With the launch of CVEX Mainnet, a new challenge begins—CVEXtopia. This interactive experience puts you in charge of Pepe the Trader, where your trading activity helps him grow stronger. Complete quests, earn XP, and move up the leaderboard to claim your place among the top traders before TGE.

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Note: Please keep in mind that the CVEXtopia design or task list you see below may differ from the final version and is a simple illustration. 

Step 1: Connect Your Wallet

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To enter CVEXtopia, the first thing you need to do is connect your crypto wallet. This will allow you to access all features and start completing quests. 

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If you’re unsure how to connect, check out our Mainnet Guide (Step 1) via this link: https://cvex.xyz/post/cvex-mainnet-guide 

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Once you’re in, Pepe the Trader is waiting for you.

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Step 2: Complete Quests

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CVEXtopia is made up of several islands, each offering different challenges. The further you go, the harder the tasks become, but the rewards grow too. Your journey begins on the first island, which is unlocked from the start. Click "Enter" to access your first set of tasks. 

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Complete them to earn XP, level up Pepe, and move forward. Make sure to claim your rewards after completing each task, as progress won’t count unless you do.

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Step 3: Take On Daily Tasks

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Aside from the main quests, Pepe needs daily training to stay competitive. The Daily Tasks section offers fresh challenges every 24 hours, giving you extra XP and a chance to move up the rankings. Enter the tab, follow the instructions, and claim your daily rewards. 

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Just remember: tasks reset every day, so don’t miss out.

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Step 4: Boost XP with Position Power

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If you want to gain XP faster, the Position Power feature is your best bet. Open a position in any of the listed contracts and hold it for as long as possible. The longer you keep it open, the more XP you earn. 

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This is the quickest way to surpass your competitors and climb the leaderboard.

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Step 5: Track Your Progress

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After grinding through quests and challenges, you’ll want to see how you compare to others. Click on "Leaderboard" in the top-right corner of the screen to check your rank. Your position depends on the total XP Pepe has accumulated. The more challenges you complete, the higher you’ll climb.

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Wrapping Up

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The countdown to TGE is on, and the competition is heating up. Train Pepe the Trader, complete tasks, and secure your place among the top traders before it’s too late. 

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Trade smart, move fast, and claim your rewards in CVEXtopia!

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⚠️ Disclaimer: Some CVEXtopia tasks may require the use of real funds. Crypto Valley Exchange is not responsible for any financial losses resulting from user actions. Always do your own research and trade responsibly.

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Disclaimer: This guide is for informational purposes only and does not constitute financial advice or a call to action. Some platform features described here may not be fully implemented at the time of reading or may not be implemented at all. Always conduct your own research and trade responsibly.

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Welcome to the Future of Decentralised Trading!

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The CVEX Mainnet is officially live and ready to welcome crypto traders worldwide! Whether you’ve been with us since the testnet days or are just discovering us now, CVEX is here to revolutionise decentralised derivatives trading.

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At CVEX, we combine high leverage, advanced risk management, and a pioneering VaR margin system with a first-of-its-kind protocol for crypto futures clearing. Our platform bridges the gap between traditional finance and crypto, offering tools once exclusive to Wall Street traders. And we’re just getting started!

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Step 1: Connecting Your Wallet

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To start trading, you’ll need to connect your crypto wallet. CVEX supports hundreds of EVM wallets, so you can choose your favourite.

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1. Click "Connect Wallet" in the top-right corner of the terminal.

2. A "Welcome to CVEX" window will appear, with instructions, terms of service, and a button to proceed.

3. Select your wallet. For this guide, we’ll use MetaMask as an example.

4. Confirm the connection in your wallet interface. This step ensures security, no funds are accessed during this process.

5. Verify wallet ownership when prompted by signing a simple message.

6. Once connected, your wallet address will appear in the top-right corner of the website.

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Step 2: Depositing Funds

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Depositing is quick and commission-free on CVEX:

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1. Click "Increase Balance" in the terminal's right panel.
2. Specify the deposit amount and blockchain.
3. Confirm the transaction in your wallet, and funds will appear in your account.

Step 3: Placing Your First Trade

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Trading on CVEX is streamlined for efficiency:

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1. Select your desired contract from the menu on the left.
2. Set order parameters (e.g., long/short, limit/market, quantity, price).
3. Review the impact on your portfolio in the preview panel.
4. Click "Place Order" to execute your trade.

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Step 4: Managing Positions

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Keep track of your trades and performance easily by monitoring active trades in the Open Positions tab, where you can also update take profit or stop loss settings or close positions manually. Review your past trades and analyze performance in the Transaction History section. You can also manage pending orders in the Open Orders tab before they are executed.

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Step 5: Withdrawing Funds

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When you’re ready to withdraw, here’s how:

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1. Navigate to "Account Details" in the bottom-right corner.
2. Click "Withdraw" and specify the amount and blockchain.
3. Confirm the transaction. 

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Please note: Only USDC not used as margin can be withdrawn.

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Wrapping Up

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CVEX offers much more than what’s covered here, from additional features to advanced settings for pro traders. Dive in, explore, and connect with our vibrant community to unlock the full potential of CVEX.

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Happy trading!

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17.01.2025 – Crypto Valley Exchange (CVEX), an innovative decentralised derivatives exchange (DDEX), has officially launched its mainnet, opening the doors for all traders. CVEX aims to bridge the gap between traditional finance and crypto trading, offering tools and functionality that were once exclusive to Wall Street.

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At the heart of CVEX are two groundbreaking components:

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The Trading Terminal – Providing high leverage, advanced risk management features, and the unique VaR margin system, CVEX empowers traders with the tools needed for secure, capital-efficient trading.

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The CVEX Protocol – A pioneering infrastructure for futures clearing in crypto markets. This untapped space has the potential to revolutionise how traders transition from traditional finance to the cryptocurrency sphere. CVEX Protocol lays the foundation for broader crypto adoption and encourages innovation. CVEX Labs has hinted at future opportunities for developers to build their own projects on the protocol, although details are yet to be revealed.

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The mainnet launch follows the successful completion of the CVEX testnet, which saw over 140,000 users executing millions of transactions. With a thriving community of more than one million members across social platforms, CVEX is set to continue its growth and innovation.

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Looking ahead, CVEX is already working on several exciting updates:

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• Options Trading – Expanding the platform's offering with new derivatives products.
• Token Generation Event (TGE) – Introducing the $CVEX token to the market.
• More Trading Features – Future updates will include tools like adjustable leverage sliders, an expanded order list, new contracts, and more to enhance the trading experience.

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“The launch of our mainnet marks a significant step forward,” said James Davies, CEO of Crypto Valley Exchange. “Our mission has always been to bring the sophistication of traditional finance tools to the world of decentralised crypto trading, and this is just the beginning.”

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For more information on CVEX and to start trading, visit https://cvex.xyz.

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About Crypto Valley Exchange (CVEX)

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Crypto Valley Exchange (CVEX) is at the forefront of the decentralized derivatives exchange space, redefining futures and options trading in crypto markets. With a focus on advanced risk management, high leverage, and unmatched efficiency, CVEX is committed to creating a seamless trading experience for retail and institutional traders alike.

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Join CVEX Community:

👉 Website: https://cvex.xyz 

👉 Twitter/X: https://x.com/cvex_xyz 

👉 Telegram: https://t.me/cvex_xyz_ann

Decentralized exchanges (DEXs) have reshaped crypto trading by offering a permissionless and trustless environment. However, they still fall short in one crucial aspect—capital efficiency. Unlike traditional finance, where clearinghouses ensure smooth derivatives trading, DeFi lacks a proper clearing infrastructure.

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This is where CVEX Protocol changes the game. CVEX is building the first decentralized clearing protocol, bringing capital efficiency, risk optimization, and institutional-grade trading tools to crypto derivatives. We built our protocol using Arbitrum Stylus. Thanks to Stylus, we can fully exploit the potential of Rust, WASM, and LLVM to create advanced and efficient smart contracts, all while preserving complete interoperability with the entire Ethereum ecosystem. This makes Stylus the only real choice for us to implement fully functional portfolio margin management for derivatives trading on-chain.

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What Is CVEX Protocol?

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At its core, CVEX Protocol is a decentralized infrastructure built for clearing derivatives in DeFi. It provides an advanced clearing mechanism that reduces collateral requirements, guarantees trade execution, and enhances market stability, features traditionally only available in TradFi clearinghouses like CME (Chicago Mercantile Exchange) or LCH (London Clearing House).

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CVEX consists of two major components:

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The Trading Terminal – A decentralized trading venue where users can trade futures and options with high leverage, advanced risk management, and a unique VaR margin system.

The CVEX Protocol – A decentralized clearing layer ensuring that every trade is backed by optimized collateral management, reducing risk and unlocking massive capital efficiency.

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What Is Clearing and Why Does It Matter?

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Clearing is a process used in traditional finance to guarantee the execution of financial trades. In simpler terms, it's like an invisible safety net that ensures both buyers and sellers fulfill their obligations.

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Without clearing, traders would need to hold 100% of their positions in collateral, making trading highly inefficient. In TradFi, clearinghouses allow traders to use capital more efficiently by offsetting risks across different positions.

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How CVEX Protocol Reinvents Clearing for DeFi

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Traditional clearinghouses act as intermediaries, but in DeFi, we need a decentralized alternative. CVEX introduces Smart Clearing, an automated system that:

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1. Guarantees Trades. Ensures that all positions are backed by sufficient collateral.
2. Optimizes Collateral Usage. Instead of locking up massive amounts of capital for each trade, CVEX calculates risk at a portfolio level, reducing collateral requirements by up to 99% in some cases.
3. Predictability During Volatility. Unlike centralized platforms, CVEX ensures deterministic trade execution, even during market turbulence.

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The Real-World Impact of Clearing in Crypto

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The absence of proper clearing in DeFi has created inefficiencies that have held back the market:

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• Crypto derivatives should be 5–10x larger than spot trading, but without clearing, collateral inefficiencies prevent this growth.
• $200B+ in annual trading fees are generated from crypto derivatives, yet traders are losing billions in unnecessary collateral lockups.
• Traditional finance processes over $2.1 trillion in cleared derivatives; crypto has yet to achieve even a fraction of this due to the lack of decentralized clearing solutions.

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Instead of requiring each trade to be fully collateralized, CVEX dynamically calculates risk across a portfolio of assets. This means traders only need to lock a fraction of their total exposure, freeing up liquidity and making derivatives trading vastly more efficient.

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Here’s how it works:

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• Risk is assessed at the portfolio level – Instead of requiring full collateral for each trade, CVEX calculates the overall risk exposure.
• Collateral requirements are reduced – By considering how assets correlate, the system determines the minimum necessary collateral.
• Trades are guaranteed even in volatile conditions – Unlike traditional margin systems, Smart Clearing ensures smooth settlement without unexpected liquidations.

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In practice, this means that a trader holding a long position on ETH futures while shorting SOL futures won’t need to provide full collateral for both trades. Instead, CVEX calculates the overall risk exposure, significantly reducing the amount of capital that needs to be locked up. For time-based strategies, such as buying BTC futures for March and selling BTC futures for June, the system can lower collateral requirements by more than 90%. Large portfolios, particularly those that include options, benefit even more, with potential collateral savings exceeding 99%.

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Why This Is a Game-Changer for DeFi

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1. Unlocking Institutional Trading

Institutional traders rely on collateral-efficient systems in traditional markets. CVEX Protocol enables them to trade in DeFi without excessive capital lock-ups, making the ecosystem more attractive to large-scale investors.

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2. Expanding DeFi’s Derivatives Market

With efficient collateral management, DeFi derivatives can finally compete with TradFi in size and scale. The market potential is staggering:

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• $45 trillion in crypto derivatives volume annually
• Projected to reach $16 trillion in annual trading fees by 2030
• Clearing can increase derivatives volume by 5-10x

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3. Bringing Real-World Assets (RWA) to DeFi

Tokenizing real-world assets (RWAs) is useless without derivatives trading. Every major traditional market (commodities, forex, stocks) relies on derivatives for price efficiency. CVEX Protocol enables RWA trading by ensuring that derivatives markets can support them effectively.

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4. Decentralizing OTC Trading

Over-the-counter (OTC) trading is the largest derivatives market in TradFi, but DeFi lacks the necessary clearing infrastructure to handle it. With CVEX Smart Clearing, OTC markets can migrate on-chain, unlocking billions in additional trading volume.

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The Future of CVEX Protocol

CVEX Protocol is a new category of infrastructure in DeFi. With 77 smart contracts live on Arbitrum, a thriving community of over 6.2 million users, and market makers already onboarded, CVEX is positioned to become the backbone of decentralized derivatives trading.

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The next steps include: 

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1. Integrating more derivative products, including advanced options trading. 
2. Enabling builders to create their own platforms on top of the CVEX Protocol. 
3. Expanding partnerships with institutional traders and DeFi-native projects.

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Crypto derivatives trading has been limited by inefficiencies, preventing DeFi from reaching its full potential. CVEX Protocol introduces the first decentralized clearing solution, enabling capital-efficient, large-scale trading without relying on centralized intermediaries.

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This is more than an exchange. It’s a fundamental shift in how derivatives work in crypto.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Historical performance does not guarantee future results. Always conduct thorough research and consult a financial advisor before making investment decisions.

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The holiday season brings more than just gifts and festive cheer — it also ushers in one of the most intriguing phenomena in financial markets: the Santa Rally. While this trend has long been observed in traditional stock markets, it has also made its way into the world of cryptocurrencies, sparking curiosity among traders and investors alike.

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From Bitcoin to the broader crypto market, historical data reveals unique patterns during the weeks before and after Christmas. But is the Santa Claus Rally consistent, and what can we expect this year? 

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What is the Santa Claus Rally?

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The Santa Claus Rally refers to a pattern where financial markets, traditionally the stock market, experience a noticeable uptick during the holiday season. This phenomenon has also gained traction in the crypto world, where similar patterns have been observed during late December and early January.

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In crypto, the rally is split into two distinct periods:

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Pre-Christmas Rally (Dec 19–25), which is often fueled by holiday optimism and lower trading volumes. Traders and investors might view this as a time to "gift" themselves by adding to their positions.

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Post-Christmas Rally (Dec 27–Jan 2), when fresh capital enters the market, possibly from holiday bonuses or end-of-year portfolio adjustments. New Year optimism and anticipation of market trends often drive this phase.

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The concept originated from traditional stock markets, but its relevance in crypto is tied to the industry’s global nature and 24/7 trading. Crypto doesn’t pause for holidays, creating unique opportunities during a time when traditional markets are often closed.

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Historical Trends in the Santa Claus Rally

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The Santa Claus Rally has been a recurring phenomenon in the crypto market, though its impact and consistency have varied over the years. Looking back at the past decade, we see patterns that hint at the rally’s influence on both the broader crypto market and Bitcoin specifically.

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General Crypto Market Trends

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The post-Christmas rally has been more common than the pre-Christmas one. Over the last 10 years, the crypto market experienced a significant increase in total market capitalization 8 out of 10 times during the post-Christmas period. These gains ranged from modest upticks of 0.69% to more substantial jumps of 11.87%.

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Pre-Christmas rallies, on the other hand, were less frequent, occurring in just 5 of the past 10 years. When they did happen, the increases ranged between 0.15% and 11.56%. This inconsistency reflects how varied market sentiment and external factors can shape these seasonal trends.

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Some years stand out as exceptional:

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• In 2016, the crypto market surged by 11.56% before Christmas and an additional 10.56% after Christmas, making it a banner year for holiday gains. 
• Similarly, 2023 saw a strong rally, with the market growing by 4.05% before Christmas and 3.64% after, as the industry rebounded from a prolonged bear market. 
• Even in challenging years like 2018, moderate increases of 1.31% pre-Christmas and 4.53% post-Christmas provided some relief to investors.

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However, the rally isn’t guaranteed. 2017 saw a sharp pre-Christmas decline of 12.12%, driven by corrections following the ICO boom. More recently, in 2021 and 2022, the market faced post-Christmas corrections of 5.30% and 1.90%, signaling a waning consistency in the rally’s impact.

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Bitcoin’s Performance

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Bitcoin, the dominant player in the crypto market, often mirrors or amplifies these trends. Over the past decade, Bitcoin experienced notable gains during the Santa Claus Rally period in several years.

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For instance, 2016 was a remarkable year, with Bitcoin surging 13.19% before Christmas and another 10.86% after, breaking the $1,000 mark for the first time since 2013. Even in a challenging year like 2018, Bitcoin managed modest increases of 1.31% pre-Christmas and 4.53% post-Christmas. That said, Bitcoin has also seen declines during this period. In 2017, the asset suffered a dramatic 21.30% drop before Christmas, reflecting broader market corrections. Smaller declines occurred in 2015 and 2019, with losses of 1.37% and 0.11%, respectively.

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When comparing returns, the Santa Claus Rally yields modest gains on average: 1.32% pre-Christmas and 1.29% post-Christmas. However, when looking at Bitcoin’s performance across the entire month of December, the average return jumps to 9.48%, significantly outpacing the rally-specific periods.

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5 Factors Driving the Santa Claus Rally in Crypto

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The Santa Claus Rally, while intriguing, doesn’t occur in a vacuum. A mix of seasonal sentiment, market behavior, and broader economic factors combine to create the conditions that sometimes drive crypto prices upward during the holidays.

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1. Holiday Optimism and Euphoria

The holiday season often brings a wave of positivity and optimism among retail traders. This festive mood can translate into increased market activity as investors feel more confident making trades, leading to upward price momentum.

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2. Lower Trading Volumes

With many institutional players stepping away for the holidays, trading volumes tend to decrease during this period. Lower liquidity can amplify price movements, making the market more volatile. This volatility can create opportunities for sharp gains, fueling the rally further.

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3. Year-End Tax Strategies

Institutional investors often adjust their portfolios at the end of the year for tax purposes. In some cases, they create temporary surges in buying activity that contribute to the rally.

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4. Speculation Around Key Events

Crypto markets are often driven by speculation, and the holiday season is no exception. Events like upcoming Bitcoin halving cycles, potential ETF approvals, or regulatory developments can boost sentiment, with traders positioning themselves early to capitalize on these anticipated shifts.

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5. General Market Sentiment

When the overall market sentiment is positive, the Santa Claus Rally is more likely to occur. Bullish trends heading into the holidays can encourage traders to keep buying, sustaining the momentum through December and into the new year.

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Does the Santa Claus Rally Always Happen?

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The short answer is no. While the Santa Claus Rally is a recognized phenomenon, it is far from guaranteed in the crypto market. Various factors can disrupt or even reverse the expected holiday gains.

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Macro-Economic Conditions

Global economic instability, rising interest rates, or recession fears can overshadow holiday cheer. When investors are preoccupied with broader economic concerns, they may avoid speculative assets like cryptocurrencies, suppressing any potential rally.

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Regulatory Actions

Unexpected regulatory announcements or crackdowns can dampen market sentiment. News of stricter regulations or unfavorable rulings can quickly reverse any positive momentum, even during the holidays.

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Market Saturation and Over-Leveraging

When the market is already overheated, with assets overbought and leverage levels high, the rally may fail to materialize. In such cases, corrections or consolidations are more likely than a sustained upward trend.

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Santa Claus Rally Worth the Hype?

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The Santa Claus Rally is a fascinating phenomenon that has captured the attention of traders and investors alike. While it’s exciting to anticipate holiday-driven market surges, history reminds us that the rally is far from predictable. Factors like holiday optimism, low trading volumes, and speculation often fuel it, but macroeconomic challenges and market saturation can just as easily derail it.

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For traders, the key is not to rely solely on seasonal trends but to remain informed, disciplined, and prepared for any outcome. Whether the rally materializes or not, the crypto market offers ample opportunities for those ready to navigate its complexities.

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Want to dive deeper into crypto trends and trading strategies? Explore more insightful articles on our blog and sharpen your knowledge.

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When you're ready to put your skills to the test, head to our trading terminal and experience the future of decentralized derivatives trading with CVEX.

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Happy trading, and let’s make this holiday season a profitable one!

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As we gear up for the CVEX Mainnet, we’re thrilled to unveil the final Testnet update—a release designed to refine your experience and prepare you for the mainnet launch. This update introduces game-changing features and improvements, from dynamic leverage adjustments to smarter security tools, ensuring that your trading is efficient, secure, and seamless.

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Here’s what’s new:

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1. VaR Margin & Dynamic Leverage. Smarter margin calculations for optimized capital efficiency.
2. Native Deposits & Withdrawals. Mimic the mainnet experience with ETH for gas fees and USDC for transactions.
3. USDC Faucet. Easily mint USDC directly from the platform.
4. Sessions & API Key Management. Advanced tools for managing sessions, keys, and custom API integrations.
5. Settlement & Liquidations. Automated bots for monitoring positions and maintaining system safety.
6. Close All Feature. Quickly close all positions and orders with a single button.
7. Bug Fixes & Enhancements. Stability improvements and user experience refinements.

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Let’s explore these updates in detail.

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VaR Margin & Dynamic Leverage

Say hello to smarter trading! With VaR (Value at Risk) Margin, your margins dynamically adjust based on active positions and orders. This feature ensures capital efficiency, particularly for hedged positions, allowing you to trade larger volumes with less collateral while managing risks effectively.

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Native Deposits & Withdrawals

Get a taste of the mainnet experience! Native deposits and withdrawals now require ETH for gas fees alongside USDC for transactions, streamlining the process and preparing you for live trading.

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USDC Faucet

Simplify your Testnet deposits with the new "Mint" tab. Need USDC? Mint it directly on the platform to keep your trading uninterrupted and hassle-free.

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Sessions & API Key Management

Enhance your security and flexibility with tools to manage sessions, secondary keys, and API integrations. Whether you’re trading manually or programmatically, you’ll have complete control over your access points.

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Settlement & Liquidations

Automated bots now actively monitor positions and perform settlements and liquidations as needed, ensuring the system remains secure and reliable. Rest assured, every trade is backed by robust safeguards.

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Close All Feature

Simplify your workflow with a single click! The new "Close All" button allows you to close all positions and cancel all orders instantly from the Positions tab.

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Bug Fixes & Enhancements

We’ve squashed bugs and fine-tuned the platform to deliver a more stable and enjoyable trading experience. These improvements bring us closer to a flawless mainnet environment.

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How to Make a Deposit? Step-by-Step

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With the new update, we have prepared the transition to the most real depositing of the trading terminal balance with the help of faucets. This is roughly how your depositing experience on Mainnet will look, so let's understand how you need to proceed.

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Step 1. Connect Wallet

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Use the instructions in our CVEX Testnet guide (step 1) to connect the wallet:

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https://cvex.xyz/post/the-official-cvex-testnet-guide 

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Step 2. Mint ETH

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Now you need to get a test ETH to your crypto wallet to cover the network's commission for funding your account. To do this:

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1. Click on the ‘Increase Balance’ button.

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2. In the pop-up window, find the link to Faucet and click on it.

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3. When you go to the Faucet page, make sure the link is the same as the one on the picture below. If everything is ok, click on the ‘Select tokens’ button.

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4. Select the 0.01 ETH Arbitrum Sepolia Testnet option.

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5. Enter your wallet address on the Arbitrum Sepolia network and click on the ‘Get tokens’ button.

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6. Authenticate your wallet. We don't know why, we are being held hostage and told to write this. To be honest, you can read what it is and why here:

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https://docs.ata.network/backed-by-pom/l2faucet/frequently-asked-questions 

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7. Great! After completing the steps, you will receive a notification that the test ETH has been sent to your address and once you receive it, you can move on to the next step.

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Step 3. Deposit USDC

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1. Go back to the CVEX website and click on the ‘Increase Balance’ button again.
2. Now, in the pop-up window, go to the ‘Mint’ tab, enter the desired number of USDC (maximum per day is 100,000) and click ‘Mint Tokens’.

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3. Now go to the ‘Deposit’ tab, enter the desired deposit amount (if you have specified the maximum and the deposit did not occur, we recommend reducing the amount and try again), then click on ‘Deposit’

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Voila! Your USDC should be topped up, and you can move on to testing the platform. If you have any problems or if something doesn't work, contact our Discord or Telegram community. 

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Happy trading!

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With the announcement of CVEX’s Private Mainnet launch set for November 28th, we know you have questions. What’s the difference between the private and public mainnets? When TGE? Why did we choose a two-stage launch? And what can you do until January?

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We’ve put together this FAQ to address your most pressing concerns and ensure you’re fully prepared for this exciting new phase. Let’s dive in!

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FAQ

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What is the date of the CVEX Mainnet launch?

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• Private Mainnet: November 28th, 2024
• Public Mainnet: 8th January 2025

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What’s the difference between the Private Mainnet and the Public Mainnet?

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The Private Mainnet is an exclusive stage designed specifically for market makers, prop traders, auditors, and the QA team. During this period, MMs will set up their integrations for LP and trading while auditors and the QA team refine and prepare the platform for you.

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The Public Mainnet, on the other hand, will be open to everyone. This is when the full CVEX experience will be available, allowing the broader community to start trading and utilising all the features we’ve built. 

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Why do we need a private stage?

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We decided on a two-stage mainnet launch for two key reasons:

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First and foremost, the transition to mainnet is a big deal. Giving our devs and market makers time to test and perfect the Private Mainnet ensures that your experience will be flawless when it’s your turn to join.

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Secondly, liquidity doesn’t magically appear — it takes time. Market makers will need around four weeks to prepare and add liquidity to CVEX. And, as luck would have it, the holiday season aligns perfectly with this timeline. Christmas and New Year happen every year (surprise, surprise), so we’re adding an extra week for everyone to enjoy the festivities before we drop this bombshell on you in January. 

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What About TGE?

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We’re planning to hold our Token Generation Event (TGE) in February 2025. While we can’t share more details just yet, rest assured that we’re working hard to make it a success.

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What can I do until the public mainnet launch?

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Well, keep doing what you’re doing right now! The testnet isn’t going anywhere, so you still have time to explore everything CVEX has to offer. Complete those tasks you’ve been eyeing, rack up all the achievements, and make sure to check out our Galxe campaigns for extra rewards and fun.

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This is also the perfect time to fine-tune your strategies, get familiar with the platform’s features, and connect with the community. Think of it as your final warm-up lap before the big race. The more prepared you are now, the smoother your experience will be once we go live.

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What about time-dependent achievements?

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Some users encountered issues with time-dependent achievements due to unexpected testnet updates. Don’t worry — we’ve got you covered. If you can prove you were affected, contact our support team on Discord. We’ll ensure your efforts are recognised.

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What is the status of the Telegram App?

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We understand your mixed feelings, but trust us, the Telegram App has been a massive success in introducing millions of Web 2.0 users to the Web 3.0 world.

For those active on the testnet, rest assured that the app will not interfere with your progress or experience. If you haven’t tried it yet, now’s the time! Join the app and stay tuned for exciting updates coming soon.

As the spooky season approaches, it’s not just haunted houses and eerie decorations grabbing attention — there’s also a curious market superstition known as the Halloween Effect. In traditional financial markets, this effect suggests that stocks perform significantly better from Halloween through to May, compared to the warmer months of the year. The theory has been around for decades, with some traders convinced it’s more than just a ghost story.

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Could it be the trick-or-treat spirit boosting market activity? Or maybe it’s the work of stock market wizards casting spells for profits? Whatever the cause, some investors have long speculated that Halloween marks the beginning of a more profitable trading period.

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But what about crypto? In a market known for its wild volatility and unpredictability, does the Halloween Effect hold any weight for Bitcoin and other digital assets? Or is it just another myth lurking in the shadows of crypto folklore?

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What is the Halloween Effect?

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The Halloween Effect, also known as the Halloween Strategy or Halloween Indicator, is a well-known market theory suggesting that stocks perform better between November and April than during the rest of the year. This belief has its roots in traditional financial markets, where it was observed that investors tend to see higher returns during the colder months, particularly after Halloween.

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For example, let’s take a look at these statistics, provided by Bloomberg a couple of years ago:

Historically, the Halloween Effect is tied to the adage "Sell in May and go away," which implies that traders often scale back their activities in the summer months, only to return after Halloween when markets start to pick up again. Several studies, including those published by the American Economic Review, have supported this theory, suggesting that the November-April period can indeed produce better results than the quieter, more unpredictable summer trading months.

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While this may sound like financial folklore, data from major stock exchanges have shown that this pattern has occurred more often than not, prompting many traders to take it seriously. But can the same be said for the wild crypto trading? Let's explore.

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Does the Halloween Effect Apply to Crypto?

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While the Halloween Effect spooks stock traders, applying it to crypto is a different tale. The crypto market’s volatility, driven by 24/7 trading and global demand, doesn’t follow the same seasonal patterns as traditional markets.

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Crypto is also much younger, lacking the decades of data behind the Halloween Effect in stocks. Without a solid historical foundation, it’s tough to say if this eerie theory holds any truth in the crypto — or if it’s just another ghost story haunting traders.

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Past Performance of Bitcoin During the Halloween Effect

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Let’s shine a flashlight on Bitcoin's history and see if the Halloween Effect holds any magic in the crypto. Over the past 7 years, if you had bought Bitcoin on November 1st and sold on May 1st, the results would have been as inconsistent as a haunted house. Out of those 7 years, only 4 would have rewarded you with a profit. The rest? More of a fright than a delight.

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Here’s a quick look at the spooky stats:

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Bitcoin's notorious volatility and unpredictable nature make it hard to trust any market strategy based purely on the calendar. Unlike traditional assets, where patterns like the Halloween Effect may show some consistency, the crypto market seems to laugh in the face of such spooky superstitions. While there have been some profitable years, betting on this theory in the crypto might feel like playing trick-or-treat blindfolded!

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What Might Cause the Halloween Effect?

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So, what could possibly cause this Halloween Effect? One common theory behind this spooky phenomenon is the old market adage, "Sell in May and Go Away." This idea suggests that experienced investors traditionally take a summer break, cashing out their positions during the warmer months. In the past, when trades needed to be made in person, it made sense to lighten portfolios before going on holiday. With less activity in the markets, prices often slowed down or even dropped.

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Another theory leans on investor psychology and market sentiment. The colder months might stir up a more cautious mindset, leading to slower trading and fewer drastic market moves. As spring blooms, optimism might grow, causing more aggressive buying and higher market activity, leading to those higher returns seen in traditional markets.

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However, in today’s digital trading, where investors can place trades from anywhere in the world at any time, these theories seem a bit outdated. The global nature of modern markets means that seasoned traders no longer need to "go away" — they can access the market from their phones or laptops. While these theories may have some historical merit, their relevance today is much less pronounced. In crypto, where the market never sleeps, such seasonal effects are even less likely to play a key role.

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Other Trading Myths

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In trading, myths and superstitions often pop up, adding a bit of mystery to market movements. While these beliefs may have roots in historical data or human psychology, they often lack solid evidence. Let’s dive into a few more well-known market myths.

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The Santa Claus Rally

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One of the most famous market myths is the Santa Claus Rally. This superstition suggests that stock prices tend to rise during the last five trading days of December and the first two trading days of January. The idea is that holiday cheer, end-of-year bonuses, and optimistic investor sentiment all contribute to a market surge during this period.

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However, while some data might show small gains during these days, the rally isn’t guaranteed. Many factors — from macroeconomic conditions to geopolitical events — play a bigger role in determining market direction. Still, the belief in a Santa Claus Rally persists, making it one of those quirky market tales traders love to discuss.

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Round Numbers

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Another common trading myth revolves around Round Numbers. Human psychology tends to favor clean, round figures, like $10,000 or $20,000, and this bias often spills over into the markets. Traders and investors may see round numbers as natural price barriers, turning them into significant support or resistance levels.

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For example, Bitcoin has historically struggled to break through major round-number milestones like $20,000 or $30,000, with prices hovering around these levels before moving decisively in either direction. This creates the illusion that round numbers hold more importance than they might in reality. But while they can influence short-term behavior, they aren’t a magic force that moves markets — they simply reflect human tendencies to attach meaning to certain numbers.

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Why Do These Myths Persist?

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So why do myths like the Santa Claus Rally and round numbers stick around? It all boils down to psychology. Traders are constantly searching for patterns to make sense of the unpredictable, and myths provide simple explanations for complex market behaviors. While data and facts don’t always support these beliefs, they persist because they offer comfort — and sometimes, they even seem to work, creating self-fulfilling prophecies.

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But just like with the Halloween Effect, these myths should be taken with a grain of salt. The market is influenced by countless variables, and no single myth or superstition can accurately predict its movements.

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Trick or Treat?

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As the night falls and shadows lengthen, it's time to ask — is the Halloween Effect just another trick, or a treat for crypto investors? Like a spooky story told around a campfire, the Halloween Effect and similar market superstitions stir the imagination but are rarely based on anything solid. Sure, it’s fun to ponder, but when it comes to your portfolio, beware!

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Here are the key points to keep in mind before you get too spooked:

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• Mixed results haunt the history of the Halloween Effect, especially in the volatile crypto.
• Speculative factors like investor vacations and seasonal shifts might have once played a role, but these theories are ghosts of the past in today’s digital, global markets.
• Other trading myths, like the Santa Claus Rally and round numbers, still linger in the shadows, but they’re more myth than reality.
• Crypto’s unpredictable nature makes it impossible to rely on these seasonal tricks.

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So, while it’s tempting to get caught up in the Halloween spirit, remember: not everything that goes bump in the night should scare you into or out of a trade.

‍Disclaimer: Don’t let superstition guide your decisions! Stick to the facts and avoid getting caught in the web of market myths. It’s better to treat yourself to reliable data than to be tricked by spooky speculation. 🎃

Crypto options might sound complicated, but they’re actually easier to understand than you think. Let’s start by explaining what options are in traditional finance. In simple terms, an option is a contract that gives you the right, but not the obligation, to buy or sell an asset at a certain price before a specific date. People use options to bet on price movements or protect themselves from losses.

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Now, options have entered the world of cryptocurrency. Just like with traditional stocks, you can use options to trade digital currencies like Bitcoin and Ethereum. The big difference? Crypto markets are more volatile, meaning prices move up and down quickly, which makes options trading both exciting and risky.

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Why is options trading becoming so popular in crypto? It’s because options give traders more flexibility. Whether the market is going up or down, options can help you make money or protect your investments from big losses. In the fast-moving world of crypto, this flexibility is key.

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At CVEX, options trading is our next big milestone after the mainnet release. This means that soon, you’ll be able to explore crypto options right on our platform. To help you get ready, we want to educate you on this important topic in advance so you’ll be well-prepared to start trading when the feature is live!

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What Are Crypto Options?

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Crypto options are a type of financial contract that lets you make decisions about an asset’s future price without actually owning that asset. There are two main types of options: call options and put options.

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• A call option gives you the right to buy a cryptocurrency at a specific price (called the "strike price") before a certain date.
• A put option gives you the right to sell a cryptocurrency at a specific price before a set date.

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These options are called derivative contracts because their value is based on (or derived from) the price of a cryptocurrency, like Bitcoin or Ethereum. You don’t need to own the crypto itself to trade these options — you're just betting on where the price will go.

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How do crypto options differ from other derivatives like futures contracts? With options, you have a choice. You’re not obligated to buy or sell when the contract ends, but you have the option to do so. Futures, on the other hand, require you to buy or sell the asset at the agreed-upon price when the contract expires, no matter what.

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This flexibility is why many traders prefer options. They offer more control and can help you manage your risks better, especially in the unpredictable crypto market.

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How Do Crypto Options Work?

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Crypto options are straightforward once you understand the basics. Let’s break down how they work and what each part means.

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Call Options

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A call option gives you the right to buy a cryptocurrency, like Bitcoin or Ethereum, at a specific price (called the strike price) before a set date (called the expiration date). Think of it as reserving the right to buy, but without the obligation to do so. You’ll only exercise this option if it’s in your favor.

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For example, let’s say you buy a call option for Bitcoin with a strike price of $30,000 and an expiration date of one month. If Bitcoin’s price rises above $30,000 before the expiration date, you can buy it at the lower strike price, making a profit. If Bitcoin stays below $30,000, you don’t have to buy it, and your loss is limited to the cost of the option (called the premium, think about it like insurance to a seller of the option).

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Put Options

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A put option works in the opposite way. It gives you the right to sell a cryptocurrency at a specific price before a certain date. You’d exercise this option if you expect the price to drop.

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For example, if you own a put option for Bitcoin with a strike price of $30,000 and Bitcoin’s price drops to $25,000, you can sell it at the higher strike price of $30,000, pocketing the difference. If the price doesn’t fall, you simply let the option expire and lose only the premium you paid for the option.

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Why Trade Crypto Options?

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Trading crypto options offers several advantages for traders, from protecting their investments to making bigger moves with less money. Here’s why many people are getting into options trading in the crypto market.

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Hedging

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One of the biggest reasons traders use crypto options is for hedging. This means protecting your portfolio from downside risk. For example, if you own Bitcoin but are worried its price might fall, you can buy a put option that lets you sell Bitcoin at a fixed price. If the price drops, the gains from your put option will offset the losses in your Bitcoin holdings. Essentially, it’s a way to insure your investment.

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Speculation

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Crypto options allow you to make speculative bets on price movements without having to buy or sell the actual cryptocurrency. For example, you could buy a call option if you believe Ethereum’s price will rise, and profit if it does, without ever owning any Ethereum. If your guess is right, you can make a nice profit. If not, your only loss is the premium you paid for the option, which can be much smaller than buying the crypto itself.

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Leverage

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Another key advantage of trading options is leverage. With options, you can control a larger position in the market with less money. Instead of buying 1 whole Bitcoin, which might cost tens of thousands of dollars, you could buy an option that gives you exposure to the same price movement for just a fraction of the cost. This lets you potentially make higher profits, but it also comes with higher risk if the market moves against you.

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Risk Management

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Unlike directly buying or selling cryptocurrencies, options provide controlled risk. When you buy an option, the most you can lose is the premium you paid for it. For example, if you buy a call option and the price doesn’t rise, you won’t lose any more than the initial cost of the option. This limited downside makes options a useful tool for managing risk in volatile markets like crypto.

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3 Practical Tips for Crypto Options Traders

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Trading crypto options can be rewarding, but it’s important to approach it with the right mindset and strategies. Here are some practical tips to help you get started and minimize risks:

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1. Start Small

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If you’re new to crypto options, start small. Options trading can be complex, and it’s best to ease into it. Begin by investing small amounts and learning the mechanics of how options work before taking bigger risks. This way, you can build confidence while keeping potential losses in check.

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2. Use Simple Strategies

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Some beginner-friendly strategies include:

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Covered Calls

If you already own a cryptocurrency, you can sell a call option on it to generate extra income while you hold it.

Protective Puts

This strategy involves buying a put option to protect your existing crypto holdings from a potential price drop.

Straddles

A more advanced strategy involves buying both a call and a put option at the same strike price and expiration date to profit from large price swings, regardless of direction.

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3. Research and Stay Updated

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Options trading is all about timing and market trends. Make sure to research the underlying crypto asset and keep up with the latest news. Market events, regulations, and new developments in the crypto space can all impact price movements, so staying informed will give you an edge.

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Ready to Trade?

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Crypto options are a powerful tool for traders, offering flexibility, leverage, and the ability to manage risk. Whether you’re looking to hedge your portfolio, speculate on price movements, or take advantage of leverage, options trading can open new doors in your crypto journey.

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However, it’s important to approach options with caution, especially if you’re new to the game. Take the time to learn, practice simple strategies, and keep an eye on market trends.

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Ready to explore crypto options? Start with small, calculated trades and choose a platform that offers user-friendly options trading tools. Dive in, but always trade cautiously and continue to grow your knowledge.

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If you're new to crypto trading or just looking for a simple and low-cost platform, you’ve come to the right place. CVEX is here to make trading easy for everyone, no matter your experience or background. Whether you’ve been in crypto for years or are just starting out, our goal is to help you trade smarter without worrying about confusing fees or tricky setups.

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In this post, we’ll break down why CVEX is perfect for retail traders like you. We’re all about keeping things simple, saving you money, and making it super easy to get started. Let’s dive in and see why CVEX should be your go-to platform for crypto trading!

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Simple, Low Fees for Everyone

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At CVEX, we believe that trading shouldn’t be expensive or complicated. That’s why we’ve set up some of the lowest fees in the market, and guess what? No hidden costs!

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No Funding Fees

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Unlike other platforms that charge you for holding a position overnight or even just keeping your trades open, CVEX keeps it simple. No funding fees mean you only pay when you actually open or close a trade. That’s it! No surprises.

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Ultra-Low Trading Fees

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We know how frustrating high trading fees can be, especially when you’re just starting out. That’s why our fees are super low — 16 times lower than what you’d pay on most centralised exchanges. Makers pay only 0.002%, and takers pay just 0.003%. So, you can keep more of what you earn!

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No Gas Fees

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One of the best things about CVEX is that we don’t charge gas fees. You don’t need any ETH in your wallet to trade here. Are you making your first trade or your hundredth? No difference. You won’t be paying extra just to get things done.

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Trade Anywhere, Anytime with Multichain Support

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At CVEX, we believe that you shouldn’t be limited by the network you're on. That’s why we’ve made it possible for you to trade across multiple chains easily. Whether you're on Ethereum, Arbitrum, Optimism, Base, or Solana, CVEX has got you covered!

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No need to jump between platforms. With CVEX, you can connect your wallet from any of the supported chains and deposit USDC to start trading in no time. Just a few clicks and you're ready to go. The best part? You don’t have to worry about moving your funds between chains. With our multichain support, you can focus all your liquidity in one place, making your trades more efficient and reducing the hassle.

