action.

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To change the interface to the lite version, just pick it in the drop-down list:

New Batch of Achievements

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Every day, you’re one step closer to Mainnet. Be prepared for the future and unlock as many achievements as possible.

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Meet the Daily Streaks

“Consistency is the key to success” — Vitalik Buterin… or Muhammad Ali… whatever.

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In line with this wisdom, we’re introducing Daily Trading Streaks, designed to reward you for every day spent in crypto trading. Stay consistent, stay motivated, and earn additional XP points for your daily trading activities!

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Share Your Success

Now, you can share your trading results with beautiful Position Sharing images. Plus, there’s a built-in QR code with your referral link. 😉

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Other Improvements

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Along with the major updates, we’ve made several key enhancements to improve your overall trading experience on CVEX:

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Better Order Estimation

We’ve introduced margin calculations to order estimations, allowing you to make more informed trading decisions. Now you can see the impact on your portfolio before placing an order.

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New Select Contract Modal

Quickly find and select the contract you want with our new Select Contract Modal, easily accessible via a shortcut. Just press Ctrl + M to open it up!

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Better Meta Transactions

Meta transactions are now presented in a more readable format, ensuring you can validate that trades will be executed exactly as intended.

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Status Bar

We’ve added a new status bar that aggregates key features in a comfortable and accessible way, giving you easy access to essential tools.

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Cookie Preferences

Take control of your privacy with enhanced cookie preferences, offering a more personalised and secure browsing experience.

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Balance Increase/Decrease without Wallet Confirmation

We’ve streamlined the process of managing your balance. You can now increase or decrease your balance without needing to confirm in your wallet.

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Updated CVEX Pro UI

We’ve refreshed the styling of some interface elements in CVEX Pro, making it more modern and consistent with the rest of the platform.

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Are You Ready?

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Version 1.171 is the final major update before CVEX's upcoming mainnet release. And the new batch of achievements is the last opportunity to gain additional XP points with this system. But there's still time! Explore, try, trade, and help us make CVEX better! 

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We are waiting for your feedback in our community (it's very important!):

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Our Discord | Twitter | Telegram 

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Joining a crypto community can be incredibly beneficial. These communities are hubs of knowledge, offering insights, support, and up-to-date information. In this guide, we'll explore the best platforms and groups where beginners can connect, learn, and grow within a thriving crypto community.

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What is a Crypto Community?

Crypto communities are essential hubs for sharing knowledge, insights, and opportunities in the cryptocurrency space, making them vital for any trading community. These communities foster collaboration and learning, helping members navigate the complexities of crypto trading.

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Definition and Purpose

A trading community, particularly in the crypto space, is a group of individuals who come together to discuss, learn, and share experiences related to cryptocurrency trading. These communities often exist on platforms like Discord, Telegram, and Reddit, where members can access a wealth of information, from market analysis to trading signals.

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The primary purpose of a trading community is to provide a supportive environment where both beginners and experienced traders can exchange ideas, ask questions, and stay informed about the latest developments in the crypto market. 

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This collaborative approach helps members improve their trading strategies and make informed decisions.

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Why Join a Crypto Community?

Joining a crypto community provides numerous benefits, especially in social trading, where shared insights can enhance trading strategies. These communities offer a collective approach to trading, making it easier to learn and grow in the crypto space.

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The Importance of Community in Crypto Trading

Being part of a crypto community can significantly improve your trading outcomes. Crypto communities serve as a vital resource for traders by offering a space where members can share strategies, market insights, and experiences. This collaborative environment is particularly beneficial for beginners who can learn from more experienced traders, while seasoned traders can refine their strategies through collective intelligence. The sense of belonging and support in a trading community also helps traders stay motivated and disciplined, which are essential traits for long-term success in the volatile crypto market.

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The Concept of Social Trading

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Social trading is a key aspect of participating in a crypto community, allowing traders to mirror the strategies of experienced members and leverage collective wisdom. This approach democratizes trading by making expert insights accessible to everyone in the community. Here are some key benefits of social trading within a crypto community:

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• Learning from Experts. New traders can observe and replicate the strategies of seasoned traders, reducing the learning curve and increasing their chances of success.
• Access to Real-Time Market Insights. Members of a social trading community can share timely market information, helping each other stay ahead of trends and make informed decisions.
• Collaborative Strategy Development. By engaging in discussions and sharing experiences, traders can collaboratively develop and refine trading strategies that are more robust and adaptable to market changes.
• Emotional Support. Trading can be emotionally taxing, especially during volatile market periods. Being part of a community provides emotional support and helps traders maintain a level-headed approach.

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By participating in social trading, members of a crypto community can significantly enhance their trading performance while minimizing risks through shared knowledge and experiences.

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Top Crypto Communities to Join

Explore the top ambassador crypto communities that offer a wealth of resources, support, and expert advice for all levels of crypto enthusiasts. These communities provide the perfect environment for both beginners and experienced traders to learn, grow, and succeed in crypto.

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Top Crypto Telegram Channels

Crypto telegram channels are among the most popular platforms for real-time updates and community-driven discussions. They offer instant access to market news, trading signals, and discussions with like-minded crypto enthusiasts.

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Crypto Miami

Crypto Miami is one of the leading crypto telegram channels, renowned for its comprehensive coverage of decentralized finance and blockchain news. With content ranging from regulations and scams to price predictions and emerging currencies, Crypto Miami is a must-join for anyone interested in the latest developments in digital finance. The channel, founded by Scalario, is known for its high-frequency posts, delivering at least one update daily. 