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Earnings with CVEX's Referral Program

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Want to earn some extra USDC while you trade? CVEX’s referral program makes it super easy to boost your earnings simply by inviting your friends to the platform.

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How Does It Work?

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When you refer someone to CVEX, you’ll earn a lifetime 20% share of their trading fees. That means every time they open or close a trade, you get a slice of the pie. And the best part? There’s no limit to how much you can earn! As long as your friend keeps trading, you keep earning.

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Let’s say you invite your friend Sarah to CVEX. She loves it, starts trading regularly, and pays $100 in fees over time. Thanks to the referral program, you’d earn $20 (20% of $100) just from Sarah’s trades! And as she continues to trade, your earnings continue to grow — it’s a win-win.

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It Gets Even Better: 10% Second-Degree Referrals

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The rewards don’t stop with your direct referrals. CVEX takes things up a notch by rewarding you for your second-degree referrals too. This means that when your friend refers someone else, you’ll earn an additional 10% of their trading fees. It’s like a chain of earnings that keeps growing.

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For example, Sarah invites her friend Tom to join CVEX. Now, whenever Tom trades, Sarah earns 20% of his fees, and you earn 10% too! So if Tom pays $50 in trading fees, Sarah gets $10, and you receive $5 — all from just one second-degree referral.

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How to Get Started?

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It’s simple! Just head over to the “Friends” tab in the CVEX app, generate your unique referral link, and start sharing it with friends. The more people you invite, the more you earn. Plus, your friends also get a 10% discount on trading fees when they sign up using your link, making it an easy sell.

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Security You Can Trust

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When it comes to trading, security is everything, and at CVEX, your funds are safe and sound. Our platform operates under a DAO-governed smart contract, meaning your assets are always in your control and protected by decentralised governance. Unlike traditional platforms, we don’t hold your funds – you do.

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To ensure everything stays secure, we’re constantly conducting security audits. Our team works with top-tier auditing firms to make sure the platform is as safe as possible, from the smart contract code to the overall infrastructure. This way, you can trade confidently, knowing that every step has been taken to safeguard your assets.

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Wrapping Up

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In short, CVEX offers an unmatched trading experience with no hidden fees, easy-to-use multichain compatibility, and even the potential for passive income through our referral program. CVEX has the tools and features to help you trade smarter and keep more of your hard-earned profits.

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So why wait? Dive into CVEX today, enjoy ultra-low fees, and start making the most of your crypto trades!

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Hey, CVEXians!

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We’re thrilled to introduce you to our new Telegram App, which is meant to enrich the experience of our Telegram community and make the entrance easier for Web 2.0 users. In this guide, we’ll walk you through all the features available at the moment and show you how to climb to the top of the leaderboard! Let’s start.

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First Meeting

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Step 1. After receiving and clicking on the CVEX App’s link, you’ll be guided to this bot with our greetings message:

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Step 2. Before you rashly click on “Play”, we recommend typing a special “/start” command to see more options:

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Step 3. Now when you’ve read and understood everything, let’s proceed. Click on the “Start Now” button and then choose “Launch” in the pop-up window to launch the CVEX App:

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Features Overview

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1. Navigating the App

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After launching, you’ll be forwarded to the main screen, from where you can access all available features at the moment:

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1. Track your current in-game balance
2. Complete the tasks
3. Navigate to other pages like Leaderboard and Friends
4. Open the “Burger menu” with all important settings and additional links
5. Turn on/turn off the background music

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2. Adjusting Settings

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Let’s start with the settings. Click on the menu icon in the top-right corner and explore the opened window:

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Here, you can find our Terms of Use and Privacy Policy, contact our working bees (support), and visit communities in X, Discord, and Telegram.

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3. Checking the Leaderboard

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Okay, now, let’s visit the Leaderboard page to see how close we are to the top. Click on the “Leaderboard” button at the bottom of the App:

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What?! We’re at the 5th place and the game isn’t even launched yet. What a shame, let’s deal with it. 

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4. Inviting Friends

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First of all, let’s tell our friends about this cool CVEX App to earn some more points. Go to “Friends” page through the button on the bottom of the App and click “Invite Friends” button to generate your unique ref link:

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You’ll be able to send it directly to PM with your friend, just choose from the list and click “Send”. Here’s how our 100% true and not staged chatting looked like:

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Well, let’s see if we received my first referral. Get back to the “Friends” tab:

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Nice! As you guys can see, we received the first referral and got +1,000,000 points.

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5. Completing Tasks

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Then, let’s complete some tasks to earn even more. Follow to “Home” page to see available tasks. We’ll pick the first one, “Follow CVEX on X” and do exactly what we were told. To start, click “Start” button:

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After completing the task, you can get back to Telegram to click “Check”, so our bot will verify your actions:

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If you did everything right, you’ll see a green checkmark in the front of the completed task, and your coins balance will adjust:

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6. Checking the Progress

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Let’s check out progress and visit the “Leaderboard” tab once again:

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The third place is much better! 

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Spin the Wheel of Fortune

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With the latest release, we added a Wheel of Fortune game where you can win more in-game points or some special tickets. What are they for? Let’s break it down.

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So, first of all, to enter the Wheel, you need to navigate to the “Game” tab

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Now, click the “Spin now!” button to test your luck. We won one ticket, for example. It's not much, but luck isn’t our strong point.

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When done spinning, click on the “Claim” button to get your prize.

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What are the tickets?

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Tickets are in-game currency which allows you to participate in the weekly giveaway. Our partners from Entravel will make a gift to winners — a luxury hotel stay. Here are some rules:

1. You can spin the Wheel every 4 hours
2. The more tickets you get - the bigger your chances are
3. Winners can exchange the hotel stay for a relevant sum in USDT
4. Winners are announced every Monday on our Social Media

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Keep Playing!

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After the initial meeting, you may proceed with completing tasks and inviting more friends to climb the leaderboard higher. These tokens will be very useful soon, so don’t waste time!

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Also, stay tuned with our updates, since we’ll drop more features soon.

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Happy playing!

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Crypto market is known for its high volatility. Prices frequently experience rapid swings, but while this volatility can create opportunities for profit, it also exposes traders to significant risk. Hedging offers a solution by providing a way to mitigate these risks and protect your portfolio from adverse market movements.

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Hedging involves taking an opposite position in a related asset, which helps offset potential losses in your primary investment. For example, if you're holding Bitcoin but anticipate a market downturn, hedging can allow you to protect your portfolio from losing value.

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At CVEX, we understand the importance of risk management in such a volatile environment. That’s why we offer a suite of tools designed to assist traders in hedging their portfolios effectively. From futures contracts to our advanced Value-at-Risk (VaR) system, CVEX provides traders with the resources they need to manage risks while continuing to pursue profitable opportunities.

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What is Crypto Hedging?

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Crypto hedging is a strategy used to reduce the risk of losses by taking an opposite position in a related asset. The goal is to offset potential losses in your primary investment by profiting from the hedge position. Essentially, it's like buying insurance for your portfolio – you can't eliminate the risk entirely, but you can mitigate its impact.

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In practice, if you hold a cryptocurrency like Bitcoin (BTC) and anticipate a price drop, you can hedge that position by opening a short position in Bitcoin futures or buying put options. If the price of BTC does fall, the profits from your hedge can offset the losses from your initial investment.

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For instance, imagine holding 1 BTC and expecting its price to drop in the short term. You could short BTC futures, so if the price decreases, the gains from your short position would cover some or all of the losses in your BTC holdings. While this doesn’t remove the risk entirely, it helps manage and contain potential losses, allowing for more balanced risk exposure in your portfolio.

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Methods of Hedging in Crypto

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There are several methods to hedge a cryptocurrency portfolio, each offering different levels of risk management based on market conditions and individual risk tolerance. Below are some of the most common hedging strategies:

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Futures Contracts

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Futures contracts allow traders to agree to buy or sell a cryptocurrency at a predetermined price on a future date. They are one of the most popular ways to hedge against potential market downturns. For example, if you're holding Bitcoin and expect the price to drop, you could enter a short futures position. If Bitcoin’s price does fall, the profit from the short futures position can offset the loss in your Bitcoin holdings.

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Options Trading

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Options give traders the right, but not the obligation, to buy or sell a cryptocurrency at a specific price before a certain date. There are two types of options used in hedging: call options and put options.

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• Put options allow you to sell an asset at a predetermined price, which helps if the price drops.
• Call options let you buy an asset at a specific price, helping hedge against missed upside potential. For example, if you're long on Bitcoin but worry about short-term volatility, you could buy a Bitcoin put option. If Bitcoin’s price drops, the gains from the put option will mitigate the losses in your BTC holdings.

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Diversification

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One of the simplest forms of hedging is diversification, where you spread your investments across multiple assets. By owning different cryptocurrencies or assets that don't correlate directly, you reduce the risk of losing your entire investment if one asset's price drops sharply. For example, if Bitcoin falls but altcoins like Ethereum (ETH) or stablecoins hold steady or rise, the impact on your overall portfolio can be minimised.

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Short Selling 

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Short selling involves borrowing a cryptocurrency and selling it at the current price, with the intention of buying it back later at a lower price. This method allows traders to profit when the price of an asset declines. Short selling is a more aggressive form of hedging and is typically used when traders expect a significant drop in asset value. If Bitcoin’s price declines, short selling allows you to buy back at a lower price, profiting from the difference.

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Let’s compare these methods:

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The effectiveness of each method depends on the market conditions and your risk tolerance.

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• Futures contracts are best for those wanting a straightforward hedge against price declines.
• Options trading is more flexible and allows traders to hedge against both downside and upside risks.
• Diversification is ideal for long-term investors who prefer a more passive approach to managing risk.
• Short selling is effective during bear markets but comes with greater risk due to the potential for unlimited losses if the market moves against you.

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In volatile markets, futures and options tend to provide more robust protection, while diversification is a slower, steady strategy. 

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How to Hedge Using Classic Futures

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Futures contracts are agreements to buy or sell a cryptocurrency at a predetermined price on a specific future date. In hedging, futures provide a way to protect your portfolio against market downturns or volatility. For example, if you hold a portfolio consisting of Bitcoin (BTC) and Ethereum (ETH), but you’re concerned that Bitcoin’s price may fall, you can hedge by opening a short position in Bitcoin futures.

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Let’s say you hold 5 BTC and want to protect against a potential 10% drop in Bitcoin’s price. You can enter into a Bitcoin futures contract that will profit if the price of Bitcoin drops by that amount. This ensures that even if your BTC holdings lose value, the profit from the short futures position offsets some or all of those losses.

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2 Practical Tips for Hedging with Futures:

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1. To determine how many futures contracts you need, calculate the exposure of your portfolio. If your portfolio has 5 BTC and you want to hedge 100% of that, you would take a short position on an equivalent number of BTC in the futures market.
2. The strike price should closely match your expectations for the price movement. Similarly, the expiration date should align with your investment timeline, providing enough time for the hedge to work as intended.

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How CVEX Can Help with Crypto Hedging?

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CVEX offers a robust platform for traders looking to hedge their portfolios through advanced tools and features. The Cross Margin system at CVEX allows users to use all available funds as collateral across multiple positions. This means if one of your trades is losing value, the collateral from your entire account can be used to prevent liquidation. This flexibility can be particularly useful when hedging, as it helps maintain positions without requiring constant manual intervention.

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Additionally, CVEX employs a Value-at-Risk (VaR) system for dynamic risk management. The VaR model adjusts collateral requirements based on current market conditions, providing real-time risk management tailored to your portfolio. This ensures that your positions remain adequately collateralised, even during periods of high volatility, allowing you to hedge effectively without risking over-exposure.

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CVEX is also developing an Isolated Margin feature, which will give traders more control by allowing them to allocate specific collateral to individual trades. This feature will be especially useful for those who prefer to manage risk on a per-trade basis, offering an additional level of precision in their hedging strategies.

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With these tools, CVEX makes it easier for traders to execute effective hedging strategies, reducing the risk and complexity associated with managing a volatile crypto portfolio.

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Wrapping Up

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hedging is an essential strategy for reducing exposure to volatility and protecting your portfolio from sudden market swings. CVEX offers the tools and resources you need to make hedging more accessible and efficient. From the flexible Cross Margin system to the advanced VaR risk management model, CVEX provides a solid foundation for traders to manage their risk dynamically and confidently. And with the upcoming Isolated Margin feature, users will have even more control over their hedging strategies.

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Ready to protect your crypto portfolio and trade smarter? Explore CVEX’s platform today and take advantage of its innovative risk management features to elevate your trading game.

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Margin trading lets crypto traders amplify their positions by borrowing funds, offering the potential for greater profits and higher risks. Two key margin types — isolated and cross-margin — help manage these risks. An isolated margin limits exposure to individual trades, while cross margin spreads risk across all positions. Knowing when and how to use each is essential for successful trading.

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Currently, CVEX offers cross margin trading with advanced risk management tools, and isolated margin will soon be available, giving traders more flexibility and control over their strategies.

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What is Margin Trading in Crypto?

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Margin trading in cryptocurrency allows traders to borrow funds to increase their buying power, enabling them to control larger positions with less capital. This type of trading is especially popular in volatile markets like crypto, where traders aim to maximise returns on smaller price movements.

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In margin trading, key terms include:

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Margin — The amount of funds required to open a leveraged position.

Leverage — The ratio of borrowed funds to the trader’s capital, which amplifies both potential profits and losses.

Initial Margin — The minimum amount of capital required to open a leveraged position.

Maintenance Margin — The minimum balance that must be maintained to keep the position open. If the account balance falls below this, the position risks liquidation.

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For example, with 5:1 leverage, a trader with $1,000 can control $5,000 worth of assets. If the market moves favourably, they can magnify their profits. However, if the market moves against them, losses are also amplified, and the trader may lose their initial investment or more.

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What is Isolated Margin?

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Isolated margin is a trading strategy in which the funds allocated as collateral are tied specifically to individual positions. This means that if a position moves unfavourably, only the margin dedicated to that specific trade is at risk without affecting the rest of your account balance.

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Advantages of Isolated Margin

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1. Controlled Risk

Only the allocated funds for that specific position are at risk, helping traders manage losses effectively.

2. Clear Profit/Loss Calculation

It’s easier to track the performance of individual trades since each position has its own separate margin.

3. Predictable Loss

Even in the worst-case scenario, you can predict and limit the maximum loss to the amount of collateral dedicated to that position.

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Disadvantages of Isolated Margin

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1. Close Monitoring Required

Traders must keep a close eye on their positions. If the market moves against them, they may need to manually add more margin to avoid liquidation.

2. Limited Flexibility

Unlike cross margin, you can’t use other funds in your account to support a position that is close to liquidation. This means that traders need to be more hands-on with their margin management.

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Note for CVEX Users:

Currently, isolated margin is unavailable at CVEX, but we are working on implementing it in future updates to offer more trading flexibility and risk management options for our users.

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What is Cross Margin?

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Cross margin is a margin trading system where all available funds in your account are shared across all open positions. Instead of allocating a specific amount of collateral to individual trades, cross-margin uses your total account balance to support any position that might need extra margin to avoid liquidation.

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Advantages of Cross Margin

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1. Flexibility

Cross margin automatically draws from your available funds to cover potential losses on any open position, helping prevent premature liquidation.

2. Reduced Risk of Liquidation

Since all positions share the same margin, profits from one position can cover losses in another, making it ideal for traders with multiple active positions.

3. Useful for Hedging Strategies

Traders can manage multiple positions simultaneously, offsetting losses from one trade with gains from another, especially useful in hedging scenarios.

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Disadvantages of Cross Margin

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1. Higher Overall Risk

While cross margin helps in reducing individual position liquidation, it puts your entire account balance at risk. If several trades move against you, your entire balance could be wiped out.

2. Less Control Over Individual Trades

Since all positions draw from the same margin pool, it’s harder to manage risk on a trade-by-trade basis. This lack of control can make it difficult to maintain specific risk-reward strategies for each position.

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Let’s proceed with an example. Imagine you have 10 BTC in your account and are using cross margin to open two trades: a long position on Ethereum (ETH) and a short position on another crypto asset, Z. If ETH price drops, your long position on ETH might start losing, but if Z also drops, your short position on Z can generate a profit. The profit from the Z trade could then be used to cover the margin requirements of the losing ETH trade, helping you maintain both positions for longer without facing immediate liquidation.

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Key Differences Between Isolated and Cross Margin

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When comparing isolated and cross-margin, it’s important to understand how they handle collateral, liquidation, and risk management. 

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In an isolated margin, only the funds you allocate to a specific position are at risk. If the trade moves against you, the loss is limited to the amount of margin you’ve set aside for that position, leaving the rest of your account untouched. For instance, if you allocate 2 BTC to an isolated trade and it loses, you only lose those 2 BTC, not your entire account balance.

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Cross margin, on the other hand, uses all your available funds as collateral for all open trades. If one position starts losing, the system will pull from your entire balance to cover potential losses, which can prevent liquidation. While this can be helpful in keeping positions open longer, if multiple trades go against you, you could lose your entire balance.

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Risk management is also different between the two. Isolated margin gives you more control over individual trades since you can limit how much of your capital is exposed. Each trade is managed separately, so a loss on one won’t affect the rest of your account. This makes it easier to manage risk on a trade-by-trade basis. Cross margin, however, allows for more flexibility when managing multiple trades. Profits from one position can offset losses in another, which is particularly useful for hedging strategies. But since all trades share the same pool of collateral, there’s a higher overall risk if the market moves sharply against you.

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In terms of flexibility and use cases, an isolated margin is ideal for traders who want more control over their risk per trade. It works best for high-conviction trades where you want to limit your exposure. Cross margin is better suited for traders managing multiple positions or running hedging strategies, as it leverages the entire account balance for capital efficiency. While cross-margin offers more flexibility, it requires careful risk management since the combined risk of all trades could lead to larger losses. Understanding these differences can help traders choose the margin type that best fits their strategy and risk tolerance.

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How Does CVEX Implement Cross Margin?

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At CVEX, the cross-margin is designed to give traders flexibility while managing risk effectively. Our cross-margin system allows you to use all available funds in your account to support multiple open trades, helping to prevent liquidation by automatically pulling from your balance when needed.

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CVEX offers a user-friendly interface and tools that make it easy to monitor your positions and manage your cross-margin trading efficiently. One of the key risk management features is our Value-at-Risk (VaR) model. The VaR system consolidates all trading exposures into a single, dynamic metric, adjusting collateral requirements based on current market conditions. This ensures that margin trading remains safe and that risks are minimised even in volatile markets.

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This past year has been one of great progress for Crypto Valley Exchange (CVEX), as we continue to bring the vision to life for the next generation of digital asset derivatives.

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As part of this evolution, there are a number of changes coming. The most noticeable change as CVEX prepares for mainnet, is for the project to spin out from the Switzerland-based venture studio Tacans, which has incubated CVEX, into its own standalone entities. This will enable operational and strategic clarity, and demonstrates the team’s dedicated focus.

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Mainnet

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CVEX is now only six weeks from mainnet launch. Currently, there are a total of 92,700 testnet users, 415,400 users connected via the affiliate dashboard and more than 100,000 followers on X. You can track all key KPIs via this dashboard: https://link.cvex.xyz/testnet-public-dashboard. Once mainnet is live, a similar dashboard will be created and published.

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Mainnet deployment timing relies on us completing some audits and assuring ourselves that the Arbitrum SDK, that is integral to our product, is completely stable.

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Structure

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CVEX Labs will be responsible for developing the key components of the CVEX ecosystem. Before the mainnet launch, both the intellectual property (IP) and the protocol will be transitioned to a decentralized autonomous organization (DAO), which will ultimately own the protocol. CVEX Labs will operate under a grant from this DAO, tasked with continuing development.

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DAO grants will be used to establish various entities that will manage different components of the CVEX ecosystem. This includes CVEX Labs for ongoing development, a dedicated entity for the white-label front end, and separate platforms for establishing contracts and setting risk levels. This structure ensures the decentralization of the ecosystem, allowing different entities to contribute independently to the overall market while preventing centralization under a single entity.

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Leadership

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Part of this transition will also see James Davies assume the role of CEO while Tacans Group CEO Mathias Nielsen will assume the role of Chief Strategy Officer in CVEX. With vast experience in leading exchanges and building derivatives markets across multiple asset classes, James is in a strong position for the CEO role’s next phase.

This move will continue to position CVEX robustly for its next phase of growth.

Stay tuned for further updates in the coming weeks and months. In the meantime, please follow the CVEX X (Twitter) https://x.com/cvex_xyz or join the CVEX Telegram https://t.me/cvex_xyz for the latest news.

Cryptocurrency trading requires more than just technical skills. We all understand that it’s also deeply shaped by psychological factors. Traders face emotional challenges that can influence their decisions, often leading to impulsive actions or misjudgments. So, developing a disciplined trading mindset is crucial for staying focused, even when markets are volatile. CVEX is here to support traders by offering tools and resources that help them overcome these psychological obstacles.

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1. Understanding and Mitigating Biases

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One of the most common psychological challenges traders face is the effect of biases. These subconscious tendencies can distort judgment and lead to decisions based more on emotion than data. Four common biases traders encounter include:

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Confirmation Bias

Traders tend to seek out information that supports their current beliefs or strategies, while ignoring evidence that might contradict their views. This leads to missed warning signs or opportunities.

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Cognitive Bias

When traders rely too heavily on intuition or mental shortcuts without proper analysis, cognitive bias occurs. While gut feelings can sometimes be useful, they often cause traders to overlook important details.

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Emotional Bias

Emotions like fear and greed can easily take control in markets. Fear can push traders to sell too early, while greed or FOMO can lead to risky trades or holding onto positions longer than necessary.

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Anchoring Bias

Traders sometimes fixate on a specific price level or piece of information, even when the market moves in a new direction. This can prevent them from adjusting their strategy, leading to potential losses.

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To counter these biases, traders need to critically evaluate information, seek diverse perspectives, and base decisions on solid data rather than emotion or initial assumptions.

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How CVEX Can Help

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CVEX offers tools designed to help traders manage the psychological aspects of trading. Our real-time market data and analytics allow traders to make decisions based on facts, reducing the likelihood of emotional reactions. By focusing on objective analysis, traders can overcome biases and improve their overall performance.

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We also provide educational content that covers trading psychology, helping traders understand and manage their emotional responses and biases. This equips them with the knowledge needed to make rational decisions, even in the most unpredictable markets.

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2. Controlling Fear and Greed

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In cryptocurrency trading, fear and greed are two emotions that can heavily impact decisions. Fear pushes traders to exit positions too soon, while greed tempts them to hold on longer than they should, hoping for bigger gains. 

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To mitigate the influence of these emotions, traders need to set clear trading rules. Establish entry and exit points ahead of time and define risk management strategies, so that decisions are based on logic rather than panic or excitement. Patience and discipline are key – sticking to your plan even when the market fluctuates will help keep emotional reactions in check.

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CVEX supports traders in managing fear and greed by providing tools to implement predefined trading rules. Features like stop-loss orders and real-time monitoring ensure that traders can set limits and make decisions that are driven by data, not emotions.

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3. Managing Trading Frustration

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Every trader will eventually experience frustration. Left unchecked, this frustration can lead to rash decisions that only worsen the situation.

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How to beat it?

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• One effective strategy for dealing with frustration is to reframe setbacks as learning experiences. Instead of seeing losses as failures, view them as opportunities to refine your strategy. 
• Practicing stress-reduction techniques such as meditation or deep breathing can help keep a calm and focused mindset. 
• Connecting with other traders to share experiences and seek advice is also valuable in gaining perspective and emotional support.

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CVEX fosters a supportive community where traders can share their experiences and learn from one another. In addition, features like achievements and tracking trading streaks help traders stay motivated and focused on the long-term picture, reducing the emotional strain of short-term setbacks.

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4. Avoiding FOMO (Fear of Missing Out)

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FOMO, or the fear of missing out, is one of the most common psychological challenges in trading. It occurs when traders chase market trends, fearing they’ll miss out on potential profits if they don’t act immediately. 

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To combat FOMO, traders should adhere strictly to their trading plans, regardless of the market hype. Resist the urge to follow the crowd without evaluating whether the trade fits within your strategy. Maintaining discipline and relying on data-driven insights ensures that decisions are grounded in analysis, not emotion.

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5. Recognising Behavioural Patterns

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Successful trading requires more than understanding the markets — it demands self-awareness. Recognising your own behavioural patterns can reveal the underlying habits and biases that influence your decisions. One of the most effective tools for achieving this is a trading journal. By tracking each decision and its outcome, traders can identify recurring patterns, both good and bad.

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Keeping a detailed record of your trades enables continuous learning and improvement. It helps uncover mistakes you may have been unaware of and provides insight into the strategies that work best. Over time, this reflective process sharpens your decision-making and enhances trading performance.

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CVEX offers traders access to a comprehensive trading history and performance metrics. With these tools, you can analyse past trades, detect patterns, and refine your approach to trading. By using data-driven insights from previous trades, you’re better equipped to make more informed decisions moving forward.

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6. Cutting Losses and Moving On

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One of the hardest lessons for any trader to learn is knowing when to cut losses. Holding onto losing trades in the hope that things will turn around can lead to significant losses and missed opportunities elsewhere. Developing the discipline to let go of a losing trade when it’s no longer viable is essential for long-term success.

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To avoid falling into this trap, traders should set predefined exit points as part of their overall strategy. Knowing when to walk away from a trade is crucial, and it’s important to accept that losses are an inevitable part of trading. A well-executed exit strategy limits the damage and frees up resources for more promising opportunities.

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7. Taking Regular Breaks and Managing Stress

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Trading is mentally demanding, and without proper rest, it’s easy to fall into burnout, which can impair judgment and lead to costly mistakes. Taking regular breaks allows traders to maintain mental clarity and approach the markets with a fresh perspective.

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Stress management is equally important. Establishing a structured routine with designated trading hours, breaks, and relaxation activities can create balance and reduce emotional strain. Incorporating stress-reduction techniques, such as deep breathing or meditation, can help maintain focus and prevent emotional responses to market fluctuations.

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CVEX contributes to stress management by offering a user-friendly interface that simplifies trading processes, reducing complexity. Additionally, customisable notifications help traders avoid the temptation of constantly checking the markets, giving them the freedom to focus on other aspects of life while remaining informed about critical updates.

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8. Practising Trading Mindfulness

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Mindfulness allows traders to make clearer decisions, free from the distractions of fear, greed, and impulsive reactions. Practising mindfulness can help traders remain calm during market volatility and make thoughtful, data-driven decisions.

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Techniques like meditation, deep breathing, and mindful analysis encourage a grounded approach to trading. These techniques help traders stay at the moment, avoid emotional overreactions, and focus on their strategies with clarity.

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9. Focusing on Emotional Intelligence

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Emotional intelligence plays a vital role in trading. Being able to recognise and manage your own emotions is key to making sound decisions, especially in high-pressure situations. Emotional intelligence helps traders avoid reactive decisions, build resilience, and develop stronger strategies. Developing emotional intelligence involves practising self-awareness and self-regulation. 

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10. Understanding the Crypto Market Cycle

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The cryptocurrency market operates in cycles, and understanding market psychology is essential for navigating these fluctuations. Emotions play a significant role during different market phases, influencing decisions at each stage of the cycle.

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The typical stages of a market cycle include disbelief, hope, optimism, euphoria, anxiety, denial, panic, capitulation, anger, and depression. Recognising these stages helps traders anticipate market shifts and adjust their strategies accordingly.

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Be Mindful

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Mastering cryptocurrency trading psychology is a crucial component of long-term success. By recognising biases, managing emotions, and understanding market cycles, traders can develop a disciplined and strategic approach to the markets.

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CVEX stands as a valuable ally in this journey, offering the tools and support needed to overcome the psychological challenges of trading.

Take the next step in your trading journey by exploring CVEX’s features. Join the CVEX community today and experience the support and resources that can help you become a more disciplined, emotionally intelligent, and successful trader.

The US election in 2024 promises to bring many changes to the lives of people around the world. However, we are not here to discuss migration policy or social programmes. Our task today is to look at how each of the presidential candidates feel about cryptocurrencies and what the market can expect from the election of Trump or Harris. 

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This article will be a short squeeze and a summary of the CVEX team's opinions. So if you are doing fundamental analysis for trading, we recommend reading the original publications and documents. DYOR.

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Why Cryptocurrencies Have Become Important?

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Cryptocurrencies have long been a distinct financial, social, and cultural phenomenon. People from all over the world, from Japan to Nigeria and from Canada to Indonesia, are rallying under yellow banners with a black "B" on them. However, in the last presidential election, which took place in 2020, the topic of cryptocurrencies did not take any significant place in the candidates' programmes. It seemed that serious people from politics just ignored crypto-enthusiasts as if it was a child's play. But today, everything has changed. Both Democrats and Republicans are actively communicating with the crypto community to get it on their side. So what has happened?

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Let's turn to the statistics. Recent polls on Statista show that the number of people in the U.S. who own or have owned cryptocurrencies has literally doubled in the last four years. In 2020, the ownership percentage was just under 8%. Today, however, that number has passed 16%. 

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Moreover, there is an interesting breakdown of these people by state, including swing states. Thanks to Coinbase, we know that the top 10 states by number of cryptocurrency holders are California, New Jersey, Washington, New York, Colorado, Utah, Florida, Alaska, Nevada, and Massachusetts. That said, three of these are swing or have been so, according to researchers in past years, including Florida, Nevada, and Colorado.

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Unsurprisingly, given the new landscape, politicians are trying to win the loyalty of new audiences by promising all sorts of support. We will see what exactly they are promising next. In the meantime, it is important to understand that despite all the statements, no one can guarantee that Trump or Harris's theses will be fulfilled. Therefore, all of the following may remain ink on paper.

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Trump & Crypto

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Donald Trump’s recent shift towards embracing cryptocurrency marks a notable change from his earlier scepticism. Guided by advisors like David Bailey, CEO of Bitcoin Magazine, Trump has positioned himself as a strong advocate for the crypto industry. This shift aligns him with key figures in the tech world, such as Elon Musk and Peter Thiel, who have a vested interest in the success of digital assets like Bitcoin.

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Trump’s pro-crypto stance is not only a political manoeuvre to gain support from the growing community of crypto investors but also a reflection of a broader strategy to differentiate himself from the regulatory-heavy approach of the Biden administration. His promises to deregulate the industry, fire SEC Chair Gary Gensler, and make the U.S. the global hub for cryptocurrency could have significant implications for the market. If these promises are fulfilled, they could lead to increased market confidence and investment, positioning the U.S. as a leader in the global digital economy.

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However, there are also concerns about the practicality of some of Trump’s proposals, particularly his pledge to keep all the U.S. government’s Bitcoin holdings. While his rhetoric may boost short-term investor optimism, the long-term impact on the market remains uncertain, especially if regulatory clarity is not achieved.

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Key Facts

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1. Fundraising Success. Trump’s campaign has raised over $25 million from the crypto sector since May 2024, highlighting the financial support he has garnered from the industry.

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2. SEC Chair Firing Promise. Trump has pledged to fire SEC Chair Gary Gensler, who is seen as antagonistic towards the crypto industry due to his strict regulatory stance.

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3. JD Vance as Running Mate. Trump’s selection of JD Vance, a senator known for sponsoring crypto deregulation legislation, underscores his commitment to a pro-crypto agenda.

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4. Pro-Bitcoin Mining Stance. Trump has expressed strong support for Bitcoin mining, aiming to position the U.S. as a dominant player in the global mining industry.

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5. Opposition to CBDCs. Trump has vowed to halt the development of Central Bank Digital Currencies (CBDCs), which are unpopular among crypto enthusiasts who value financial privacy and decentralisation.

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6. Price Impact. Following Trump’s speech at a major Bitcoin conference, the price of Bitcoin surged to nearly $70,000, indicating the market’s positive reaction to his pro-crypto rhetoric.

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7. Industry Support. High-profile crypto figures like Cameron Winklevoss and Jesse Powell have backed Trump, reflecting the strong alignment between his campaign and the interests of the crypto community.

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8. Potential Regulatory Shift. If elected, Trump’s policies could lead to a more favourable regulatory environment for cryptocurrencies in the U.S., potentially reversing many of the strict measures implemented under the Biden administration.

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Kamala Harris & Crypto. Tug of war

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As the Democratic presidential nominee, Kamala Harris faces the complex challenge of positioning her campaign to appeal to the growing community of crypto investors while maintaining a balanced approach to regulation. With President Joe Biden having taken a relatively stringent stance on cryptocurrency, Harris must navigate the expectations of both crypto advocates and skeptics within her party.

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Key Facts:

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1. Bipartisan Crypto Appeal. Harris’ campaign has attracted significant interest from crypto advocates who see her as a potential ally. The formation of the "Crypto for Harris" advocacy group and the involvement of prominent figures like Mark Cuban highlight the efforts to garner support from the crypto community. However, Harris has yet to clearly define her stance on digital assets, which has left some industry players uncertain about her long-term commitment.

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2. Strategic Campaign Moves. Recently, Harris has brought on board former crypto advisors David Plouffe and Gene Sperling, signaling a potential shift towards a more crypto-friendly approach. This move is seen as a response to Trump’s strong appeal to the crypto industry, particularly his promises to deregulate and support the sector.

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3. Balancing Act. Within the Democratic Party, Harris must balance the pro-crypto sentiment with the concerns of prominent figures like Senator Elizabeth Warren, who have been vocal critics of the industry. Warren’s influence within the party represents a significant hurdle for Harris as she crafts her policy towards digital assets.

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4. Electoral Impact. Harris’ approach to cryptocurrency could play a pivotal role in the election, especially given the close race in key battleground states. The recent Mercury Analytics poll suggests that undecided Democratic voters, particularly those from minority groups, are more likely to own crypto and view the Biden administration’s policies as too hostile towards digital assets. This indicates a potential opportunity for Harris to capture these votes by adopting a more favorable stance on crypto.

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If Harris successfully navigates these challenges and positions herself as a moderate, yet forward-looking candidate on cryptocurrency, she could appeal to a broader base of voters who are invested in the future of digital assets. However, the tension within her party over how to handle crypto regulation could complicate her efforts. Harris’ ability to unite the party on this issue while offering a clear and strategic vision for the future of crypto in the U.S. could be a determining factor in the 2024 election.

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Why Bother at All?

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The United States holds a pivotal role in the global cryptocurrency market, making its presidential elections crucial for the future of digital assets like Bitcoin. As the largest economy and a key player in financial markets, the U.S. significantly influences Bitcoin through its regulations, market involvement, and economic strategies.

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A clear example of this influence is the U.S. government's ability to regulate major cryptocurrency platforms such as Binance. The recent case against Binance, which led to a $4 billion settlement, underscores how U.S. actions can steer the global crypto landscape, affecting Bitcoin’s market behavior and investor sentiment.

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Moreover, with the U.S. financial markets accounting for over 42.5% of the global market and the U.S. dollar serving as the world’s reserve currency, most Bitcoin transactions are conducted in dollars. This reinforces the U.S.'s power over Bitcoin, especially as the potential approval of Bitcoin ETFs by U.S. regulators could further institutionalize the digital asset, increasing its demand and integration into traditional investment portfolios.

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While the institutionalization of Bitcoin in the U.S. could boost adoption and market demand, it also challenges Bitcoin’s decentralized nature by bringing it under the control of established financial institutions. However, this regulation also aims to provide a safer environment for investors, reduce fraud, and enhance Bitcoin’s credibility.

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In essence, the U.S. presidential election will likely determine the future of cryptocurrency regulation and market conditions. The policies the U.S. sets will have significant implications for Bitcoin and the global crypto market, making this election particularly important for all stakeholders in the digital asset space.

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Wrapping Up

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“We are also increasingly optimistic that the next administration, whether Democrat or Republican, will be constructive on crypto. The rhetoric has shifted,” said Brian Armstrong, CEO of Coinbase. 

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As the U.S. heads into another pivotal election, the future of cryptocurrency hangs in the balance. Both Trump and Harris represent starkly different paths for digital assets, with Trump’s pro-crypto stance potentially accelerating Bitcoin’s institutionalization, while Harris’ approach remains more cautious, emphasizing regulation and consumer protection. The outcome of this election will shape the landscape of crypto regulation and adoption in the U.S., making it a critical moment for investors and the broader crypto community.

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We’re thrilled to congratulate Arbitrum on the successful mainnet release of Stylus! This major milestone is a testament to the cutting-edge innovation that Arbitrum continues to bring to the blockchain space. As one of the projects building on Arbitrum, we at CVEX are particularly excited about the benefits this release will bring to our platform and the broader crypto community.

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Stylus is set to change the way smart contracts are written and executed. This is a win for developers and the entire ecosystem that depends on faster, cheaper, and more efficient blockchain solutions. 

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In this blog, we’ll explore how Stylus will expand CVEX’s capabilities and what this means for our traders. From significantly improved computation efficiency to reduced transaction costs, Stylus is poised to reshape the future of on-chain derivatives trading.

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Key takeaways:

• Arbitrum recently launched Stylus on mainnet, marking a major milestone for the blockchain space.
• Stylus allows CVEX to write smart contracts in Rust, elevating efficiency and interoperability with Ethereum's ecosystem.
• CVEX benefits from over 10x improvements in computation and memory usage due to Stylus' integration with WebAssembly (WASM).
• Stylus reduces gas fees on CVEX, offering traders lower transaction costs.
• Rust's built-in safety features, like reentrancy detection, improve the security of smart contracts on CVEX.
• Stylus' EVM compatibility allows seamless cross-chain trading between Ethereum, Arbitrum, Base, and Optimism.

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What is Arbitrum Stylus?

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Arbitrum Stylus is a breakthrough technology that introduces a new approach to building smart contracts. Unlike traditional Solidity-based contracts, Stylus leverages WebAssembly (WASM), which opens the door to writing contracts in languages like Rust. This not only expands the options for developers, but also drastically improves the efficiency of contract execution.

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Stylus operates with full compatibility with the Ethereum Virtual Machine (EVM), meaning it integrates seamlessly with existing Ethereum-based protocols. This "MultiVM" setup allows developers to mix and match contracts, optimising them for performance while preserving the ability to interoperate with the broader Ethereum ecosystem. 

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The result? More flexible, powerful, and efficient contracts that still fit within the familiar Ethereum environment.

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Why CVEX Chose Stylus?

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At CVEX, we made a deliberate choice to build on Arbitrum’s Stylus, and the reasons are clear. The key benefit lies in the interoperability that Stylus provides between WebAssembly (WASM) and Solidity. This allows us to develop smart contracts in Rust, which gives us access to decades of compiler advancements through LLVM. By doing so, we can create more advanced and efficient contracts while still maintaining compatibility with the Ethereum ecosystem, thanks to Stylus' seamless integration with the EVM.

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Our CTO, Ivan, summarised this perfectly:

"Thanks to Stylus, we can fully exploit the potential of Rust, WASM, and LLVM to create advanced and efficient smart contracts while preserving complete interoperability with the entire Ethereum ecosystem. This makes Stylus the only real choice for implementing fully functional portfolio margin management for derivatives trading on-chain." 

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Stylus’ unique capabilities allow us to efficiently use Rust’s powerful development ecosystem to create robust and cost-efficient contracts. This gives our traders the advantage of lower fees and higher performance without compromising on the security and flexibility of Ethereum’s extensive infrastructure.

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Technological Advantages of Stylus for CVEX

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Stylus brings cutting-edge technological benefits to CVEX, transforming the efficiency, cost-effectiveness, and security of our platform. By utilising Rust and WebAssembly (WASM), Stylus allows us to significantly optimise our protocol for better performance and scalability. 

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Below, we dive into the three key advantages that Stylus delivers to CVEX and our users:

1. 10x improvements in computation and memory usage through Rust and WASM.
2. Significant reduction in gas fees, lowering transaction costs for users.
3. Enhanced security through Rust’s reentrancy detection and Arbitrum Nitro’s fraud-proofing.

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Efficiency in Computation & Memory Usage

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One of Stylus's standout features is its ability to provide over 10x improvements in computation and memory usage, thanks to its integration with Rust and WebAssembly. This optimisation is crucial for handling the heavy computational loads associated with derivatives trading. By leveraging these technologies, CVEX is able to execute trades faster and manage more complex portfolios with greater efficiency.

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This leap in performance allows us to scale our operations and offer a superior trading experience. It ensures that high-volume transactions run smoothly, even during peak market conditions. The increased efficiency also helps lower the platform’s operational costs, further benefiting our traders.

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Lower Transaction Costs

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Stylus directly reduces transaction costs. One persistent challenge in decentralised finance (DeFi) is the high gas fees associated with smart contract execution. However, by incorporating Stylus, which optimises gas usage, CVEX can significantly lower these fees.

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This reduction in gas costs means that our users can trade more frequently without being burdened by excessive fees. For traders managing large portfolios or executing frequent transactions, this translates into substantial savings over time, making CVEX a more cost-effective option compared to other platforms.

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Improved Security

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Security is paramount in any DeFi platform, and Stylus offers advanced features that elevate the safety of smart contracts. Rust’s inherent safety features, such as reentrancy detection (enabled by default), allow CVEX traders to enjoy a higher level of security. This prevents malicious attacks that could exploit vulnerabilities in contract execution.

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By building on Stylus, CVEX ensures that every contract benefits from Rust's rigorous security protocols combined with the proven fraud-proofing technology integrated within Arbitrum’s Nitro framework.

Bridging Ecosystems Through EVM Compatibility

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One of Stylus's key strengths is its seamless interoperability with the Ethereum Virtual Machine (EVM), a feature that CVEX fully leverages. By being EVM-compatible, Stylus allows CVEX to bridge multiple blockchain ecosystems — such as Ethereum, Arbitrum, Base, and Optimism — making cross-ecosystem transactions smooth and hassle-free for our users.