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Bitcoin Industry

Bitcoin Industry stands out as one of the pioneers among crypto telegram channels, offering the latest finance and trading news. With a substantial subscriber base, this channel focuses on both established and upcoming digital assets, making it an excellent resource for keeping up. Subscribers can expect regular updates on market trends, making it easier to stay informed and make timely trading decisions. 

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Whale Alert

Whale Alert is a unique crypto telegram channel that tracks significant cryptocurrency transactions across various blockchains. Launched in 2018 by two brothers passionate about blockchain technology, Whale Alert offers an independent analytical system that monitors large transactions, which can significantly impact a currency's price. Subscribers receive real-time alerts whenever a major transaction occurs, allowing them to anticipate potential market movements. With coverage of over nine blockchains and more than 200 digital assets, Whale Alert is an invaluable tool for traders who want to stay ahead of the market.

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Top Crypto Discord Servers

Crypto discord servers are dynamic spaces where members can engage in deep discussions and receive timely updates on cryptocurrency trends. These platforms are perfect for those looking to connect with like-minded individuals, gain insights, and stay informed on the latest developments in crypto.

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Elite Crypto Signals

Elite Crypto Signals is a top-tier crypto discord server that has been serving the cryptocurrency community since 2018. Known for its focus on providing high-quality trade signals, Elite Crypto Signals combines fundamental and technical analysis to offer members reliable and early trading opportunities. With a strong emphasis on education, this server also provides trading notifications and expert guidance to help members refine their trading strategies. For those looking for more in-depth analysis and frequent signals, the server offers a premium membership that unlocks access to a network of expert traders and daily updates.

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Cryptohub

Cryptohub is a vibrant crypto discord community designed for crypto enthusiasts, investors, and traders at all levels. This server offers a wealth of resources, including daily market updates, free trading materials, and starter guides that are particularly beneficial for beginners. With over 15 professional analysts contributing signals and recommendations, Cryptohub stands out as one of the most reliable sources for trading advice. The server’s premium membership option provides even more exclusive content, including advanced trading signals and access to professional market predictions, making it a valuable resource for anyone serious about crypto trading.

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NFTs World | Web 3.0 Community

NFTs World | Web 3.0 Community is the largest NFT-focused crypto discord server, boasting a massive membership base that is deeply engaged in discussions about NFTs, the metaverse, and cryptocurrency-related marketing. This server is a hub for discovering new NFT projects, sharing insights on emerging trends, and staying updated with the latest news from top cryptocurrency and NFT companies. 

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CVEX Community. Join Our Telegram and Discord!

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The CVEX community on Telegram and Discord offers unparalleled access to crypto insights, trading signals, and a supportive network of enthusiasts. By joining, you’ll be part of a dynamic environment where members can share knowledge, participate in exclusive events, and grow together.

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Introduction to CVEX Community

The CVEX community is an ecosystem designed to provide members with the tools and knowledge they need to succeed in the crypto market. Our Telegram and Discord channels are packed with valuable resources, including real-time trading signals, market analysis, and the latest news in the crypto space. What sets the CVEX community apart is our commitment to fostering a collaborative environment where members can engage in meaningful discussions, share insights, and help each other navigate the complexities of crypto trading. Additionally, we host a variety of activities on Discord, including regular trading competitions in our dedicated trading channel. 

How to Join?

Joining the CVEX community is simple and straightforward. 

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1. To get started, visit our official Telegram and Discord channels. 
2. Once you've joined, you'll have immediate access to all public channels where you can start interacting with other members, participating in discussions, and taking advantage of the wealth of information available. 
3. For those who are particularly active and engaged, there's also the opportunity to become a CVEX OG member. OG members gain access to our exclusive, closed community, which includes direct interactions with our developers, team members, influencers, and top traders.

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We encourage all members of the CVEX community to actively participate in the discussions and activities available on our Telegram and Discord platforms. Your involvement helps to strengthen the community and create a richer experience for everyone. By staying active and contributing regularly, you build valuable connections with other like-minded individuals. And remember, the most engaged and active members have the chance to be recognized as CVEX OG members, gaining exclusive access to our inner circle and the opportunity to influence the future of our platform.

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FAQ

Is there a crypto community?

Yes, there is a vibrant and active crypto community that spans various platforms like Telegram, Discord, Reddit, and more. These communities bring together individuals who share an interest in cryptocurrencies, offering a space for knowledge exchange, support, and collaboration.

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How to join crypto communities?

Joining a trading community is easy. Most communities are hosted on platforms like Telegram, Discord, and social media. Simply find a group that aligns with your interests, such as trading, investing, or blockchain development, and follow the instructions to join.

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Which crypto has the biggest community?

Bitcoin has one of the biggest communities in the crypto space, with extensive social trading networks across various platforms. Ethereum also boasts a large and active community, particularly among developers and those interested in decentralized finance (DeFi).

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What is the biggest developer community in crypto?

Ethereum is home to the largest crypto groups of developers in the industry. Its focus on smart contracts and decentralized applications (dApps) has attracted a vast community of developers who are constantly innovating and building new projects on the Ethereum blockchain.

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Welcome to the guide on Crypto Futures for CVEX users. 

We will cover the fundamentals, including how Crypto Futures work, the various types of contracts, the advantages and risks associated with trading them, and the challenges you may encounter. Let's dive in and explore how you can leverage Crypto Futures to enhance your trading experience on CVEX.

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What are Crypto Futures?

Crypto Futures are financial derivatives that allow traders to speculate on the future price movements of cryptocurrencies. These contracts obligate the buyer to purchase, and the seller to sell, a specific amount of cryptocurrency at a predetermined price on a future date. By trading futures, participants can gain exposure to cryptocurrencies without having to own the underlying assets.