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For traders on CVEX, this means they can move funds between these various networks without facing the complexities that typically come with cross-chain trading. The integration of Stylus allows us to offer a unified trading experience, letting users benefit from the strengths of multiple chains while staying within the familiar Ethereum ecosystem. 

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Be Ready for New Crypto

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The introduction of Arbitrum’s Stylus mainnet is a groundbreaking achievement for the blockchain space, and CVEX is proud to be building on this technology. Stylus redesigning the efficiency, scalability, and security of our platform while also lowering transaction costs and making cross-ecosystem trading a reality for our users. 

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We congratulate Arbitrum on this incredible milestone and look forward to continuing our work with Stylus to bring even more innovations to the crypto derivatives trading space. The future is bright, and we’re excited to explore the endless possibilities that Stylus unlocks for both CVEX and the broader DeFi community.

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Often luck isn’t enough in trading. It demands a solid strategy and the right tools. Thus, knowing which technical indicators to use can be the difference between profit and loss.

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In this guide, we’ll explore the top 5 technical analysis tools available on CVEX that can help you make smarter, more informed trading decisions. These are the tools that should be in every trader’s toolkit. So, grab your favorite caffeinated beverage, and let’s dive in!

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How to Apply Indicators?

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CVEX uses Trading View functionality to deliver traders up-to-date market charts and the option to apply technical analysis indicators on them. So, this process won’t take long:

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1. Visit the CVEX trading terminal and connect your wallet
2. Choose the contract you want to analyse (e.g. BTC 27SEP24)
3. Click the “Indicators” button right above the price chart to open the search menu
4. Jot down the name of the indicator you want to apply or choose it from the list in the pop-up menu
5. Close the pop-up menu, place your cursor over the name of the indicator, which must be shown on the left part of the chart, and click on the settings
6. Adjust the applied indicator to your needs by changing the settings

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Moving Averages (MA)

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Moving Averages (MAs) are a group of indicators designed to simplify chart navigation by highlighting price changes by averages and identifying the trend. Two types are very common among traders: Simple Moving Averages (SMA) and Exponential Moving Averages (EMA).

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They work in the same way, but they pay attention to different data. SMA takes the average price values for a specified period, on the basis of which the chart is built. It’s perfect for long-term trades, especially if the market isn’t going wild EMA does the same thing, but the closer the time period is to the current date, the more “weight” its average price. Obviously, EMA is ideal for short-term trades, particularly in a volatile market.

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Pro tip: MAs work well in pairs, allowing you to see the big picture and get an idea of recent movements at the same time. Try combining them!

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Relative Strength Index (RSI)

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The Relative Strength Index (RSI) acts like your personal radar system, scanning the market for overbought and oversold conditions. As a momentum oscillator that swings between 0 and 100, it gives you a heads-up on when the market might be ripe for a change in direction.

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RSI measures the speed and change of price movements. When RSI values rise above 70, it might signal that the asset is overbought and due for a pullback. Conversely, RSI values below 30 could indicate that the asset is oversold and might be poised for a rebound. Traders also watch for divergences between RSI and price, as these can be early indicators of potential trend reversals.

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While RSI is a powerful tool, it’s even more effective when combined with other indicators, such as Moving Averages, for a comprehensive analysis.

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Bollinger Bands

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Bollinger Bands, which consist of a middle SMA and two outer bands representing standard deviations from the middle band, help you gauge whether the market’s getting too tight or too loose.

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When the bands widen, it indicates increasing volatility, while narrowing bands suggest a period of lower volatility. If the price touches the upper band, it may signal overbought conditions, whereas touching the lower band could indicate oversold conditions. Traders often look for "band squeezes" as potential signals of impending significant price movements.

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Pro Tip: Watch for band squeezes — they often precede big moves. If the bands are squeezing, the market might be gearing up for a breakout.

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Moving Average Convergence Divergence (MACD)

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The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two EMAs, helping you spot changes in momentum.

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The MACD line is calculated as the difference between a short-term EMA and a long-term EMA. The signal line, which is a 9-period EMA of the MACD line, acts as a trigger for buy or sell signals. The MACD histogram visually represents the difference between the MACD and its signal line, providing insights into the strength and direction of a trend.

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MACD is ideal for trending markets where identifying momentum shifts is crucial. It’s particularly useful in crossover strategies, where a classic buy signal occurs when the MACD line crosses above the signal line. A sell signal is indicated when the MACD line crosses below the signal line.

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Quick Tip:

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MACD Line Above Signal Line: Bullish signal.

MACD Line Below Signal Line: Bearish signal.

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Average Directional Index (ADX)

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The Average Directional Index (ADX) acts like a thermometer for trends, helping you measure the strength of a trend without indicating its direction.

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ADX values range from 0 to 100. An ADX above 25 usually indicates a strong trend, while an ADX below 20 suggests a weak trend. Traders also look at the directional indicators (DI+ and DI-) that accompany ADX to determine whether the trend is bullish or bearish.

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ADX is your go-to for confirming the strength of a trend, especially in trending markets. It’s also useful for avoiding false signals in ranging markets, ensuring that you’re not getting faked out by weak trends.

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Wrapping Up

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There you have it — the top 5 technical analysis tools that can help you level up your trading game on CVEX. Remember, these indicators are powerful on their own, but they work even better when combined with other tools and strategies. Keep experimenting, stay disciplined, and always have a plan before you trade. Now, go forth and trade smart!

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DISCLAIMER:

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This information is created for educational purposes only and does not constitute financial advice. The crypto market can be subject to high volatility, which may cause you to lose your money. Past performance does not determine future price movements. Trade with caution.

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Together with the new CVEX v.1.171 update, we have introduced the CVEX Lite Version. In general terms, it is a simplified trading terminal interface with fewer elements and indicators. Why did we do it? Well, it’s quite simple: some traders don’t pay attention to most indicators, and these can become unnecessary visual clutter. But for our experienced friends, we have left all this in the Pro Version. 

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But what exactly has changed?

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How to Switch?

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Firstly, let's understand how to get to the Lite Version. In general, the Lite Version is the first at launch, as it is objectively user-friendlier. However, in case it didn't happen, to get to it, use the drop-down list in the upper right corner of the screen. Click on it and select Simple Trading.

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No More Noise

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The first difference you may notice is the reduction of visual noise and the reduction of information content in the interface. There are two pictures at the bottom, compare them for yourself:

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For instance, we’ve removed the Margin Utilisation parameter. You can still see how your position will affect the required margin, but unclear percentages are a thing of the past. Also, the Leverage indicator has taken the form of a slider for more convenience. As you know, in the future, we will introduce the ability to select the leverage yourself, and this is the first step in that direction.

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One more change has been made to fees. In the end, for most traders, it doesn't matter what part of the commission is for operational fees and what part is for trading fees. So now you can see the total value. For example, to buy one Bitcoin, you will spend $2.7 on commissions.

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Finally, order types. As our statistics show, a few users actually use these features (although we consider them necessary for competent trading), so now we have left them only for the Pro version.

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New Account Details

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In the new Lite Version, we have simplified the display of your account details and portfolio. Again, there are two pictures below for comparison:

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Here's what's changed:

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• The Margin Utilisation and Required Margin metrics have been merged. Now, in account details, the first metric is listed as a percentage and the second as a number.
• The USDC Collateral indicator has been removed. You can now see it in the Pro Version or calculate it yourself by adding Equity and P&L. 
• Available to Withdraw became Available Collateral, which is closer to the truth. After all, this amount can be used for opening new positions and for withdrawal to a stablecoins wallet.

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More Contracts Information

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Now, in the upper part of the terminal, you can see the percentage change in the asset price without having to calculate everything yourself. Also, detailed information for fundamental analysis of the asset is available by clicking on a separate button in the upper right corner of the chart. 

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We have also decided to limit the variability of selecting contracts for trading in the Lite Version, leaving only those that have a later settlement date. This decision is based on the feedback received from the audience and statistics collected by us.

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What Else?

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Along with the Lite Version, we have introduced several other features that can help you trade faster and more efficiently. You need an example, don't you?

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New Contract Search

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Now, by clicking on the contract name or using the shortcut Ctrl+M (the shortcut does not work in the Lite Version), you will open a new contract search box. Here, you can find the asset you are interested in a more convenient format.

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Balance Increase/Decrease without Wallet Confirmation

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Since CVEX v.1.171, each balance change no longer requires additional confirmation from your wallet. This improvement required some hard technical decisions from us, but we have achieved the result. Now your trading should be much smoother. 

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Note: We are aware that this improvement has caused excessive load on the smart contract, leading to delays or errors in balance changes. We are working on this and will address the situation with the next hotfixes. Thank you for your feedback!

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Cookies 

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Don't be alarmed — we don't cooperate with the CIA! (Or maybe we do, who knows?) You, allowing all cookies, will help us make the product better!

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And This Is not the End!

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You can read about other changes in our recent blog. 

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We are truly happy that we are one step closer to our goal - the Mainnet release. And this update is the last step before we prepare for the release. So stay tuned and don't forget to leave your feedback in our community. Happy testing!

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Our Discord | Twitter | Telegram 

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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Options trading in the crypto markets is evolving, offering traders new ways to manage risk and capitalise on market movements. As financial instruments, options provide strategic flexibility, but they come with their unique set of challenges, especially when implemented on decentralised platforms.

What are Options?

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Options are financial derivatives that give buyers the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price on or before a certain date. Unlike owning the actual asset, holding an option provides the possibility to leverage market movements with a predefined risk. Options can serve various purposes, from hedging against potential losses to speculating on the price movements of an asset with a relatively small upfront investment.

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The Difference Between Options and Futures

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Options and futures are both derivatives, meaning their value is derived from an underlying asset, but they function differently in key areas. 

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The primary difference lies in the obligations they impose on the buyer and seller. Futures contracts require both parties to fulfill the contract by buying or selling the asset at the agreed-upon price on the specified future date, making them a commitment. In contrast, options grant the holder the right to buy or sell the asset at a predetermined price, providing the flexibility to opt out if the market conditions become unfavorable. This difference makes options a preferred choice for risk management, as they offer the potential for profit while limiting potential losses to the cost of the option premium.

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Challenges in Crypto Options Trading

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Implementing options in the crypto markets, particularly on decentralised exchanges (DEXs), presents several hurdles that are often underestimated. One significant issue is the complex nature of options pricing mechanisms and their integration with required margin levels. Many crypto platforms focus on innovative trading strategies like covered calls or volatility trades, yet they frequently neglect essential backend processes like clearing and settlement. These systems are vital for the stability and functionality of any financial trading system but are often inadequately developed in the crypto context.

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Another challenge is the high capital cost required to establish positions in these derivatives. Without efficient cross-margin capabilities, executing sophisticated trades or managing spread positions can become prohibitively expensive, often erasing the potential gains from such strategies. This situation is exacerbated by the high cost of margin on many platforms, which deters the development of more intricate products like options. The existing margin models in crypto options markets do not sufficiently accommodate the nuances of traditional options trading, hindering the establishment of robust and functional options platforms.

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Our Vision for Crypto Options Trading

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At Crypto Valley Exchange, we recognise the complexities and challenges currently facing the crypto options market and are committed to forging a path toward a more mature, robust platform. 

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Our vision centers on the development of an advanced, on-chain clearing and settlement system that addresses the core issues hindering the growth of decentralised options markets. By focusing on the backend infrastructure as much as the frontend user experience, we aim to create a transparent, efficient, and secure trading environment.

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We believe that a comprehensive clearing and settlement system, integrated seamlessly with smart contract technology, is crucial for supporting sophisticated trading strategies and ensuring market stability. This system will facilitate accurate, timely settlements and provide a solid foundation for market participants to engage confidently in options trading. Additionally, we are dedicated to introducing cross-margin capabilities that enhance capital efficiency, allowing traders to manage multiple positions more effectively and economically.

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It’s a Nice Option!

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The potential of options trading in the cryptocurrency market is vast, yet untapped due to existing limitations in technology and market structure. At Crypto Valley Exchange, we are poised to revolutionise this space by addressing these challenges head-on. By focusing on essential infrastructure and innovative solutions like cross-margining and comprehensive risk management, we aim to unlock the full potential of crypto options trading. Our approach caters to seasoned traders and invites newcomers to participate in a more accessible and equitable financial ecosystem.

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Join us as we pave the way for a new era in decentralised finance, where options trading is no longer encumbered by traditional constraints but empowered by blockchain innovation. Together, we can build a platform that meets the market's current needs.

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Misconceptions and overconfidence can lead to significant misunderstandings and financial missteps. This phenomenon, often observed in discussions around complex trading scenarios like the GameStop saga, echoes the psychological concept known as the Dunning-Kruger effect. Here, individuals with limited knowledge or competence in a specific area overestimate their understanding, leading to misinformation and potentially costly errors. 

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This article, inspired by insights from our CPO James Davies — who brings over 25 years of experience in financial markets — aims to shed light on this cognitive bias and its impact on traders. We encourage our readers to follow James on Twitter (@jlldavies) for more expert insights on trading.

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What is the Dunning-Kruger Effect?

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The Dunning-Kruger effect is a cognitive bias where people with limited knowledge or ability in a particular area greatly overestimate their own expertise. In trading, this often manifests when individuals with only surface-level information feel overly confident about their understanding of complex financial instruments, market dynamics, or the motivations of market actors. This misplaced confidence can lead to decision-making that isn't just incorrect, but potentially detrimental.

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Misinformation Highlighted by the GameStop Saga

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The GameStop trading frenzy serves as a prime example of the Dunning-Kruger effect in action. Many discussions and assertions made during the event showcased profound misunderstandings of market mechanisms and player motivations. For instance, the belief that the plight of a few hedge funds represented a systemic attack on Wall Street, or misconceptions about market practices such as naked short selling and settlement cycles, highlighted a gap between perceived and actual understanding among retail investors.

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The Dunning-Kruger effect can be visualised through a curve that represents confidence against knowledge. Initially, a small amount of learning leads to a significant boost in confidence — a peak of "Mount Stupid", where knowledge is minimal, but confidence is high. As one gains more information and expertise, they realise the complexity of the subject, and their confidence dips, entering the "Valley of Despair". With continued learning and experience, confidence gradually rebuilds based on a more solid foundation of true expertise.

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The Duty to Educate Ourselves

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For DeFi and crypto markets to mature and thrive, participants must move beyond echo chambers and seek comprehensive education on trading mechanisms. Understanding the intricacies of market risk, cascade risk, default waterfalls, and calculating yields and returns with an awareness of counterparty risks is essential. The path to competing effectively with traditional financial systems lies in a well-informed community that prioritises knowledge over noise.

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The future of DeFi holds tremendous potential, but realising this potential requires a community that is well-educated and deeply knowledgeable about how financial markets function. Let us commit to enhancing our understanding of trading principles and market dynamics. By deepening our knowledge, we can foster a more resilient, informed, and competitive ecosystem in DeFi. Let's take up the mantle of education and pave the way for a robust financial future.

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This commitment to self-education and community enlightenment will help mitigate the effects of the Dunning-Kruger effect and empower traders to make more informed and strategic decisions in the increasingly complex world of cryptocurrency and decentralised finance.

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The financial sector has long been dominated by traditional finance systems, which, despite their widespread use, harbor fundamental issues that affect everyday consumers and investors. This article introduces Decentralised Finance (DeFi) as a revolutionary model poised to fix these enduring problems.

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What Are TradFi and DeFi?

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Traditional Finance, or TradFi, encompasses the established systems and institutions—like banks, investment funds, and brokerage firms—that have long been the pillars of the financial world. These institutions act as intermediaries in almost every type of financial transaction, from simple banking services to complex trading and asset management. The reliance on these intermediaries often introduces inefficiencies, including slower transaction times and higher costs for consumers. For example, when sending money overseas, fees can be exorbitant, and processing may take days due to the involvement of multiple banks.

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Moreover, the complexity of products and the opaque nature of TradFi can deter the average consumer from fully engaging with their finances. Products such as mortgage-backed securities and derivative contracts are often difficult to understand without specialised knowledge, creating a barrier to entry for the average person.

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In contrast, Decentralised Finance, or DeFi, eliminates these traditional intermediaries by leveraging blockchain technology. DeFi platforms operate using smart contracts—self-executing contracts with the terms directly written into code—which are deployed on blockchains like Ethereum. This setup allows DeFi to operate globally, transparently, and without the need for middlemen. Transactions on DeFi platforms can occur faster and at a lower cost compared to traditional methods.

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An exemplary DeFi platform is CVEX, a decentralised derivatives exchange. CVEX enables users to trade derivatives directly from their digital wallets, eliminating the need for traditional brokerage or clearinghouse intermediaries. This reduces the fees associated with trading and gives traders full control over their funds at all times. The use of smart contracts on CVEX ensures that all trades are executed transparently and that the terms of the contracts are automatically enforced, further enhancing the security and efficiency of trading.

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Additionally, because DeFi platforms are typically open source, they allow for high levels of innovation and rapid development of new financial products and services that can meet the diverse needs of a global user base. This openness also helps in fostering a community of developers who continuously work to improve the platforms and address user needs in real-time, something that is less feasible in the closed ecosystems of traditional finance.

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5 Problems of TradFi

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1. High Fees and Middlemen Costs. Traditional finance systems are notorious for the excessive fees charged at multiple levels of financial transactions. For example, investment management fees, brokerage fees, and bank charges can significantly erode investment returns. Studies suggest that investment management fees alone can consume up to 40% of total returns over 25 years. These costs act as a major drain on wealth accumulation for individual investors.

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2. Regulatory Burdens. While regulations are crucial for maintaining system integrity and protecting consumers, they can also create unintended consequences. The regulatory frameworks often increase operational costs for financial institutions, which, in turn, pass these costs onto consumers through higher service fees. Moreover, these regulations can erect barriers that prevent new entrants from joining the market, thus stifling innovation and competition.

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3. Inefficiencies in Transaction Processing. TradFi is often hampered by outdated systems that lead to inefficiencies in processing transactions. For example, cross-border payments can be slow and entail numerous steps involving several intermediaries, each adding their own fees and time delays. Such inefficiencies are particularly disadvantageous in a global economy where speed and efficiency are paramount.

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4. Economic Disparity and Lack of Social Mobility. The traditional financial system has played a role in widening the economic gap. Wealth and power are increasingly consolidated within the finance sector, predominantly among the top 1% of the population. This consolidation has contributed to stagnation in social mobility and growing economic disparities across different societal segments.

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5. Opaque Practices and Lack of Transparency. TradFi is often criticised for its opaque practices where the true costs, risks, and returns are unclear to consumers. This lack of transparency can lead to misinformed financial decisions and perpetuates a system where only the well-informed or well-connected can navigate successfully.

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How DeFi Can Help

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DeFi, or Decentralised Finance, acts as a potent transformative force within the financial sector, tackling many inefficiencies and inequalities found in traditional finance. By leveraging blockchain technology, DeFi eliminates the need for intermediaries such as banks and brokers. This reduction lowers transaction costs and accelerates financial exchanges globally, enhancing both the speed and accessibility of financial services.

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The use of blockchain ensures that every transaction is recorded on a public ledger, making every process visible and reducing the possibility of fraud. This level of transparency fosters trust among users, who can rely on the integrity of financial activities without traditional audits. Moreover, the public nature of blockchain democratises access to financial services, bringing them within reach of the unbanked and underbanked populations around the world. This is particularly transformative for global financial inclusion, allowing individuals who were previously excluded from the financial system to engage in economic activities and manage their financial futures.

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Furthermore, DeFi promotes a competitive financial ecosystem by reducing barriers to entry, encouraging innovation, and facilitating a broader range of participants. This enriches the market and ensures financial services evolve to meet the needs of today’s digitally-oriented and globally connected population. Unlike traditional finance, where decisions are often centralised, DeFi platforms frequently use governance models that allow users to vote on key issues, empowering them with a direct stake in the platform's development.

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By these means, DeFi challenges the traditional financial model with its advanced, inclusive technologies and promises a more equitable and transparent future for financial markets worldwide.

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Bottom Line

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DeFi represents a significant step forward in creating a more equitable, efficient, and transparent financial system. As this sector matures, it will require continuous innovation, active community engagement, and adaptive regulatory approaches to ensure that its growth aligns with the broader objectives of financial equity and accessibility. The transformative potential of DeFi could redefine the global financial landscape, making it more inclusive and fair for all participants.

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Market makers often get a bad rap, portrayed as shadowy figures manipulating the markets. However, they play an integral role, not as hidden forces but as fundamental pillars ensuring market liquidity and stability. At CVEX, we recognise the pivotal role of market makers in creating a dynamic and efficient trading environment, which is why we are committed to promoting partnerships with them.

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Market makers help bridge the gap between buy and sell orders, ensuring that trades can be executed swiftly, even during periods of significant volatility or when large orders are placed. This is crucial in maintaining an orderly market and preventing price manipulations or extreme fluctuations that could harm the market’s integrity. By providing liquidity, market makers enable other traders to enter and exit positions at competitive prices, enhancing overall market health and trader confidence.

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Our Strategy for Market Maker Engagement

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Market makers are vital in ensuring sufficient liquidity on trading platforms, which is essential for the execution and pricing of trades, especially in derivatives markets. By continuously buying and selling financial instruments, they help fill the order book and enable smoother transactions, reducing slippage and enhancing the trading experience for all platform participants. That’s why we have prepared an attractive strategy to empower your work, our precious MMs:

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Selection of Designated Market Makers (DMMs)

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To optimise our trading environment, we collaborate with DMMs, which are selected based on stringent criteria, including financial robustness, trading expertise, and technological capabilities. Our platform accommodates up to four DMMs at any given time to ensure diversity and competitive market-making activities.

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Incentives and Support

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We understand the need for market makers to have solid incentives. Therefore, 40% of transaction fees collected by CVEX are redistributed to DMMs. This performance-based reward system encourages them to maintain tight spreads and a deep order book. Additionally, we provide DMMs with operational support, such as technical advice and assistance to empower their trading strategies.

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Transparent and Stable Operational Framework

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Regular assessments ensure that our market makers meet pre-defined liquidity and efficiency criteria. We maintain a stable incentive structure to provide a predictable working environment for DMMs, which is crucial for long-term planning and effective market-making.

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Why Market Makers Choose CVEX

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Our platform offers a uniquely supportive environment for market makers:

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• Financial Incentives: Attractive fee redistribution and performance-based rewards.
• Technological Support: Access to advanced trading tools and analytics.
• Transparency: Clear communication and open access to platform developments.
• Governance Participation: Involvement in decentralised governance through our DAO, influencing platform operations and future developments.

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Our collaboration with market makers remains a top priority as we continue to grow and evolve. We are committed to enhancing our platform's features and stability, supporting robust trading strategies and operations. The collective goal is to build an ecosystem that supports current market needs and adapts to future challenges and opportunities.

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We invite market makers looking to impact a leading cryptocurrency trading platform to join us. Together, we will shape the future of decentralised trading, creating a more efficient, transparent, and beneficial market for all participants.

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Join Us!

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If you want to collaborate with us or learn more about our market maker program, please contact our Chief Product Officer, @jlldavies on Twitter. We look forward to forging strong partnerships that drive mutual success and innovation.

Read a part of our Docs about Market Makers.

Derivatives are contracts that derive their value from underlying assets like stocks, cryptocurrencies, or commodities. They enable traders to speculate on future price movements without direct ownership. Common types include futures, options, and swaps.

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Decentralised derivatives transform these traditional instruments using blockchain technology, eliminating the need for intermediaries such as banks or brokers. This peer-to-peer setup allows for direct, efficient trading experiences and skips KYC procedures, enhancing privacy and accessibility.

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Traders control their funds directly through cryptocurrency wallets, maintaining custody of assets and reducing third-party risks. CVEX leverages blockchain to support diverse derivative products and introduces features such as cross-chain trading and enhanced leverage options. These innovations provide traders with broader market access and sophisticated strategies underpinned by the security and transparency of blockchain technology, positioning CVEX as a leader in the decentralised derivatives market.

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CVEX’s Implementation and Technological Backbone

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CVEX harnesses a comprehensive technological stack to provide a seamless trading experience in exchanging decentralised derivatives. Ethereum, celebrated for its robust security and broad adoption, forms the foundation of CVEX’s infrastructure. CVEX integrates Layer 2 solutions like Arbitrum to boost performance and scalability, which offer quicker transactions and lower gas costs while maintaining Ethereum's security.

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Central to CVEX's operations are smart contracts, which automate the execution of derivative contracts and manage functions from trade settlement to collateral management. Programmed to act when specific conditions are met, these smart contracts ensure transparency and continuous operation without manual intervention, minimising human error.

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For accurate pricing and effective risk management, CVEX utilises blockchain oracles. These services provide real-time data essential for valuing derivatives and managing risks, by feeding external information like asset prices and volatility indices directly to the blockchain. 

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You can read more about Price and Risk Oracles in our recent blog.

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This robust combination of blockchain technology, smart contracts, oracles, and a DAO supports CVEX's complex derivative trading while promoting decentralisation and user empowerment. The infrastructure sets CVEX apart as a cutting-edge platform in the decentralised finance landscape, ready to meet modern traders' needs and define new standards in DeFi.

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Advanced Trading Strategies and Safety Measures

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CVEX is designed to accommodate advanced trading strategies, offering traders the flexibility to hedge and leverage effectively within a secure environment. Hedging on CVEX involves taking positions that offset potential losses in other parts of a trader's portfolio. For example, if a trader expects a downturn in Bitcoin, they might buy a futures contract that profits when Bitcoin's price falls (e.g. some altcoins), thereby mitigating the risk of their spot holdings.

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Leverage is another powerful tool available on CVEX, allowing traders to amplify their market exposure with less capital. For instance, with a 10x leverage, a trader can control a position worth $10,000 using just $1,000. This can significantly increase potential returns but also increase risk, making effective risk management crucial.

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CVEX employs a sophisticated Value at Risk (VaR) model to manage the risks associated with high leverage. This model helps determine the maximum expected loss over a specified period at a given confidence interval, ensuring traders do not exceed their risk capacity. The VaR model is particularly useful in volatile market conditions, providing traders with clear metrics to guide their decision-making and maintain sufficient collateral.

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Looking towards the future, CVEX plans to introduce customisable leverage options to enhance trader autonomy and control. These options will include user-friendly tools like leverage sliders, enabling traders to adjust their leverage levels easily according to their risk tolerance and market conditions. This feature will allow traders to fine-tune their strategies dynamically, adapting to changing market dynamics without compromising security.

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In addition to these trading tools, CVEX is committed to maintaining high safety standards. The platform incorporates multiple safety protocols to protect traders’ investments. These include regular audits, secure smart contract deployment, and continuous monitoring of platform activities to respond to any potential security threats.

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By combining advanced trading functionalities with robust safety measures, CVEX empowers traders to explore complex strategies and ensures a trading environment where they can operate confidently. The upcoming features like customisable leverage sliders further reflect CVEX's commitment to enhancing user experience and providing traders with the tools they need to succeed in the dynamic world of decentralised finance.

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Embrace the Future!

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Discover the power of decentralised derivatives with CVEX. Our platform melds cutting-edge blockchain technology with advanced trading strategies like hedging and leveraging, all within a secure and transparent environment.

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Dive into the future of trading on the CVEX testnet. Experiment with derivatives without financial risk and sharpen your trading skills. Ready to take control? Start trading now on our testnet!

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It's been over a month since the last major update, and we can't wait to share what we've been working on since then. 

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Deployment Success on Sepolia Stylus Testnet

We have successfully deployed a set of our smart contracts to the Stylus Testnet on Sepolia. They will be integrated as soon as Stylus releases as part of Sepolia Testnet.  As we are one of the first to do so, this is a huge step forward for the smooth operation and expansion of the Stylus ecosystem!

You can join us in pushing the boundaries of what’s possible by voting for the Stylus team here: AIP: Activate Stylus and Enable Next-Gen WebAssembly Smart Contracts (ArbOS 30).

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🔔 What’s New on CVEX?

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- Light Theme: By popular demand, we've added a light theme. You can apply this it in the settings to customise your interface.

- 1 connect to use them all: We've reworked the navigation, so switching between Achievements, Affiliate Dashboard, and the Trading Terminal no longer requires reconnecting your wallet.

- Email Sign-In via Wallet Connect: Thanks to @WalletConnect, we now offer an Email Sign-In option, allowing you to create a wallet using your email. This makes accessing your account even more convenient.

- Connection Status Widget: This widget indicates the difference between the last block timestamp received by a user and the user's local machine time, providing insights into blockchain issues or connection stability.

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🛠️ Enhancements

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- Simplified Order Placement: Placing orders is now more intuitive, with automatic amount recalculation. 

- Cancel All Orders Shortcut: We’ve added a shortcut to bulk cancel all orders, making order management more efficient.

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🔧 Fixes

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- We've spent a lot of time researching and fixing various bugs to improve overall performance. Your experience should now be smoother and more reliable.

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Thanks for your continued support. One step closer to becoming your favourite derivatives exchange! 

Leverage in trading is like using a magic magnifying glass that lets you play bigger in the market with less money. On CVEX, a trading platform, we take this tool to the next level, offering unique ways to use leverage safely and effectively. Whether you're starting small or aiming big, our platform gives you the power to stretch your trading dollars further, opening up new opportunities to grow your investments. Dive into the world of CVEX and discover how you can boost your trading strategies with our advanced leverage options.

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The Specifics of Leverage

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Leverage on the Crypto Valley Exchange (CVEX) is a dynamic tool that magnifies your trading power, allowing you to control a larger market position with a proportionately smaller amount of capital. At CVEX, leverage is calculated using a sophisticated Value-at-Risk (VaR) model, which assesses the worst expected market exposure over one day at a 99% confidence level. Typically, traders can access leverage ranging from 5x to 9x for cryptocurrencies.

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Simply put, leverage in trading works much like using a lever to lift a heavy object — it amplifies your ability to operate in the market with less effort. For instance, with a 10x leverage, you could handle $10,000 worth of assets with just $1,000. While this increases potential profits, it also heightens the risks since losses are similarly magnified.

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To enhance your trading experience and give you more control, we’re planning to introduce customizable leverage options in the near future. These include a user-friendly slider that allows you to adjust your leverage levels easily and align with your trading strategy and risk tolerance. Whether you prefer conservative trading or seek higher exposure, these new tools are designed to make leverage adjustment straightforward and tailored to your needs.

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Advanced Leverage Options and Hedging

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At CVEX, advanced leverage options open up strategic possibilities, particularly in hedging. Hedging involves balancing positions across assets that are related or correlated, like pairing a long position in Bitcoin with a short position in Ethereum. This strategy can effectively reduce risk and allow for higher leverage levels.

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For experienced traders managing complex, well-balanced portfolios, leverage can reach up to an astonishing 150x and higher. This high degree of leverage is made possible through meticulous risk management and a deep understanding of market dynamics. It allows seasoned traders to maximize their market influence and potential returns without tying up large amounts of capital. Essentially, by using advanced hedging strategies and leveraging correlated assets, traders can amplify their trading power significantly on the CVEX platform.

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Safety Measures and Platform Stability

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CVEX prioritizes safety with stringent protocols, particularly through the Value at Risk (VaR) model. This model helps manage the risks associated with leverage by predicting potential market exposures with a high degree of confidence. It ensures traders maintain enough collateral to cover potential losses, safeguarding against market volatility.

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To keep our platform stable and secure, CVEX regularly updates and refines leverage ratios and trading specifications. These continuous improvements are crucial for adapting to market changes and maintaining the security of all traders. By diligently monitoring and adjusting our strategies, CVEX provides a reliable and secure trading environment.

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Conclusion

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On the CVEX testnet, traders can experiment with leverage without the worry of liquidation. This risk-free environment is perfect for both new and experienced traders to explore and understand how leverage works in real market conditions, without any financial risk. The testnet serves as an excellent training ground to practice different trading strategies and see how various levels of leverage impact trade outcomes.

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Leverage is a powerful tool on CVEX that offers significant opportunities to amplify potential returns. However, it also requires careful management to avoid substantial losses. Traders are encouraged to use the advanced leverage options available on CVEX responsibly. By understanding and respecting the power of leverage, traders can effectively enhance their trading effectiveness while managing risk.

Sometimes, a trader might not have enough funds to cover a potential loss. When this happens, a process called "liquidation" is used to close their positions, ensuring the market remains stable and fair for everyone. This is like a safety net that prevents big problems before they happen. 

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It's important to know that while we talk about liquidation, it doesn't happen on our practice platform, the CVEX testnet. This means you can learn and try things out on the testnet without worrying about liquidation until we launch the real trading platform, the mainnet.

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What is Liquidation?

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Liquidation in cryptocurrency trading is when a trader’s position is closed by the trading platform because their account doesn't have enough funds to cover potential losses. Think of it as a forced exit from a trade when it looks like the trader might lose more money than they have available. This can happen when the value of cryptocurrencies changes rapidly and a trader’s losses are about to exceed what they originally invested.

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Why does this happen? 

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It’s all about keeping the market safe and fair. If a trader’s losses went unchecked, it could lead to bigger problems not just for them, but for everyone trading. By automatically closing these losing positions, the platform protects the trader from even greater losses and helps maintain a stable and reliable trading environment. This ensures that everyone on the platform can continue trading under fair conditions. Liquidation is a protective measure — a bit like how a circuit breaker works in your home, stopping the power when the system is overloaded to prevent any damage.

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Step-by-Step Liquidation Process on CVEX

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Understanding how liquidation unfolds on CVEX is key for traders. Here’s a clear, step-by-step guide on what happens from opening a position to possible liquidation.

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1. Position Opening by Trader:

When traders decide to enter a trade on CVEX, they open a position using some of their funds as collateral, which is known as the margin. This margin is important because it acts as a security deposit, ensuring that the trader can cover any losses they might incur in the trade. It's like putting down a deposit when renting something, promising that you'll cover any damages.

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2. Margin Ratio Exceeded:

A trader’s margin ratio exceeds 100% when their losses are about to surpass the margin they've put up. In simple terms, it means the trader's account no longer has enough funds to keep the trade open due to market movements against their position. This is a critical threshold because it triggers the platform’s protective mechanisms to start the liquidation process to prevent further losses that could destabilise the market.

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3. Initiation by Clearance Bots:

Clearance Bots on CVEX play a critical role in monitoring trading positions. When a trader’s margin ratio exceeds 100%, these automated systems quickly detect the risk and initiate the liquidation process. Think of Clearance Bots as vigilant guardians that constantly watch over the market, ensuring that all positions remain secure and swiftly addressing any that become risky.

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4. Liquidation Methods:

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• Market Order Liquidation: When liquidation is triggered, the system attempts to close the position using a market order, which sells the position at the best available market price. This method is designed to quickly mitigate risk by exiting the position, aiming to prevent further losses in a volatile market.

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• Use of Default Fund: If the proceeds from the market order are not sufficient to cover all outstanding liabilities, CVEX’s Default Fund comes into play. This fund is a safety net, accumulated from liquidation fees, used to cover the shortfall and ensure that all parties are protected against extreme market movements.

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• Counterparty Liquidation via Auto Deleverage Queue: As a last resort, if the Default Fund is unable to cover the liabilities, the platform engages the Auto Deleverage Queue. This process systematically reduces positions of other traders who hold opposite positions, ensuring market stability and fairness. It’s a necessary mechanism to prevent a cascade of defaults that could affect the broader market.

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Each of these methods is integral to maintaining market integrity and protecting both individual traders and the overall trading environment from significant losses.

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5. Distribution of Recovered Funds:

When liquidation occurs, the funds recovered are first used to pay off the outstanding debts of the liquidated trader. If the sale of the trader's positions generates more money than what was owed, the surplus is returned to the trader. This ensures that the trader only loses what is necessary to cover their debts, and if the market conditions are favorable, they may still retain some capital. This fair distribution method is crucial for maintaining trust and fairness in the trading system.

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6. Fees and Rewards:

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• Liquidation Fee: A fee is charged on each liquidated position, which is typically about 2% of the position’s nominal value. This fee is crucial as it contributes to the Default Fund, which acts as a buffer to absorb losses and protect the market during periods of high volatility or significant liquidations.

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• Rewards for Clearance Bots: Clearance Bots are incentivised to perform efficiently and protect the market. A portion of the liquidation fee, usually around 0.5%, is allocated as a reward to the Clearance Bot that successfully initiated the liquidation. This reward system ensures that Bots are motivated to monitor positions proactively, contributing to a stable and secure trading environment.

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Understanding these fees and rewards is essential for traders, as it highlights the importance of managing their risks and the mechanisms CVEX employs to uphold market integrity and compensate those who help maintain it.

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No Liquidation on Testnet

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Before we finish, it’s important to notice something one more time.

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On the CVEX testnet, traders can explore and experiment with various trading strategies without the risk of liquidation. This environment provides a safe space for learning and understanding market dynamics without the financial stress of actual trading. It’s an excellent opportunity for both novice and experienced traders to refine their techniques, test the impact of different leverage levels, and understand the behavior of their trades under simulated market conditions. 

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We encourage all our users to take full advantage of the testnet to develop and enhance their trading skills, preparing them for live trading scenarios where real capital is at stake.

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Conclusion

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So, understanding the liquidation process is essential for every trader engaged in cryptocurrency trading on platforms like CVEX. Liquidation acts as a critical control mechanism that protects the market and traders from excessive losses due to highly leveraged positions. For traders, comprehending when and how liquidations occur helps in crafting more informed and resilient trading strategies. It reinforces the need for effective risk management, prompting traders to maintain adequate margins and to continuously assess their position against market movements. This knowledge not only safeguards their investments but also enhances their ability to navigate volatile markets.

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Since its inception in 2009 with the launch of Bitcoin, the cryptocurrency market has undergone a remarkable transformation. What began as a digital curiosity has exploded into a bustling ecosystem featuring over 10,000 different cryptocurrencies, collectively valued at approximately $1.7 trillion. 

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This surge not only reflects the growing mainstream acceptance of crypto but also underscores the significant financial opportunities it presents. In this article, we spotlight the top 7 richest crypto traders in 2024, whose impressive fortunes exemplify the lucrative potential of savvy investment and strategic market engagement in the dynamic world of cryptocurrency.

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The Crypto Trading Phenomenon

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Cryptocurrency trading has captivated the financial world due to its volatility and the substantial profits it can yield. This allure stems from the market's around-the-clock availability, offering continuous opportunities for traders. Successful crypto traders employ a variety of strategies to capitalise on these dynamics. Day trading, for instance, exploits short-term market movements, while long-term investing banks on the future growth of digital assets. High-frequency trading (HFT) leverages algorithms to execute rapid trades, exploiting minute price discrepancies.

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However, the high reward potential comes with substantial risks. Effective risk management is crucial; traders must be adept at safeguarding capital through diversified investments and stringent security practices. Diversifying across different cryptocurrencies can mitigate risks associated with the volatility of any single asset. Similarly, utilising secure trading platforms and cold storage options ensures the safety of digital assets. These risk management practices are essential for sustaining profitability in the unpredictable crypto market, ensuring traders can continue to engage with this exhilarating trading phenomenon.

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 Profiles of the Top 7 Richest Crypto Traders

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1 - Changpeng Zhao (CZ) 

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Net worth: $33 billion

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The cryptocurrency landscape is dominated by influential figures whose strategic investments and innovations have shaped the industry. Among these pioneers, Changpeng Zhao, commonly known as "CZ," stands out as a colossal figure. As the founder and CEO of Binance, the world's largest cryptocurrency exchange by trading volume, CZ has been pivotal in shaping the crypto trading arena.

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Born in Jiangsu, China, and immigrated to Canada during his teenage years, CZ's journey into the crypto world began after stints in the Tokyo Stock Exchange and Bloomberg's Tradebook. His foray into blockchain technology led to the creation of Binance in 2017. Under his leadership, Binance quickly rose to prominence, capitalising on its user-friendly interface, wide array of cryptocurrencies, and low transaction fees.

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CZ’s role in Binance is not just administrative; he holds a significant stake in the company, which has been central to his ascent as one of the richest figures in the crypto world. His influence extends beyond corporate success; CZ is a prominent voice in the cryptocurrency community. He is known for his active engagement on social media, where he shares insights, champions blockchain technology, and interacts with Binance users. His advocacy for transparency and user engagement has not only bolstered Binance’s market position but has also endeared him to many in the crypto community, cementing his status as a key player in the digital finance revolution.

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2 - Brian Armstrong

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Net worth: $11.2 billion

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Brian Armstrong, co-founder and CEO of Coinbase, has been a driving force in the mainstream acceptance of cryptocurrencies. Launching Coinbase in 2012, Armstrong sought to make buying and trading digital currencies as straightforward as ordering products online. Under his leadership, Coinbase has grown into a cornerstone of the crypto market, renowned for its user-friendly interface, robust security measures, and commitment to regulatory compliance.

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Armstrong's vision extends beyond transactional platforms; he foresees a future where cryptocurrencies fundamentally reshape financial systems to be more inclusive and efficient. His strategic direction for Coinbase involves not only enhancing accessibility to crypto trading but also expanding blockchain usage into various sectors. Armstrong's insights and leadership have positioned him as a thought leader in the digital currency space, shaping discussions around the future potentials of blockchain technology.

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3 - Giancarlo Devasini 

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Net worth: $9.2 billion

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Giancarlo Devasini stands out as a central figure in the cryptocurrency landscape, holding the position of CFO and potentially the largest shareholder of Tether, the most significant issuer of stablecoins. His strategic financial leadership at Tether has been instrumental in managing over 100 billion Tether tokens, crucial for providing stability in the volatile crypto market. With a net worth of $9.2 billion, Devasini's wealth stems substantially from Tether's impressive profitability, which last year alone generated $6.2 billion in profits, capitalising on high interest rates and the expansive use of Tether in global financial transactions. 

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His substantial 47% stake in Tether underscores his influence and commitment to sustaining Tether's dominance in the stablecoin market.

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4 - Joseph Lubin

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Net worth: $5 billion

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Joseph Lubin's pivotal role as a co-founder of Ethereum and the founder of ConsenSys has significantly shaped the development and expansion of the Ethereum blockchain. At ConsenSys, Lubin focuses on building infrastructure and applications on the Ethereum network, promoting its capabilities beyond mere cryptocurrency use to encompass decentralised finance and enterprise solutions. 

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His influence extends throughout the blockchain industry, championing the potential of Ethereum to create a decentralised internet, often referred to as Web3. Lubin’s vision and leadership continue to drive innovation and adoption in the blockchain space, reinforcing Ethereum’s position at the forefront of digital transformation.

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5 - Chris Larsen

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Net worth: $3.2 billion

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Chris Larsen is a key figure in the cryptocurrency landscape, notably for co-founding Ripple and advocating for the broad adoption of blockchain technology in financial systems. Here's a snapshot of his significant contributions:

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• Co-founder of Ripple: Larsen helped establish Ripple Labs, which revolutionised digital payment protocols through its Ripple payment system, greatly enhancing cross-border transactions with faster processing times and reduced costs.
• Financial Blockchain Innovation: His work has pushed for blockchain integration into mainstream banking, transforming financial infrastructures around the globe.
• Advocate for Fintech Regulation: Larsen actively engages with policymakers to shape a regulatory environment that supports both innovation and consumer protection in the fintech sector.
• Philanthropy: Committed to giving back, he has donated millions to charitable causes and supports various initiatives aiming to improve financial accessibility.

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Chris Larsen's enduring impact on the financial blockchain ecosystem continues to influence the evolution of digital currencies and their adoption across various sectors.

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6 - Tyler and Cameron Winklevoss

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Net worth: $2.7 billion

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Tyler and Cameron Winklevoss, prominent figures in the cryptocurrency sphere, made significant contributions to the sector following their early investment in Bitcoin. The Winklevoss twins were among the first to recognise the potential of cryptocurrencies, heavily investing in Bitcoin during its nascent stages. They founded Gemini, a New York-based cryptocurrency exchange and custodian, which emphasises user security and regulatory compliance, making it a trusted platform for digital assets trading.

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Contributions to Cryptocurrency Regulation:

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• Advocacy for Clear Regulations: They have been vocal proponents for clear, robust regulatory frameworks that support both innovation and investor protection.
• Security First Approach: Gemini was the first licensed Ether exchange, leading the way in obtaining necessary approvals and setting industry standards.

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The Winklevoss twins continue to drive crypto towards mainstream acceptance, shaping its regulatory landscape and enhancing its credibility.

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7 - Mike Novogratz

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Net worth: $2.5 billion

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Mike Novogratz, a former hedge fund manager, made a pivotal shift to cryptocurrency, becoming a significant advocate for its adoption within traditional investment circles. His transition was marked by founding Galaxy Digital, a diversified financial services firm dedicated to the digital asset and blockchain technology sector. 

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Novogratz leverages his extensive experience in traditional finance to bridge the gap between crypto and conventional investments, promoting broader acceptance and understanding of digital currencies among institutional investors. His efforts have positioned him as a key figure in mainstreaming cryptocurrency, influencing its perception and acceptance globally.

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Success Factors Behind Their Wealth

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The wealthiest traders share several pivotal traits and strategies that underpin their success. These elite traders possess a keen ability to leverage market trends, adapt to technological advancements, and navigate the evolving regulatory landscape, setting them apart from the competition.

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1. Leveraging Market Trends
   The top crypto traders excel at identifying and capitalising on market trends. They use sophisticated analytical tools to predict market movements and position their investments to maximise gains or minimise losses, often before these trends become apparent to the broader market.

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2. Technological Advancements
   Adaptation to new technologies is another hallmark of successful crypto traders. They often lead the charge in adopting emerging technologies, such as blockchain enhancements and advanced trading algorithms, which enable them to execute transactions faster and with more precision than less tech-savvy market participants.

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3. Navigating Regulatory Changes
   Regulatory acumen is also crucial. The best traders stay well-informed about regulatory changes in various jurisdictions and adjust their trading strategies accordingly. This proactive approach not only helps in compliance but also in capitalising on new opportunities that such regulations might present.

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4. Innovation and Adaptability
   Finally, innovation and adaptability are essential. The crypto market is known for its rapid changes and volatility. Successful traders are those who can quickly adapt their strategies in response to new information or market shifts. This agility enables them to remain profitable in an industry where many others may struggle.

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In essence, these traders' success is not merely about having capital but about smartly deploying that capital by synthesising market insights, technological prowess, and regulatory foresight. This blend of skills and strategies helps them maintain and grow their wealth in the competitive crypto trading landscape.

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How to Follow in Their Footsteps

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For aspiring traders eager to emulate the success of the top crypto traders of 2024, several actionable steps can set the foundation for a successful trading career. By observing and incorporating the methods of these financial trailblazers, newcomers can significantly enhance their trading acumen and strategic approach.

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Market Research

Deep and thorough market research is a cornerstone of successful trading. This involves following the prices and news related to major cryptocurrencies and understanding broader economic indicators that could impact the crypto market. Learning from the analytical approaches of successful traders can provide insights into developing a nuanced understanding of the crypto ecosystem.

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Community Engagement

Engaging with the crypto community can provide a wealth of knowledge and networking opportunities. Successful traders often share their insights through social media or cryptocurrency forums. New traders can benefit immensely from such platforms by learning from discussions and staying updated on the latest trends and strategies discussed within the community.

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Practical Experience

While theoretical knowledge is crucial, there is no substitute for practical experience. Using demo accounts or participating in testnet environments allows traders to hone their skills without financial risk. For instance, our CVEX testnet offers a simulated trading environment where new traders can practice their strategies, participate in our testnet program, and potentially reap future benefits as they learn the ropes of crypto trading.

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By following these steps, new traders can begin their journey on solid footing, armed with the knowledge and skills necessary to navigate the volatile world of cryptocurrency trading effectively.

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Wrapping up

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In exploring the journeys and strategies of the top 7 richest crypto traders of 2024, we've gleaned valuable insights into the mindset and methodologies that drive success in the volatile world of cryptocurrency trading. From steadfast dedication to education and rigorous market research to active community engagement and continuous adaptation to new technologies and regulations, these traders exemplify what it takes to achieve and sustain financial success.

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For those inspired by these crypto moguls, the path forward involves more than just admiration—it requires action. By applying the lessons learned from these financial pioneers, you too, can refine your trading strategies and potentially replicate their success in your own trading endeavours.

To further your trading skills and explore various effective strategies, we invite you to visit the CVEX blog. Here, you'll find a wealth of resources tailored to both novice and experienced traders aiming to enhance their market understanding and trading proficiency. Dive into our content, experiment on our testnet, and take your first steps towards becoming a savvy crypto trader today.

We're thrilled to announce a significant step forward in our journey at CVEX — a strategic alignment with Google Cloud. This collaboration is part of Google Cloud's commitment to supporting Web3 innovations and has recognised our efforts with a substantial $200,000-worth grant. This alliance is not just about financial backing but a testament to our shared vision for pioneering advancements in decentralised finance.

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Our Partnership in Action

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Utilising Google Cloud's cutting-edge technologies, we're enhancing various facets of our platform:

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• Testnet Operations. Google Cloud powers our Testnet, ensuring robust, scalable, and efficient testing environments that mimic real-world conditions for optimal user experience.
• Affiliate Dashboard. We leverage Google Cloud solutions to run our Affiliate Dashboard, streamlining operations and providing our partners with real-time, actionable insights.
• Scalable Infrastructure. As demand on our platform grows, Google Cloud’s scalable solutions ensure we can seamlessly manage increased activity without compromising performance.
• Smart Contracts and NFT Deployment. Through our partnership with ThirdWeb, we efficiently deploy smart contracts and NFTs, backed by the reliability and security of Google Cloud’s infrastructure.
• Networking Solutions. Google Cloud's state-of-the-art networking solutions help us deliver the lowest latency experiences, ensuring smooth and uninterrupted trading for our users.

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What This Means for Our Users

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This grant from Google Cloud is more than just a financial boost — it's a milestone that brings substantial resources to enhance our platform’s development. It reinforces our commitment to using top-tier technology to provide a robust, secure, and seamless trading environment. This partnership will help us stay ahead of the curve in the fast-evolving world of Web3 and decentralised finance.

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Looking Ahead

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With Google Cloud’s support, we are set to innovate further, enhance security measures, and boost user satisfaction. We are excited about the future and grateful for this opportunity to upgrade our services under the Google for Web3 Startups initiative.

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Stay tuned for more updates as we leverage this incredible opportunity to expand our capabilities and continue leading the charge in revolutionising derivatives trading. Thank you for being a part of our community — your trust and support motivate us to keep pushing the boundaries of what is possible in decentralised finance. Together, we're not just participants in the market — we're shaping its future.

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At CVEX, a leading decentralised derivatives exchange, we're here to demystify the concept of Crypto ETFs (Exchange-Traded Funds) and their pivotal role in the broader financial ecosystem. 

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This article will delve into the fundamentals of Crypto ETFs, offering you insights into various types, how they operate, and the pros and cons of integrating them into your investment portfolio. As the bridge between traditional investment mechanisms and the dynamic realm of cryptocurrencies, Crypto ETFs provide a structured gateway for investors to gain exposure to digital assets without the complexities of direct trading. 

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Whether you're a seasoned investor or new to the cryptocurrency scene, understanding Crypto ETFs will enhance your trading strategies and decision-making on platforms like CVEX. Join us as we explore the potential and intricacies of Crypto ETFs in the modern investment landscape.

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What Are Crypto ETFs?

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Crypto ETFs, or cryptocurrency exchange-traded funds, serve as a bridge for traditional investors to enter the world of digital assets without the complexity of managing cryptocurrencies directly. These financial instruments are designed to track the performance of one or more digital currencies or related technologies, such as blockchain, by being traded on conventional stock exchanges like any other ETF.

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Essentially, Crypto ETFs allow investors to buy shares in a fund that represents an investment in cryptocurrencies. This method provides exposure to the crypto market's potential gains while mitigating the risks and technical challenges associated with setting up digital wallets and securing private keys. Investors can thus participate in the potential growth of digital assets through a familiar investment vehicle, without needing to engage directly with the underlying technology.

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Crypto ETFs blend traditional investment strategies with access to emerging technologies, offering a straightforward and less daunting entry point into the crypto space.

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Types of Crypto ETFs

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Crypto ETFs come in various forms, each catering to different aspects of the cryptocurrency and blockchain landscape. Here’s a breakdown of the most common types:

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• Bitcoin ETFs. These ETFs are primarily focused on tracking the price of Bitcoin, the leading cryptocurrency by market capitalisation. An example is the ProShares Bitcoin Strategy ETF (BITO), which mirrors the performance of Bitcoin through futures contracts rather than direct ownership of the digital currency.

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• Ethereum ETFs. Similar to Bitcoin ETFs but centered around Ethereum, these funds aim to mirror the movements of Ether. Although direct Ethereum ETFs are not yet available on major U.S. exchanges, products like the Grayscale Ethereum Trust (ETHE) offer similar exposure through a fund structure.

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• Blockchain ETFs. These funds invest in a portfolio of companies actively involved in developing and implementing blockchain technologies. The Amplify Transformational Data Sharing ETF (BLOK) is a notable example, providing investors with exposure to the blockchain sector beyond just cryptocurrencies.

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• Bitcoin Miner ETFs. Targeting the mining sector of the Bitcoin ecosystem, these ETFs invest in companies that produce bitcoins through the mining process. The Valkyrie Bitcoin Miners ETF (WGMI) is an example, focusing on firms that generate revenue through mining activities.

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The regulatory environment, especially for spot Bitcoin ETFs, remains a complex and evolving area. While futures-based Bitcoin ETFs have been approved, the U.S. Securities and Exchange Commission (SEC) has been cautious with spot Bitcoin ETFs, which would hold actual bitcoins rather than derivatives. The approval process has been stringent due to concerns over market manipulation and the lack of surveillance-sharing agreements with major cryptocurrency exchanges.

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Comparative Table of Crypto ETF Types:

How Crypto ETFs Work?

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Crypto ETFs provide investors with a pathway to participate in the cryptocurrency market without direct ownership of digital assets. These ETFs are structured to hold cryptocurrencies directly (spot ETFs) or use financial instruments like futures contracts to emulate the price movements of cryptocurrencies (futures-based ETFs).

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Spot ETFs directly purchase and hold the cryptocurrency, allowing the ETF's performance to closely mirror the actual price movements of the digital asset it represents. In contrast, futures-based ETFs invest in futures contracts that speculate on the future price of cryptocurrencies, potentially introducing some deviation due to factors like roll costs and contango.

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Investors can buy and sell shares of Crypto ETFs just like any other stock through traditional exchanges during regular trading hours. This process simplifies access to the volatile crypto market, providing a familiar, regulated framework for traditional investors to gain exposure to digital currencies.

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Pros and Cons of Investing in Crypto ETFs

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Investing in Crypto ETFs offers several advantages and disadvantages that investors should consider:

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Advantages:

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1. Accessibility: Crypto ETFs simplify entry into the cryptocurrency market via traditional brokerage accounts, avoiding the complexities of crypto wallets and exchanges.
2. Diversification: These ETFs often hold multiple cryptocurrencies or related securities, spreading risk across various assets.
3. Liquidity: Traded on major stock exchanges, Crypto ETFs offer high liquidity compared to direct cryptocurrency transactions.
4. Risk Mitigation: Investors are not required to handle security concerns like private key management, reducing the risk of theft or loss.

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Disadvantages:

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1. Tracking Error: The performance of Crypto ETFs may not exactly match the underlying assets due to management fees or the mechanics of futures contracts.
2. Counterparty Risk: Using derivatives introduces risks if the other party defaults on the contract.
3. Regulatory Uncertainties: The evolving legal landscape can impact ETF performance and availability.
4. Market Volatility: Cryptocurrency markets are notoriously volatile, affecting ETF valuations rapidly.

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These factors make Crypto ETFs a compelling yet complex investment choice for those looking to diversify into digital assets with a traditional investment feel.

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Crypto Trading or Crypto ETFs?

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Investing in Crypto ETFs versus directly owning cryptocurrencies presents distinct differences, each appealing based on the investor's comfort with risk and desire for involvement in asset management.

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Crypto ETFs provide a simplified, less hands-on approach to cryptocurrency investment. They offer traditional market trading hours in regulated environments and avoid the technicalities of cryptocurrency storage and security. This makes them an attractive option for traditional investors seeking exposure to crypto without the complexities of direct management.

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Direct Crypto Investments involve purchasing cryptocurrencies like Bitcoin or Ethereum directly through exchanges. This method allows for 24/7 trading and potentially lower fees. It also offers excitement and deeper engagement in actively participating in the crypto market, including using platforms like CVEX for trading futures. It can be more thrilling and rewarding for those familiar with such environments.

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Choosing between ETFs and direct investments often comes down to personal preference for involvement level, risk tolerance, and interest in the technology behind cryptocurrencies.

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Wrapping Up

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Crypto ETFs stand as a pivotal innovation, offering a bridge for traditional investors to enter the dynamic realm of cryptocurrency without the direct risks and complexities of managing digital assets. Whether opting for the regulated simplicity of ETFs or the direct engagement of owning cryptocurrencies, investors have diverse pathways to participate in the crypto economy. 

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As the landscape evolves, both methods will continue to offer unique benefits and challenges, making it crucial for investors to stay informed and consider their investment strategies carefully in this fast-moving market.

At the heart of our trading platform is the CVEX Protocol, which ensures everything from trade execution to security is handled seamlessly. This protocol is crucial because it not only manages the current operations efficiently but also sets the stage for each trader's active participation in the platform's future through the DAO.

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What is the CVEX Protocol?

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The CVEX Protocol serves as the foundational framework of our platform, managing all key functions necessary for its operation. Built on the Arbitrum blockchain, it leverages cutting-edge technology to ensure transactions are both swift and secure. The protocol oversees various critical functions such as validating trades, securing transactions, and managing the digital wallets where assets are stored. Its design is focused on ensuring that the platform remains robust and responsive to the needs of its users.

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Who is the Protocol Owner, and What is the DAO's Role?

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Initially, the protocol is managed by the CVEX core team, who are responsible for setting it up and ensuring it functions as intended. Their role is pivotal in the early stages as they handle everything from routine updates to major strategic decisions.

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However, the ultimate goal is for the platform to evolve into a system governed by its users through a Decentralised Autonomous Organisation (DAO). The DAO will enable traders like you to vote on significant aspects of the platform, from feature updates to financial strategies. This shift is not just about transferring power but about creating a truly democratic trading environment where every user’s voice can directly influence the protocol’s development and refinement.

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Responsibilities of the Protocol Owner

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Before the full transition to DAO governance, the Protocol Owner is tasked with several crucial responsibilities:

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• Configuring the Protocol. This includes setting the operational parameters of the platform, such as how trades are executed and how fees are handled.
• Managing Funds. They oversee the protocol’s finances, ensuring that there are adequate funds for its operation and growth, which includes managing the fees collected and funding necessary upgrades or expansions.
• Updating the Protocol. Technology and market conditions evolve, and so must the protocol. The owner is responsible for implementing software updates that enhance functionality and security.
• Handling Emergencies. In case of a major disruption or security threat, the owner has the authority to halt operations to protect users’ assets and the platform's integrity.

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Conclusion

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The CVEX Protocol is integral to the functionality and security of our trading platform. With the upcoming transition to a DAO system, each trader will soon have the opportunity to shape the protocol’s future. This not only ensures that our platform stays at the cutting edge of technological advancements but also fosters a community-driven approach where your input and vote genuinely matter. 

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Get ready to take a more active role in governing the ecosystem that supports your trading activities. This is your chance to influence the decisions that will define the landscape of decentralised finance.

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Fundamental analysis in crypto trading is the meticulous assessment of digital assets beyond mere price trends. It delves into project fundamentals, technology, and market demand to gauge the intrinsic value of a cryptocurrency. 

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This analytical approach contrasts with technical analysis, which focuses on price movements and market patterns to time trades. Both methodologies are crucial in developing robust investment strategies, but fundamental analysis offers a deeper understanding of what drives value in the crypto space, empowering investors to make well-informed decisions grounded in the broader economic and regulatory environment.

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Key Takeaways:

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• Fundamental analysis offers a deeper insight into the true value of cryptocurrencies beyond surface-level price movements.
• It assesses various aspects including project fundamentals, technology, tokenomics, and the regulatory stance, providing a holistic view.
• By understanding the strengths and vulnerabilities of a project, investors can better manage and mitigate potential risks.
• Empowered with thorough analysis, investors can make more strategic and informed investment decisions, aligning with long-term goals in the volatile crypto market.

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The Basics of Crypto Fundamental Analysis

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Fundamental analysis in crypto trading involves a thorough examination of several core aspects of a project to determine its potential long-term success and inherent value. Here’s a breakdown of key concepts essential for conducting fundamental analysis:

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• Whitepaper — This document is the blueprint of a cryptocurrency project, detailing the technical specifics, the problem it aims to solve, and how it plans to do so. A well-articulated whitepaper provides insight into the project’s innovation and feasibility.
• Roadmap — The roadmap outlines the project’s goals and the timeline for achieving them. It is a progress tracker and can indicate the project's commitment and long-term planning. Consistent milestone achievements are a positive sign of a team’s dedication and capability.
• Technology — Underpins the entire project, where the uniqueness and security of the underlying blockchain technology are assessed. Scalability, transaction speed, and consensus mechanism are critical factors that can affect a project’s adoption and sustainability.
• Project’s Fundamentals — This encompasses the overall vision, the team’s expertise, developmental progress, and the actual use case of the cryptocurrency. It looks at how well the project addresses a real-world problem and its potential to disrupt or improve existing systems.

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Understanding these concepts is pivotal in assessing a crypto project's strength and potential. Fundamental analysis not only highlights the opportunities but also helps identify risks, making it an indispensable part of crafting sound investment strategies in the volatile world of crypto trading.

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Economic and Market Factors

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Understanding the economic and market factors through fundamental analysis is critical. Here are the key aspects to consider:

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Tokenomics

This refers to the economic model of the cryptocurrency, including its supply mechanism, distribution schedule, and any mechanisms for reducing supply (like burning or staking). Effective tokenomics can incentivise behavior that supports the project's long-term viability and price stability.

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Funding and Financial Health

Analysing a project's funding sources and financial sustainability is essential. Projects with robust funding from credible investors or through successful initial coin offerings (ICOs) demonstrate financial health and resource availability for sustained development.

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Market Dynamics and Adoption Rates

It’s crucial to evaluate how a cryptocurrency fits into the broader market. This includes understanding current and projected demand, user adoption rates, and transaction volumes. A crypto that is gaining traction and showing increasing adoption may present a favorable long-term outlook.

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Competitive Analysis

Assessing the cryptocurrency's position relative to its competitors helps identify its unique value proposition. A crypto that offers distinct technological advantages or fills a particular niche can stand out in a crowded market.

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Each of these factors plays a significant role in shaping a cryptocurrency's market performance and potential for growth, making them essential components of effective investment strategies in the crypto sector.

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Technological Assessments

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Also, the technological backbone of a blockchain project is a critical element of fundamental analysis. The core technology not only supports the project's functionality but also shapes its future scalability and security profile. As investors delve into the whitepapers and roadmaps, understanding the underlying technology—be it a unique consensus mechanism or a novel cryptographic approach—provides insights into the project's innovative potential and operational viability.

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Security is paramount in blockchain projects due to the decentralised nature and the high-value assets involved. A project's ability to protect against security vulnerabilities and potential breaches is a strong indicator of its technical robustness and maturity. Similarly, scalability is another vital aspect; it determines a project's capacity to handle growth in terms of transaction volume and size of the network without compromising speed or user experience.

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Evaluating these technological factors provides a deeper understanding of a project's strengths and weaknesses, informing better investment strategies and risk management practices in the competitive landscape of crypto assets.

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Community and Ecosystem Analysis

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The success of cryptocurrency projects often hinges on the strength and engagement of their communities. In the decentralised world of crypto, where formal marketing and governance can be minimal, a vibrant and active community not only fosters innovation and support but also acts as a crucial barometer of trust and sustainability. Positive community sentiment, demonstrated through active participation in forums, social media, and development activities, can significantly enhance a project's credibility and attract new investors.

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Strategic partnerships are equally critical, serving as a catalyst for ecosystem growth. By aligning with established tech firms, financial institutions, or other blockchain projects, a cryptocurrency can rapidly expand its technological infrastructure, user base, and market penetration. These collaborations often bring about integrations and innovations that are essential for staying competitive in a rapidly evolving market.

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Together, community engagement and strategic partnerships form the backbone of a project's ecosystem. They not only validate the project's current status but also indicate its potential for future growth and success in the broader crypto market.

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Regulatory and Compliance Challenges

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The regulatory environment plays a decisive role in the success and stability of crypto projects. Navigating the regulatory landscape is pivotal for projects to gain legitimacy and trust. Changes in regulations can greatly influence market demand and the broader adoption of cryptocurrencies. For investors, understanding the regulatory compliance of a project is essential to assess its long-term viability and legal risks.

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Compliance challenges can have profound implications:

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• Market Access: Regulatory approval can open or close significant markets. For instance, approval by the SEC or the EU can boost investor confidence and increase the user base substantially.
• Investor Protection: Projects adhering to regulatory standards are generally deemed safer, reducing the risks associated with fraudulent activities or market manipulation.
• Operational Continuity: Non-compliance can lead to legal battles or shutdowns, abruptly halting project operations and impacting investment returns.

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Investors must evaluate how well a crypto project adheres to the regulatory frameworks of the jurisdictions in which it operates. This includes analysing the project's whitepaper and roadmap for compliance strategies, and assessing the robustness of its risk management systems. A strong understanding of the regulatory environment not only helps in managing potential risks but also in identifying opportunities within the regulatory frameworks.

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Risk Assessment in Crypto Investments

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Identifying and managing risks is essential for anyone involved in crypto trading. The volatile nature of cryptocurrencies, driven by technological, market, and regulatory factors, necessitates a comprehensive risk assessment strategy to safeguard investments.

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• Technological Risks: These include issues such as security vulnerabilities in a blockchain's design or execution flaws in smart contracts that could lead to breaches or losses. Investors must evaluate the security measures detailed in the project’s whitepaper and assess the frequency and transparency of the project's code audits.
• Market Risks: Cryptocurrency markets are notoriously volatile, with prices fluctuating dramatically within short periods. This volatility can be driven by various factors, including media hype, market sentiment, and macroeconomic indicators. Traders need to be adept at reading market signs and employ strategies such as stop-loss orders to manage their exposure.
• Regulatory Risks: The regulatory landscape for cryptocurrencies is still evolving, with significant differences across jurisdictions. Changes in regulations can have abrupt and profound impacts on market dynamics and the legal standing of crypto projects. Investors should stay informed about the regulatory status of cryptocurrencies in their countries and globally to anticipate changes that might affect their holdings.

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Effective risk management in crypto trading involves a combination of staying updated on technological developments, closely monitoring market trends, and understanding the potential regulatory shifts. This holistic approach helps investors mitigate risks and capitalise on opportunities in the dynamic crypto market.

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The Bottom Line

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Fundamental analysis is indispensable in crypto trading as it provides a comprehensive evaluation of underlying project strengths and market potentials. By examining aspects such as technology, tokenomics, and the regulatory environment, investors gain a deep understanding of the intrinsic value and sustainability of crypto assets. 

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Leveraging this analysis enables informed investment decisions, minimising risks associated with market volatility and regulatory uncertainties. Ultimately, mastering fundamental analysis equips investors with the knowledge to navigate the complex crypto market and capitalise on opportunities with confidence.

We carefully gathered dozens of questions about testnet activities and our plans on CVEX that are interesting to users. So, search for everything you need below and share your wisdom with others. 

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About Testnet

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How can I get an “Early testnet adopter” role?

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Unfortunately, this role is no longer available, but you still have a chance to participate in other activities. 

Find more information here: https://discord.com/channels/1140960876992659506/1141560549843423352.

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Why isn’t CVEX Guild being updated? 

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We manually update all the data about users' progress every few days. So, please wait a bit and check Guild after a while. However, if you think enough time has passed, and the information still hasn't been released, contact our worker bees in Discord.

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Can I share CVEX achievements conditions in the chat?

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No. Sharing descriptions of achievements you have unlocked in the official chat rooms and CVEX community channel is forbidden. Nevertheless, we cannot regulate your actions outside our official community.

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How do I participate in the CVEX Tetnet? 

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The basic logic of our Testnet revolves around the XP points system. The number of XP points you earn is directly proportional to your contribution to testing the platform and our marketing activities. To earn points, you can complete achievements in our trading terminal, refer your friends, and follow our social media closely to avoid missing new features.

More information on our lending.

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Are there any guides on CVEX Testnet?

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Yes. We have put a lot of effort into trying to provide you with up-to-date guides about our CVEX testnet and trading in general. 

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You can find them here:

Youtube — https://www.youtube.com/@cvex_xyz;

Blog — https://cvex.xyz/blog;

CVEX DOCs — https://docs.cvex.xyz/.

‍

I found a bug. What should I do?

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Firstly, we appreciate your participation! We’re still in the testnet phase, so we’re constantly working on improving our terminal and providing you with the best possible experience. If you find a bug, you can report it on our terminal.

Check out this video guide to learn how. 

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How can I suggest a feature?

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It's always good to hear new ideas. If you know what would make CVEX better, let us know at this link: https://cvex.nolt.io/. 

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Why doesn't Galxe accept my tasks?

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Galxe is a perfect platform for our connection with you. However it operates with tons of data every day and need time to process it. Please, make sure you completed all requirements mentioned in the task and wait a while. If the problem persists, contact our community guys for help.

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About our Roadmap

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Is there a mobile version of CVEX platform?

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No, a mobile version is currently in development. Please look forward to upcoming updates where we plan to introduce a mobile-friendly trading experience.

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Will there be a white theme?

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Yes, we are actively working on designing a light theme for our platform. This option will be available in a future update to provide our users with more visual choices.

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Can I place a stop loss/take profit?

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Not yet, but we are committed to broadening our list of risk management tools, including the addition of stop loss and take profit functionalities. These features will enhance trading strategies and improve risk management on our platform.

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Is it possible to avoid signing a transaction every time?

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Not currently, but we are developing a trusted mode that will allow users to execute transactions without needing to sign each one individually. This feature will also help save on transaction fees and improve the trading experience.

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Will there be contracts for meme tokens in the future?

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Yes, we are open to expanding our offerings to include meme tokens. We understand the popular demand and are considering how best to integrate these into our platform.

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Will it be possible to trade COMMODITIES in the future?

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Yes, we are working on the technical aspects of integrating commodities into our platform. Once we can ensure reliable pricing models, we will offer commodities trading to meet our users' diverse investment needs.

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About Trading Activities 

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What types of orders exist?

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In the CVEX Platforms, there are two primary types of orders used:

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• Market Orders: Executed immediately at the current market price, designed for traders prioritising speed over control of the execution price.
• Limit Orders: Specify a price limit for buying or selling an asset, providing control over the execution price but not guaranteeing execution.

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What will happen to my position if the contract expires?

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If the contract expires, a position gets settled, and profits and losses are distributed based on the latest Index price.

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What should I do if my Margin utilisation level is over 90, and I cannot close my position? 

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While in the testnet stage, you can just use the faucet and click ‘increase’ under account details. As a result, your balance will be replenished, and the margin ratio will be lowered. However, we recommend not bringing your account to this state and keeping a close eye on the margin ratio to avoid such a situation.

We recommend you to read this article, where you can learn more about margin ratio: https://cvex.xyz/post/initial-and-required-margin-margin-utilisation.

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What is the index price?

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The Index Price is provided by the Price Oracle and is used in the calculation of the Mark Price for futures and perpetual contracts on the CVEX Protocol. It reflects the real-time price of the underlying asset.

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Check out this guide for a better understanding of pricing models: https://cvex.xyz/post/concepts-of-last-mark-and-index-prices.

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What is the mark price?

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The Mark Price in the CVEX Protocol is continuously re-evaluated to reflect the contract's fair price, serving as an anchor to the market's perception of the true value of a contract, independent of immediate order book fluctuations. It is used to assess traders’ position value for futures and perpetual contracts, which is used to calculate equity and maintenance margins. 

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The Mark Price is calculated from the Index Price of the underlying asset, provided by the Price Oracle, and the Last Price, obtained from the contract's order book. The Last Price is the median value between the lowest ask and the highest bid prices in the CVEX order book, averaged for the Index Price updates. The protocol computes the contract basis as a moving average of the difference between the Index Price and the Last Price, and the current Mark Price is calculated by adjusting the current Index Price with the basis.

Check out this guide for a better understanding of pricing models: https://cvex.xyz/post/concepts-of-last-mark-and-index-prices.

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How can I increase my leverage?

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To increase your leverage on the Crypto Valley Exchange, you can employ hedging strategies. For example, holding a balanced long position in Ethereum (ETH) and a short position in Bitcoin (BTC) can extend leverage up to 15x. 

Additionally, for larger options portfolios that are well-hedged, particularly where the delta of the portfolio is well managed, you can build a cost-effective book of options with leverage ratios reaching up to 1000x. It's also noted that leverage varies for commodities, ranging from 10x to significantly higher depending on the commodity's volatility.

Also,we are working on manually adjustable leverage, which should be done for public mainnet release.

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I don’t have ETH for commissions will I be able to trade?

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Yes. You don't have to have ETH in your wallet to trade on CVEX.

While we are in the testnet stage, you use our inbuilt faucet, so you don't need money at all. At the mainnet stage, CVEX will use the meta-transaction principle. In short, when you open an order or perform any other action that executed on-chain CVEX pays gas for you and then compensates it through operational fees.

So you don't have to worry if you don't have ETH in your wallet.

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What is the Trading fee and operational fee?

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The Operational Fee is a fixed cost for each trade, paid in USDC from traders' collateral deposits, designed to compensate for the gas used by protocol participants in managing traders' orders and positions. It is independent of trade size and is directed to the platform's Operational Fund.

The Trading Fee is a relative fee based on the notional value of each order. The collected trading fees are distributed between the Platform Fund and the Protocol Fund, with the Platform Fund covering the expenses of platform operators and the Protocol Fund allocated for staking rewards, protocol development, and operational needs.

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What measures does CVEX take to ensure the security and stability of its decentralised derivatives exchange?

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CVEX ensures the security and stability of its decentralised derivatives exchange through several measures, particularly in volatile market conditions:

• On-chain Portfolio Risk Management: CVEX employs a Value-at-Risk (VaR) model for on-chain portfolio risk management, allowing traders to utilise higher leverage while maintaining controlled risk exposure. This model accounts for volatility, correlations, and tail risks to estimate potential losses within a specified confidence interval.

• Automated Clearance Bots: The exchange uses automated Clearance Bots that operate within set risk parameters deterministically to reinforce stability and security. These bots are part of an active market monitoring system.

• Risk Oracles: Specialised Risk Oracles adjust risk parameters in real-time to adapt to market changes, ensuring that the exchange can respond quickly to fluctuations in market conditions.

• Fully Automated Default Funds: An extra layer of protection is provided by fully automated Default Funds, which help maintain market stability in volatile conditions.

• Advanced Margin Methodology: The CVEX Protocol calculates margin requirements using dynamic risk models that align collateral obligations with the actual risks of traders’ portfolios. This includes a concentration adjustment to limit risks from an overconcentration of open interest in a single portfolio.

• Liquidation Protocol and Counterparty Risk Management: The liquidation protocol prioritises market order liquidations to realise fair value, utilising the Default Fund where necessary to cover losses. Counterparty liquidations are a last resort, utilised only to preserve market balance when all other measures are exhausted.

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Do you have risk management tools?

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Yes, the protocol incorporates risk management tools and strategies. These include:

Transparent Risk Parameters. The platform operates with transparent risk parameters encoded into smart contracts to mitigate trading risks.

Independent Account Management. Each account is treated as an independent entity with its own risk profile, enabling precise risk management.

Also, you may read the article on our VaR-Margin system to understand more: https://cvex.xyz/post/the-impact-of-value-at-risk-var-model-at-cvex.

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How to partially close the position?

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To close a part of a position, you can do the opposite action. If you open a long position, you need to sell the part of the contract by which you want to reduce your position. If you opened short, you should do the opposite.

It is important to click on the ‘Reduce-only’ checkbox when opening a new order.

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Futures contracts play a pivotal role in the trading world, especially in the rapidly evolving landscape of cryptocurrency trading. There are two main types of futures contracts that crypto traders can utilise: classic (dated) futures and perpetual futures. Understanding the differences between these two types is crucial for anyone involved in the dynamic world of crypto trading.

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Dated futures contracts, often referred to as dated futures, have a specific expiration date and are typically used for hedging or speculating on the future price of an asset, including cryptocurrencies. 

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On the other hand, perpetual futures, which are particularly popular in the crypto sphere, do not have a fixed expiration date, offering traders a different level of flexibility in managing their positions.

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Each of these contract types offers unique benefits and challenges, especially in the context of crypto trading, where price volatility is often high. Understanding how each contract operates can help traders navigate the complexities of crypto markets more effectively.

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 Definition of Classic (Dated) Futures Contracts

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Classic, or dated, futures contracts are standardised financial agreements that obligate two parties to buy or sell an asset at a predetermined price on a specified future date. These contracts are typically traded on regulated exchanges and cover a wide range of underlying assets, including commodities, stocks, and cryptocurrencies.

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How Classic Futures Are Typically Structured

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Dated futures contracts have a set expiration date, which means they come with a defined lifespan. Traders agree to the terms of the contract, which include the quantity of the asset, the price, and the expiration date. As the expiration date approaches, the price of the contract usually converges with the spot price of the underlying asset, influenced by factors such as interest rates, storage costs, and market demand. This structure allows traders to hedge against future price movements or speculate on asset prices.

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Classic futures contracts play a crucial role in the financial world. They are widely used for hedging, allowing businesses and investors to protect themselves against adverse price movements. For example, a farmer might use futures contracts to lock in a selling price for their crops, while an airline might use them to secure fuel prices. 

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Additionally, traders use dated futures for speculation, aiming to profit from price changes. These contracts facilitate price discovery and liquidity in various markets, contributing to the overall efficiency of the financial system.

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Definition of Perpetual Futures Contracts

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Perpetual futures contracts are a type of derivative that allows traders to speculate on the future price of an asset without a set expiration date. Unlike classic futures, perpetual futures do not have a fixed term, which means traders can hold their positions for as long as they wish. These contracts are especially popular in the cryptocurrency markets, where they offer continuous trading opportunities.

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How Perpetual Futures Differ from Classic Futures

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The key difference between perpetual and dated futures lies in their expiration dates. While classic futures have a specific date at which they must be settled, perpetual futures do not, offering traders the flexibility to maintain their positions indefinitely. 

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Additionally, perpetual futures typically use a funding rate mechanism, which adjusts periodically to ensure that the contract price aligns with the underlying spot price. This funding rate incentivises traders to take positions that bring the contract price back in line with the spot price.

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Perpetual futures have found a significant niche in the trading world, particularly in the cryptocurrency space. Their flexible nature allows traders to capitalise on short-term market movements without worrying about contract expiration. This feature is beneficial in highly volatile markets, where timing is critical. Perpetual futures also facilitate leveraged trading, enabling traders to amplify their positions and potentially increase their returns. These contracts offer a dynamic trading environment and cater to a wide range of trading strategies, making them a valuable tool for crypto traders and speculators.

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Key Differences Between Dated and Perpetual Futures

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Expiration

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• Dated futures contracts have set expiration dates. This means traders have a limited time frame to manage their positions and must settle or roll over their contracts before the expiry date. The fixed expiration date helps provide clarity on when the contract must be concluded.

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• Perpetual futures contracts, on the other hand, do not have fixed expiration dates. Traders can hold their positions indefinitely, providing greater flexibility in reacting to market conditions. This open-ended nature of perpetual futures aligns well with the continuous nature of cryptocurrency trading.

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Funding Mechanism

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• Classic futures do not incorporate a funding rate mechanism. The contract price is influenced primarily by the spot price of the underlying asset, along with other factors like interest rates and storage costs. This traditional pricing approach is straightforward but lacks a dynamic adjustment mechanism.

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• Perpetual futures use a funding rate mechanism to align the contract price with the underlying spot price. This rate, which is periodically exchanged between long and short positions, ensures that the contract closely tracks the spot market. The funding mechanism serves as a stabilising force, reducing deviations between the contract and spot prices.

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Trading Flexibility

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• The trading periods for classic futures are restricted by the contract's expiration date. Traders need to plan their entry and exit strategies within the contract’s lifespan, which can limit their flexibility in managing their positions.

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• Perpetual futures offer continuous trading opportunities, without the constraints of an expiration date. Traders can enter and exit positions at their convenience, aligning with market trends and personal strategies. This flexibility is particularly beneficial in highly volatile markets where timing is crucial.

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Pricing Mechanisms

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The pricing mechanisms for classic futures and perpetual futures differ based on their unique characteristics. Dated futures derive their prices from various factors, including the spot price of the underlying asset, interest rates, storage costs, and other economic influences. As the contract nears its expiration date, the futures price typically converges with the spot price, thanks to the process of arbitrage. This helps align the futures price with the actual market value of the asset.

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Perpetual futures, on the other hand, employ a funding rate mechanism to maintain a close relationship with the underlying spot price. The funding rate is a periodic payment exchanged between long and short positions to ensure the contract price remains aligned with the spot market. When the contract price deviates from the spot price, the funding rate incentivises traders to correct the imbalance, helping to stabilise the contract's value.

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How These Mechanisms Impact Trading Decisions

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The pricing mechanisms of both types of futures contracts significantly impact trading decisions. In classic futures, the convergence of the futures price with the spot price near expiration can influence when traders choose to enter or exit their positions. Understanding how factors like interest rates and storage costs affect the pricing can also help traders make informed decisions.

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For perpetual futures, the funding rate directly affects the cost of holding positions. Traders must monitor these rates closely, as they can influence the profitability of long or short positions over time. High funding rates, for example, can make it costly to maintain a long-term position, while negative funding rates may benefit short positions. This dynamic pricing environment requires traders to be vigilant about market conditions and adjust their strategies accordingly.

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Conclusion

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Classic (dated) futures and perpetual futures offer distinct features and benefits for traders and investors. Classic futures, with their set expiration dates, are ideal for traditional hedging and speculation. Perpetual futures, with their open-ended nature and dynamic funding rates, cater to continuous trading and leveraged strategies, particularly in the cryptocurrency space. Understanding the unique pricing mechanisms and trading flexibilities of each contract type is essential for making informed trading decisions. By carefully evaluating these characteristics, traders can align their strategies with their financial goals and effectively navigate the diverse futures markets.

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In derivatives trading, knowing your prices is key. On CVEX, understanding the Last, Mark, and Index prices is crucial for making informed decisions. These price types impact everything from trade execution to risk management. This guide will simplify these concepts, helping both newcomers and seasoned traders grasp when and how to use each price type effectively. Stick with us to demystify these terms and boost your trading strategy on CVEX.