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Key Characteristics of Crypto Futures

• Standardisation. Crypto Futures contracts are standardised in terms of the quantity and quality of the underlying asset, ensuring consistency and facilitating easier trading on exchanges like CVEX.
• Leverage. Futures contracts allow traders to use leverage, meaning they can control a large position with a relatively small amount of capital. This can amplify potential profits but also increases the risk of significant losses.
• Expiration Dates. Unlike spot trading, which involves the immediate exchange of assets, futures contracts have specific expiration dates. At expiration, the contract must be settled, either through physical delivery of the cryptocurrency or more commonly, through cash settlement.
• Hedging. Crypto Futures are often used for hedging purposes. Traders and investors can use futures contracts to protect their portfolios against adverse price movements, thereby managing risk more effectively.
• Speculation. Beyond hedging, Crypto Futures are popular among speculators who aim to profit from price volatility. By predicting the future price direction of a cryptocurrency, traders can buy or sell futures contracts to capitalise on their market outlook.

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How Crypto Futures Benefit Traders

Crypto Futures provide several benefits that attract both individual and institutional traders. They contribute to price discovery by reflecting the collective market sentiment about future price movements. This helps in establishing more accurate asset prices. 

Additionally, futures contracts often offer higher liquidity compared to spot markets, allowing traders to enter and exit positions with minimal price impact. Furthermore, by using futures, traders can hedge their positions and mitigate the risks associated with volatile cryptocurrency markets. 

Understanding these fundamental aspects of Crypto Futures is crucial for anyone looking to trade on CVEX. With this knowledge, you're better prepared to explore how Crypto Futures work and the specific types of contracts available.

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How do Crypto Futures Work?

Crypto futures operate similarly to traditional futures contracts, providing a way for traders to buy or sell a specific amount of cryptocurrency at a predetermined price on a future date. Understanding the mechanics of these contracts is crucial for effective trading.

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The Mechanics of Crypto Futures

Crypto futures contracts come with certain specifications, including contract size, expiration date, and price. Each contract specifies the amount of the underlying cryptocurrency and has a set expiration date, upon which the contract is settled at the predetermined price.

Leverage is a key feature in crypto futures trading. It allows traders to control a large position with a relatively small amount of capital. However, traders must maintain a margin account and meet specific margin requirements to hold these leveraged positions. This means that while leverage can amplify profits, it can also magnify losses.

Another important aspect is the mark-to-market process. Futures contracts are marked to market daily, meaning profits and losses are calculated and settled at the end of each trading day. If the account balance falls below the maintenance margin, a margin call is issued, requiring the trader to deposit more funds or close positions to meet the margin requirement.

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Trading Crypto Futures

The process of trading crypto futures begins with opening a position. For long positions, a trader buys a futures contract expecting the price of the underlying cryptocurrency to rise. Conversely, for short positions, the trader sells a futures contract expecting the price to fall.

Managing these positions involves adjusting exposure. Traders can buy more contracts to increase their exposure or sell contracts to decrease it. Additionally, futures are often used for hedging, allowing traders to protect their existing cryptocurrency holdings against adverse price movements.

Closing a position can be done before the expiration date by executing an opposite trade, thereby offsetting the original position. At expiration, positions are automatically settled. Depending on the contract specifications, this settlement can be through physical delivery of the cryptocurrency or cash settlement.

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Practical Example

Consider a trader who believes the price of Bitcoin will rise in the next three months. They decide to buy a Bitcoin futures contract with a three-month expiration at a price of $50,000. Over the next three months, the price of Bitcoin fluctuates. If the price rises to $60,000, the trader can sell the futures contract at this higher price, realising a profit. Conversely, if the price falls to $40,000, the trader incurs a loss.

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Types of Crypto Futures Contracts

Crypto futures contracts come in various forms, each offering unique features and benefits tailored to different trading strategies and risk appetites. Understanding these types can help traders select the most suitable contract for their needs.

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Classic Futures Contracts

Classic futures contracts, also known as dated futures, have a specific expiration date. Traders agree to buy or sell a certain amount of cryptocurrency at a predetermined price on this future date. These contracts are typically used for hedging or speculative purposes, allowing traders to lock in prices and manage their risk exposure effectively.

For instance, a trader who anticipates a rise in the price of Bitcoin might buy a classic futures contract expiring in three months. If the price increases as expected, the trader can profit by selling the contract at the higher price before or at expiration.

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Perpetual Futures Contracts

Perpetual futures contracts, unlike classic futures, do not have an expiration date. These contracts allow traders to hold positions indefinitely, providing greater flexibility. Perpetual futures are particularly popular in the cryptocurrency market due to their continuous nature.

To ensure the contract price remains close to the underlying asset's spot price, perpetual futures use a funding rate mechanism. This involves periodic payments between long and short position holders, incentivising the alignment of the contract price with the spot price.

However, it's important to understand that perpetual futures need additional funding from you to work. It's called funding fees, which can become a great loss for your portfolio. Check out how it works in our recent guide.

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Inverse Futures Contracts

Inverse futures contracts are a specific type of futures contract where the underlying asset is denominated in a cryptocurrency rather than fiat currency. For example, an inverse Bitcoin futures contract might be priced in Bitcoin instead of US dollars.

These contracts are useful for traders looking to hedge or speculate without converting their holdings into fiat. They can also provide an advantage in terms of margin requirements and capital efficiency, as they often require less initial investment compared to traditional futures contracts.

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Quarterly Futures Contracts

Quarterly futures contracts are a subset of classic futures with a three-month expiration cycle. These contracts are designed to settle at the end of each quarter (March, June, September, and December). They are particularly useful for traders who prefer a shorter-term outlook or those who align their trading strategies with quarterly financial cycles and reports.

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Benefits of Different Contract Types

Each type of crypto futures contract offers distinct advantages:

• Classic Futures. Ideal for hedging and locking in prices for specific future dates, providing predictability.
• Perpetual Futures. Offer flexibility with no expiration date and continuous trading opportunities.
• Inverse Futures. Useful for traders wanting to maintain positions in cryptocurrency without converting to fiat.
• Quarterly Futures. Suitable for shorter-term trading strategies aligned with quarterly cycles.

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Read our guide on difference between classic and perpetual futures with more insights.

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Advantages and Risks of Trading Crypto Futures

Trading crypto futures can be highly rewarding but also comes with significant risks. It's essential for traders to understand both the advantages and the potential pitfalls to make informed decisions.

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Advantages of Trading Crypto Futures

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1. Leverage:

Crypto futures contracts often allow traders to use leverage, meaning they can control a larger position with a relatively small amount of capital. This amplifies potential profits from favorable price movements, enabling traders to achieve significant gains even with modest investments.

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2. Hedging:

Futures contracts provide an effective tool for hedging against market volatility. Traders can protect their portfolios from adverse price movements by taking opposite positions in the futures market. For example, a trader holding a large amount of Bitcoin can short Bitcoin futures to mitigate potential losses if the price drops.

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3. Price Discovery:

Futures markets contribute to price discovery by reflecting the collective market sentiment about future price movements. This helps traders and investors make more informed decisions based on the anticipated direction of the market.

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4. Liquidity:

Futures markets often have higher liquidity compared to spot markets, especially for popular cryptocurrencies like Bitcoin and Ethereum. High liquidity ensures that traders can enter and exit positions with minimal slippage, even when trading large volumes.

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5. Market Access:

Crypto futures enable traders to access and trade a wide range of cryptocurrencies without the need to hold the underlying assets. This can simplify the process of speculating on price movements and allows for greater diversification across different assets.

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6. Flexibility:

With various types of futures contracts available, traders can choose the ones that best suit their strategies and risk tolerance. From classic dated futures to perpetual contracts, there are multiple options to meet different trading needs.

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Risks of Trading Crypto Futures

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1. Leverage Risks:

While leverage can amplify profits, it also magnifies losses. A small adverse price movement can result in significant losses, potentially exceeding the initial investment. Traders using high leverage must be cautious and manage their risk carefully.

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2. Market Volatility:

Cryptocurrency markets are known for their high volatility. Sudden price swings can lead to rapid changes in the value of futures contracts, posing a risk to traders who are not adequately prepared for such fluctuations.

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3. Liquidation Risk:

In highly leveraged positions, even minor market movements can trigger margin calls and liquidations. If the market moves against a trader's position, they may be forced to sell their holdings at a loss to meet margin requirements, resulting in potential liquidation.

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4. Complexity:

Futures trading can be complex and may require a deep understanding of market dynamics, technical analysis, and risk management strategies. Inexperienced traders may find it challenging to navigate the intricacies of futures markets and could incur significant losses.

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5. Funding Rates:

For perpetual futures contracts, funding rates are periodically exchanged between long and short positions to keep the contract price aligned with the spot price. These rates can fluctuate, leading to additional costs for traders holding positions over long periods.

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6. Counterparty Risk:

Although futures exchanges often have mechanisms in place to mitigate counterparty risk, there is still a risk that the counterparty may default. This risk is generally lower on well-established exchanges but should still be considered.

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7. Regulatory Risk:

The regulatory environment for cryptocurrencies and futures trading is constantly evolving. Changes in regulations can impact the legality, accessibility, and liquidity of futures markets, posing a risk to traders who may be affected by new rules and requirements.

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What We End Up With?

In summary, understanding Crypto Futures is essential for traders looking to leverage the benefits of price discovery, liquidity, and risk management. By grasping how these contracts work, the various types available, and the associated advantages and risks, traders can make informed decisions and develop effective strategies. With this comprehensive guide, you're well-equipped to navigate the dynamic world of Crypto Futures on CVEX, enhancing your trading expertise and potential for success.

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Managing risk in crypto trading isn’t important — it's essential. 

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The volatile nature of the crypto market, with its frequent and unpredictable price swings, requires traders to adopt robust risk management strategies. Effective risk management helps protect your investments from significant losses and ensures that you can navigate the market's ups and downs with greater confidence.

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The crypto market is known for its extreme volatility. Prices can surge or plummet in a matter of minutes, driven by various factors such as market sentiment, regulatory news, technological advancements, or macroeconomic events. Without proper risk management, traders can quickly find themselves exposed to substantial losses. By implementing risk management practices, you can safeguard your assets, minimise potential losses, and make more informed trading decisions. This not only helps preserve your capital but also allows you to take advantage of profitable opportunities with a clearer understanding of the risks involved.

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Key Takeaways

• Effective risk management is essential for success in cryptocurrency trading.
• Secure wallets protect assets from theft and loss.
• Practicing on test accounts helps traders refine their strategies without financial risk.
• Hedging with futures contracts mitigates potential losses in volatile markets.
• CVEX’s Value-at-Risk (VaR) model provides a quantifiable measure of potential losses.
• Dynamic risk assessment ensures that margin requirements reflect current market conditions.
• Integrated TradingView tools enhance technical analysis and risk management.

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What Is Risk Management in Crypto Trading?

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Risk management in crypto trading involves identifying, assessing, and prioritising risks associated with trading digital assets. It encompasses a range of techniques and practices aimed at protecting capital, preserving profits, and managing exposure to potential losses. Given the inherent volatility and uncertainty of the crypto market, robust risk management strategies are crucial for long-term success and sustainability.