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Overview of Price Types

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On CVEX, traders encounter three main types of prices: Last, Mark, and Index. Each serves a unique role in the trading ecosystem.

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Last Price

This is the median value between the lowest selling price (ask) and the highest buying price (bid) currently in the CVEX order book. It reflects the most recent price agreed upon by buyers and sellers.

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Mark Price

Used mainly for calculating the value of open positions in futures and perpetual contracts, the Mark Price helps prevent unnecessary liquidations during market manipulation or extreme volatility. It's derived from the Index Price, adjusted by the average difference (basis) between the Last Price and the Index Price.

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Index Price

Sourced from a Price Oracle, the Index Price aggregates data from various external exchanges to represent the true market value of the underlying asset. It is crucial for ensuring that the Mark Price remains anchored to real-world trading conditions outside of CVEX.

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Understanding these prices helps traders manage their positions more effectively, aligning their strategies with current market dynamics.

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Last Price

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The Last Price on CVEX serves as a snapshot of the most recent consensus on value between buyers and sellers. It's pivotal for traders as it reflects the latest price at which a trade was executed, thus acting as a real-time indicator of current market conditions.

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How It's Determined on CVEX:

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On CVEX, the Last Price isn't just about the last individual transaction. Instead, it is calculated as the median of the lowest selling price (ask) and the highest buying price (bid) present in the order book. This value is then averaged over the same time frame that the Index Price updates occur. This method smooths out any anomalies caused by single transactions and provides a more stable and reliable price for traders to reference, ensuring that the price reflects a true median market value rather than outliers.

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When to Use It?

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The Last Price is particularly useful for traders who need to make quick decisions based on the most recent trading data. It's ideal for day traders or those involved in high-frequency trading where timing and immediate market conditions are critical. Understanding the Last Price helps traders grasp how the market has recently valued an asset, which is essential for short-term trading strategies that rely on quick, tactical entries and exits.

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Mark Price

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The Mark Price is critical in the trading of futures and perpetual contracts on CVEX. It serves as the primary reference for valuing positions and determining liquidation points, ensuring that these calculations are based on a stable and manipulation-resistant price metric.

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How It's Determined on CVEX:

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Mark Price is calculated by adjusting the Index Price with the basis, which is a moving average of the difference between the Last Price and the Index Price. This methodology allows the Mark Price to reflect both current market conditions and average price trends, smoothing out the effects of short-term volatility or manipulation in the order book.

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When to Use It?

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Traders should rely on the Mark Price primarily to assess the health of their open positions in derivatives like futures and perpetual contracts. It is essential for understanding potential margin requirements and avoiding unwanted liquidations. The Mark Price's stability makes it suitable for traders who need consistent, reliable pricing data to manage longer-term positions or to strategise around entry and exit points during more volatile market periods.

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Index Price

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The Index Price is vital as it represents the aggregated perception of the underlying asset's true market value across various exchanges. It's an essential benchmark on CVEX, especially for derivatives trading, where it helps ensure that the contract prices are aligned with the broader market conditions.

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Source on CVEX:

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The Index Price on CVEX is sourced from a Price Oracle, which gathers data from multiple top exchanges to provide a comprehensive and reliable measure of the current value of an asset. This integration helps prevent price manipulation by dispersing the influence any single exchange could have on the price determination.

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When to Use It?

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Traders should look at the Index Price when evaluating the overall market trends and the inherent value of an asset without the immediate influences of supply and demand mismatches that can occur on a single exchange. It is particularly useful for making strategic decisions in futures and options trading, where accuracy in the underlying asset's price is crucial. Understanding the Index Price helps traders gauge the market consensus on asset value, aiding in more informed trading decisions.

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Relationship Between the Prices

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Understanding how Last, Mark, and Index Prices interact is crucial for traders on CVEX. These prices each play a unique role but are interdependent, influencing and stabilising each other to reflect accurate market conditions.

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• Last Price reflects real-time market transactions, influenced by immediate buyer and seller activities.
• Index Price offers a broader market perspective by aggregating data across various exchanges, providing a benchmark for the true market value.
• Mark Price connects the immediate market activities and broader market trends by adjusting the Index Price with the basis derived from the Last Price. This adjustment helps in mitigating any temporary market anomalies caused by low liquidity or price manipulations on single exchanges.

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Example Scenarios:

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Scenario 1: Sudden Market Spike

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If there's a sudden spike in the Last Price due to a large buy order on CVEX, the Mark Price will adjust less dramatically because it’s tempered by the Index Price, which aggregates more stable prices across multiple exchanges.

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Traders relying solely on the Last Price might perceive a buying opportunity, but those watching the Mark Price receive a moderated view, potentially saving them from buying at a peak based on skewed data.

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Scenario 2: Broader Market Downturn

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When the Index Price begins to reflect a downturn based on global market trends, the Mark Price will follow, even if the Last Price on CVEX hasn’t yet adjusted due to localised trading patterns.

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Traders can anticipate a potential decline in the CVEX market and adjust their positions accordingly, using the Mark Price as a more reliable indicator of impending changes.

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When to Use Each Price:

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1. Use the Last Price for immediate entry or exit decisions when market conditions match your trading strategy.
2. Refer to the Index Price to understand long-term trends and set broader strategic goals.
3. Rely on the Mark Price for managing open positions, especially in derivatives, to protect against volatility and price manipulation, ensuring fair trading conditions and risk assessment.

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By leveraging the distinct yet complementary roles of these three price types, traders can optimise their strategies, manage risks more effectively, and make decisions that align with both immediate conditions and broader market movements.

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Wrapping Up

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Understanding Last, Mark, and Index prices equips traders with essential insights into market dynamics on the CVEX platform. By discerning the interplay between these price types, traders can enhance their strategic decision-making, manage risks effectively, and adapt to both sudden changes and long-term trends in the cryptocurrency market.

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Understanding key market indicators is essential for anyone looking to navigate the complexities of financial markets successfully. This blog delves into two fundamental metrics: Open Interest and Trading Volume. Both indicators are pivotal in assessing Market Liquidity and Price Movements, offering traders deep insights into Market Trends and Trading Opportunities. 

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By comparing and contrasting these indicators, traders can better understand the dynamics of Contract Trading and make more informed decisions. This analysis not only highlights the differences between Open Interest and Trading Volume but also illustrates their interplay and impact on daily market activities. Join us as we explore how these crucial indicators can guide your trading strategies in both Futures Contracts and Options Trading.

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What Is Volume? 

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Trading volume represents the total number of financial instruments traded during a specific period, typically a trading day. It is a critical measure in markets because it indicates the level of activity associated with a particular asset or security. High trading volume often signals strong interest in the asset, whether for buying or selling, and is considered a fundamental indicator of market liquidity.

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How Volume is Measured

Volume is calculated by tallying up the total number of shares, contracts, or tokens traded within a given timeframe. In most markets, this figure resets daily, meaning that the volume measured reflects the activity for one trading day only. This reset helps traders gauge the freshness of activity and sentiment each day, providing a clear view of daily market dynamics.

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Significance of Volume in Trading

The role of trading volume is pivotal as it helps validate the strength behind price movements. For instance, a price increase accompanied by high volume is typically seen as more robust and likely to persist than a similar move with low volume. It also helps traders assess the intensity of market sentiment, whether bullish or bearish, and anticipate potential continuations or reversals in price direction.

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While the concept of volume is universally applicable across various asset classes, its implications can differ. In the stock market, volume can help identify breakout stocks or those in consolidation. In the world of cryptocurrencies and derivatives markets such as futures and options, volume plays an equally important role but with distinct nuances. Crypto markets, for example, operate 24/7, making the interpretation of daily trading volume slightly different due to the non-stop nature of trading. Similarly, in options and futures contracts, volume can indicate not just the liquidity but also the maturity of the market or specific contracts.

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What Is Open Interest?

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Open interest is a key metric in the derivatives market, representing the total number of outstanding derivative contracts, such as futures and options, that have not been settled. For traders in the crypto derivatives market, open interest provides a snapshot of total market involvement. Unlike volume, which counts transactions during a trading day, open interest measures the flow of money into the futures and options market, giving an idea of how much money is at stake.

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Calculation of Open Interest

Open interest is determined by counting all open contracts that have been entered into and not yet liquidated by an offsetting trade or delivered upon. In the crypto markets, this number is crucial as it is updated at the end of each trading day, providing insights into the flow of money for each contract. Every new contract opened increases the open interest, and every closed contract decreases it.

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Interpreting Changes in Open Interest

Changes in open interest can serve as a powerful indicator of the market sentiment and the strength of the current price trend. If open interest is increasing during a market rally, it suggests new money is coming into the market, supporting a continuation of the trend. Conversely, if open interest decreases, it may indicate that the market is losing momentum, which could precede a price decline or market stabilisation.

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It's important to understand that open interest is not an indicator of market ownership but rather the number of open, unsettled contracts. In crypto derivatives markets, this distinction is crucial as open interest provides a clearer picture of the leverage, risk, and commitment traders are willing to undertake, which differs significantly from just looking at volume or price movements alone.

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Comparing Volume and Open Interest

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Trading volume and open interest are complementary indicators that together provide a fuller picture of market activity and liquidity. Volume measures the number of contracts traded within a given timeframe, reflecting immediate market action and sentiment. Open interest, on the other hand, counts the total number of outstanding contracts and offers insights into longer-term market commitment and potential future activity. 

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When analysed together, these indicators can reveal not only the depth and breadth of market activity but also the strength and potential sustainability of price movements.

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Analysing Market Trends

To gauge the strength of market trends, both volume and open interest are indispensable. For instance, a rising market trend accompanied by increasing open interest and volume suggests new money is entering the market, which typically reinforces the trend's robustness. Conversely, if prices rise but volume and open interest decline, the trend may lack support and could be nearing its end, indicating a potential reversal or slowdown.

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Scenarios Analysis:

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1. Bullish Trend: Imagine a scenario where both price and open interest are increasing, but volume is also on the rise. This indicates that new positions are being opened, and more traders are participating, suggesting a strong bullish sentiment and a potential continuation of the uptrend.
2. Bearish Trend: Conversely, if prices are falling and open interest is increasing while volume remains high, it may indicate that new short positions are being established. This scenario could point to a strong bearish trend with increasing market participation in anticipation of further declines.
3. Consolidation or Reversal: Should there be an increase in price with a drop in open interest but an increase in volume, it may signal that the market is undergoing profit-taking or liquidation of positions. Traders might be closing their positions rather than opening new ones, which could either lead to a market consolidation or a potential price reversal.

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Understanding these dynamics is crucial for traders who need to assess not just current market conditions but also anticipate future movements. By closely monitoring both volume and open interest in relation to price changes, traders can make more informed decisions, leveraging insights into both the immediate actions of market participants and longer-term market trends. This approach is particularly valuable in the crypto derivatives market, where the combination of rapid price movements and the leveraging effect of futures and options can significantly amplify risks and opportunities.

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Conclusion

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Understanding both trading volume and open interest is pivotal for any trader aiming to grasp the full spectrum of market dynamics. These indicators are not just measures of market activity; they are essential tools that, when used together, can significantly enhance the accuracy of your trading decisions. By integrating volume and open interest into your trading strategies, you gain deeper insights into market sentiment and price movements, which are crucial for making well-informed trades.

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For those looking to delve even deeper into market analysis techniques, our blog offers a wealth of advanced trading concepts. Enhance your trading acumen by exploring our comprehensive guide on crypto technical analysis here: Guide on Crypto Technical Analysis. Equip yourself with the knowledge to navigate the complexities of the derivatives market more effectively.

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FAQ 

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1. Which is more important: volume or open interest?

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Both volume and open interest hold crucial roles in trading. High volume can indicate more liquid trading opportunities, facilitating easier entries and exits. Conversely, open interest provides insights into the total number of active, unsettled contracts, reflecting the depth and potential sustainability of market trends.

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2. How can an option have volume but no open interest?

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Volume measures the number of contracts traded, while open interest counts only those contracts still open or unsettled. If a trading day ends with only closing transactions, volume will register these trades, but open interest will not increase as no new contracts remain open.

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3. What is the relationship between price, volume, and open interest?

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The interplay of price, volume, and open interest helps assess market strength. A price increase coupled with declining volume and open interest suggests a weakening market. Conversely, if prices fall while volume and open interest rise, the market may also be weakening. A strong market typically sees prices decline with both volume and open interest decreasing.

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4. What does high open interest and high volume signify?

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High open interest and high volume indicate robust activity and interest in a market, suggesting that a large number of participants are engaged in trading a particular asset. This scenario often leads to better liquidity and more efficient markets, allowing traders to execute large trades more easily without significantly impacting the price.

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Achievements are in-app rewards, that a tester receives for a certain action in our Testnet. At the moment, there are already a few dozen Achievements available. But we will expand the list every fortnight and inform the community about it.

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Here's a kicker: conditions required to get a particular Achievement are unknown. Therefore, we invite you to experiment in our trading terminal, make the most of the testnet and other marketing activities to unlock as many achieves for your account as possible.

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Remember that some Achievements are given not for a single event, but for a sequence of actions or prolonged activity. So be patient to earn them all!

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Why Do You Need Achievements?

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Each Achievement you receive will give you three things:

1. The joy of collecting;
2. A reason to discuss it with your friends;
3. Extra XP points;
4. 👀.

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No one knows how XP points will convert into real benefits for testnet users. But if you take a magic ball and ask it if it's worth getting Achievements, it will say yes. We believe in magic, how about you?

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Achievements are divided into 4 levels of difficulty:

• Common;
• Rare;
• Epic;
• Legendary.

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The higher the level of the achievement, the more XP points you will get for it. But the action at Legendary rank will be much harder than at Common rank, of course. 

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Earning Your First Achievement

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Now, let's get your first Achievement (and 20 XP points at the same time). 

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Step 1. Log in to the CVEX trading terminal.

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Go to our trading terminal and perform all the actions necessary to start trading (connecting your wallet and funding your test account). You can read more about them in our Testnet guide:

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https://cvex.xyz/post/the-official-cvex-testnet-guide 

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Step 2. Making your first transaction with futures.

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Now you need to make your first transaction. To do this, choose any contract you are interested in, for example, BTC-28JUN24.

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After that, select "Market" in the Place Order section.

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Enter the amount for which you want to open a trade and click the Place Buy button.

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Step 3. Check the progress and rejoice.

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Voila, you should have received your first Achievement for this simple action. Go to the website and check your progress. 

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Note that it may take time for the platform to credit you for the achievement, so wait a little while. If after a while, the achievement still hasn't appeared in your profile, then contact our helpful community managers in Discord.

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Conclusion

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Achievements are a great opportunity to earn extra XP points on CVEX by performing non-standard actions and having fun on our testnet. We look forward to seeing you at the top! Happy testing!

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Find us here:

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Website — https://cvex.xyz/ 

Twitter — https://twitter.com/cvex_xyz 

Discord — https://discord.com/invite/DRma7Z9BTz 

Achievements lending — https://affiliate.cvex.trade/achievements

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Managing risk effectively is critical to both short-term success and long-term sustainability. This blog explores how CVEX employs advanced financial models like Value-at-Risk (VaR) to determine initial and required margins, ensuring that traders can effectively manage their portfolios against potential losses. Understanding these concepts is essential for any trader looking to optimise their strategies and maintain financial health in the volatile crypto market.

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Understanding Initial and Required Margin

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What is Required Margin?

Required margin is the amount of equity a trader must maintain in their trading account to keep their positions open. It is calculated based on the potential losses a portfolio might incur within a specific period and confidence interval, known as the Value-at-Risk (VaR). This metric helps ensure traders have enough capital to cover potential losses predicted by market movements.

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What is Initial Margin?

Initial margin refers to the minimum amount of capital required to open a new trading position. This margin is set higher than the required margin to provide a buffer against market volatility. It ensures that there is sufficient capital in the account to withstand price fluctuations soon after entering a trade, thus protecting against premature liquidations.

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These margins are crucial components of risk management on the CVEX platform, helping traders manage their exposures prudently while allowing them to leverage their positions effectively.

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CVEX Margin System Explained

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Calculating Required Margin with Value-at-Risk (VaR)

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At CVEX, required margin is not just a static number; it is dynamically calculated using the Value-at-Risk (VaR) model, which estimates the potential maximum loss a trader's portfolio might face over a specific time frame at a given confidence interval. This approach allows for a more tailored risk management strategy that aligns with market conditions and the individual trader's exposure.

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Imagine a trader, Alice, who holds various cryptocurrency positions in her portfolio. The CVEX system calculates the VaR to determine a potential maximum loss of $900 over a day with 95% confidence, given current market conditions. This $900 becomes the required margin Alice needs to maintain to keep her positions open.

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Initial Margin and Its Role in Risk Management

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The initial margin is set higher than the required margin to create a safety buffer for the account. This buffer helps manage the risk of market volatility that might occur right after a position is opened, thus preventing premature position liquidations if the market moves against the trader unexpectedly.

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Using the previous scenario with Alice, if the required margin based on her VaR is $900, CVEX might set her initial margin at $1125 (25% higher than the required margin). This extra margin ensures that Alice has enough capital in her account to cover potential losses shortly after entering her trades, providing a cushion against immediate market drops.

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Margin Ratio: Monitoring Collateral Health

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The margin ratio is a critical measure on CVEX that indicates the health of a trader's collateral relative to their required margin. A ratio below 100% suggests that the trader's portfolio is well-collateralised and can withstand some degree of market fluctuation without triggering a margin call or liquidation.

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If Alice's total equity in her trading account is $1200, and her required margin is $900, her margin ratio would be calculated as: 900/1200×100=75%. This ratio indicates that Alice's account is sufficiently collateralised.

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Integrating Margin Management in Trading Strategies

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Understanding and effectively managing required and initial margins is crucial for traders to maximise their strategic outcomes. By keeping a healthy margin ratio and being aware of how close they are to their initial margin thresholds, traders can avoid unwanted liquidations and better plan their entry and exit strategies in the market.

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Conclusion

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Understanding and managing margins is essential for effective trading on CVEX. By utilising the Value-at-Risk model to calculate required margins and setting a higher initial margin, CVEX ensures that traders like Alice are well-prepared for market fluctuations. This system safeguards traders from sudden market movements and empowers them to make informed decisions, optimising their trading strategies under various market conditions. Adequate margin management is key to maintaining portfolio health and achieving long-term trading success, enabling traders to confidently and securely navigate the dynamic crypto market.

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The role of technical analysis has become increasingly pivotal. This method, which employs historical price data and market trends to forecast future price movements, offers a structured approach to navigating the often turbulent crypto markets. By analysing crypto charts and utilising a range of technical indicators, traders can glean insights into market sentiment and make more informed trading decisions.

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The aim of this blog is to demystify the complex world of technical analysis for crypto traders. From the foundational use of candlestick charts to the nuanced interpretation of support and resistance levels, we delve into the tools, techniques, and indicators that are indispensable for anyone looking to harness the power of technical analysis in their trading strategy. Whether you're evaluating the momentum through RSI (Relative Strength Index) or assessing market volatility with Bollinger Bands, understanding these elements can significantly enhance your ability to spot lucrative trading opportunities in the cryptocurrencies market.

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As we explore these aspects, our focus will be on how traders can effectively employ technical analysis to identify market trends, anticipate price movements, and refine their trading strategies. This comprehensive guide aims to equip traders with the knowledge and tools needed to navigate the crypto market trends with confidence and precision.

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The Essence of Technical Analysis in Crypto

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Technical analysis stands as a cornerstone in the realm of cryptocurrency trading, offering a systematic approach to deciphering the market's future direction based on historical price actions and volume data. This methodology, grounded in the analysis of crypto charts, enables traders to anticipate market trends, thereby facilitating informed trading decisions. Its relevance in the crypto market is profound, given the volatility and rapid price changes characteristic of digital currencies. Through technical analysis, traders can sift through the noise, identifying patterns and signals that indicate potential price movements.

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The roots of technical analysis stretch back to the late 19th century with Charles Dow, co-founder of Dow Jones & Company and a pioneer in market analysis. Dow's insights, encapsulated in what is now known as Dow Theory, laid the groundwork for modern technical analysis. Dow Theory posits that market prices reflect all available information and that prices move in identifiable trends that are likely to continue until a clear reversal occurs. This theory emphasises the importance of price movements, distinguishing between primary trends, secondary movements, and minor fluctuations.

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Over the years, technical analysis has evolved, adapting to the changing landscapes of financial markets. Its application has expanded beyond traditional stock markets to include commodities, indices, and notably, cryptocurrencies. The principles of Dow Theory still underpin much of today's technical analysis, providing a framework for understanding market dynamics. In the context of the crypto market, these principles guide traders through the intricacies of market sentiment, offering tools like candlestick charts, trend lines, and volume indicators to navigate the digital asset space effectively.

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As we delve deeper into the essence of technical analysis in crypto, it's clear that the approach is not just about predicting future prices but about understanding the market's underlying trends and behaviors. This knowledge empowers traders to make strategic decisions, harnessing the potential of the crypto market while mitigating risks associated with its volatility.

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Core Tools and Charts

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The arsenal of tools at a trader's disposal is vast, with charts standing as the cornerstone for insightful analysis. Among the plethora of options, candlestick charts, line charts, and bar (OHLC) charts each serve a unique purpose, tailoring to various trading strategies and preferences. Below, we delve into the essence of these core tools, elucidating their significance and optimal use cases in the crypto trading landscape.

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Candlestick Charts

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Candlestick charts, with their origins in 18th-century Japan, offer a visually rich representation of price movements. These charts are distinguished by their detailed depiction of the open, high, low, and close (OHLC) prices within a specific timeframe. The body of the candle illustrates the distance between the opening and closing prices, while the wicks or shadows extend to the high and low prices. This configuration not only conveys the price range but also provides insights into market sentiment and potential reversals.

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Best For:

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• Detecting reversal patterns
• Understanding market sentiment
• Visualising price volatility

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Line Charts

Line charts stand as the epitome of simplicity, connecting the closing prices over a set period. This streamlined approach offers a clear perspective on the trend's direction, stripping away the complexity of minute price variations. For traders whose strategies are grounded in long-term movements rather than short-term fluctuations, line charts provide an uncluttered overview of market trends.

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Best For:

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• Long-term trend analysis
• Simplifying complex market data
• Quick assessment of market direction

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Bar Charts (OHLC)

Bar charts, similar to candlestick charts, present the OHLC values but without the same visual emphasis on the relationship between the opening and closing prices. Each bar reveals the high and low prices as the vertical line, with small ticks indicating the opening (left tick) and closing (right tick) prices. This format caters to traders seeking a detailed yet less visually intense alternative to candlesticks.

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Best For:

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• Traders seeking detailed market data
• Those who prefer a straightforward visual representation
• Analysis requiring attention to open, high, low, and close values

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Comparative Analysis

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Here's a concise table comparing these chart types to guide traders on when to utilise each:

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Choosing the right chart type is a strategic decision that aligns with a trader's specific analysis needs and trading style. Whether it's the comprehensive detail of candlestick charts, the simplicity of line charts, or the balanced detail of bar charts, each tool offers unique insights into the crypto market's ever-evolving dynamics.

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Technical Indicators and Their Applications

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In the quest to decipher the complex tapestry of cryptocurrency markets, traders lean heavily on technical indicators as their compass. These tools, grounded in mathematical computations, translate raw data into actionable insights, guiding trading decisions with precision. Among the myriad of indicators available, Moving Averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence) are particularly revered for their effectiveness in shedding light on market trends and momentum. Here, we delve into each of these indicators, unraveling their applications and offering examples to illustrate their utility in the volatile world of crypto trading.

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Moving Averages

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Moving Averages smooth out price data to identify the trend direction over a specified period. Traders employ Simple Moving Averages (SMA) for a straightforward average of prices, while Exponential Moving Averages (EMA) give more weight to recent prices, responding more quickly to price changes. 

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For instance, in a volatile asset, a trader might use a 50-day EMA to gauge the long-term trend, while employing a 10-day EMA to make timely trading decisions based on short-term movements. When the short-term EMA crosses above the long-term EMA, it's a bullish signal, suggesting it might be time to buy. Conversely, a cross below signals a bearish outlook, potentially indicating a sell.

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RSI (Relative Strength Index)

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The RSI is a momentum oscillator measuring the speed and change of price movements, operating within a range of 0 to 100. It helps identify overbought or oversold conditions, offering clues about potential reversals.

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At an RSI below 30, signaling that it might be oversold. This could indicate a buying opportunity for traders, predicting that the market sentiment might soon pivot towards bullish, leading to a price increase. Conversely, RSI above 80 may signal about overbought and bearish potential.

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MACD (Moving Average Convergence Divergence)

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MACD is a trend-following momentum indicator that shows the relationship between two EMAs of a cryptocurrency. The MACD line (the difference between the 12-day and 26-day EMA) and a signal line (9-day EMA of the MACD line) can indicate buy or sell signals. 

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A trader might watch for the MACD line to cross above the signal line as a bullish indicator, suggesting an opportune moment to enter a long position. Conversely, a cross below could signal a potential downtrend, prompting a decision to sell or short.

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Bollinger Bands

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Bollinger Bands consist of a middle band being a moving average, flanked by two standard deviation bands above and below it. This indicator is a measure of market volatility; narrow bands indicate low volatility, while wide bands signal high volatility. 

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For traders, Bollinger Bands can serve as a critical tool for identifying potential market entry or exit points. A price touching the upper band could be seen as overbought, suggesting a possible sell signal, whereas a touch of the lower band might indicate oversold conditions, hinting at a buying opportunity. The key is to look for the price to bounce back from these bands, indicating a potential reversal in momentum.

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Volume Indicators: OBV

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The On-Balance Volume (OBV) indicator uses volume flow to predict changes in stock price. By cumulatively adding or subtracting each trading session's volume based on the direction of the price move, OBV offers insights into the strength of market trends. 

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In the context of futures, a rising OBV suggests that buyers are in control, possibly leading to higher prices. Conversely, a falling OBV indicates that sellers might be dominating, potentially driving prices down. Traders might use OBV in conjunction with other indicators to confirm a trend's strength or weakness, integrating this analysis into their decision-making process for entering or exiting trades.

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Trend Lines and Channels

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Trend lines are straight lines drawn on charts that connect a series of prices to identify the general direction of the market. An uptrend line is drawn along the lows of an upward-moving market, indicating support levels where buyers are expected to enter the market. Conversely, a downtrend line is drawn along the highs, showing resistance levels where sellers might take control. 

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Channels form when a parallel line is drawn on the opposite side of the trend line, creating a price range within which the asset moves. Recognising these patterns can significantly impact trading strategies by highlighting potential breakout or reversal points, thereby guiding traders on when to buy or sell.

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Support and Resistance Levels

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Support and resistance levels are key concepts in understanding market psychology and predicting future price movements. Support levels are price points where a downtrend can be expected to pause due to a concentration of demand. 

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Resistance levels, conversely, are where a trend can stall or reverse due to a surge in supply. These levels are pivotal as they represent the collective decision-making of the market's participants, influenced by their perceptions, psychology, and actions. 

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Identifying these levels helps traders anticipate potential reversal points, offering strategic opportunities for entry or exit. The importance of these levels lies in their ability to signify areas where the sentiment of the market could change, driven by the principles of supply and demand.

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Step-by-Step Guide to Combining Indicators

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1. Identify the Market Trend. Use moving averages to determine the market's general direction. A rising moving average indicates an uptrend, while a declining moving average points to a downtrend.

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2. Assess Market Momentum. Apply RSI and MACD to gauge the strength and momentum of the trend. High RSI levels might suggest overbought conditions, signaling a potential reversal in an uptrend, whereas low RSI levels could indicate oversold conditions in a downtrend.

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3. Determine Potential Reversal Points. Employ Fibonacci Retracement levels for uptrends and downtrends to identify possible reversal zones where the market might stall or reverse.

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4. Confirm with Volume Indicators. Utilise OBV to confirm the trend’s strength. An increasing OBV in tandem with rising prices confirms an uptrend; a decreasing OBV with falling prices confirms a downtrend.

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5. Set Entry and Exit Points. Use Parabolic SAR to identify suitable entry and exit points, ensuring trades are aligned with the trend's direction.

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Case Study

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A trader analysing the ETH28Jun market might start with a daily moving average to spot the general trend direction. Upon identifying an uptrend, the trader examines the MACD for momentum and the RSI for potential overbought conditions. Noticing a retracement, the trader uses Fibonacci levels to pinpoint potential entry points at significant support levels. OBV confirms buying pressure, and the Parabolic SAR indicates it's time to enter the trade.

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This trader successfully combines these indicators, allowing for a nuanced understanding of market movements and the execution of a well-timed entry, significantly increasing the likelihood of a profitable outcome. This methodical approach exemplifies how integrating various technical analysis tools can enhance trading decisions, turning the unpredictable nature of crypto markets into manageable, calculated risks.

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Wrapping Up

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Technical analysis stands as a beacon for navigating the tumultuous waters of the crypto market. By dissecting past price movements and volume trends, traders equip themselves with the foresight to anticipate future market behaviors. This guide has ventured through the core principles and tools of technical analysis, from understanding candlestick patterns to deciphering complex indicators like the MACD and RSI, all aimed at enhancing your trading acumen.

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Embracing these techniques is not merely about following charts and numbers; it's about cultivating a disciplined approach to trading, where every decision is informed by analysis rather than intuition. As you integrate these methods into your trading strategy, remember that proficiency comes with practice and patience. Dive into the world of technical analysis, where informed decision-making and effective risk management can transform the volatility of the crypto market into opportunities for growth.

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FAQ

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What is the best technical analysis indicator for crypto trading?

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There isn't a universal indicator that suits all trading strategies. Successful crypto trading often requires a blend of several indicators to provide comprehensive market insights, tailoring your approach based on specific market conditions and personal trading style.

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Can technical analysis predict cryptocurrency prices accurately?

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Technical analysis provides insights into potential price movements based on past trends, but it's not infallible, especially in the highly volatile crypto market. Considering market sentiment and external factors, it should be used as part of a broader strategy.

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How important is volume in crypto technical analysis?

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Volume is pivotal in technical analysis, as it confirms the strength of a trend or a potential reversal. Indicators like On-Balance Volume (OBV) can offer insights into the momentum behind price movements, enhancing decision-making.

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What is the difference between technical analysis and fundamental analysis in crypto?

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Technical analysis focuses on price movements and patterns, while fundamental analysis evaluates the intrinsic value based on external and environmental factors. Each serves different purposes; technical analysis is often used for short-term trading, while fundamental analysis is suited for long-term investments.

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Can beginners easily learn and apply technical analysis in crypto trading?

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Yes, beginners can learn and apply technical analysis, starting with foundational concepts like reading candlestick charts and understanding basic indicators. With patience, practice, and ongoing education, anyone can incorporate technical analysis into their crypto trading strategy for more informed decisions.

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Navigating the market's uncertainties requires intuition and strategy and a solid foundation in risk management. It's essential for traders to have a method to assess potential losses, preparing them for the inherent volatilities of the financial world. This is where Crypto Valley Exchange steps in, adopting the Value-at-Risk (VaR) model as a sophisticated tool for risk evaluation. The VaR model is a testament to CVEX's commitment to providing its users with advanced resources to manage risk effectively. Let's delve into the principles of the VaR model and how it transforms risk assessment on CVEX.

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Understanding the Value-at-Risk (VaR) Model

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The Value-at-Risk model stands out as a statistical measure designed to estimate the potential loss in the value of a portfolio over a defined period for a set confidence interval. VaR calculates the maximum expected loss under normal market conditions, offering traders a clear perspective on the risk associated with their positions. This ability to quantify financial risk within a specific timeframe is invaluable. It enables traders to gauge the extent of potential losses and adjust their strategies accordingly, fostering a more informed and cautious approach to trading. Through adopting the VaR model, CVEX empowers its traders with a quantifiable risk assessment, setting a new standard in the careful navigation of the financial markets.

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3 Benefits of Using the VaR Model for Traders on CVEX

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Efficient Capital Usage. The VaR model aligns margin requirements with actual risk exposure, reducing the need for excessive capital allocation towards margins. This allows traders to utilise their capital more effectively, enabling additional trading activities and enhancing portfolio diversification.

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Dynamic Risk Assessment. Adapting to market changes and volatility, the VaR model ensures that margin requirements are always reflective of current market conditions. This adaptability helps traders stay prepared for fluctuations without the burden of unnecessary margins.

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Enhanced Trading Safety and Stability. By providing a realistic measure of potential losses, the VaR model helps traders make informed decisions, significantly reducing the likelihood of unexpected losses. This contributes to a more secure and stable trading environment on CVEX.

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The Calculation Methodology Behind CVEX’s VaR Model

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At the heart of CVEX’s adoption of the Value-at-Risk model lies a sophisticated calculation methodology, meticulously carried out by Risk Oracles. Unlike the traditional historical method, which relies heavily on past return values and can be skewed by extreme market events, CVEX embraces a statistical approach. This methodology ensures a more balanced and comprehensive risk assessment by considering the full range of available data.

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The process begins with the Risk Oracles assessing the historical prices of assets, converting these into log returns, and normalising them to eliminate bias. This preparation is crucial for accurately fitting the data into a statistical distribution model, moving away from the potential pitfalls of the historical method's sensitivity to tail values.

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By utilising the entire data spectrum, the statistical method allows for a precise evaluation of potential losses, accounting for the complexities and nuances of market behavior. This approach not only mitigates the irregularities associated with extreme market conditions but also provides a more reliable foundation for calculating margin requirements.

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In transitioning from the historical to a statistical methodology, CVEX ensures that its VaR model remains robust, responsive, and reflective of the true risk landscape. It's a testament to the platform's commitment to offering traders a reliable, nuanced, and scientifically grounded risk management tool.

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Choosing the Right Distribution for Accurate VaR Results

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Accurate VaR calculation hinges on selecting an appropriate distribution model that mirrors market realities, including the 'fat tails' characteristic of market return distributions. The t-distribution emerges as the superior choice over the normal distribution for several reasons:

• Better Representation of Market Extremes: Unlike the normal distribution, the t-distribution can accommodate the heavy tails observed in real-world market returns, which are indicative of more frequent extreme price movements.
• Fitting Log Returns with Precision: CVEX's Risk Oracles employ the Maximum Likelihood Estimation method to tailor the t-distribution to market data. This approach adjusts the distribution's parameters to capture the nuances of market behaviour accurately, enhancing the reliability of VaR calculations.

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The Impact of VaR on Trading Strategies

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Understanding and applying the VaR model significantly alters how traders approach risk management and decision-making:

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• Informed Trading Decisions: With a clear quantification of potential losses, traders can tailor their strategies to balance risk and return more effectively, avoiding positions that might expose them to unacceptable levels of risk.
• Enhanced Risk Management: CVEX's implementation of the VaR model equips traders with a powerful tool for assessing the risk of potential trading scenarios, enabling a proactive approach to risk management. This detailed risk insight fosters confidence among traders, empowering them to navigate the markets more skillfully.

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Conclusion

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The integration of the Value-at-Risk model into CVEX's trading platform represents a significant advancement in risk assessment for traders. By adopting a statistical approach grounded in the t-distribution, CVEX offers a nuanced and realistic evaluation of potential market risks. This model enables traders to understand their risk exposure better and to make trading decisions that are informed by a comprehensive risk assessment framework. The ultimate benefit of employing the VaR model on CVEX is the empowerment it provides traders, allowing for strategic decision-making bolstered by precise risk analysis. This enhances not just individual trading outcomes but also contributes to the overall stability and safety of the trading environment on CVEX.

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Ever wondered how much you're actually paying in funding fees while trading futures? 

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CVEX stands out by offering a unique benefit for traders: zero funding fees. This not only maximises your trading profits but also distinguishes CVEX from other platforms.

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Understanding Funding Fees

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Funding fees are periodic payments made by traders when holding open positions in perpetual futures contracts. These fees are designed to align the perpetual contract prices with the underlying asset's market price. However, they can significantly eat into your profits, especially in a highly volatile market.

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Typically, funding fees are calculated based on the difference between the perpetual contract's market price and the spot price of the underlying asset. Traders on the side of the contract that pays the fee (either longs or shorts, depending on market conditions) must pay funding fees to the other side at set intervals, often every 8 hours.

Here's a simplified example to illustrate the impact of funding fees on your trading costs:

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• On platforms like Binance, if you open a 10x leverage position with a notional value of $1,000,000, you might end up paying a substantial amount in funding fees over time. These fees will cost you approximately 18% of the position's value yearly.
• In contrast, on CVEX, a similar futures position would incur no funding fees whatsoever. The only costs would be the low trading and operational fees, making your trading endeavors more cost-effective and profitable in the long run.

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This stark difference showcases how CVEX can lead to significant savings for traders, enhancing the appeal of futures trading on the platform.

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By choosing CVEX, traders can enjoy the benefits of leverage and sophisticated trading strategies without the burden of funding fees, making each trade more efficient and potentially more profitable.

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Case Study: CVEX vs. Binance

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Funding fees significantly impact perpetual futures trading, affecting both strategies and overall profitability. Here's how CVEX distinguishes itself from platforms like Binance by using dated futures, which means eliminating funding fees totally.

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Funding Fees Overview

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The average funding rate for perpetual futures contracts in the market is 0.017% every 8 hours. This translates to a daily rate of 0.051% and an annual rate of 18.6%. Here we need to specify that funding fees are calculated from notional value. So if a trader opens a position with a value of $100,000 and 10x leverage, locking only $10,000 as a margin, he will pay 18% yearly from $100,000, not $10,000.

Also, please, take into account that these percentages are actual for the date we’re writing this article. Fees are changing constantly due to market conditions, so the next day fees can be bigger, let’s say 0.5%.

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Comparative Analysis:

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Binance Scenario:

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• Position: 10x leverage on a perpetual contract with a notional value of $1,000,000.
• Initial Margin: $100,000.
• Maintenance Margin: $50,000.
• Trading Fee: $500.
• Days till Liquidation: Considering the market's average funding rate, a position on Binance would last approximately 98 days before liquidation risks escalate, assuming constant contract value.

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CVEX's Offering:

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• Position: Similar 10x futures with $1,000,000 notional value.
• Initial Margin: $100,000.
• Maintenance Margin: $50,000.
• Trading Fee: Just $30.
• Operational Fee: A negligible $0.3.
• Funding Fee: Absolutely none, providing substantial cost savings.

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Cost-Benefit Analysis

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Choosing CVEX over Binance for futures trading means:

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1. Saving $470 directly on lower trading fees.
2. Dramatically reducing costs by avoiding the 18.6% yearly drain from notional value due to average market funding fees.

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The Financial Impact of No Funding Fees on Traders

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Trading on CVEX comes with a distinct financial advantage that directly influences profitability – the absence of funding fees. This peculiarity can significantly affect traders' long-term outcomes, offering a more sustainable trading environment.

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Benefits of No Funding Fees:

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• Enhanced Profitability. Without the burden of funding fees, traders retain a larger portion of their earnings, directly boosting profitability.
• Long-Term Sustainability. The savings from not paying funding fees compound over time, making trading strategies more sustainable in the long run.
• Competitive Edge. Traders on CVEX enjoy a competitive advantage, as they can operate with thinner margins, allowing for more flexible and aggressive trading strategies.

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Conclusion

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Choosing CVEX for futures trading presents a pivotal shift towards cost-efficient trading practices. By eliminating funding fees, CVEX stands out as an unparalleled choice for traders and organisations aiming to enhance their financial performance in the volatile crypto market.

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The financial landscape of futures trading is evolving, with CVEX leading the charge towards a more equitable and cost-effective trading environment. By choosing CVEX, traders unlock a pathway to enhanced profitability, devoid of the burden that funding fees impose on traditional platforms.

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Dive into a trading experience where efficiency and profitability are paramount. Explore CVEX today and discover how our unique approach to futures trading can revolutionise your financial strategy. With CVEX, you’re not just trading; you’re setting the stage for unparalleled financial growth.

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Start Trading Now! 

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Unleash your trading potential on CVEX. Visit https://cv.exchange to learn more and join a community of traders redefining success in the digital asset space.

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The need for platforms that cater to both individual traders and organisations has never been more critical. CVEX, with its unique blend of decentralisation and capital efficiency, stands out as a beacon of innovation in this regard. This blog delves into how CVEX is changing risk management and trading for a diverse audience, highlighting its benefits for average traders and organisations.

For Average Traders

Gasless Operations. One of the most significant advantages CVEX offers to traders is the elimination of gas fees. Unlike other decentralised exchanges where every transaction can become costly due to fluctuating gas fees, CVEX ensures that your trading activities are not only efficient but also cost-effective. This feature alone can dramatically reduce trading costs, making it an attractive option for traders at all levels.

Anonymity Preserved. In a world where privacy is increasingly valued, CVEX offers the anonymity of decentralised exchanges without the common trade-offs. Traders can engage with the full experience of cryptocurrency trading without sacrificing their privacy, ensuring that their activities remain confidential.

Higher Leverage Options. For those seeking to maximise their trading potential, CVEX provides higher leverage than is typically available on the market. This allows traders to amplify their trading strategies, offering a significant advantage in both bullish and bearish market conditions.

For Organisations: Advanced Risk Management Tools

Enterprise-Level Risk Management. CVEX serves as an indispensable tool for organisations looking to hedge against market volatility. Through portfolio margining, the platform significantly reduces the capital required for hedging operations, allowing institutions to manage their risks efficiently without impacting their balance sheets.