Risk management is a systematic approach to managing uncertainty and minimising potential financial losses. It involves several key steps:

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1. Risk Identification. Recognising the various risks involved in trading cryptocurrencies, such as market volatility, liquidity risk, cybersecurity threats, regulatory changes, and operational risks.
2. Risk Analysis. Assessing the likelihood and potential impact of identified risks. This can involve quantitative methods like scenario analysis, stress testing, and sensitivity analysis.
3. Risk Assessment. Prioritising risks based on their likelihood and impact, often using tools like risk rating scales or heat maps.
4. Risk Treatment. Developing and implementing strategies to mitigate identified risks. This can include techniques like diversification, setting stop-loss orders, and using secure trading platforms.

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Understanding and effectively managing these risks is vital for any trader looking to succeed in the crypto market. By adopting a structured risk management approach, traders can protect their investments, improve their decision-making processes, and enhance their overall trading performance.

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Wallets and Trading Platforms

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Secure wallets play a critical role in protecting your investments from theft, hacking, and other malicious activities. By securely storing your private keys and offering features like two-factor authentication (2FA), encrypted storage, and backup options, secure wallets ensure that your assets remain safe and accessible only to you.

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Secure wallets offer several advantages that help safeguard your digital assets:

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1. Secure wallets use advanced encryption and security protocols to protect your private keys from unauthorised access.
2. With secure wallets, you maintain full control over your funds, reducing the risk of loss due to exchange hacks or insolvency.
3. Most secure wallets provide backup and recovery options, ensuring you can regain access to your assets in case of device loss or failure.
4. Secure wallets often include privacy features that help keep your transactions and holdings confidential.

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While secure wallets are crucial for protecting your assets, choosing the right trading platform is equally important. Different platforms offer varying levels of security, functionality, and user experience, which can impact your overall trading strategy and risk management.

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First of all, let’s try to understand the differences between decentralised and centralised exchanges, which can help you make an informed decision:

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Centralised Exchanges

These platforms are managed by a central authority or company. They offer high liquidity, user-friendly interfaces, and a wide range of trading pairs. However, they are also more susceptible to hacks and regulatory scrutiny, and users must trust the exchange with their funds.

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Decentralised Exchanges (DEXs)

DEXs operate on blockchain technology and allow users to trade directly from their wallets without intermediaries. They offer enhanced security and privacy, but may have lower liquidity and less user-friendly interfaces compared to centralised exchanges.

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To ensure maximum security and efficiency in trading, it is important to choose a platform that combines the best aspects of decentralised and centralised exchanges. CVEX offers robust security measures and a user-friendly trading environment.

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How CVEX Ensures Security

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At CVEX, security is a top priority, and the platform leverages several measures to protect traders and their assets:

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• Crypto Wallets. CVEX uses decentralised crypto wallets, ensuring that users retain full control over their private keys and funds. This approach reduces the risk associated with centralised asset custody and provides enhanced security and privacy for traders.
• Secure Smart Contracts. The platform employs thoroughly vetted smart contracts, which are designed to be secure and resistant to hacking attempts. These contracts are regularly audited to maintain high-security standards, providing an additional layer of protection.
• Decentralised Infrastructure. CVEX operates on a decentralised infrastructure, further minimising the risks associated with centralised exchanges. This approach enhances the overall security and resilience of the platform, ensuring a safe trading environment for users.

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By prioritising the use of secure wallets and robust smart contracts, CVEX provides traders with a safe and reliable environment for trading digital assets. 

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Risk Management in the Trading Process

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This section explores key strategies and tools that traders can use to manage risk and enhance their trading outcomes. We will delve into the importance of the risk/reward ratio, the use of take profit and stop loss orders, and the creation of a comprehensive trading plan. Additionally, we will highlight how CVEX supports traders with advanced features designed to bolster risk management practices. By mastering these concepts and utilising the tools available on CVEX, traders can approach the crypto market with greater confidence and resilience.

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Risk/Reward Ratio

This ratio helps traders evaluate the potential profit of a trade relative to its risk, ensuring informed decision-making and strategic planning.

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How to Calculate Risk/Reward Ratio?

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1. Determine Risk. Calculate the risk amount by subtracting the stop-loss level from the entry point.

         Example: If the entry point is $50,000 and the stop-loss level is $48,000, the risk amount is $2,000.

2. Determine Reward. Calculate the reward amount by subtracting the entry point from the target price.

         Example: If the target price is $56,000 and the entry point is $50,000, the reward amount is $6,000.

3. Calculate the Ratio. Divide the risk amount by the reward amount to get the risk/reward ratio.

          Example: $2,000 / $6,000 = 1:3.

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A favorable risk/reward ratio, such as 1:3, indicates that the potential reward outweighs the risk, making the trade more attractive.

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Take Profit and Stop Loss

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Implementing take profit and stop loss orders is crucial for managing risk and securing profits in the volatile crypto market.

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Take Profit Orders

Take profit orders automatically close a trade when the price reaches a predetermined level, locking in gains. This prevents traders from holding onto a winning position for too long, which could result in a reversal and loss of profits.

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Stop Loss Orders

Stop loss orders automatically close a trade when the price drops to a specified level, limiting potential losses. This is essential for managing downside risk and protecting capital from significant market movements.

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By setting take profit and stop loss levels, traders can manage their trades more effectively, ensuring they lock in gains and minimise losses.

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Creating a Trading Plan

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A well-defined trading plan is essential for consistent and disciplined trading. This plan should outline the trader’s strategies, risk management rules, and performance goals.

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Components of a Trading Plan

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• Entry and Exit Points. Clearly define levels for entering and exiting trades based on market analysis.
• Risk/Reward Ratios. Ensure each trade has a favorable risk/reward ratio to maximise profitability.
• Stop Loss and Take Profit Levels. Set predefined levels to manage risk and secure profits.
• Position Sising. Determine the sise of each trade based on the trader’s risk tolerance and account sise.
• Performance Review. Regularly review trading performance to identify strengths and areas for improvement.

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By adhering to a structured trading plan, traders can maintain discipline, manage risks effectively, and enhance their overall trading performance.

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How CVEX Can Help?

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CVEX offers several features and tools to help traders manage risk effectively and improve their trading strategies.

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Integrated Trading View

CVEX integrates Trading View, providing traders with advanced technical analysis tools. These tools include risk/reward calculators, charting tools, and technical indicators that help traders make informed decisions and manage risks.

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Secure Trading Environment

CVEX ensures a secure trading environment with decentralised wallets and secure smart contracts. This enhances the safety of traders’ assets and minimises the risk of hacks and unauthorised access.

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Test Accounts for Practice

CVEX offers a testnet that allows traders to practice their trading strategies without risking real capital. This enables traders to refine their strategies, test different risk management techniques, and gain confidence before trading on the mainnet.

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Weekly Email Analytics

CVEX provides weekly email analytics with market news and insights, helping traders stay informed about market conditions and make better fundamental analysis decisions.

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Hedging Portfolio with Futures

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Hedging is a crucial aspect of risk management, while futures contracts are a powerful tool for hedging. They allow traders to protect their portfolios from adverse price movements. This section explores how futures can be used effectively for hedging and the specific benefits offered by CVEX’s classic futures contracts.

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Futures for Hedging

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Futures contracts are standardised financial agreements to buy or sell an asset at a predetermined price on a specific future date. They are widely used for hedging in various markets, including cryptocurrencies, due to their ability to lock in prices and create offsetting positions. By taking an opposite position in the futures market, traders can mitigate the risk of price movements in their primary holdings.

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Classic futures offer several benefits for hedging, including price stability, predictability, and flexibility. They allow traders to secure current prices and protect their investments from unfavorable market shifts. This predictability is particularly valuable in the highly volatile cryptocurrency market, where prices can fluctuate rapidly.

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But you need some examples, right?

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Short Hedge: Farmer Example

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A farmer plants wheat in the fall, anticipating harvest next summer. To protect against falling wheat prices, the farmer sells wheat futures contracts at the current price. If the market price drops by harvest time, the farmer’s loss in the physical wheat market is offset by gains in the futures market, effectively locking in the original price.

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Long Hedge: Baker Example

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A baker anticipates needing wheat next year and worries about rising prices. To hedge against this risk, the baker buys wheat futures contracts. If wheat prices rise by the time the baker needs to purchase the wheat, the increased cost in the physical market is offset by gains in the futures market, ensuring stable pricing for the baker’s ingredients.

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How to Hedge Your Portfolio Using CVEX?

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CVEX’s classic futures contracts allow traders to lock in prices, providing predictability and security in uncertain market conditions. This helps in mitigating the risk of significant price fluctuations that could impact the value of a trader's portfolio.

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Consider a scenario where you hold a significant amount of ETH in your wallet. You are concerned that negative news might trigger a sharp decline in ETH’s price. To hedge against this risk, you decide to use CVEX’s platform to short a correlated asset, such as BNB, which often moves in tandem with ETH.

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1. Start by identifying assets that typically move in the same direction as your primary asset. In this example, ETH and BNB are correlated.
2. Move a portion of your funds to your CVEX trading account to facilitate the hedging process.
3. Use the funds to open a short position in BNB futures on the CVEX platform. This means you are betting that the price of BNB will fall.
4. Due to CVEX’s high leverage options, you don’t need to match the full value of your ETH holdings with an equivalent BNB position. A smaller, leveraged position can effectively hedge your portfolio. For instance, if you have $10,000 worth of ETH, a $1,000 short position in BNB futures with 10x leverage can provide substantial protection against potential losses.

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Benefits of Using CVEX’s Classic Futures for Hedging

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• Price Stability and Predictability: By locking in prices with futures contracts, you gain predictability and security, mitigating the risk of significant price fluctuations.
• Flexibility in Risk Management: Classic futures on CVEX allow you to manage both long and short positions across various assets, including cryptocurrencies and, in the future, commodities like metals and oil.
• Comprehensive Coverage: With a wide selection of assets and plans to expand into different markets, CVEX provides ample opportunities for effective hedging.

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Practising with Test Accounts

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Practicing with test accounts is an essential step for any trader, especially in the volatile world of cryptocurrency trading. It allows traders to develop and refine their strategies without the risk of losing real money. The importance of practicing with test accounts lies in the opportunity it provides to learn the intricacies of trading, understand market dynamics, and test strategies without financial risk. This risk-free learning environment helps traders build confidence and understand how various market mechanisms work.

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Paper trading, or simulated trading, involves executing trades in a virtual environment that mimics real market conditions without using actual funds. This practice is invaluable as it allows traders to develop and fine-tune their trading strategies in a safe environment. By experimenting with different approaches, traders can identify what works best and make necessary adjustments. New traders, in particular, can build confidence in their trading abilities by practicing in a simulated environment and seeing the results of their strategies without the fear of financial loss.

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CVEX offers a comprehensive testnet environment where traders can practice their trading strategies without risking real capital. This testnet replicates the live trading environment, providing realistic market conditions and access to all trading tools and features available on the mainnet. To use the CVEX testnet, traders first need to sign up on the CVEX platform and navigate to the testnet section. They should then connect their crypto wallet to the CVEX testnet and ensure they have test funds, which can be provided by the platform for simulated trading.