Structured Products and Financing. CVEX’s platform is a goldmine for financial institutions and boutique firms aiming to offer complex financial products. Lower collateral requirements and fees mean that creating products like capital-protected notes or yield enhancement strategies becomes more feasible and profitable.

Multi-Platform Interoperability and Stablecoin Management. With features catering to seamless integration with other platforms and stablecoin management, CVEX ensures that organisations can protect against collateral asset devaluation while enjoying robust market connectivity.

The Comprehensive CVEX Ecosystem

Beyond individual traders and organisations, CVEX extends its offerings to a wide array of market participants. From retail investors to DeFi projects and DAOs, the platform’s composable architecture and efficient environment make it a versatile tool for various financial activities. Whether it’s for arbitrage opportunities, dynamic liquidity provision, or developing decentralised financial products, CVEX lays the foundation for innovation and growth.

The protocol’s asset-agnostic nature further reinforces its potential, supporting an extensive range of asset classes and paving the way for its application across both traditional and digital asset markets. This flexibility ensures that CVEX is not just a protocol but a comprehensive risk management infrastructure poised to redefine financial markets.

Conclusion

CVEX’s vision extends beyond mere transactions; it’s about empowering users with tools that were once the exclusive domain of institutional players. By democratising access to advanced risk management and trading strategies, CVEX is not just changing how we trade but also why we trade. It’s about creating a financial ecosystem that is open, efficient, and accessible to everyone, regardless of their background or market knowledge.

As we look towards the future, CVEX continues to innovate, inviting traders and organisations to explore and engage with a platform that truly understands their needs. With CVEX, the future of finance is not just arriving; it’s already here. Explore the vast possibilities with CVEX and join a growing community committed to revolutionising the digital finance landscape.

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The advent of CeFi (Centralised Finance) and DeFi (Decentralied Finance) marks a pivotal shift from traditional finance models to more inclusive and accessible systems. This transformation is not just a technological leap but a response to the growing demand for transparency, efficiency, and autonomy in financial transactions.

Historically, financial systems have been built on centralised models, with banks and financial institutions acting as the gatekeepers of money and credit. These entities, governed by a complex web of regulations, have controlled the flow of money, the issuance of credit, and the management of financial risks. However, this centralisation has often led to inefficiencies, exclusivity, and a lack of transparency, prompting the search for alternative finance models.

Enter CeFi and DeFi, two paradigms that challenge the status quo of traditional finance. CeFi, or Centralised Finance, refers to the crypto-equivalent of traditional banking systems, where exchanges and platforms act as centralised entities offering various financial services. These services include but are not limited to, trading, lending, borrowing, and yield farming, all under the oversight of a central authority. CeFi platforms bridge the gap between the legacy financial system and the burgeoning world of digital assets, providing users with familiar interfaces and regulated environments.

On the other hand, DeFi, or Decentralised Finance, represents a radical departure from conventional financial operations. Built on blockchain technology, DeFi offers a suite of financial services that operate without central intermediaries. From decentralised exchanges (DEXs) to lending protocols and stablecoins, DeFi utilises smart contracts to automate financial transactions, offering unparalleled transparency and control to users. This shift towards decentralisation seeks to democratise finance, making it more accessible and equitable for all participants.

The emergence of CeFi and DeFi as responses to the limitations of traditional finance is a testament to the dynamic nature of the financial industry. By addressing issues such as accessibility, transparency, and user control, these models are reshaping our understanding of financial systems in the digital age. As we delve deeper into the distinctions, advantages, and challenges of CeFi and DeFi, it becomes clear that the future of finance is on the cusp of a transformative era, promising more inclusive, efficient, and transparent financial services for individuals worldwide.

Understanding CeFi: Centralised Finance in Crypto

Centralised Finance (CeFi) within the cryptocurrency domain acts as a pivotal bridge connecting traditional financial mechanisms with the rapidly evolving digital currency landscape. Rooted in age-old principles, CeFi today melds with modern technology to offer an array of financial services while maintaining centralised governance. This blend represents a continuum from tangible assets to digital currencies, illustrating humanity’s pursuit of stable and dependable financial infrastructures.

CeFi’s cornerstone is centralised exchanges (CEXs), which funnel all trading activities through a singular platform under centralised oversight. Prominent examples include Binance, Coinbase, and Kraken, which display CeFi’s role in cryptocurrency, providing a unified venue for trading, lending, and borrowing. These platforms, acting as custodians, assume the responsibility of securing and managing users’ funds. Beyond trading, CeFi extends to services like lending, borrowing, and margin trading, enriching the cryptocurrency experience.

Advantages of CeFi include:

• Enhanced Security: CeFi platforms invest in sophisticated security measures to protect users’ assets from cyber threats.
• Robust Customer Service: Provides comprehensive support to users, facilitating a smoother navigation through the complexities of crypto trading.
• Regulatory Compliance: CeFi entities adhere to legal frameworks, offering an added layer of protection against potential fraud and malpractices.

Challenges faced by CeFi comprise:

• Security Risks: Despite robust security measures, centralised platforms remain prime targets for hackers, evidenced by past security breaches resulting in significant financial losses.
• Control Over Funds: The centralised nature of CeFi means users relinquish direct control over their funds, raising concerns about autonomy and the risks of mismanagement.
• Privacy Concerns: Utilising CeFi platforms often entails disclosing personal information, potentially compromising user anonymity.

In essence, Centralised Finance in the cryptocurrency arena marries traditional financial systems with technological innovation. It provides a regulated and familiar environment for trading and asset management, backed by a suite of services catering to various user requirements. Nevertheless, it necessitates a judicious assessment of its benefits against inherent risks and challenges. As the cryptocurrency landscape continues to mature, CeFi remains a critical component, steering the course of digital finance with its blend of security, innovation, and regulatory alignment.

Diving into DeFi: The Decentralised Finance Revolution

Decentralised Finance (DeFi) represents a revolutionary shift in the financial domain, challenging the centralised banking systems’ status quo by leveraging blockchain technology and smart contracts. This innovative framework democratises finance, making it accessible, transparent, and inclusive. DeFi stands out for its ability to offer a comprehensive suite of financial services — from asset exchanges to loans and leveraged trading — without the intermediation of traditional financial institutions.

The Role of Blockchain and Smart Contracts in DeFi:

Blockchain serves as the backbone of DeFi, ensuring transparency, security, and efficiency. It enables transactions and agreements to be executed automatically through smart contracts, without needing central authorities or intermediaries. This technology not only reduces the potential for human error but also significantly cuts down transaction costs and time.

Services Provided by DeFi:

DeFi platforms have rapidly expanded their offerings, covering a wide range of financial services that mirror those in the traditional financial sector. These include but are not limited to:

• Asset Exchanges: Decentralised platforms facilitating direct peer-to-peer asset trading.
• Loans: Permitting users to lend or borrow cryptocurrencies, often secured by digital assets.
• Leveraged Trading: Allowing traders to amplify their trading positions using borrowed funds.

Unique Features of DeFi:

DeFi’s allure lies in its core features:

1. Transparency: Every transaction and its rules are recorded on the blockchain, visible to anyone.
2. Control: Users retain full control over their assets without relying on third parties.
3. Accessibility: DeFi services are accessible to anyone with an internet connection, breaking down geographical and socio-economic barriers to financial services.

Advantages of DeFi over CeFi:

DeFi ushers in a new era of financial empowerment and innovation. It offers unparalleled transparency, where users can directly interact with financial systems and products without opaque practices. Additionally, DeFi promotes financial inclusion and user empowerment, allowing individuals to participate in a wider array of financial activities with minimal entry barriers.

Risks Associated with DeFi:

Despite its potential, DeFi is not without risks:

• Asset Security: The nascent stage of many DeFi platforms can pose security risks, from smart contract vulnerabilities to platform exploits.
• Platform Reliability: As decentralised platforms are still in development, they may face issues with scalability, user experience, and reliability.
• Regulatory Ambiguity: The lack of clear regulatory frameworks for DeFi can create uncertainties for users and developers, potentially affecting its mainstream adoption.

In summary, DeFi represents a paradigm shift in finance, challenging traditional centralised systems with its innovative use of blockchain technology to offer transparent, accessible, and user-controlled financial services. While it promises a future of empowered financial participation, it also necessitates cautious navigation of its associated risks. As the DeFi space continues to evolve, it is poised to redefine the financial landscape, promising more inclusive and innovative solutions.

CeFi vs. DeFi: A Comparative Analysis

The financial ecosystem is witnessing a transformative period with the coexistence of Centralised Finance (CeFi) and Decentralised Finance (DeFi), each presenting unique advantages and challenges. This comparative analysis delves into the core differences and similarities between CeFi and DeFi across multiple dimensions, shedding light on the evolving landscape of finance.

Public Verifiability and Transparency:

DeFi, built on blockchain technology, excels in public verifiability and transparency. Every transaction and contract execution is recorded on the blockchain, accessible for anyone to audit. This contrasts with CeFi, where operations are more opaque, often leaving users in the dark about the internal workings and decisions affecting their assets.

Atomicity and Execution Speed:

DeFi transactions can be programmed to be atomic, meaning they either complete in their entirety or not at all, reducing the risk of partial execution. However, DeFi can sometimes suffer from slower execution speeds due to network congestion. CeFi, operating on traditional digital infrastructures, often provides faster transaction speeds but lacks the inherent atomicity of blockchain transactions, relying instead on legal agreements to ensure transaction integrity.

Development and Deployment Anonymity:

DeFi platforms often embrace development and deployment anonymity, allowing for the creation and operation of financial services without revealing the identities of the developers. This level of anonymity is rare in CeFi, where companies are typically bound by regulatory requirements to disclose significant amounts of operational and ownership information.

Custody and Control Over Assets:

One of the most pronounced differences lies in the approach to asset custody. DeFi grants users full control over their assets through non-custodial wallets and smart contracts, contrasting with CeFi’s custodial nature, where users entrust their assets to the platform. This fundamental difference highlights the trade-off between the convenience of CeFi and the sovereignty provided by DeFi.

Market Hours and Availability:

DeFi markets operate 24/7, facilitated by the always-on nature of blockchain networks, offering continuous trading without the constraints of traditional market hours. In contrast, CeFi markets may have specific operating hours, influenced by their geographical location and regulatory environment.

Interplay and Blurred Lines:

The distinction between CeFi and DeFi is not always clear-cut. The financial ecosystem is increasingly witnessing a convergence of practices, with CeFi platforms incorporating blockchain technologies and DeFi principles to enhance transparency and efficiency. Conversely, some DeFi projects are exploring centralised elements to improve user experience and regulatory compliance.

In essence, CeFi and DeFi represent two sides of the same coin, offering diverse paths to financial innovation and inclusion. While DeFi pushes the boundaries of decentralisation and user empowerment, CeFi provides a familiar, regulated framework for financial services. The future of finance may well lie in the synergies between these two paradigms, leveraging the strengths of each to create a more inclusive, efficient, and transparent financial system.

Legal, Security, Economic, and Privacy Perspectives

CeFi operates within a well-established legal framework, adhering to regulatory standards that cover licensing, anti-money laundering (AML), and customer due diligence (CDD). In contrast, DeFi navigates a less clear regulatory landscape, leveraging blockchain’s global reach to offer financial services without centralised governance, raising questions about jurisdiction and legal compliance.

Security Challenges and Solutions

Security in CeFi hinges on the robustness of centralised platforms, which are frequent targets for cyberattacks but benefit from institutional-grade protection measures and insurance schemes. DeFi’s security is rooted in blockchain technology, offering resilience through decentralisation but facing challenges such as smart contract vulnerabilities. Both ecosystems are evolving with enhanced security protocols, including multi-factor authentication in CeFi and rigorous smart contract audits in DeFi.

Economic Implications

Transaction costs in DeFi are variable, primarily influenced by network congestion and demand for blockchain space, potentially leading to high fees during peak times. CeFi typically offers more predictable fees but can include costs like withdrawal fees and currency exchange charges. Regarding inflation, CeFi is tied to traditional fiat currencies subject to central bank policies, whereas many DeFi projects have predefined token supplies, introducing different economic dynamics.

Privacy Considerations

CeFi requires user identification, compromising anonymity for regulatory compliance. DeFi, powered by blockchain, offers pseudo-anonymity, with transactions publicly recorded but not directly linked to real-world identities. However, the increasing integration of “Know Your Customer” (KYC) processes in DeFi projects begins to blur the lines of privacy between CeFi and DeFi.

Market Manipulation and Arbitrage Risks

CeFi markets are susceptible to traditional manipulation tactics but are monitored by regulatory authorities to protect investors. DeFi’s transparency and decentralised nature make manipulation more challenging but not impossible, with practices like front-running becoming prevalent due to public transaction pools and automated market making.

Arbitrage in CeFi involves exploiting price differences across different exchanges, often hindered by transfer times and fees. DeFi offers unique arbitrage opportunities within and across platforms, facilitated by instant blockchain transactions. However, the inherent risks of price slippage and transaction failures due to network congestion or smart contract issues apply. Both CeFi and DeFi arbitrageurs must navigate these challenges, weighing potential profits against the costs and risks of their strategies.

The Synergy between CeFi and DeFi

As the financial world evolves, it becomes evident that CeFi and DeFi are not adversaries but complementary forces shaping the future of finance. These two ecosystems have the potential to coexist harmoniously, leveraging their unique strengths to provide a more robust, inclusive, and versatile financial landscape.

Innovations such as bridges and cross-chain services are paving the way for seamless interaction between CeFi and DeFi platforms. These technologies allow assets and information to flow freely between different blockchains and centralised systems, unlocking new possibilities for liquidity, accessibility, and financial services. By integrating CeFi reliability and DeFi innovation, these solutions offer users the best of both worlds.

The financial ecosystem is witnessing the emergence of hybrid models that blend CeFi’s regulatory compliance and user-friendly interfaces with DeFi’s transparency and decentralisation. Such platforms are instrumental in introducing traditional finance users to the benefits of blockchain technology, fostering a gradual transition to more decentralised solutions.

Conclusion and Future Outlook

The journey through the realms of CeFi and DeFi uncovers a landscape rich with opportunity, innovation, and challenges. As we have explored, both systems possess distinct advantages that, when combined, have the potential to redefine financial interactions and accessibility.

The financial ecosystem continuously evolves, with CeFi and DeFi each playing critical roles in this transformation. As technologies advance and regulatory frameworks mature, we can anticipate a more interconnected and interoperable financial environment where users can effortlessly navigate between centralised and decentralised services according to their needs.

We encourage our readers to dive deeper into the worlds of CeFi and DeFi, exploring the diverse offerings on platforms like CVEX. Embrace the opportunity to engage with traditional and innovative financial solutions, expanding your understanding and capabilities within this ever-changing ecosystem.

Stay ahead of the curve by keeping informed about the latest developments in both CeFi and DeFi. As the lines between these two sectors continue to blur, being well-informed will enable you to make the most of the opportunities in this dynamic financial landscape.

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Navigating the diverse landscape of decentralised trading demands a deep understanding of the order types at your disposal. CVEX stands out as a platform that equips traders with various order options, enabling efficient market navigation. This detailed guide sheds light on crucial order types and how they can amplify your trading efficacy on CVEX.

Market and Limit Orders

Market Orders are pivotal for traders who prioritise quick execution over price precision. Executed at the prevailing market price, these orders offer the advantage of speed. However, traders must be cautious of possible price slippage, especially in volatile market conditions, which can affect the final execution price.

Limit Orders introduce a layer of price control, allowing traders to specify the price at which they wish to buy or sell an asset. This order type is essential for traders who seek price certainty and are willing to wait for the market to match their specified price. While limit orders ensure that you don’t pay more (or sell for less) than your desired price, execution is not guaranteed if the market price does not reach the price set by the trader.

The Intricacies of Futures and Options

Exploring futures and perpetual markets on CVEX, traders can take long or short positions, betting on both the rise and fall of asset prices. It’s important to note that simultaneous long and short positions on the same contract nullify each other due to their opposing nature.

The options market further diversifies trading strategies. Traders can buy or sell Call and Put contracts with predefined strike prices. Margin trading in options allows traders to enter into positions without paying the full premium upfront, distinguishing CVEX from traditional centralised and decentralised exchanges by providing a broader range of trading strategies.

Expanding on Time-in-Force (TIF) Settings

Good ’til Cancel (GTC) orders remain active until they are fully executed or explicitly canceled by the trader. This setting is perfect for traders who are not under immediate pressure to execute and prefer to wait for the market to reach a specific price.

Immediate or Cancel (IOC) orders emphasise the need for swift execution. These orders aim for immediate fulfillment; any part of the order that cannot be filled instantly is canceled. This type is favored by traders looking for rapid execution while avoiding the risk of partial fills.

Fill or Kill (FOK) orders are all about immediacy and completeness. They must be executed in their entirety as soon as they are placed; otherwise, they are entirely canceled. This order type is particularly useful for traders dealing in large volumes who require a full fill and wish to avoid partial executions.

Post Only (PO) orders ensure that a trader always adds liquidity to the market, thus qualifying for maker fees instead of taker fees. These orders do not execute immediately against existing orders, ensuring the trader’s position as a liquidity maker. If a PO order would be matched with existing orders upon placement, it is automatically canceled, thus preserving the maker status.

Efficient Order Execution and Strategic Management on CVEX

Our platform meticulously verifies that each order is sufficiently supported by collateral before execution. This vigilance ensures a seamless trading experience, where traders can effortlessly cancel or adjust orders that await execution. We’re on the brink of enhancing our platform further by introducing Stop Loss and Take Profit orders, broadening the strategic toolkit available to our traders.

Innovating for Advanced Trading Approaches

The future of CVEX shines brightly with the impending rollout of an array of conditional orders. This innovation marks a pivotal step in our journey to revolutionise the DeFi trading landscape. Our unwavering dedication to delivering a comprehensive, intuitive trading platform caters to the vast spectrum of trader aspirations and strategies.

Conclusion

CVEX is committed to empowering traders with various order types and customisable trading configurations. Our platform is crafted with the needs of both burgeoning traders and trading veterans, offering unmatched versatility and control. As we persist in enhancing our platform’s capabilities, CVEX is poised to maintain its leading position in decentralised trading innovation.

We invite you to stay connected for further enhancements, as we continue to elevate the trading experience on CVEX, making it your go-to platform for decentralised trading endeavors.

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Today, Crypto Valley Exchange (CVEX) proudly launches its Public Testnet, welcoming over 150,000 users who have eagerly awaited this day. This significant step follows our Closed Testnet phase, which demonstrated the robustness and potential of our platform.

Closed Testnet Achievements

From March 14th to 21st, our Closed Testnet saw participation from 75 users, the execution of over 9k events and 1,250 orders, and our users’ identification of 20 bugs. Our development team has efficiently addressed most of the bugs and vulnerabilities, ensuring our readiness for this wider release.

Upcoming Features and Developments

As we continue our journey towards the Mainnet launch, we’re excited to share the enhancements we’re working on:

• Batch Actions. Execute multiple operations simultaneously, saving on gas fees and leveraging VaR Margin for optimal trading efficiency.
• User Interface Enhancements. Expect a reworked list of markets, account details, and order configuration, making the platform more accessible for newcomers.
• Relaxed Mode. Benefit from more efficient (cheaper) transaction execution, optimising your trading strategy.
• Leverage Configuration & Risk Model Rework. Gain access to higher leverage through a refined risk model and leverage settings.
• Advanced Trading Features. Look forward to Confirmation-less trading (Trusted Mode), Trading Strategies, and more, catering to novice and experienced traders.
• Comprehensive Analytics. Dive deep into Protocol, Platform, and Portfolio Analytics, providing you with the insights needed to make informed decisions.
• Affiliate Program Enhancements. Enjoy a robust Affiliate Rewards Distribution Service and Affiliate Dashboard Analytics, among other advanced features.
• Cross-Chain & Multi-Account Capabilities. Experience seamless CCTP Integration for cross-chain funding and Multi-Account Mode for diversified trading strategies.
• Market Maker & Trading Automation. Leverage our API/SDK for Market Makers and programmatic trading, enhancing trading efficiency for professionals.
• Data Integration & Accessibility. Migration to Chainlink Data Streams for decentralised, accurate and timely market data, alongside Localisation and Light Theme options for improved platform accessibility.
• Mobile App. Stay connected and trade on the go with our upcoming mobile application, ensuring you take advantage of every trading opportunity.

Please note that future scope is subject to change based on insights gained during the Testnet phase.

Your Role in Shaping CVEX

Join the CVEX Public Testnet and play a vital role in refining our platform. Your feedback is crucial in crafting a superior DeFi trading experience. Explore, test, and engage with our community, including crypto enthusiasts and the CVEX team, to shape the future of decentralised trading. Connect with fellow testers and share insights in our dedicated Discord channel. Your participation is key to our collective success.

Join the discussion: https://discord.com/channels/1140960876992659506/1216747747823321128

Join the CVEX Journey

Immerse yourself in the CVEX Public Testnet and be part of the movement shaping the future of decentralised futures trading. For a comprehensive guide on how to navigate and make the most out of our Public Testnet, visit our Official CVEX Testnet Guide.

Stay Connected

For the latest updates and to join our vibrant community, follow us on:

Website — https://cvex.xyz/

Twitter — https://twitter.com/cvex_xyz

Telegram — https://t.me/cvex_xyz_ann

Discord — https://discord.gg/DRma7Z9BTz

Together, let’s embark on a journey toward creating a decentralised futures trading platform that is not only innovative and secure but also deeply aligned with the needs and aspirations of our community.

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As we gear up for the Mainnet launch, we’re sharing a preview of our structured fee system and rewards mechanism to enhance your trading experience. This guide aims to demystify our fee structure and rewards, making your journey with us profitable and engaging.

A Closer Look at Fees

At CVEX, each trade carries an operational fee, which is a small charge for order delivery and execution. This fee varies depending on the type of delivery and execution mode you choose. For example:

• Instant Execution (1–2 seconds). For those seeking speed, fees range from $0.20 to $0.30, depending on whether it’s a trusted or signed delivery.
• Relaxed Mode (around 30 seconds). A cost-effective choice offering significant savings, with fees as low as $0.05 for trusted delivery.
• Direct Calls to the Smart Contract. Incur only a minimal operational fee of $0.02, plus the cost of gas used.

Traders can also bundle orders in a batch to save on costs, which is especially useful for options trading or adjusting orders.

When it comes to liquidations and settlements, a small fee applies, ensuring the platform can sustainably manage these processes. Yet, there are no fees for deposits and withdrawals, except for the standard gas costs.

Trading Fees Explained

Trading fees are differentiated between makers and takers based on their contribution to the liquidity in the order book. Makers add liquidity by placing orders that are not immediately matched, thus building the market. Takers remove liquidity by matching with these orders. Fees for takers start at 0.00300%, while makers receive rebates, encouraging market-making activities.

Holding CVEX Tokens unlocks tier-based discounts on trading fees, rewarding our community’s commitment. Discounts range from 10% to 20%, depending on your staking tier, making trading more advantageous for our loyal users.

Rewards for Keeping the Market Efficient

Frontends and Clearance Bots play a crucial role in maintaining market efficiency. They are reimbursed for gas costs and receive a premium for their operational expenses. Additionally, bots that help manage risk by initiating margin calls or terminating risky orders are rewarded, ensuring a stable trading environment.

Your engagement with CVEX is pivotal. The fees and rewards system is designed with the community in mind, balancing operational sustainability with user incentives. As we progress towards our Mainnet launch, we value your feedback and participation in shaping a platform that truly reflects the needs of our users.

Stay tuned for updates and join us in redefining decentralised trading. Your journey with CVEX is just beginning, and we’re excited to have you aboard.

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In this guide, you’ll learn about all the features we presented in our Crypto Valley Exchange Closed Testnet. We approached our UX/UI with much love and hope you won’t need this guide. But let’s go through the CVEX functionality step-by-step so you don’t have any questions left.

Please note that all transactions on our Testnet are test ones. No real funds will be used!

Step 1: Connect Your Wallet

To enter the wonderful world of decentralised trading, you need a key. In our case, that key will be one of the 170 crypto wallets we support. So, how do you connect to the platform?

Note: We support only those wallets supporting EIP-712 Standard.

1. Go to the official website of our testnet. Make sure that the link in your browser search bar and this link: https://testnet.cvex.trade/ match. The scammers are not sleeping, don’t let yourself be fooled!

2. Now, you will see a window “Welcome to CVEX”, where you will find more detailed instructions and explanations of the wallet connection process and a link to our Terms of Service. When you have read everything, click “Connect”.

3. Choose one of the 170 options we support. But you’ll choose Metamask, we know.

4. Your wallet will ask you to confirm that you want to connect to CVEX. Don’t worry, no funds will be used. The confirmation is purely a security function. Read the terms and conditions and agree to all offers

5. After connecting the wallet, you’ll need to verify the ownership. Just one more dialogue window from your wallet, but it’s very important. All in all, how do we know that’s your wallet?

6. Now, if you are on our Whitelist, you’ll get access to the platform. But if not, you’ll see this message:

Please fill in your email, and we’ll notify you personally when our Testnet launches in the public phase so you can try it.

7. If everything’s fine, you’ll notice your address in the top-right corner of the website. Like this:

Step 2: Choose Your Chain

After connecting, you may want to choose the preferred chain to use. Click on your wallet’s address in the top-right corner and see this:

Here, you can switch between Sepolia, Arbitrum Sepolia, Base Sepolia and OP Sepolia chains. Choose your fighter, and let’s proceed.

Step 3: Increase Your Balance

So, you’re connected. But to trade, you need some money, right? We’ve prepared a built-in faucet that will increase your balance on the platform without requiring many actions.

It is important to note that the CVEX testnet does not involve working with real funds. All balances are test ones!

1. Find the “Increase” or “Deposit” buttons and click them.

2. After clicking, your wallet will ask to verify a transaction. Agree with it. And now, in “Account Details”, you’ll see how your test deposit on CVEX is growing.

3. Here, in the “Account Details”, you can also test decreasing your balance, seeing your available collateral and total equity.

Step 4: Place Your First Order

Now let’s take apart the main window of the interface:

First, look at the “Place Order” section on the right side of the screen. This is where all trading on CVEX takes place. Here you can:

1. Choose to place Buy or Sell orders
2. Choose whether you want to place a Limit or Market Order

If you want to engage with an asset right now, then choose market order:

Here, you just need to fill in the quantity of the desired asset to buy/sell and hit the “Place Buy” button. Also, you may want to use the “Reduce-Only” (read further about it) option. Right below the buy button, you can see the trading and operational fees you will pay from your test balance.

If you are aimed at a specific price level, you may find it better to use Limit orders:

The main difference here is the ability to choose the price level at which your order will be executed (e.g., buy BTC at $75,000). Also, you’ll find different types of orders from which you can choose. Let’s break them down:

Additional settings of orders on CVEX:

- Reduce-Only: This option is handy if you already have open trades. Say you’ve gone long on 0.5 BTC and want to set up a short position for 0.2 BTC as a Reduce-Only order. CVEX will simply adjust your long position down to 0.3 BTC. If you then add another short for 0.4 BTC, CVEX will close out your long position completely.

- Post-Only: This feature is used in limit orders to ensure your order only gets added to the book if it can’t be filled immediately by matching it with an existing order. It’s a way to ensure you pay the maker fee instead of the taker fee.

- Good-till-Cancel (GTC): This type of order remains active until the trade is executed or you decide to cancel it. It’s a “set and forget” option for traders waiting for their price target.

- Fill-Or-Kill (FOK): This is an all-or-nothing order that needs to be filled entirely and immediately, or it gets cancelled. It’s used when you want to ensure a complete fill without partial executions.

- Immediate-Or-Cancel (IOC): Similar to FOK, this order type seeks immediate execution. CVEX will immediately fill as much of the order as possible and cancel any unfilled portion. It allows for partial fills, offering flexibility in fast-moving markets.

Step 5: Analyse Your Portfolio

Now, after opening your first position, your account details should have changed, which you can see in the bottom-right corner of the platform:

Let’s take a closer look at what information you can find here and how to use it to improve your profitability in CVEX trading:

1. Leverage

At the very top, you will see Leverage and a number after it. Currently, CVEX does not allow you to select the desired Leverage size yourself. Considering many factors, the platform automatically selects the maximum allowable Leverage for you. But the main one is risk management.

Our website has a whole section dedicated to calculating Leverage for different scenarios. We recommend that you read it in detail to understand how to maximise the potential Leverage for your account: https://cvex.xyz/.

2. Margin Utilisation

Margin Utilisation is the percentage of your total portfolio that is currently spent on maintaining open positions. If the percentage exceeds 90%, the user has a high chance of getting their orders closed, as they will not have enough money to maintain the margin.

In our example, the total value of the portfolio is $100k. At the same time, a position is opened for a long $BTC worth $20,000. Since the Leverage of the account is 10x, we only need to cover 1/10th of the order value from our balance, or ~$2000 ($1,987 to be exact), or 2% of the total portfolio value.

Now, let’s open another position. For example, to short $ETH for the same amount of $20k. Even though we now have 40% of our portfolio in open trades. We are only paying 2.68% in margin collateral, or $2,664.89. CVEX, thanks to its VaR-based margin system, realises that $BTC and $ETH are largely correlated assets, so if one trade fails, the second one must cover the potential losses.

This means that the overall riskiness of the portfolio is reduced, and the trader can pay less for margin utilisation. By the way, a lot is written about it in our documentation: https://docs.cvex.xyz/

3. Equity

Equity is the current value of the account and fluctuates with every tick when looking at your trading platform on your screen. It is calculated using the formula USDC Collateral — Open P&L.

4. Open P&L

How much money you will gain or lose if you close all your positions at the current market price.

5. USDC Collateral

All of the trader’s assets that are on the balance sheet are used to cover the margin on open orders or will be used to cover losses from failed trades

6. Required Margin

The amount of funds required to maintain open positions at a given moment.

7. Available to Decrease

The amount of funds available for withdrawal from the trader’s balance to his wallet now.

Step 6: Analyse Your Trades

At the bottom of the screen, you can find a tab dedicated to open positions and orders, as well as the trading history of this account:

Here a trader can keep track of all open positions, as well as get full analytics of his actions on the platform to further study and improve his trading.

Let’s get more detailed!

1. Open Positions

In this tab, CVEX shows the trader all of his currently open positions. These include:

• Contract name (e.g., BTC-28JUN24);
• Size of the position in tokens;
• Net Value of the position;
• Average entry price (average price at which the asset was bought/sold);
• Mark price;
• Margin (isolated to maintain this position);
• Leverage (used to open this position);
• Unrealised P&L (how much money will the trader get or lose if decides to close the position right now using the market price);
• ADL rank (If the insurance fund is insufficient or the liquidation order is not fully executed due to low liquidity, Auto-Deleveraging, or ADL, will be activated. Once ADL is activated, the system will reduce the counter positions of the liquidated traders by profit and leverage based on the Mark Price at the time of trigger).

2. Trade History

Here, a trader can view the entire history of his positions (their opening and closing) for a specified period of time (1 day, 1 week, 1 month, 3 months, or a custom date value).

Among other things, CVEX shows when a position was opened or closed, the initial and average entry price, position size, selling price, realised P&L, and the number of commissions paid.

3. Open Orders

In this section, the trader is shown all his open orders, including Order ID, Contract Name, and additional information on price, quantity, and number of tokens already filled in the order. There is also an important button to close an open but unexecuted order.

4. Order History

Pretty similar to the “Trade History” tab but makes accents on orders and their peculiarities, not on positions, like the trader’s role (taker/maker), the type of the order, etc.

5. Transactions History

Here, a trader can see all the information about depositing or withdrawing funds from the platform and sort it based on the execution date.

Step 7: Analyse Charts

The main window of the CVEX platform, where the trader can see all information regarding contracts, current price, orderbook, and so on:

1. Choosing Contracts

On the left side of the screen, a trader can see a list of all available contracts for trading and search by name or ID. In the contract name, you can read the name of the token being traded (e.g., ETH means ETH/USDC) and the expiration date (e.g., 28Jun24 means June 28th, 2024). Also, next to the contract name, you can see the Last Price in this token pair.

2. TradingView Charts

This is where the entire technical analysis toolkit is located for the user. The trader can view the chart, change the timeframe, draw technical analysis elements like Fibonacci grids, calculate the potential profit, etc. You can read more about the functionality of TradingView, which is fully integrated into the CVEX platform, here: https://www.tradingview.com/charting-library-docs/latest/getting_started/Key-Features

In the same window, the trader is shown information about Mark, Index, and Last Price. You can read more about them in our recent article.

3. Contact Details

In Contract Details, the trader can access information about the token being traded (their website and documentation for basic fundamental analysis) as well as details about the CVEX contract, such as tick size.

4. Order Book

Finally, on the right side of this large window, the trader can see the order book of the selected contract, with all the long or short orders, their total value at different price values, and the number of tokens that will be bought or sold at these values. If the “Trades” tab is clicked, the user will get information about all recent trades made within this contract.

Step 8: Adjust Your Settings

In the top-right corner, you can adjust your settings and get some useful links:

In these three tabs, you can get to the rest of the CVEX protocol, such as our social media, documentation, Affiliate Dashboard, and so on. Also, under the gear icon, you can see the platform’s appearance settings. You can hide or reopen additional tabs by clicking on it, such as TradingView Charts.

Leave Your Feedback

Clicking on the icon with an exclamation mark opens a menu for communication with the CVEX development team. Here, the trader can report bugs and offer his vision of the platform through the “Suggest Feature” button.

Also, you can suggest an improvement directly by following this link and basic authorisation via social media or email: https://cvex.nolt.io/.

Conclusion

We hope this guide has given you a clear understanding of what to expect from our Public Testnet. Our team has worked tirelessly to ensure the features and UX/UI meet and exceed your expectations. Your feedback is invaluable as it helps refine and perfect our platform. We encourage you to report bugs, suggest new features, or simply share your experience. Connect with our vibrant community and stay updated through our official channels:

• Website: https://cvex.xyz/
• Twitter: https://twitter.com/cvex_xyz
• Telegram: https://t.me/cvex_xyz_ann
• Discord: https://discord.gg/DRma7Z9BTz

Let’s make the world of DeFi trading better, one step at a time. Your journey with CVEX is just beginning, and we’re thrilled to have you on board.

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Crypto Valley Exchange (CVEX) team is excited to invite you to the first look at our Closed Testnet starting March 14th, 2024. This is a key moment in our journey towards enhancing DeFi Trading, leading up to our Public Testnet on March 21st and the full Mainnet release in the summer of 2024.

We have a simple goal: to offer you a trading platform that combines the best of both worlds — traditional finance’s stability and DeFi’s innovation. The Closed Testnet launch is your opportunity to get a hands-on feel for what we’ve been building on our protocol.

Starting March 14th, Closed Testnet is open for these users:

1. Zealy winners: 100 and 50 winners of the first and the second Zealy sprints, respectively;
2. Alpha-tier affiliates: users who invited the most friends on the platform at the time of the snapshot;
3. Influencers: our ambassadors and other crypto enthusiasts who showed their support to the project;
4. CVEX’s team: we also want to hit buttons.

Inside the CVEX Closed Testnet

The Closed Testnet is more than just a sneak peek; it’s your playground to explore features that aim to improve your trading experience:

• Futures Trading. Dive into futures trading with functionalities such as Reduce-Only Orders, Post-Only Orders, and TIF (Time in Force) Orders.
• Multichain Support. Connect from a broader ecosystem with Ethereum, Arbitrum, Optimism, and Base support, enabling a seamless trading experience across multiple blockchains.
• Wallet Connect Integration. Connect effortlessly with over 170 wallets (Please notice that wallets are limited by those supporting EIP-712 Standard).
• Customisable Layout. Tailor the trading interface to suit your preferences, enhancing your trading experience.
• Advanced Charting. Utilise Trading View charts for Last, Mark, and Index Prices, providing the tools needed for in-depth market analysis.
• Comprehensive Trading Data. Access Contracts, Orderbook, Trades, Price Line, User’s Operations, and Portfolio Widgets for detailed insights into your trading activities.
• User’s Account Details. Keep track of your account specifics easily, ensuring you’re always informed about your portfolio risks.
• Gasless Transactions. Enjoy Meta Transactions, allowing for a smoother and cost-efficient trading experience.

What’s Coming Next

Our path to the Mainnet is filled with exciting feature rollouts planned to make your trading experience even better:

• Batch Actions. Execute multiple operations simultaneously, saving on gas fees and leveraging VaR Margin for optimal trading efficiency.
• User Interface Enhancements. Expect a reworked list of markets, account details, and order configuration, making the platform more accessible for newcomers.
• Relaxed Mode. Benefit from more efficient (cheaper) transaction execution, optimising your trading strategy.
• Leverage Configuration & Risk Model Rework. Gain access to higher leverage through a refined risk model and leverage settings.
• Advanced Trading Features. Look forward to Confirmation-less trading (Trusted Mode), Trading Strategies, and more, catering to novice and experienced traders.
• Comprehensive Analytics. Dive deep into Protocol, Platform, and Portfolio Analytics, providing you with the insights needed to make informed decisions.
• Affiliate Program Enhancements. Enjoy a robust Affiliate Rewards Distribution Service and Affiliate Dashboard Analytics, among other advanced features.
• Cross-Chain & Multi-Account Capabilities. Experience seamless CCTP Integration for cross-chain funding and Multi-Account Mode for diversified trading strategies.
• Market Maker & Trading Automation. Leverage our API/SDK for Market Makers and programmatic trading, enhancing trading efficiency for professionals.
• Data Integration & Accessibility. Migration to Chainlink Data Streams for decentralised, accurate and timely market data, alongside Localisation and Light Theme options for improved platform accessibility.
• Mobile App. Stay connected and trade on the go with our upcoming mobile application, ensuring you take advantage of every trading opportunity.

Please notice that future scope is subject to change by insights gained during the Testnet phase.

We Value Your Feedback

Your insights are crucial as we fine-tune CVEX. The Testnet phase is about collaborating with our community to ensure the platform meets your needs and expectations.

We also have a little gift for those with an exclusive NFT for early Testnet access. We’ve prepared a special Discord channel where you can talk to our team, other testers, and famous crypto enthusiasts all over the world. To get there:

1. visit our Guild;
2. claim an “Early Testnet Adopter” role;
3. Join the Discord channel.

Be Part of the Journey

We’re on a mission to improve decentralised trading, and your input is key. Your feedback and support are invaluable as we aim to build a platform that truly resonates with the community’s needs.

So, ready to join? Check out our Testnet here: https://testnet.cvex.trade/

You can also find us here:

Website — https://cvex.xyz/

Twitter — https://twitter.com/cvex_xyz

Telegram — https://t.me/cvex_xyz_ann

Discord — https://discord.gg/DRma7Z9BTz

Keep an eye out for further updates, and get ready to take your trading to the next level with CVEX.

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For our loyal users, we prepared a special gift of unique NFTs for their achievements. If you are among them, one of four NFTs should have appeared on your crypto wallet in the Arbitrum network:

1. Influencer Beacon: for crypto influencers who showed their support to our project during the pre-testnet phase;
2. Unity Forge: for our team members who worked on CVEX testnet;
3. Zealy Vanguard: for the TOP 100 winners of our 1st Zealy sprint and the TOP 50 winners of the second one;
4. Alpha Networker: for Alpha-tier affiliates with most invited friends at the snapshot’s time.

Owning this NFT already has its perks and gives you access to the closed Discord community, where you can communicate directly with the CVEX team, popular crypto enthusiasts and other active users on Testnet. However, you may want to see our beautiful NFTs in your portfolio, and there are a couple of ways to do it. Let’s check them!

Option 1: Visit OpenSea

To see your NFTs on OpenSea, go to the platform’s website and connect using your Ethereum wallet:

Then, go to your Profile and search for CVEX’s NFT in your collection.

Potentially, your NFTs can be sent into the “Hidden” section. If so, you may find them here:

To “unhide” it and transfer NFT to the main collection, click three dots on the bottom edge of the NFT and then choose “Unhide”. Voilà!

Option 2: Import NFT to Your Wallet

Prefer having your NFTs right in your wallet for that instant feel-good vibe? While MetaMask doesn’t directly showcase NFTs in the wallet interface (yet!), you can still manage them with a bit of help from third-party platforms that sync up nicely with MetaMask. Here’s a simple way to bring your NFTs home:

1. Add Arbitrum, If You Haven’t

Kick things off by adding the Arbitrum network to your MetaMask. It’s a snap — find “Networks”:

Then, hit “Add Network”:

Now, choose “Add Network Manually”:

and pop in the Arbitrum details. You’re looking for something like this:

• Network Name: Arbitrum One
• RPC URL: https://arb1.arbitrum.io/rpc
• Chain ID: 42161
• Symbol: ETH
• Explorer: https://arbiscan.io/

2. Let the NFT Come to You

With Arbitrum onboard, use a dApp or platform that plays nice with MetaMask for NFT peeks. Connect your wallet, and follow the prompts to bring your NFT into view.

1. Choose NFTs section:

2. Scroll down, find, and press “Import NFT” button:

3. Now, you need to fill in the Contract Address and Token ID of your NFTs.

NFT Name | Contract Address | Token ID

Unity Forge | 0x04e775b9c4298991b7eD51DE2A866C272c837E9A | 0

Alpha Networker | 0x04e775b9c4298991b7eD51DE2A866C272c837E9A | 1

Zealy Vanguard | 0x04e775b9c4298991b7eD51DE2A866C272c837E9A | 2

Influencer Beacon | 0x04e775b9c4298991b7eD51DE2A866C272c837E9A | 3

There you have it! Now, whether you’re browsing OpenSea or checking your wallet, your CVEX NFT is ready to show off its flair. Enjoy being a part of the exclusive circle and keep your eyes peeled for more perks coming your way!