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Once connected, traders can familiarise themselves with the various features of the CVEX platform, including the trading interface, charting tools, and order types. CVEX integrates TradingView, offering advanced technical analysis tools such as risk/reward calculators and various charting options. Using the testnet, traders can develop and test their trading strategies, experimenting with different approaches and analysing the performance of their trades. The analytics and reporting tools provided by CVEX help traders assess the effectiveness of their strategies and make data-driven adjustments.

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The integration of TradingView into CVEX offers several benefits for technical analysis. TradingView provides advanced charting tools, a variety of chart types, and customisable indicators that help traders analyse price trends and identify patterns. Technical indicators such as moving averages, RSI, MACD, and Bollinger Bands allow traders to make informed decisions based on quantitative data. Drawing tools for trend lines, support and resistance levels, and other annotations are essential for technical analysis, while real-time data ensures that analysis is based on the most current market conditions.

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Using CVEX’s testnet, coupled with the advanced tools provided by TradingView, traders can practice and refine their trading strategies in a risk-free environment. This preparation is crucial for effective risk management and achieving long-term success in cryptocurrency trading.

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Wrapping Up

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Effective risk management is crucial for navigating the volatile crypto market. By utilising secure wallets, practicing on test accounts, and employing hedging techniques with futures, traders can significantly mitigate risks. CVEX enhances these efforts with its Value-at-Risk (VaR) model, dynamic risk assessment tools, and integrated TradingView features, providing a comprehensive suite of tools to help traders manage their portfolios effectively and achieve greater stability and success in their trading endeavors.

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In the fast-moving world of cryptocurrency, hype often grabs our attention. But what really matters for long-term success? Quick profits can be exciting, but the real value of any crypto project comes from its ability to create lasting benefits. This means addressing real market needs, having strong foundations, and building a supportive community.

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Think about it: What makes a crypto project truly valuable? It’s not just about riding the latest trend. It’s about solving problems, being reliable, and positively impacting over time.

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CVEX is a great example. We’re here to shape a future where cryptocurrency is more accessible, reliable, and valuable. In this article, we’ll explore the key elements that help crypto projects build long-term value. Whether you’re an investor, a curious observer, or active in the crypto world, understanding these principles will help you see beyond the hype and recognise projects with real potential.

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Let’s dive in and see what it takes to build a strong, lasting crypto project.

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1. Solving Real Problems

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A project must address real market needs to build long-term value in the crypto market. This means identifying common inefficiencies and offering solutions that provide clear benefits, such as faster transactions, lower costs, enhanced security, or new functionalities.

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For example, many crypto markets face high transaction fees and slow processing times. A project that can reduce these fees or speed up transactions can significantly improve user experience and attract more participants. Another common problem is the lack of security in some platforms, leading to hacking and fraud. By developing more secure technologies, projects can protect users' assets and build trust in the ecosystem.

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Solving these real problems helps individual users and contributes to the overall growth and stability of the crypto market. When projects focus on practical solutions, they create a more reliable and attractive environment for new and experienced users, encouraging wider adoption and participation.

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2. Strong Fundamentals

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Strong fundamentals in the context of crypto mean having a robust technological foundation. This includes security, scalability, and efficiency. Security ensures that users' assets and data are protected from theft and fraud. Scalability allows the platform to handle a growing number of users and transactions without slowing down. Efficiency ensures that the platform runs smoothly and uses resources effectively.

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For example, a secure platform uses advanced encryption and regular security audits to protect against hacking. A scalable platform can handle thousands of transactions per second without delays. An efficient platform uses minimal resources to achieve maximum performance.

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Continuous improvement and updates are crucial for maintaining these strong fundamentals. The crypto market is constantly evolving, and projects need to keep up with new developments and threats. Regular updates ensure that the platform remains secure, scalable, and efficient, adapting to the changing needs of the market and its users.

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3. Transparent Governance

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Transparent governance means that decision-making processes are open and involve all stakeholders. This often involves decentralised decision-making in the crypto world, where token holders have a say in the project's direction. This can include voting on important issues like protocol changes, new features, or budget allocations.

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For example, a project might hold regular votes where token holders can decide on the next steps for development. This ensures that the project reflects the interests and needs of its community.

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4. Community Engagement

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Building a supportive and engaged community is vital for the success and sustainability of any crypto project. A strong community provides a foundation of loyal users who believe in the project's vision and contribute to its growth.

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To engage community members effectively, projects can:

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• Actively use social media platforms to communicate updates and interact with users.
• Organise events, both online and offline, to foster connections and share knowledge.
• Provide support resources such as forums, FAQs, and customer service to help users navigate the platform.

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An engaged community boosts the project's visibility and provides valuable feedback, helping to refine and improve the platform. Community members become advocates, spreading the word and attracting new users, thus driving long-term success.

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5. Sustainable Economics

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Sustainable economics, or tokenomics, involves designing a project's economic model, including token distribution, usage, and valuation. A well-crafted tokenomic model aligns incentives between the project and its users, promoting long-term holding and project longevity.

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Effective tokenomics ensures continuous revenue, rewards long-term holders with mechanisms like staking, and balances supply and demand to maintain token value. By focusing on sustainable economics, projects create a stable environment for investors and users, reducing short-term trading and fostering a loyal user base.

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6. Strategic Partnerships

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Strategic partnerships are crucial for expanding a project's functionality and adoption. Collaborating with other platforms allows projects to integrate new features, enhance user experience, and reach a broader audience.

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Partnerships with blockchain platforms enable cross-chain functionality, while collaborations with financial institutions can offer additional services like lending. Integrating with popular wallets or exchanges increases accessibility. These alliances enhance interoperability, allowing users to interact with multiple platforms and services, increasing the project's value and appeal. Projects can leverage their partners' strengths through strategic partnerships to drive innovation and growth.