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Understanding the true market value of your positions is crucial for successful trading strategies. Traditional methods often rely on the last trading price to mark a position’s value and need to be more accurate in accurately reflecting the market’s true value. This discrepancy becomes especially pronounced during market manipulation, illiquidity, or abnormal volatility and can lead to unnecessary liquidations. Such challenges are more prevalent in the nascent stages of a new exchange, where liquidity is still developing.

To mitigate these issues and enhance market stability, the CVEX Protocol introduces an innovative approach to evaluating a contract’s value through the Mark Price mechanism. This article delves into the significance of Mark Price in futures and perpetual contracts trading on CVEX, highlighting its benefits and the methodology behind its calculation.

What is Mark Price?

Mark Price acts as an anchor to the market’s perception of a contract’s true value, independent of immediate fluctuations in the order book. It is a critical tool the CVEX Protocol uses to assess the value of traders’ positions in futures and perpetual contracts. By doing so, it calculates equity and maintenance margins, stabilising against market manipulation and protecting traders from unwarranted liquidations due to market anomalies.

Calculating Mark Price

Calculating Mark Price involves several steps, each designed to ensure that the final value accurately reflects the market’s consensus on a contract’s value. Here’s a breakdown of the process:

• Index Price. The Mark Price calculation begins with the Index Price of the underlying asset, provided by the Price Oracle. This price reflects the aggregated value of the asset across multiple exchanges, serving as a reliable reference for its true market value.
• Last Price. Concurrently, the Last Price is determined based on the CVEX order book. It is calculated as the median value between the lowest ask and the highest bid prices, averaged throughout the Index Price updates.
• Contract Basis. The protocol computes the contract basis as a moving average of the difference between the Index Price and the Last Price. This basis reflects the market’s collective cost of carrying underlying assets, accounting for factors like time value and market expectations.
• Mark Price Calculation. Finally, the current Mark Price is calculated by adjusting the current Index Price with the basis. This ensures that the Mark Price remains sensitive to genuine market trends while being protected against price manipulation.

MarkPrice = IndexPrice + Basis

3 Advantages of Mark Price in Futures Trading

The implementation of Mark Price in futures trading on CVEX offers several advantages:

1. Stability. By stabilising the valuation of contracts against market anomalies, Mark Price protects traders from unnecessary and potentially harmful liquidations.
2. Fair Valuation. It ensures that the value of positions reflects the collective perception of the true market value, free from the distortions of temporary market fluctuations.
3. Protection Against Manipulation. Mark Price acts as a safeguard against potential market manipulation, ensuring that the integrity of the trading environment is maintained.

Conclusion

Understanding and leveraging the Mark Price mechanism is essential for traders looking to navigate the futures market effectively. By providing a more accurate reflection of a contract’s true market value, CVEX’s Mark Price methodology enhances the trading experience, offering stability, fairness, and protection to its users. As the trading landscape continues to evolve, tools like Mark Price will play a pivotal role in shaping the future of decentralised finance, making it more accessible and secure for traders worldwide.

In the realm of futures trading, knowledge is power. By grasping the intricacies of mechanisms like Mark Price, traders on CVEX can make more informed decisions, paving the way for a more prosperous trading journey.

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Crypto Valley Exchange (CVEX), a leader in the Decentralised Derivatives Exchanges (DDEX) sector, offers an innovative approach to on-chain futures and options trading in decentralised finance. CVEX is set to announce the launch of its Testnet, marking a significant milestone in DeFi trading. The launch will unfold in two phases:

• Closed Testnet: Starting March 14th, 2024, access will be exclusively available to CVEX’s most engaged and supportive community members.
• Open Testnet: On March 21st, 2024, the Testnet will open up to the general public, inviting crypto traders and enthusiasts from around the globe to explore its innovative features.

This significant milestone marks a pivotal moment in CVEX’s journey towards redefining the trading experience for crypto enthusiasts worldwide.

The Closed Testnet phase from March 14th to March 21st, 2024, will offer private access to:

• NFT Holders: Active participants from the Zealy sprints who have acquired exclusive CVEX NFTs, unlocking early access.
• Alpha-tier Affiliates: Leading contributors from our Affiliate Dashboard, recognised for their exceptional referral activities.
• CVEX Ambassadors: Esteemed figures in the crypto community, ready to share their knowledge and experiences, enhancing CVEX’s visibility and user engagement.

This initial phase is designed to reward CVEX’s most active and dedicated supporters, offering them a first look and hands-on experience with the exchange’s Minimum Viable Product (MVP). The MVP features include:

• Wallet connectivity. Seamlessly connect and disconnect wallets.
• Multichain. Effortlessly switch between Arbitrum, Optimism, and Base chains.
• Balance adjustments. Utilise the built-in faucet to manage your balance on the platform.
• Futures Contracts interactions. Engage with popular crypto contracts through buying and selling. Users can place limit or market orders, based on their strategies.
• Detailed contract insights. Access comprehensive details about contracts.
• Advanced charting. Explore trading view charts for in-depth market analysis.
• Trading history. Review your trading actions and market movements.
• Risk management. Experience our innovative VaR margin system in action.

Following the exclusive closed phase, the CVEX Testnet will open to the general public on March 21st, 2024, inviting a broader audience to contribute to the platform’s evolution.

The launch of the CVEX Testnet underscores the platform’s commitment to innovation, security, and community engagement, setting the stage for a transformative impact on the digital asset trading landscape.

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As we step into 2024, the landscape of cryptocurrency regulation globally continues to evolve, shaping the trajectory of digital finance. This evolution marks a critical juncture in the journey of cryptocurrencies from niche digital assets to mainstream financial instruments. Regulatory clarity emerges as a cornerstone for the sustained growth and stability of the crypto market, addressing the pressing need for investor protection, market integrity, and the curtailment of illicit activities. The significance of regulatory frameworks cannot be overstated, as they safeguard the interests of stakeholders and pave the path for innovation and broader adoption of cryptocurrencies.

The Imperative of Crypto Regulation

Cryptocurrencies have ushered in a new era of digital finance, highlighting the urgent need for robust regulatory mechanisms. The importance of crypto regulation extends beyond mere compliance; it is fundamental to ensure investor protection and maintain the integrity of markets. Effective regulation acts as a bulwark against fraud, market manipulation, and financial crimes, thereby instilling confidence among investors and participants in the crypto ecosystem.

Moreover, the role of regulation in fostering innovation within the crypto space is pivotal. Clear, comprehensive, and forward-thinking regulatory frameworks encourage the development of new technologies and platforms, enabling the industry to thrive. Such environments attract investment and talent, driving advancements that can lead to more secure, efficient, and accessible financial systems.

Furthermore, regulatory clarity is instrumental in promoting the wider adoption of cryptocurrencies. As governments and regulatory bodies worldwide work towards creating harmonised and sensible regulations, the ambiguity that once shrouded the crypto market is dispelled. This clarity facilitates the integration of cryptocurrencies into the broader financial landscape, making them more accessible to a global audience and encouraging mainstream acceptance.

The regulation of cryptocurrencies is not just a compliance requirement but a foundation upon which the future of digital finance is being built. As we navigate through 2024, the imperative for clear and effective crypto regulation has never been more pronounced, promising a future where digital assets can safely, innovatively, and inclusively play their part in the global economy.

A Historical Journey Through Crypto Regulation

The evolution of cryptocurrency regulation traces back to the genesis of Bitcoin in 2009, a period characterised by a global financial tumult. Initially, the digital currency realm operated in a regulatory vacuum, a laissez-faire environment where innovation outpaced policy formulation. This era of minimal oversight saw cryptocurrencies flourish, albeit with a growing chorus for regulation amidst concerns over security, legality, and financial stability.

Significant strides towards a regulatory consensus emerged with the G20 finance ministers’ endorsement of recommendations by the Financial Stability Board (FSB) and the International Monetary Fund (IMF). These recommendations, aimed at harmonising global crypto policies, marked a pivotal moment, underscoring the international community’s commitment to responsibly integrating crypto assets into the global financial system.

In India, the journey saw a critical juncture when the Reserve Bank of India (RBI) initially curtailed banking support for crypto transactions, a decision later overturned by the Supreme Court in 2020. This legal victory for the crypto space was followed by the government’s move to tax crypto gains, signalling a nuanced shift towards recognition and regulation rather than outright prohibition.

Notorious Cases and Their Impact on Regulation

The Ripple (XRP) case is a watershed in the crypto regulatory landscape. The U.S. Securities and Exchange Commission’s (SEC) litigation against Ripple Labs Inc. for selling unregistered securities challenged the industry’s understanding of cryptocurrencies’ legal classification. This case shed light on the nuances of digital assets and urged regulatory bodies worldwide to reconsider the framework within which cryptocurrencies operate.

The collapse of FTX, a behemoth in the crypto exchange world, further accentuated the urgent need for regulatory oversight. Originating in the Bahamas, FTX’s downfall reverberated globally, prompting regulators to scrutinise the operational and financial integrity of crypto platforms more closely. The incident underscored vulnerabilities within the crypto ecosystem, catalysing a push for regulations focusing on asset segregation, consumer protection, and corporate governance.

Other notable events, such as the hacking of Mt. Gox and the controversial shutdown of the Silk Road marketplace, have significantly impacted the regulatory narrative. Each incident, with its unique ramifications, has propelled the evolution of crypto regulations, underscoring the necessity for a balanced approach that safeguards interests without stifling innovation.

Global Crypto Regulation

The global landscape of cryptocurrency regulation as of 2024 remains as diverse as the countries that attempt to govern it. Below is a comprehensive overview of how various jurisdictions approach the regulation of cryptocurrencies, illustrating the spectrum from progressive to restrictive frameworks.

United States

• Regulatory Approach: Fragmented oversight, with the SEC, CFTC, and IRS offering varied definitions and treatments of digital assets.
• Key Developments: The approval of spot Bitcoin ETFs in 2024 marked a significant regulatory milestone. Ongoing litigation and enforcement actions reflect a dynamic regulatory environment aimed at investor protection and market integrity.
• Future Outlook: Continued regulatory clarifications and potential legislative efforts to provide a more cohesive framework for digital assets.

China

• Regulatory Approach: Highly restrictive, with outright bans on crypto trading, exchanges, and mining activities to mitigate financial risks and reduce energy consumption.
• Key Developments: The People’s Bank of China (PBOC) maintains a firm stance against cryptocurrencies, pushing innovation towards government-backed digital currency efforts.
• Future Outlook: Likely continuation of strict regulations, with a focus on central bank digital currencies (CBDCs) rather than open cryptocurrencies.

Canada

• Regulatory Approach: Progressive, treating cryptocurrencies as commodities and implementing comprehensive registration requirements for crypto trading platforms.
• Key Developments: Early adoption of crypto ETFs and classification of crypto firms as MSBs underline Canada’s balanced approach to fostering innovation while ensuring market oversight.
• Future Outlook: Continued support for cryptocurrency innovations with a focus on enhancing regulatory frameworks to protect investors.

United Kingdom

• Regulatory Approach: Regulatory oversight without stifling innovation, not classifying cryptocurrencies as legal tender but allowing their use under certain conditions.
• Key Developments: The Financial Services and Markets Act 2023 extended legal recognition to crypto assets, setting the stage for more detailed regulatory frameworks.
• Future Outlook: Potential for refined regulations that further integrate cryptocurrencies into the financial system while addressing money laundering and financial crime.

Switzerland

• Regulatory Approach: Forward-thinking, with laws that facilitate tokenization and acknowledge DLT securities, promoting Switzerland as a hub for crypto innovation.
• Key Developments: Adopting legislation supporting blockchain technology and digital assets, offering a clear legal framework for crypto businesses.
• Future Outlook: Continued leadership in crypto regulations, potentially serving as a model for other countries seeking to create a conducive environment for blockchain technologies.

El Salvador

• Regulatory Approach: Pioneering, with the historic move to adopt Bitcoin as legal tender, underscoring a bold stance on cryptocurrency acceptance.
• Key Developments: Investments in Bitcoin and initiatives to use cryptocurrency to drive economic inclusion and growth.
• Future Outlook: Ongoing development of infrastructure to support Bitcoin’s use nationwide, with potential implications for similar initiatives in other countries.

European Union

• Regulatory Approach: Harmonizing, with the introduction of the Markets in Crypto-Assets Regulation (MiCA), aiming to standardize crypto regulations across member states.
• Key Developments: MiCA represents one of the first major regulatory frameworks explicitly designed for cryptocurrencies, focusing on consumer protection, market stability, and innovation support.
• Future Outlook: Implementation of MiCA could set a precedent for international regulatory cooperation, offering a blueprint for other regions to follow.

The global regulatory environment for cryptocurrencies in 2024 highlights a balancing act between fostering innovation and ensuring financial stability and investor protection. As the digital asset space continues to evolve, so will the regulatory responses, potentially leading to more unified global standards.

Future Opportunities and Challenges

The path to global regulatory harmonization presents a complex puzzle, with each piece representing national sovereignty, market innovation, and the need for international cooperation. The challenge lies in creating a regulatory framework that transcends borders without stifling the innovative essence of cryptocurrencies. As Central Bank Digital Currencies (CBDCs) begin to take shape, they introduce a new dynamic into the regulatory equation, potentially offering a bridge between traditional financial systems and the digital asset world. This development could harmonize regulatory approaches and raise questions about market competition and the role of decentralized cryptocurrencies.

Modern crypto projects like CVEX are pioneering compliance-focused innovations in response to the evolving regulatory landscape. These platforms are not waiting for regulations to catch up; instead, they are proactively embedding regulatory compliance into their DNA, anticipating future regulatory requirements, and setting new standards for the industry.

Clear, consistent, and fair regulations are not just bureaucratic hurdles but the bedrock of market stability and investor confidence. The crypto industry stands at a crossroads, where the path chosen by regulators and industry participants will determine the market’s long-term viability. Collaboration between the crypto sector and regulatory bodies can yield a regulatory ecosystem that nurtures innovation while safeguarding against market manipulation, fraud, and financial crimes.

This collaborative approach requires an ongoing dialogue and a willingness from both sides to understand the unique aspects of digital assets. Encouraging participation in regulatory discussions, compliance efforts, and policy formulation can ensure that the regulatory frameworks developed are effective, equitable, and conducive to growth.

Conclusion

The journey towards comprehensive and coherent crypto regulations is ongoing, reflecting the rapid evolution of the market and the technologies that drive it. Adapting to and shaping these regulations is crucial for the sustainability and prosperity of the crypto ecosystem. It calls for patience, collaboration, and a commitment by all stakeholders to continuous learning and adaptation.

The future of crypto regulation is a shared responsibility. We invite you to engage in the conversation, share your insights, and explore compliant projects like CVEX that lead the way in regulatory innovation. Stay informed and active in the regulatory dialogue, advocating for policies that foster innovation while ensuring market integrity and protection for all participants. Together, we can pave the way for a stable, secure, vibrant crypto future.

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In the rapidly evolving world of cryptocurrency, the CVEX platform stands out for its commitment to regulatory compliance while pioneering the frontier of decentralised finance. Developed by Tacans and soon to be overseen by a Swiss AG governed by a DAO, CVEX introduces a groundbreaking approach to legal and compliance frameworks in the crypto space.

The Structure of CVEX

At its core, the CVEX Protocol, developed in Switzerland, is designed to usher in a new era of decentralised derivatives trading. Governed by a unique combination of a Swiss AG and a DAO, CVEX ensures that while the blockchain ethos of decentralisation is preserved, regulatory and legal obligations are not overlooked. This dual structure allows agile adaptation to regulatory changes, ensuring CVEX remains at the forefront of legal compliance.

The Three Pillars of CVEX

• CVEX Protocol. Beyond its inception by Tacans, the protocol is set to be governed by a Swiss AG, ultimately controlled by a DAO. This ensures a secure environment for decentralised futures and options platforms, with the DAO appointing directors to meet regulatory demands.
• Platform Business. Operating independently, this segment focuses on Oracle data and risk management. It’s a testament to CVEX’s commitment to operating within legal boundaries, earning its keep through transaction fees without being entangled in Swiss regulations.
• Front-end Business. The user interface and interaction fall under this independent entity, which captures a share of the transaction fees. Distinct from the AG and DAO, it focuses on delivering an intuitive and engaging user experience without regulatory encumbrance.

Governance and Future Outlook

The DAO, wielding control over the Swiss AG, appoints qualified directors to navigate the regulatory landscapes of Switzerland and beyond. This structure facilitates adherence to current standards and positions CVEX to adapt to future regulatory changes. Despite the current lack of a regulatory framework specifically targeting protocols like CVEX, the platform is built on safety, transparency, and governance principles that align with international standards.

CVEX is more than just a platform; it’s a vision for a decentralised future where innovation meets regulation harmoniously. By ensuring that risk management aligns with global standards and advocating for a well-regulated ecosystem, CVEX is not just preparing for the present, but is ready to adapt and thrive in the future regulatory environment.

As we navigate the uncertainties of cryptocurrency regulation, CVEX remains dedicated to engaging with regulators, avoiding undue exposure to stringent jurisdictions like the US, and fostering a platform that benefits communities worldwide. This commitment underscores CVEX’s role as a pioneer in technology and in creating a compliant, secure, and user-centric trading environment for the future.

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In the fast-paced and often unpredictable world of cryptocurrency trading, managing risk effectively is paramount for both traders and platforms. The CVEX Protocol, renowned for its innovative approach to decentralised finance (DeFi), introduces a cutting-edge mechanism to address these challenges: the Default Prevention system. This system is specifically designed to mitigate the risks associated with limit orders, ensuring a stable and efficient trading environment on the CVEX platforms.

Understanding the Complexity of Margin Requirements

The dynamic nature of margin requirements on CVEX, influenced by contract volatility and price correlations, presents a unique challenge. Traders are required to pre-allocate and reserve collateral for placed orders, which can lead to stringent margin demands. These requirements may fluctuate significantly due to changes in market conditions or portfolio exposure, making proactive risk management essential.

The Proactive Approach of Default Prevention

To navigate these complexities, CVEX has implemented a Default Prevention system that meticulously monitors and manages all limit orders across the platforms. Before a limit order is placed in the order book, the system evaluates the initial margin requirements for the trader’s current portfolio as if the order were executed under prevailing market conditions. This ensures that orders only enter the order book if the margin requirements are met, initiating default prevention monitoring.

The Role of Clearance Bots in Maintaining Market Stability

A key feature of this system is the employment of Clearance Bots, which play a crucial role in preemptively terminating limit orders that could lead to a trader’s liquidation. These bots focus on orders with a high probability of execution and those that would significantly impact the trader’s margin ratio. By doing so, they help maintain market stability and protect traders from potential financial distress.

Operational Mechanics and Incentives

When an order is terminated by the protocol, the associated trading fee is not reimbursed to the trader but is instead awarded to the Clearance Bot responsible for the termination. This arrangement serves dual purposes: it incentivises traders to diligently monitor their orders and maintain adequate collateral, and it motivates Clearance Bots to actively participate in default prevention. This competitive environment ensures that the CVEX platforms remain a secure and attractive venue for trading.

Enhancing Trader Security and Platform Efficiency

CVEX’s Default Prevention system is a testament to the platform’s commitment to enhancing trader security and operational efficiency. By preemptively addressing the risks associated with limit orders, CVEX not only safeguards traders’ interests but also fosters a more stable and reliable trading ecosystem. This innovative approach highlights CVEX’s role as a leader in DeFi, pushing the boundaries of what is possible in cryptocurrency trading.

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CVEX takes a proactive and comprehensive approach to on-chain security and risk prevention. This article outlines our meticulous strategies to safeguard our users and their assets, ensuring a secure trading environment on our platform.

Smart Contract Audits: The First Line of Defense

At CVEX, we recognise the critical role smart contracts play in maintaining the integrity and security of our platform. To this end, our smart contracts are rigorously audited by leading third-party security firms specialising in blockchain technology. These audits are designed to detect any vulnerabilities and ensure that the contracts operate precisely as intended, providing a robust foundation for our security framework.

Decentralised Security Measures

Leveraging the inherent security features of blockchain technology, CVEX ensures that all transactions and assets on the platform are secured against unauthorised access. We advocate for the use of hardware wallets and secure private key storage methods, offering our users guides and best practices to enhance their wallet security.

CVEX operates with clearly defined and transparent risk parameters embedded within our smart contracts. This transparency allows for effective risk mitigation strategies, ensuring that the risks associated with trading are well-managed and understood. Each user account is treated as an independent entity, allowing for precise risk management and safeguarding against systemic risk.

Empowering Users Through Education

We believe in empowering our users with knowledge. CVEX provides an extensive knowledge base, including documentation, tutorials, and resources focused on security best practices and risk management. Our commitment to continuous learning is reflected in our educational initiatives, such as webinars and real-time updates, aimed at keeping our users informed about the latest developments in blockchain security.

A well-informed community is a secure community. CVEX fosters a culture of security and risk awareness through active engagement with our users. We provide platforms for discussion, support, and the sharing of experiences and strategies, reinforcing the collective security of our ecosystem.

Conclusion

CVEX’s approach to on-chain security and risk prevention is rooted in a commitment to providing a safe, transparent, and efficient trading environment. By combining rigorous smart contract audits, decentralised security measures, transparent risk management, and a strong focus on user education and community support, we aim to set a new standard for security in the DeFi space. Join us to create a secure and prosperous future for decentralised trading.

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Crypto Valley Exchange (CVEX) stands at the forefront of managing the dynamic challenges in decentralised finance. With a firm commitment to trader protection and market stability, CVEX implements an advanced liquidation protocol. This mechanism is a cornerstone of the platform, ensuring that the market’s integrity and the traders’ interests are preserved even during intense market fluctuations.

Margin Ratios as Safety Thresholds

On CVEX, liquidation is initiated when a trader’s margin ratio falls beyond 100%. This is a clear signal that the trader’s collateral is no longer adequate to cover the risks associated with their positions. CVEX deploys Clearance Bots to address this, which kickstarts a well-structured liquidation process. The objective here is to minimise market disruption and ensure that the values are recovered fairly, thus maintaining a balanced risk exposure.

A Layered Approach to Liquidation

CVEX’s liquidation protocol is intricate, featuring three distinct methods, each contributing to the overall stability of the market:

1. Market Order Liquidation with Liquidation Fee. The platform quickly executes market orders at the most favorable current prices. If a market order cannot be filled completely, it is withdrawn to mitigate any adverse impact on the market. The liquidation fee, set at approximately 2% of the position’s nominal value, is directed into the Default Fund, which stabilises reserves during market turmoil or liquidity crises.
2. Utilising the Default Fund. The Default Fund intervenes to fill the financial gaps when the liquidation proceeds are inadequate. Moreover, this fund is replenished with any surplus generated from liquidations, maintaining its capacity to stabilise the market in future scenarios.
3. Counterparty Liquidation via Auto Deleverage Queue. In extreme cases where other methods fall short, CVEX resorts to Counterparty Liquidation. This method systematically reduces counteracting positions in the market, ensuring equilibrium is restored. It’s a crucial tool, used only when necessary, to maintain market integrity.

About Clearance Bots

The Clearance Bots in CVEX’s ecosystem are pivotal. They are programmed to respond swiftly in high-risk scenarios and rewarded through a portion of the liquidation fees. Their prompt actions are crucial for maintaining the market’s equilibrium and stability. A portion of the Liquidation Fee is set aside as a reward for the Clearance Bots. Generally, this is about 0.5% of the liquidated position’s nominal value, which the Platform Operator sets.

Counterparty Liquidations — Your Ultimate Safety Net

Counterparty Liquidations are rare yet essential procedures activated under extreme conditions. These liquidations are meticulously designed to be fair and immune to market manipulation. While CVEX strives to avoid this last-resort measure, its existence is vital for upholding market integrity in unpredictable scenarios.

What Is the Default Fund?

The Default Fund is a key component of CVEX’s liquidation arsenal. It plays a significant role in absorbing the shocks of defaults, thereby lessening the need for Counterparty Liquidation. Its presence and management are central to ensuring a stable trading environment on CVEX.

Conclusion

CVEX’s comprehensive liquidation protocols embody the platform’s dedication to providing a secure and fair trading environment. These measures are thoughtfully crafted to manage risks and uphold market stability, reinforcing CVEX’s position as a reliable and forward-thinking player in the decentralised finance domain.

CVEX’s liquidation safeguards constitute a comprehensive protocol that mitigates risks posed by extreme market volatility. This systematic approach to risk management ensures market stability and fairness, making CVEX a secure and reliable platform for traders in the decentralised finance space.

This intricate system of checks and balances reflects CVEX’s commitment to providing a trading environment where risks are managed effectively, ensuring the safety of traders and the overall market even under turbulent conditions.

In the dynamic world of decentralised finance, technology selection is pivotal. Crypto Valley Exchange (CVEX) has chosen Arbitrum Stylus for developing its smart contracts, driven by its efficiency, power, and adaptability. This decision significantly enhances the platform’s robustness, benefiting our users in multiple ways.

Combining Best Features for Peak Efficiency

Arbitrum Stylus stands out by integrating the strengths of well-established programming languages like Rust while maintaining compatibility with the Ethereum Virtual Machine (EVM). This unique combination enables us to craft smart contracts that are not only robust but also highly efficient, setting a new standard in the realm of smart contract development.

Bridging Ecosystems through EVM Compatibility

An advantage of adopting Arbitrum Stylus is its compatibility with the CCTP and ERC-191, which is pivotal in enhancing user accessibility on CVEX. This compatibility ensures that users from various blockchain ecosystems, including Ethereum, Arbitrum, Base, and Optimism, can easily trade on our platform.

The integration with EVM allows users to trade across these diverse ecosystems with ease, transferring funds from one to another. This interoperability eliminates the barriers and complexities associated with cross-blockchain transactions. Users can enjoy a seamless trading experience, leveraging the strengths of each blockchain while still operating within the familiar environment of the Ethereum ecosystem.

Technological Leap in Computation and Memory Usage

The use of Arbitrum Stylus marks a technological advancement, with computation becoming over ten times more efficient and memory usage drastically reduced compared to traditional EVM approaches. This enhancement allows users to achieve the same level of user experience that exists on centralised DeFi products.

Optimisation for Lower Transaction Costs

One of the key benefits of incorporating Arbitrum Stylus is the significant reduction in gas usage. This optimisation translates directly into lower transaction costs for our users, addressing one of the most pressing concerns in the blockchain space — the high expense of gas fees.

Future-Readiness with Arbitrum Stylus

Our adoption of Arbitrum Stylus is not just a solution for present challenges; it’s a strategic move to future-proof the CVEX platform. As computational demands continue to evolve, our platform remains efficient and cost-effective, ensuring that we stay ahead in the rapidly advancing DeFi sector.

Enhancing Security and User Experience

Security and scalability are important in decentralised finance. Arbitrum Stylus strengthens these aspects with its advanced architectural design, which enhances security and reduces vulnerabilities.

In conclusion, the choice of Arbitrum Stylus is a testament to CVEX’s commitment to innovation and excellence in the DeFi space. By prioritising efficient technology, user-friendly experiences, and future-readiness, CVEX is not just participating in the DeFi revolution; it’s leading it. Our platform continues to evolve, always keeping our users’ needs and the ever-changing market dynamics in mind.

The world of cryptocurrency trading has witnessed the rise of perpetual contracts as a popular derivative product. However, their inherent disadvantages, compared to deliverable futures contracts, are increasingly becoming evident. Originating outside the cryptocurrency realm, perpetual contracts are often compared to financial instruments like CFDs and rolling spot FX contracts*, yet they bear distinct characteristics. A common myth is that they were invented in the crypto ecosystem, which is not the case.

*A little note:

CFDs (Contract for Difference):

CFDs are financial contracts that let you bet on the price movement of assets like stocks or currencies. You don’t own the asset; instead, you predict whether its price will go up or down. Your profit or loss is the difference in price from when you open to when you close your trade.

Rolling Spot FX Contracts:

These are contracts for trading currencies without a fixed end date. You can keep the trade open as long as you want, settling in cash based on the currency price changes. They’re popular in forex trading for their flexibility.

Key Drawbacks of Perpetual Contracts

Perpetual contracts have some significant problems. One big problem is that they don’t use money wisely. Most markets find it hard to trade many different types of perpetual contracts effectively. This problem becomes even more noticeable when it comes to hedging strategies. Hedging is like insurance against price changes, but perpetual contracts aren’t flexible enough for this. They’re not good for a type of hedging called ‘delta hedging,’ which is about reducing the risk of price changes in options. This limitation stops the options market from growing and becoming stronger.

Furthermore, perpetual contracts owe their success in the cryptocurrency environment to their ease of implementation within DeFi frameworks. Processes like simple margin calculations and integrated lending are easier to implement for perpetual contracts than a proper clearing mechanism. But, this simplicity comes at a cost, introducing its own set of challenges.

Design Issues and Market Risks

Perpetual contracts often rely on failed trades to fund lending pools in many protocols, a design that inherently favors retail failures over successes. This leads to inappropriate margin levels relative to market volatility, skewing the market and undermining the value for long-term hedging. Additionally, the risk management model in perpetual markets often results in imbalanced market conditions, especially in low-volatility scenarios. This poses risks for users employing these products as long-term hedges.

In markets dominated by perpetual contracts, the tendency of speculators to take one-sided positions increases exit costs and assigns disproportionate market risk, potentially leading to market instability. Poor market dynamics for market makers and skewed reward systems further exacerbate these issues.

The Future: A Shift to Futures

In light of these limitations, the crypto environment is gradually recognising the need for a shift towards futures contracts. Futures, unlike perpetual, are more capital-efficient and offer greater flexibility in hedging strategies. Their design and implementation, though complex, provide a more stable and balanced approach to market risk.

Futures contracts are widely adopted by institutional markets and are considered more effective for comprehensive risk management. Their adoption of Futures contracts is crucial for bringing more capital into the cryptocurrency ecosystem and supporting the incredible projects within it.

Conclusion

While perpetual contracts offer simplicity and ease of use, their significant challenges in terms of capital utilisation, hedging flexibility, and inherent risk in their funding and margin models are leading to a shift in preference toward futures contracts. This transition is essential for the advancement of the cryptocurrency ecosystem, ensuring better risk management capital flow optimisation and attracting more institutional participation. Futures, with their established structure and efficiency, are aimed to replace perpetual as the preferred derivative product in the evolving world of cryptocurrency trading.

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Leverage is a critical concept in trading, especially on the Crypto Valley Exchange (CVEX) platform. It allows traders to amplify their market presence significantly, offering opportunities to maximise gains from their trades. CVEX, operating on the innovative Arbitrum, introduces a sophisticated margin management system that employs a Value at Risk (VaR) model, ensuring stability and security during market fluctuations.

Understanding Leverage on CVEX

On CVEX, leverage is not a one-size-fits-all solution; it is thoughtfully tailored to suit different asset classes. In the realm of cryptocurrencies, leverage typically ranges from 5x to 9x. This range is meticulously calculated based on 1 day at a 99% confidence level, illustrating a robust and thoughtful approach to risk management. For commodities trading, CVEX offers a variable leverage system. This system considers the distinct volatility profiles of each commodity, providing traders with flexibility and precision in their trading strategies.

A Strategic Approach for Leverage and Hedging

The platform takes the concept of leverage further through hedging strategies. By balancing positions across correlated assets, traders can access higher leverage levels. For instance, combining positions in ETH and BTC could allow traders to leverage up to 15x, thereby enhancing their potential returns. This strategy optimizes returns and mitigates risks associated with individual asset volatility.

For seasoned traders managing large, well-hedged options portfolios, CVEX’s capabilities shine even brighter, offering leverage up to an astonishing 1000x. This feature demonstrates CVEX’s commitment to supporting sophisticated and varied trading strategies, catering to the needs of advanced traders.

Safety Measures and Continuous Improvement

CVEX prioritizes the safety and security of its users. The platform’s leverage ratios and trading specifications are continuously reviewed and refined. This iterative process ensures that they align with the evolving interests of both the protocol and its users. Leverage, while a powerful tool, requires careful and informed use. CVEX is dedicated to maintaining a secure and transparent trading environment, continually adapting and improving to meet the needs of its diverse user base.

Staying Updated with CVEX

As with any trading tool, staying informed and educated is key to leveraging effectively. CVEX encourages its users to stay updated with the latest developments and educational resources provided through its official channels. This ensures that traders can make informed decisions and utilize leverage to its full potential while being mindful of the risks involved.

In Conclusion

In conclusion, leverage on CVEX is a dynamic and potent feature designed to suit various assets and accommodate different trading strategies. Its effective use hinges on understanding, skill, and caution. CVEX provides the tools and the environment for traders to maximize their trading potential, but it is up to the individual trader to navigate these waters skillfully and responsibly.

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In the intricate realm of cryptocurrency trading, options trading emerges as a multifaceted financial instrument, pivotal for risk management and capitalising on market probabilities. However, its transition into the crypto sphere, particularly within decentralised exchanges (DEXs), has been met with considerable challenges. This article delves into the complexities of options trading on CVEX, shedding light on the challenges, solutions, and the pioneering approach of the Crypto Valley Exchange in refining this market segment.

Understanding the Challenges

Inadequate Clearing and Settlement

Many crypto options platforms focus primarily on pricing mechanisms and margin integration, neglecting the critical aspects of clearing and settlement. These foundational processes are vital for the stability of financial trading systems yet remain underdeveloped in the crypto options sector.

The Virtual Market Maker Dilemma

Some platforms, under the guise of exchanges, operate as virtual market makers. They either provide liquidity for trades from funding pools or manipulate market prices to balance trades, akin to bookmakers. This approach, often obscured by complex language and front-end design, fails to address the core requirements of a mature options platform.

High Capital and Margin Costs

Establishing positions in crypto derivatives is notably capital-intensive compared to traditional markets. The absence of cross-margin capabilities in most platforms exacerbates this issue, making complex trades or spread positions prohibitively expensive.

Lack of Advanced Capabilities

The high cost of margin in existing platforms stifles the development of sophisticated products like options. Minor adjustments in implied volatility do not compensate for the high opportunity costs faced by market makers, hindering the growth of traditional options markets in the crypto domain.

CVEX’s Forward-Thinking Approach

Recognising these hurdles, CVEX is committed to fostering a robust and transparent options trading environment. Our platform is intricately designed to address the aforementioned challenges:

• Robust Clearing and Settlement Processes. CVEX places a strong emphasis on establishing mature clearing and settlement systems on-chain, ensuring the stability and functionality of our financial trading framework.
• Capital Efficiency and Cross-Margin Capabilities. We are dedicated to implementing efficient cross-margin capabilities, reducing the capital costs associated with trading derivatives, and enabling the execution of complex trades at a feasible cost.
• Transparent and Advanced Trading Solutions. Our platform aims to offer transparent and advanced trading solutions, drawing inspiration from platforms like Deribit, which, despite its challenges, showcases the demand for transparent and efficient options trading mechanisms.

Conclusion

Options trading in the cryptocurrency market stands at a crossroads, with CVEX leading the charge towards a more mature, efficient, and transparent future. By addressing the critical issues of clearing, settlement, and capital efficiency, and by fostering advanced trading capabilities, CVEX is not just participating in the market — we are shaping its future. Join us on this revolutionary journey with CVEX, where the potential of crypto options trading is fully realised.

Stay tuned for the latest updates and insights from CVEX as we continue to lead the charge in transforming the crypto trading landscape. Visit our website and follow us on social media to be part of the future of decentralised finance.

CVEX, an innovative trading platform, seamlessly integrates the worlds of cryptocurrency and commodities. It provides traders with a diverse portfolio, from the stability of gold to the dynamic nature of Bitcoin. This integration allows for various trading styles and risk management preferences.

Extensive Asset Options and Trading Contracts

Traders on CVEX enjoy a broad selection of cryptocurrencies and commodities, each carefully selected to enhance trading strategies. The platform offers expirable futures for capitalising on specific market timings.

CVEX introduces monthly futures contracts, allowing traders to engage with short-term market movements. Additionally, the platform offers quarterly contracts for long-term market planning, accommodating the growing interest in future scenarios.

Liquidity Providers and Contract Tailoring

Understanding the critical role of liquidity providers, CVEX has tailored contract sizes to ensure their trading activities are profitable and aligned with the platform’s goals. This symbiotic relationship underscores the importance CVEX places on aligning incentives between the platform and its users.

Soon, CVEX’s team plans to introduce new types of commodities contracts. This expansion will include assets like crude oil, gold, silver, natural gas, and copper, thereby adapting to an even broader segment of traders who are looking for diversification in their investment portfolios.

Options Trading with a Focus on Market Volatility

Options trading on CVEX is closely aligned with the futures market. It provides a range of strike prices, adapting to anticipated market volatility and enabling traders to adopt various strategic positions.

Pricing and settlements on CVEX are standardised in USDC to maintain clarity and stability. This approach ensures consistency in pricing, with all contracts pegged perfectly to the dollar.

Pricing Consistency and 24/7 Trading Accessibility

Reflecting the relentless nature of the digital economy, CVEX’s trading platform operates around the clock every day of the year. This uninterrupted service is crucial in providing global access to traders, allowing them to engage with the market at their preferred times, thereby ensuring they never miss an opportunity.

Adaptive Growth and Community-Centric Evolution

Remaining dynamic and responsive to market changes, CVEX continuously refines its features and offerings. The platform’s dedication to transparency means that any updates or changes are clearly communicated, keeping the community’s best interests at heart. Embracing a user-centric approach, CVEX encourages active feedback from its users to continuously improve the trading experience. This collaborative effort ensures that the platform not only meets but anticipates the evolving demands of the market, positioning CVEX as a leader in innovation and user satisfaction.

Conclusion

CVEX is redefining financial markets by merging the liquidity of commodity trading with the versatility of cryptocurrencies. This unified, user-focused platform sets a new benchmark in the financial world, catering to a diverse range of trading preferences and strategies.

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Crypto Valley Exchange (CVEX) stands at the forefront of risk management in decentralised finance (DeFi) with its innovative use of Value-at-Risk (VaR) Calculations. This і is essential for traders to decrease margin requirements for correlated assets, providing a comprehensive view of potential risks.

Understanding VaR: A Key Trading Strategy

VaR is a statistical method used by CVEX to estimate the maximum potential loss within a trader’s portfolio over a specific period, under a given probability. It’s akin to a financial ‘stress test’, projecting the worst-case scenario based on market trends and historical data. CVEX’s approach to VaR considers factors like asset volatility and correlations between different holdings. This methodology is vital for determining margin requirements ensuring each trader’s portfolio is resilient against market shifts.

Implementing VaR offers several benefits, changing how traders handle risk. It consolidates various risk indicators into a single figure, allowing for efficient capital use. CVEX enhances the VaR model by integrating a wide range of data.

T-Distribution in VaR: Accurate Risk Prediction

CVEX adopts the t-distribution model for VaR calculations, providing a more accurate representation of ‘fat tails’ or extreme market events. This model is supported by extensive financial studies showing its suitability for financial market returns, especially in the unpredictable crypto market.

CVEX utilises the Maximum Likelihood Estimation method for t-distribution, considering ‘degrees of freedom’ and historical price scales. The result is a dynamic, real-time, responsive VaR that offers a nuanced risk management tool.

Enhancing Trader Safety and Market Stability

CVEX’s VaR calculations ensure that traders’ collateral requirements align with current market volatility, enhancing safety and stability in trading. This approach allows traders to manage risks effectively, maximising opportunities in the DeFi market.

CVEX’s implementation of VaR calculations in its risk management framework enables traders to approach the crypto markets with control and confidence, effectively managing risk and maximising trading opportunities. CVEX’s commitment to sophisticated yet accessible risk management tools underlines our dedication to empowering traders in the DeFi space.

Experience informed and controlled trading at CVEX, where risk management is not just a feature but a fundamental aspect of the trading environment.

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In the complex world of financial markets, Options and Futures emerge as pivotal instruments for investors and traders. This in-depth guide, courtesy of Crypto Valley Exchange (CVEX), seeks to elucidate the intricacies of these derivatives, underscoring their crucial roles, diverse benefits, and strategic uses in today’s financial scene. They represent more than just trading tools; they are gateways to new possibilities, offering ways to maximise profits, mitigate risks, and explore diverse market scenarios. For veterans and novices alike in the trading world, mastering these instruments is a step towards greater market acumen and financial success.

Decoding Options: A Gateway to Flexible Trading Strategies

Options, in their essence, are versatile financial derivatives that provide strategic flexibility unmatched in the financial markets. These contracts allow holders to buy (call options) or sell (put options) an asset at a pre-determined price within a specific period, are more than just agreements; they are opportunities. They enable traders to hedge risks, speculate on market movements, and employ complex strategies that balance risk against potential rewards.

Consider a scenario where you’re an investor in the tech industry, eyeing a company poised for significant growth. Purchasing a call option on this company’s stock can be strategic. If the company’s value soars as anticipated, the option enables you to buy shares at a lower price, set before the surge, leading to substantial gains. However, if the stock’s performance falters, your risk is confined to the option’s premium, shielding you from larger market losses. This level of strategic control makes options a preferred choice for many savvy investors.

Futures: Harnessing the Power of Leverage and Prediction

Futures contracts stand as a testament to the ingenuity of financial engineering. These standardized agreements to buy or sell an asset at a future date and price present a world of possibilities for traders. They embody the concept of leverage — the ability to control significant asset volumes with a relatively small capital investment, thus magnifying both potential profits and associated risks. This leverage is a double-edged sword, offering opportunities for substantial gains while posing significant risk, necessitating astute market understanding and risk management.