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7. Regulatory Compliance

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Navigating the regulatory landscape in the crypto space is essential for any project's long-term viability. Regulations are designed to protect investors and ensure market stability. Compliance with these regulations builds trust and credibility, attracting institutional investors and a broader user base.

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Why is compliance crucial? It minimises the risk of legal challenges and penalties that can derail a project. Additionally, engaging with regulators allows projects to contribute to the creation of favorable policies, ensuring that the regulatory environment evolves in a way that supports innovation while protecting users.

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CVEX: A Case Study

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CVEX exemplifies how to build long-term value in the crypto industry by adhering to the principles discussed.

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• Solving Real Problems

CVEX addresses inefficiencies in the derivatives market by offering a protocol that enables the launching of on-chain derivatives platforms. This approach opens up markets that were previously inaccessible or inefficient, providing real value and solutions.

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• Strong Fundamentals

CVEX prioritises secure, scalable, and efficient technology. Continuous improvements and regular updates ensure that the platform remains at the forefront of technological advancement.

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• Transparent Governance

CVEX implements decentralised decision-making, involving token holders in governance processes. This transparency builds investor confidence and ensures that the platform evolves in alignment with the community's needs.

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• Community Engagement

CVEX actively engages its community through social media, events, and support resources. This engagement fosters a strong, supportive user base that is integral to the platform's success.

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• Sustainable Economics

The tokenomics of CVEX promote long-term holding and usage. The platform's economic model ensures continuous revenue while offering value to token holders, creating a stable and appealing environment.

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• Strategic Partnerships

CVEX forms partnerships to enhance functionality and adoption. These alliances improve interoperability and user experience, driving innovation and growth.

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• Regulatory Compliance

CVEX stays compliant with regulations and engages proactively with regulators to shape favorable policies. This strategy ensures the platform's long-term viability and attractiveness to a broader audience.

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• Future Plans

CVEX aims to continue providing value by inviting builders to create more front ends and brokerage capabilities, extending the protocol to handle physical asset delivery. These initiatives will allow CVEX to remain a leader in the crypto space, addressing real-world problems and driving the industry's evolution.

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Wrapping Up

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Building long-term value in the crypto industry requires a commitment to solving real problems, maintaining strong fundamentals, and fostering a supportive community. By adhering to principles like transparent governance, sustainable economics, strategic partnerships, and regulatory compliance, projects can transcend the hype and achieve lasting success. CVEX serves as a prime example of how these strategies can be implemented effectively, providing a robust, innovative platform that continues to deliver value and drive the industry's evolution. As the crypto market matures, focusing on these core principles will be crucial for projects aiming to create sustainable, impactful solutions.

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In derivatives trading, the settlement process is crucial for ensuring the stability and integrity of trading platforms. At CVEX, we've implemented a sophisticated settlement system that not only aligns with traditional financial market practices but also introduces innovative features unique to the decentralised environment of blockchain technology.

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What is Settlement in Trading?

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Settlement refers to finalising a trade, where the actual exchange of assets and the closing of positions occur at the end of a contract. In traditional futures trading, this process might involve the physical or cash-based settlement of the underlying asset. However, in the context of CVEX, settlement is tailored to meet the specifics of cryptocurrency transactions.

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Settlement on CVEX

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On CVEX, settlement occurs when a trader's open position reaches the contract’s expiration date. For example, a BTC-27AUG24 contract would be settled on August 27, 2024. At this point, the Clearance Bots spring into action. Traders involved in these contracts are required to pay a settlement fee, which is 0.5% of the position’s net value, into the Platform Fund. 

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This fee serves as an incentive for traders to close their positions before the contract expires, thereby maintaining liquidity and reducing the risk of price manipulation at the contract's end.

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Beyond Settlement

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At CVEX, Clearance Bots are much more than facilitators of the settlement process; they are essential cogs in the platform's operational machinery. These automated agents perform several critical tasks that enhance the trading environment:

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• Order Clearing: Clearance Bots efficiently clear limit orders, conserving gas for taker orders and ensuring successful trade executions. This functionality is vital for maintaining an orderly trading process and minimising execution costs.

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• Settlement Responsibilities: As part of their role in settling trades, these bots manage the timely closure of all positions and the cancellation of open orders as contracts reach expiration. This systematic activity winding down is crucial to avoid disruptions and maintain market stability.

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• Initiating Portfolio Liquidation: To protect the platform from financial instability, Clearance Bots are programmed to monitor collateral levels. Should a trader's collateral fall below necessary thresholds, these bots proactively initiate liquidation to mitigate potential risks to the platform.

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• Default Prevention: In scenarios where users are at high risk of defaulting, Clearance Bots have the authority to preemptively cancel limit orders. This preventive action is key to maintaining the financial health of the trading ecosystem.

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• Managing Auto Deleverage Queue: Following counterparty liquidations, Clearance Bots efficiently manage the auto-deleverage queue. This involves adjusting the positions of traders in the queue to ensure fair and orderly market conditions.

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• Conditional Order Management: These bots also handle orders based on predefined conditions, such as Stop Limits and Take-Profit. This capability allows sophisticated trading strategies to be executed automatically and efficiently.

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Compensation and Incentives for Clearance Bots

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Recognising the importance of these functions, CVEX ensures that Clearance Bots are adequately compensated for their services. Their compensation includes:

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Clearance Bots receive compensation for the gas costs incurred during their operations, plus an additional premium from the Operational Fund. This incentive is designed to cover operational expenses and encourage the continuous and effective performance of their duties.

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When the protocol terminates an order rather than a trader cancelling it, the trading fee is awarded to the Clearance Bot responsible for the termination. This policy compensates bots for their work and aligns their operations with the platform's financial health and efficiency.

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