For example, in commodities trading, Futures are a cornerstone. A farmer anticipating a good harvest season might use Futures to secure a favorable selling price for their produce, safeguarding against the unpredictability of market prices. This forward-looking approach guarantees the farmer a stable return, irrespective of market volatility. Similarly, businesses dependent on raw materials, like a bakery needing wheat, can use Futures to stabilise their input costs. This usage of Futures as a protective measure against market unpredictability is what makes them invaluable in diverse sectors beyond traditional finance.

Diverse Strategies with Options and Futures

Options and Futures are not just financial instruments; they are the keys to many strategic opportunities in the trading world. These derivatives adapt to various market views and risk tolerances, enabling traders to craft strategies that align with their investment goals. Options, for instance, allow for protective puts, which act as a safeguard against stock price declines, or bullish call spreads that capitalise on upward market trends. On the other hand, futures offer the leverage and precision needed for speculative plays or hedging against commodity price fluctuations. This versatility in strategy application, ranging from cautious hedging to aggressive speculation, highlights the dynamic nature of these financial tools.

Risk Management: The Essence of Derivatives Trading

At the heart of Options and Futures trading lies a fundamental principle — risk management. These derivatives are essential in creating a safety net in the volatile world of finance. They enable traders to hedge against potential losses in their existing portfolios, speculate on anticipated market movements, and even devise intricate strategies like straddles, which benefit from market volatility. The beauty of these instruments lies in their ability to offer investors and traders a more calculated approach to market engagement, allowing for precise planning of market exposure and risk levels. This strategic foresight is vital in navigating the complexities of modern financial markets.

CVEX: Democratising Access to Decentralised Derivatives

At Crypto Valley Exchange, our mission is to demystify and democratise the world of derivatives trading. We understand the complexities of Options and Futures and strive to make them accessible within the decentralised finance landscape. CVEX is more than a trading platform; it’s a bridge to advanced financial tools designed with intuitiveness and user-friendliness in mind. Our platform is equipped with educational resources to guide beginners and seasoned traders and a sleek interface that simplifies trading. CVEX is dedicated to empowering its users, providing them with the tools and knowledge necessary to explore and leverage the full potential of decentralised derivatives trading.

At CVEX, we’re making complex finance easy to understand. Our goal is to explain how futures and options work in the blockchain world, making this knowledge accessible to everyone, no matter their experience level.

1. Risk Management for Big Companies

Big companies often hold a lot of cryptocurrency, which can be risky because its value changes a lot. CVEX helps these companies protect their investments from these big value changes without needing extra money. This makes it safer and easier for them to handle their crypto.

2. Helping Cryptocurrency Funds:

Fund managers who handle cryptocurrency can use CVEX to make smart investment choices. Our platform helps them save money and use better strategies to increase their funds.

3. New Financial Products for Investors:

Banks and financial firms can create new investment products for people with a lot of money. With CVEX, they can do this with less money upfront and lower fees, making these investments more attractive.

4. Financing for Crypto Projects:

Crypto projects can use CVEX to protect their tokens from sudden price drops. Our system is reliable and managed by a DAO (a group governed by its members), which makes it a safe choice for these projects.

5. Working Together with Other Platforms:

CVEX can easily work with other financial platforms. This cooperation makes the market stronger and allows different platforms to benefit from each other.

6. For Individual Investors and Risk Takers:

CVEX is great for everyday investors and those who like taking risks. Our platform offers low-cost trading and strategies for high rewards, all in a safe and legal environment.

7. Making the Most of Market Differences:

Traders can use CVEX to take advantage of small price differences in the market. Our lower costs make it easier for them to make profits this way.

8. Keeping Stablecoins Safe:

For those holding stablecoins, CVEX offers ways to protect them from losing value. This adds an extra layer of security for your investments.

9. Better Options for Liquidity Providers:

People who provide liquidity can use CVEX to manage their risks better. Our system helps them make more money and protect their investments.

10. Using Futures and Options for DAOs:

DAOs can use CVEX to control their tokens better, like managing how many are available or planning to buy more in the future.

11. Creating New DeFi Products:

CVEX opens the door for new financial products in the DeFi space, like ETFs and mutual funds. This makes DeFi more diverse and exciting.

More Than Just a Protocol

CVEX is not just a platform; it’s a complete solution for managing financial risks. It works with many different types of assets, from digital currencies to traditional ones. Although we’re not planning to add regulated assets right now, CVEX is built to handle them in the future. This makes our platform very flexible suitable for many different users, both now and in the future.

CVEX brings the complex world of futures and options to everyone. We’re dedicated to making these financial tools easy to understand and use. Whether you’re a big company, a small investor, or just curious about crypto, CVEX is here to help. We’re always improving and adding new features, so stay tuned for more exciting updates from us.

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In the digital finance landscape, decentralised derivatives are emerging as game-changers. This comprehensive guide takes you through the essentials of decentralised derivatives, highlighting their critical role in reshaping the world of finance. In this era of blockchain technology, these derivatives redefine transparency and security in financial dealings, making them an indispensable part of modern trading strategies.

The advent of decentralised derivatives on blockchain platforms has triggered a significant transformation in financial markets. These innovative financial tools offer a level of transparency that was previously unattainable in traditional finance. Every transaction is recorded on a blockchain, providing an immutable, transparent, and verifiable record. The security features inherent to blockchain technology safeguard against fraud, ensuring that these financial instruments remain secure and trustworthy. Additionally, the decentralised nature of these derivatives democratises financial market access, paving the way for broader participation and fostering a more inclusive financial ecosystem.

Empowering Risk Management and Market Speculations

Derivatives play a crucial role in real-world risk management scenarios. Consider the volatility in agricultural prices: a coffee farmer’s income is at the mercy of fluctuating market prices. By engaging in a futures contract, the farmer can set a future sale price for their coffee, thereby insulating themselves from the risk of plummeting prices. Such derivatives act as a financial buffer, securing the farmer’s income against market volatility and demonstrating the practical utility of derivatives in safeguarding economic stability.

Beyond risk management, derivatives are potent tools for market speculation. In the realm of cryptocurrencies, for instance, Bitcoin futures offer a compelling example. Investors looking to capitalise on Bitcoin’s price movements can turn to futures contracts. These contracts enable speculation on the cryptocurrency’s future value without the need to hold the actual digital currency. If Bitcoin’s price climbs, the investor stands to gain; however, they also face potential losses if the market moves against their prediction. This dynamic underscores the dual nature of derivatives as instruments for both safeguarding and speculating on asset values.

In the volatile world of business operations, derivatives are not just a financial instrument but a necessity for stability. Consider the case of an airline company grappling with fluctuating fuel prices — a significant operational cost. By strategically utilizing options contracts, the airline can lock in a steady fuel price. This move not only shields the company from sudden spikes in fuel costs but also ensures more predictable financial planning. It’s a perfect example of how derivatives serve as a hedge against market uncertainties, illustrating their practical value in real-world business scenarios.

The Shift from Centralised to Decentralised Derivatives

The financial world is witnessing a significant shift from traditional centralised derivatives trading to decentralised platforms. Centralised exchanges, while familiar, come with inherent risks like counterparty vulnerabilities and a lack of transparency. Enter decentralised derivatives platforms like CVEX, which harness the power of blockchain technology. These platforms offer a more secure, transparent, and efficient trading environment. By eliminating intermediaries, they reduce the associated risks and costs, marking a new era in derivatives trading that prioritises trust and accessibility.

Crypto Valley Exchange (CVEX) is not just a participant in the world of decentralised derivatives; it’s a trailblazer. CVEX introduces an array of groundbreaking features to the derivatives market. These include cross-margin trading that maximises traders’ potential, advanced risk management tools to safeguard investments, and a broad spectrum of tradable assets from cryptocurrencies to traditional commodities. CVEX is committed to redefining the trading experience, offering traders a platform that is not only robust and secure but also intuitively designed for the modern financial landscape.

As we delve deeper into the realm of decentralised derivatives, CVEX emerges as your ideal companion in this journey. The platform is dedicated to educating and guiding traders through the intricacies of options, futures, and effective risk management strategies. With CVEX, you’re not just trading; you’re becoming a part of the evolution in finance, equipped with the knowledge and tools to navigate this progressive market.

Conclusion

The realm of derivatives often shrouded in complexity, plays an integral role in today’s financial ecosystem. Serving a diverse range of market participants — from agricultural producers safeguarding their profits to corporate entities managing operational risks and traders exploring the crypto universe — derivatives are the universal language of risk management and speculative opportunities. CVEX brings this intricate world into more precise focus, offering a platform that demystifies derivatives trading and makes it accessible and secure for all. Join the revolution with CVEX and explore the endless possibilities in the dynamic derivatives market.

CVEX is poised to introduce an innovative trading mechanism that blends traditional strategies with modern liquidity provision — Range Orders. This novel order type is set to transform how traders engage with the CVEX platform, especially as we eagerly anticipate the launch of our testnet.

What Are Range Orders?

Range Orders allow traders to distribute liquidity uniformly across various price levels within a defined range. This concept, akin to the concentrated liquidity seen in DEXes like Uniswap V3, provides traders with a sophisticated tool for capitalising on market movements and executing complex arbitrage strategies more efficiently.

The Mechanics of Range Orders

Range Orders simplify the process of engaging with the market for liquidity providers. A single operational fee covers liquidity placement across multiple price levels, eliminating the redundancy of fees typically encountered in traditional exchanges. When these orders are matched, they fill uniformly, creating a seamless trading experience.

Upon execution, a Range Order transitions into a Range Position, effectively managing a spectrum of open limit orders within the chosen price range. This dynamic allows for automatic adjustment to market fluctuations, ensuring traders remain actively involved in the market without needing constant manual intervention.

Benefits for CVEX Traders

• Cost Efficiency. Traders incur operational fees just once, making Range Orders an economical choice for those looking to maximise their trading strategies.
• Dynamic Market Engagement. The system’s automatic adjustment of orders ensures ongoing participation with market trends, offering continuous opportunities for profit.
• Maker Rewards. Owners of Range Positions earn rewards whenever their liquidity fills market orders, adding an additional incentive for liquidity provision on the CVEX platform.

Future Implications for CVEX Traders

The introduction of Range Orders is more than just a new feature; it represents a pivotal evolution in how traders will interact with the CVEX ecosystem. As we move closer to the testnet release and eventually the full launch, Range Orders are expected to:

• Enhance Trading Strategies. By allowing precise targeting within a price range, traders can better capitalise on market conditions.
• Foster an Efficient Liquidity Environment. The efficient fee structure and dynamic order adjustments encourage more robust liquidity provision, benefiting both makers and takers on the platform.
• Prepare Traders for Future Innovations. Range Orders are just the beginning. As CVEX continues to innovate, traders will be well-equipped to adapt to and benefit from new trading mechanisms and opportunities.

Looking Ahead

As CVEX prepares for its testnet release, the anticipation among our community is palpable. Range Orders symbolise our commitment to providing traders with the tools they need to succeed in the dynamic world of DeFi. We invite our community to join the waitlist and be among the first to experience how Range Orders and other forthcoming innovations will make CVEX a leader in decentralised trading. Together, we’re not just building a platform; we’re shaping the future of finance.

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CVEX’s margin model stands at the forefront of risk management in the cryptocurrency trading arena, offering a nuanced approach that marries the Value-at-Risk (VaR) methodology with intelligent leverage and hedging strategies. This balanced framework aims to empower traders, providing them with the tools to navigate the market’s inherent volatility while optimising their trading outcomes.

What Is Value-at-Risk (VaR) Model?

The Value-at-Risk (VaR) model is a cornerstone of CVEX’s risk management, offering a statistical measure that quantifies the level of financial risk within a trading portfolio over a specific time frame. Our implementation, characterised by a 1-day look-ahead period and a confidence level of 99%, requires traders to maintain collateral that accounts for the worst expected market move against their positions for one out of every hundred days.

This methodology draws on historical market data, extending back to a decade, to ground our risk calculations in robust historical contexts. To ensure accuracy and relevancy, we exclude data from periods of extreme market volatility and require a minimum dataset of two years — or equivalent proxy data for newer assets — to list new instruments on the platform. This approach underscores our commitment to reliability and transparency in risk assessment.

The Usage of Strategic Leverage and Hedging

Leverage is a critical component of trading strategy, and CVEX’s margin model facilitates leverage typically within the 5x to 9x range for individual crypto assets. This leverage framework caters to various trading strategies, from conservative to more aggressive approaches.

Our platform excels in offering hedging strategies that significantly amplify leverage potential without focusing on extreme leverage points. For example, a trader might strategically pair long positions in Ethereum with short positions in Bitcoin, leveraging the interplay between these assets to potentially enhance leverage up to 15x.

This model shines particularly in options trading, where sophisticated hedging can substantially increase leverage while maintaining a balanced risk profile. We present examples where leverage is thoughtfully applied, demonstrating how traders can utilise CVEX’s tools to achieve substantial leverage through well-considered long and short positions across different cryptocurrencies and trading strategies.

Preliminary Specifications and Ongoing Adaptation

The details provided about contracts, margin/risk parameters, and fees reflect CVEX’s current vision and are intended as preliminary specifications. We recognise the importance of flexibility and adaptability in the fast-paced world of cryptocurrency trading. As such, we reserve the right to adjust these parameters in alignment with the evolving needs of our protocol and its user community. Changes will be communicated through our official channels, emphasising our dedication to transparency and the best interests of our traders.

Conclusion

The CVEX margin model, rooted in the VaR methodology and enriched by strategic leverage and hedging capabilities, represents a sophisticated risk management framework tailored to decentralised finance. Our model is crafted to support traders’ journey through the crypto market, offering a blend of precision, flexibility, and safety. As CVEX continues to innovate within the DeFi ecosystem, we focus on enhancing user experience, ensuring robust risk management, and fostering a secure and dynamic trading environment.

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In the dynamic world of decentralised finance (DeFi), the CVEX Protocol stands out by adopting USDC as its cornerstone for financial operations. This choice not only streamlines transactions, but also significantly enhances market stability. Here’s how USDC transforms the CVEX ecosystem, making it more accessible and secure for traders worldwide.

Why USDC?

USDC is a stablecoin whose value is pegged to the US dollar, ensuring its stability and reliability. In the CVEX ecosystem, USDC is utilised for various key functions:

1. Collateral Provision. Traders use USDC to back their trading positions, ensuring a stable investment foundation.
2. Fee Payments. All transaction fees within the CVEX Protocol are paid in USDC, simplifying the fee structure.
3. Rewards. Participants in liquidity provision, staking, and clearance activities are rewarded in USDC, enhancing the ecosystem’s vibrancy.

The inherent stability of USDC mitigates the volatility risk commonly associated with other cryptocurrencies. This predictability creates a more secure trading environment where the risk of collateral default is minimal.

Cross-Chain Transfer Protocol (CCTP)

Integrating the Cross-Chain Transfer Protocol (CCTP) further elevates the CVEX platform. CCTP allows for the seamless movement of USDC across different blockchain networks through a burn-and-mint process. Here’s a brief overview:

• Depositing USDC. Traders burn USDC on their native chain. Circle, the issuer of USDC, then provides a signed attestation of this burn, allowing the minting of an equivalent amount of USDC on Arbitrum for use within the CVEX ecosystem.
• Withdrawing USDC. The process is reversed for withdrawals. USDC is burned on Arbitrum and then minted on the trader’s native blockchain, facilitating quick access to funds.

The Withdrawal Challenge and CCTP’s Solution

One of the hurdles in layer-2 (L2) chains like Arbitrum is the typical seven-day waiting period for withdrawals, a security measure that can deter traders seeking faster access to their funds. CCTP’s integration with CVEX effectively addresses this challenge by reducing the withdrawal time to just 10–30 minutes, significantly enhancing flexibility and accessibility for traders on the platform.

Ensuring Safety in Cross-Chain Transfers

Security is paramount in the DeFi space. CCTP, operated by Circle, ensures that cross-chain transfers of USDC within the CVEX ecosystem maintain the highest security standards. Since Circle has the authority to burn and mint USDC, traders can deposit and withdraw confidently, knowing their assets are secure, and their transactions are directly managed by the stablecoin’s issuer.

By centering its operations around USDC and leveraging CCTP, the CVEX Protocol offers a stable, secure, and efficient trading environment. This approach reduces the complexity and risk associated with crypto transactions and fosters a more inclusive and accessible DeFi ecosystem. With USDC, CVEX sets a new standard for stability and trust in the digital asset world.

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The CVEX Protocol emerges as the backbone of the CVEX ecosystem. This comprehensive smart contract, deployed on the Arbitrum chain, orchestrates all the critical operations within the platform, setting a new standard in the decentralised finance landscape. Here’s an in-depth look into the workings of the CVEX Protocol and how it redefines the structure of decentralised trading.

Understanding the CVEX Protocol’s Core Functionality

The CVEX Protocol operates as the structural core of the CVEX ecosystem, facilitating decentralised execution of all essential operations across various platforms. This protocol is not just another blockchain application; it’s a complete infrastructure solution developed in Rust and implemented via Stylus, representing a novel approach to writing EVM-compatible smart contracts.

Stylus contracts, executed in WebAssembly (WASM), offer a highly efficient alternative to traditional Solidity contracts. The efficiency stems from decades of compiler development for Rust and LLVM, combined with the faster runtime of WASM compared to the EVM. This technological choice ensures that the CVEX Protocol benefits from over 10x improved computation and memory usage, setting the stage for rapid and efficient operations.

Key Functions of the CVEX Protocol

The CVEX Protocol is responsible for a range of critical functions within the trading ecosystem:

• Collateral Management. Ensures secure handling of trader collateral deposits and withdrawals.
• Order Execution. Manages the matching engine and maintains order books for accurate trade execution.
• Platform Management. Facilitates the creation of trading platforms and contracts, configuring price and risk oracles for optimal performance.
• Risk Assessment. Validates portfolio margins and executes liquidations when necessary, maintaining market integrity.
• Financial Management. Controls various funds within the ecosystem, including Collateral, Operational, Default, and Protocol Funds.
• Money Flow. Manages the fair distribution of profits, losses, fees, rebates, and rewards among participants.
• Token Management. Oversees the behaviour of the $CVEX token, encompassing aspects like staking and reward distribution.

Roles Defined by the CVEX Protocol

For seamless operation, the CVEX Protocol defines several roles, each interacting with the protocol uniquely:

• Protocol Owner. Configures global settings and oversees protocol upgrades.
• Platform Operators. Manage individual trading platforms, tailoring configurations to suit specific needs.
• Price Oracles. Deliver reliable index prices for accurate trading.
• Risk Oracles. Provide essential volatility and correlation parameters for risk assessment.
• Traders. Engage actively in trading managing portfolios through the creation of orders.
• Frontends. Serve as the interface between traders and the protocol, facilitating order delivery and data presentation.
• Clearance Bots. Perform critical functions like liquidations and order clearing to preserve market integrity.

Conclusion

The CVEX Protocol is a testament to innovation and efficiency in decentralised trading. By addressing the fundamental needs of a trading platform, from collateral management to risk assessment and financial control, the CVEX Protocol ensures a seamless, secure, and efficient trading experience for all participants.

As we continue to evolve and expand, the CVEX Protocol remains committed to setting new benchmarks in decentralised finance. Join us on this transformative journey with CVEX, and experience the future of trading where innovation meets security and efficiency.

For the latest news and developments from CVEX, stay tuned to our official channels and become a part of the revolution in decentralised finance.

Welcome to the Crypto Valley Exchange (CVEX) Affiliate Programme, a gateway to earning both USDC and exclusive rewards. Our Affiliate Dashboard is designed to empower you, our valued user, to reap financial benefits while expanding our vibrant community.

By participating in this programme, you secure a remarkable opportunity to earn a lifetime share of 20% on trading fees from every friend you refer to CVEX. Additionally, you can earn an extra 10% from second-degree referrals, extending your earning potential even further. The incentives don’t just end with you. Every connection you bring on board using your referral code enjoys a 10% discount on their trading commissions. This mutual benefit approach not only enhances your earnings but also makes trading on CVEX more appealing to your network.

But there’s more to our Affiliate Dashboard than just referral earnings. Each successful referral earns you XP points, a critical component in unlocking future rewards and exclusive benefits on the CVEX platform. You get 10 XP for each direct active referral and 5XP for 2ND-degree active referrals. Moreover, if you sign in using someone’s referral link, you’ll be rewarded with an additional 10 XP points from the start. These points add up, paving the way for you to access unique opportunities and offers unavailable to regular users.

Engaging with our Affiliate Dashboard is straightforward and rewarding. We’ve designed it to be user-friendly and efficient, ensuring you can easily track your earnings, monitor your referral network’s growth, and understand your progress toward achieving new reward levels.

Join us in this exciting journey of growth and rewards. Connect to the CVEX Affiliate Dashboard today and start unlocking the full potential of your network within the expansive world of decentralised finance. Your path to earning passive income and exclusive rewards begins here.

How to Join? Step-by-Step Guide

Now, let’s break down how you can join the Affiliate Dashboard and unlock a path to rewards for yourself. Ready?

Step 1. To get started, go to the Crypto Valley Exchange website using this link: https://cvex.xyz/. Please make sure the address in your browser matches the one listed here. Beware of scammers!

Step 2. Now, the site has opened in front of you, where you can read about all the features of our platform. But you need to go a little lower and find a separate window dedicated to Affiliate Dashboard.

Step 3. Here, you can read more about the conditions of participation and potential bonuses and see how many users have already joined the programme. Click on the “Invite Friends” button after reading the terms and conditions.

Step 4. After clicking on the button, you will be taken to a separate tab dedicated exclusively to Affiliate Dashboard. However, to start using it you need to join the platform by clicking on the “Connect Wallet” button in the top right corner.

Step 5. A registration window will open in front of you. You can choose one of two options:

1st Option: Provide your name, email address, and referral code of your friend (if present).

Note: Please note that using the referral code provides you with an additional 10 XP points (20 in sum) after registration and gives 10 XP points to the person who invited you.

After that, a message with a verification code will be sent to the specified e-mail address. Find it and enter it in the special box.

Keep in mind that if you register via email, you will still need to confirm your crypto wallet address later on. After singing-in the CVEX platform will propose you continue with your wallet. Click the button and follow the instructions on the screen, or read further and see how we do it!

2nd Option: The second verification option involves connecting your crypto wallet to the CVEX platform. To do this, click on the “Continue with WalletConnect” button at the bottom of the window.

You now have the opportunity to choose your wallet. We support more than 350 different wallets. The most popular ones are right in front of you, and to view the rest, click on the “All Wallets” tab at the bottom of the window.

In this guide, we will use MetaMask. Clicking on the appropriate icon in your browser will open a standard confirmation window from your provider, where you need to agree to the terms of use and agree to join your wallet to the CVEX platform. These steps are crucial so we can track your referrals and give you the deserved XP points!

Now, you can tinker with your email. Just enter it in the appropriate box, and you will be able to receive the latest information about the project before anyone else!

After all confirmations, you will see your wallet address in the top right corner of your browser. If this is the case, congratulations, you are now officially a Crypto Valley Citizen!

Step 6. After connecting to the platform, you can click on the “Invite Friends” button and see your referral link and referral code. Just share them with your friends and start building your CVEX community! Easy-peasy.

What’s Next?

Now, the more of your friends come to the platform, the more XP points you will get and the higher you will be on the leaderboard. To find out where you are, scroll down the page a bit and find the Leaderboard tab. Now, all that’s left is to find yourself on the list!

Checking your rating is crucial since the higher you are, the more Affiliate Programme potential you unlock. Each direct referral earns you 10 XP, while secondary referrals add 5 XP to your tally. Moreover, when the Mainnet starts, you’ll get a fraction of the fees from each of your referral trades!

Not only do you benefit from this network growth, but your connections also enjoy a 10% commission discount, courtesy of your referral code. This mutually advantageous setup enhances your earnings and enriches your network’s trading experience on CVEX.

Also, on the Affiliate Dashboard page, you can once again read all the terms and conditions of the referral programme and see what stage of its implementation CVEX is currently at.

Embracing Opportunities with CVEX’s Affiliate Dashboard

Join the CVEX Affiliate Programme and step into a world of shared success and mutual benefits. By participating, you don’t just earn — you become part of a community that values collective growth. Every referral enhances your earnings and integrates your connections into a dynamic trading community. This isn’t just about individual gains; it’s about growing together and reaping shared rewards.

Step into a future of rewarding possibilities with CVEX. Our Affiliate Programme offers a pathway to continuous earning and exclusive rewards. Don’t miss this chance to revolutionise your DeFi experience. Join now, build your network, and unlock the potential of every trade and referral in the expansive world of decentralised finance.

Find Us Here:

Website | Twitter | Discord

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In the evolving landscape of decentralised finance (DeFi), the CVEX protocol emerges as a sophisticated platform designed to optimise trading operations. However, implementing such advanced systems in a blockchain environment comes with its own technical challenges. Recognising these hurdles, CVEX introduces an innovative solution: Clearance Bots. This article delves into the complexities faced by the protocol and how Clearance Bots play a pivotal role in ensuring its seamless operation.

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Addressing Technical Challenges

Implementing the CVEX protocol as a smart contract reveals several technical obstacles:

• High Operational Costs. Continuously monitoring user margin ratios for variation margin on-chain is complex and resource-intensive. It necessitates ongoing computations and updates, leading to increased operational expenses.
• Reactive Execution Limitations. Smart contracts are reactive by nature and cannot perform scheduled tasks, limiting the protocol’s ability to automate certain critical functions for timely execution.
• Unfair Cost Distribution. In scenarios where a taker order matches with multiple smaller limit orders, the execution costs can disproportionately fall on a single trader. This inequity results in unfair transaction fee distribution, with one trader inadvertently subsidising the transactions of others.

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The Role of Clearance Bots

To mitigate these challenges, CVEX incorporates Clearance Bots within its ecosystem. These bots are engineered to manage various protocol operations, ensuring efficiency and fairness:

• Order Clearing. They streamline the clearing of limit orders by managing a clearance queue, optimising gas usage, and guaranteeing successful executions regardless of the number of matched orders.
• Settlement Responsibilities. Post-expiry of futures and options contracts, Clearance Bots, handle the settlement process, closing all active positions and canceling open orders.
• Initiating Portfolio Liquidation. By actively monitoring trader margins, these bots initiate liquidation processes when necessary to maintain protocol integrity.
• Default Prevention. In situations of potential default, Clearance Bots cancel limit orders for at-risk users, preventing defaults before they occur.
• Auto Deleverage Queue Management. They are tasked with managing the ADL queue and adjusting positions as needed to ensure the system’s balance.
• Conditional Order Management. Clearance Bots execute or cancel orders based on predefined conditions, such as Stop Limit, Stop Loss, and Take Profit orders.

These operations are designed to be deterministic and permissionless, allowing anyone to participate as a Clearance Bot operator within the CVEX ecosystem. Operators are incentivised through gas compensation and a premium from the Operational Fund, ensuring their activities remain economically viable, even during high gas prices.

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Open Invitation and Continuous Innovation

The CVEX team commits to publishing a reference implementation for Clearance Bots, encouraging community involvement and contributions to the ecosystem’s robustness. Furthermore, developing and deploying more sophisticated Clearance Bot versions are encouraged, fostering innovation and efficiency within the CVEX protocol.

In conclusion, Clearance Bots are essential to overcoming the inherent challenges of implementing complex protocols on blockchain platforms. Clearance Bots exemplify CVEX’s commitment to creating a user-centric, fair, and efficient trading environment by enhancing operational efficiency, ensuring equitable cost distribution, and maintaining system integrity.

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The world of decentralised finance is evolving rapidly, and Crypto Valley Exchange (CVEX) is at the forefront of this transformation. Our latest innovation, Multichain support, marks a significant milestone in the DeFi landscape. It’s not just a feature; it represents a new way of engaging with the crypto market. As we delve into this revolutionary aspect of CVEX, we uncover how it’s changing the rules of the game, offering unparalleled flexibility and a tailored trading experience in the dynamic world of cryptocurrencies.

Multichain: Bridging Networks for Enhanced Trader Freedom

The introduction of Multichain support by CVEX isn’t just about embracing new technology; it’s about opening doors to a realm of possibilities for traders. Imagine a world where you’re not restricted by the boundaries of a single blockchain. Whether you’re a veteran of Ethereum, an enthusiast of Arbitrum’s innovations, an Optimism aficionado, or a Base blockchain believer, CVEX’s platform empowers you to start your trading expedition on familiar ground. This feature is a celebration of diversity in the blockchain universe, offering a seamless transition from your preferred network to our cutting-edge trading platform.

In practice, it looks like this: all trading takes place on the Arbitrum blockchain, but thanks to EVM, every user of the above-mentioned blockchains can without any obstacles. You don’t need an Arbitrum wallet or ETH for gas. Simple trading without restrictions!

Deposit Freedom: Tailoring Your Crypto Journey

At CVEX, we recognise that every trader has unique preferences and requirements. Our Multichain support is a reflection of this understanding. It grants you the autonomy to deposit USDC from the blockchain network that aligns with your trading style and strategy. This level of personalisation is rare in the DeFi space and sets CVEX apart as a platform that truly listens to and caters to its users’ needs. Whether you’re looking for the robust security of Ethereum, the lightning-fast transactions of Arbitrum, the vibrant ecosystem of Optimism, or the innovative features of Base, CVEX welcomes you with open arms, providing a trading experience that’s as unique as you are.

Unified Trading on Arbitrum One: A Symphony of Efficiency and Innovation

In the diverse world of blockchain, CVEX brings a unique harmony with its unified trading experience on Arbitrum One. Despite the variety in deposit options across multiple blockchains, all trading paths converge onto the innovative landscape of Arbitrum One. This strategic amalgamation of varied entry points with a singular, high-performance trading environment showcases our commitment to providing an efficient, seamless trading experience. Arbitrum One, known for its exceptional trading capabilities, ensures that your trades are not only smooth but also executed with remarkable speed and reliability. This fusion of diverse inputs with a centralised trading solution exemplifies our dedication to innovation and trader convenience.

The essence of CVEX’s Multichain approach is encapsulated in its ability to offer the best of both worlds: the ease of access through multiple blockchain gateways and the superior performance of a centralised trading platform. This ingenious combination caters to the diverse preferences of traders, allowing for easy asset deposits from their chosen blockchain, while ensuring that the trading experience remains top-notch on Arbitrum One.

It’s a model that resonates with the dynamic needs of the modern trader, offering flexibility without compromising on efficiency. This blend of accessibility and high-performance trading is what sets CVEX apart, ensuring a balanced, rewarding trading journey for every user.

Expanding Opportunities for Traders with CVEX’s Multichain Model

CVEX’s pioneering Multichain support is more than just a feature — it’s a gateway to expanded possibilities in the crypto trading world. This innovative approach empowers traders from all walks of the blockchain ecosystem to participate in a trading platform that is optimised for speed, efficiency, and performance.

Whether you’re deeply rooted in Ethereum or exploring the realms of Arbitrum, Optimism, or Base, CVEX’s platform is designed to welcome you into a world where your trading actions are swift, smooth, and secure. This forward-thinking model by CVEX is a testament to our commitment to broadening the scope for traders, ensuring that regardless of your blockchain preference, you have access to a state-of-the-art trading experience on Arbitrum One.

About Crypto Valley Exchange (CVEX)

Crypto Valley Exchange (CVEX) is a pioneering force in decentralised finance, offering advanced Options & Futures trading with over 1000x leverage. It features real-time Value-at-Risk (VaR) portfolio management and cross-margin capabilities, enabling efficient and dynamic trading across cryptocurrencies and commodities. Multichain from inception, CVEX supports major chains like Ethereum and Arbitrum, allowing seamless USDC transactions. Its commitment to security and efficiency positions CVEX as a leader in DeFi innovation.

Crypto Valley Exchange (CVEX) stands out for its distinctive approach in the dynamic world of cryptocurrency trading. Contrary to the common trend, CVEX does not focus on perpetual contracts but instead emphasises the integration of expirable futures and options into its trading platform. This strategic decision stems from an in-depth understanding of perpetual contracts’ inherent limitations.

Understanding Perpetual Contracts and Their Shortcomings

Perpetual contracts, while popular in the crypto space, have notable disadvantages. They are often inefficient in capital utilisation, limiting their effectiveness in diverse trading strategies, particularly in hedging. This inefficiency is a barrier to the growth of a robust options market, as these contracts lack the necessary flexibility for various hedging tactics, including delta hedging.

Significant design issues and market risks overshadow the ease of implementing perpetual contracts within DeFi frameworks. Many protocols depend on failed trades to fund lending pools, a system that inherently favors retail failures over successes. This leads to skewed market risks and undermines the long-term value of these products for hedging. Additionally, the risk management models often result in imbalanced market conditions, posing risks for long-term hedges and potentially leading to market instability.

A Focus on Futures and Options

Recognising these challenges, CVEX has prioritised futures contracts and options in its offerings. These instruments are launched monthly and have a three-month lifespan, ensuring the availability of three active futures at any given time. This approach aligns with the platform’s commitment to providing diverse trading options, catering to different strategies and risk profiles.

Futures contracts on CVEX are meticulously designed to provide an edge to liquidity providers, with the bid-offer spread tailored to enable profitability. The final settlement of these contracts occurs on the last Friday of the expiry month, with a settlement fee designed to incentivise the closing of positions before the final settlement. This strategy reduces system load at settlement and minimises overall risk.

Options contracts on CVEX complement the futures schedule, offering a range of strike prices based on anticipated contract volatility. This structured approach allows traders to engage in various strategies, leveraging the dynamic nature of both futures and options markets.

Conclusion

CVEX’s commitment to not being a perpetuals DEX is a bold step toward more efficient and risk-managed crypto trading. By focusing on expirable futures and options, CVEX sets new standards for fusing traditional finance principles with decentralized finance innovation. This approach is about providing trading options and ensuring stability, efficiency, and risk management in the crypto trading landscape. Join us at CVEX as we redefine the future of cryptocurrency trading, where the focus is on sustainable growth and comprehensive risk management.

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Welcome to the forefront of decentralised finance innovation at Crypto Valley Exchange (CVEX). Today, our focus is on a feature that’s changing the game in digital asset trading: Cross Margin Capability. This advanced feature is not just an addition to our platform; it’s a paradigm shift in how traders manage and leverage their assets. Offering unparalleled flexibility and efficiency, cross margin trading on CVEX opens new avenues for seasoned traders and newcomers to navigate the market with greater agility and strategic depth. Join us as we delve deep into the inner workings and remarkable advantages of the Cross Margin system on CVEX.

Understanding Collateral and Margin in Trading

In the dynamic trading environment of CVEX, collateral and margin play pivotal roles. Every open position on our platform necessitates the provision of collateral, which is secured as a margin. This margin is more than just a requirement; it’s a critical safety net, ensuring traders have a buffer to cover potential market swings and losses. It’s the foundation of robust trading, striking a delicate balance between ambition and prudence. In this ecosystem, where market conditions can shift rapidly, having a reliable margin system is key to maintaining confidence and stability in your trading journey.

The CVEX Cross Margin Approach

At CVEX, we’ve reimagined the conventional margin system with our innovative cross margin mechanism. Unlike traditional platforms where the margin is isolated per position, CVEX’s cross margin system calculates margin requirements based on your entire portfolio. This comprehensive approach accounts for the interplay between different positions.

Cross margining on CVEX represents a major leap forward in trading efficiency. The key advantage lies in the substantial reduction of the overall margin requirement across your portfolio, as opposed to the cumulative margin needed for individual positions. This efficiency translates into more judicious use of your capital, allowing you to unlock more trading strategies with less capital tied up as margin. It’s a smarter way to manage your resources, opening up opportunities for increased market participation and potentially greater returns.

Enhanced Benefits for Hedged Positions

Traders who master the art of hedging in their portfolios find cross margining particularly beneficial. When you balance your positions effectively, CVEX’s cross margin system recognises the reduced risk and correspondingly lowers your margin requirements. This advantage frees up more of your capital, which can be redirected to explore new trading avenues or diversify your investment portfolio, further enhancing your trading strategy and potential returns.

At CVEX, we understand that effective risk management is the cornerstone of successful trading. That’s why our platform includes ongoing portfolio monitoring, encompassing both collateral and any unrealised gains or losses. This vigilant approach ensures a harmonious balance between your trading ambitions and the ability to absorb market fluctuations, maintaining a healthy margin-to-equity ratio and securing your financial stability in the volatile world of crypto trading.

Protective Measures with Clearance Bots

Effective risk management is key to successful trading. Our platform continuously monitors your portfolio, including collateral and unrealised gains or losses. This ensures a balance between your trading goals and market volatility, maintaining financial stability in crypto trading.

We prioritise safety with features like Clearance Bots. These bots activate when risk levels rise, starting liquidation processes to minimise losses and maintain market integrity. This might seem strict, but it’s a vital protection against significant financial losses due to sudden market shifts.

In summary, the Cross Margin Capability on CVEX is a testament to our commitment to offering advanced, trader-centric features. It not only allows for more judicious capital management but also includes built-in protective mechanisms. This feature exemplifies our dedication to enhancing the trading experience, making it more efficient and secure for our users. Join us on CVEX to experience the transformative power of Cross Margin in your trading endeavors.

In the fast-paced world of decentralised finance, CVEX stands out with its advanced margin and liquidation methodologies, designed to balance capital efficiency with market integrity. Let’s break down how CVEX optimises trading safety and fairness through its innovative financial models.

Dynamic Margin Methodology

At the heart of CVEX’s approach is a dynamic margin model that employs a Value-at-Risk (VaR) methodology. This model calculates collateral requirements by considering market volatility, correlations between assets, and potential extreme losses, providing a comprehensive risk assessment. The initial margin is set to cover potential losses within a specific confidence interval, ensuring traders have sufficient collateral. A key feature is the concentration adjustment, which mitigates the risk posed by large positions in a single portfolio, promoting a balanced trading environment.

Pricing for Futures and Options

Futures

The Mark Price for futures contracts is determined using a moving average basis, which helps to mitigate the impact of price discrepancies between futures and spot markets. This ensures that the valuation of positions reflects true market conditions.

Options

Premium Mark Prices for options are derived using the Black-Scholes model, adjusted for real-time market volatility. This integration allows for accurate pricing that responds to market dynamics, ensuring options trading is both fair and responsive to current conditions.

Liquidation Protocol and Counterparty Risk Management

CVEX’s liquidation protocol is designed with stability and fairness in mind. Liquidations are executed through market orders to ensure positions are closed at fair value, with the Default Fund acting as a safety net for covering losses. This fund is carefully managed to minimise counterparty risk, ensuring the trading ecosystem remains secure.

Counterparty liquidations are considered a measure of last resort, with a focus on preserving market balance. The Deleverage Queue system provides transparency, detailing the order in which positions may be liquidated. Moreover, the Default Prevention system proactively cancels high-risk limit orders, preventing unnecessary liquidations by assessing the potential impact on the margin ratio.

Conclusion: Balancing Efficiency with Security

CVEX’s margin and liquidation methodologies represent a significant advancement in decentralised trading, offering traders an optimised balance between leveraging opportunities and the safeguards necessary to maintain a stable market. By dynamically adjusting margin requirements and employing a fair liquidation protocol, CVEX ensures that trading remains both efficient and secure, fostering a trustworthy environment for all participants.

As we look towards the launch of our testnet, CVEX is committed to providing the tools and mechanisms traders need to succeed, all while upholding the highest standards of market integrity. Join us in shaping the future of DeFi trading, where innovation meets security.

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The cryptocurrency trading world has come a long way, evolving rapidly from its early days. Big names like Coinbase and Binance have brought stability and innovation, yet the crypto landscape still faces significant challenges, especially in its on-chain infrastructure.

Lack of Essential Derivative Infrastructure

Although platforms like Uniswap have revolutionised token exchanges, a key piece is missing: advanced financial tools like futures and options. These tools are vital in traditional markets for risk management and optimising portfolios, but they’re scarce in the crypto world. This gap not only limits investors but also exposes them to higher risks.

The Urgent Need for Sophisticated Tools

For the decentralised Web 3.0 to thrive and support efficient capital flow, integrating advanced financial instruments is crucial. As competition for capital intensifies with advancements in other sectors like AI, the need for these tools in crypto becomes more pressing.

Challenges in Current DeFi Systems

Efforts to introduce derivative products by platforms like the former FTX and Binance face trust issues, inefficient margin requirements, and unclear regulations. These challenges hinder the true decentralisation of blockchain and its ability to scale these capabilities.

Limitations in Ecosystem Development

The crypto market’s ecosystem is still developing. The growth of brokers, structured product providers, and builders is essential to move beyond speculation and create a platform that truly supports decentralised growth.

The Importance of Liquidity Development

Success in DeFi protocols heavily relies on strong, efficient liquidity. Many DeFi models struggle with liquidity provision, with market makers and providers often relying on token incentives or external payments. A shift is needed to make liquidity provision profitable, focusing on elements like tick size, contract size, and transaction fee structures.

A Specialised Market Maker Program

To overcome these challenges, we propose a specialised market maker program combining token rewards with adjustments to instrument sizes and transaction fees. This approach aims to attract not only designated market makers but also regular traders and scalpers, emphasising the importance of developing liquidity.

While crypto trading has advanced, the absence of vital on-chain derivative infrastructure remains a major hurdle. To fully unlock the potential of DeFi and merge it with traditional finance, we must introduce sophisticated financial instruments and foster a robust ecosystem for decentralised growth.

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The accuracy and integrity of market data are paramount. At CVEX, we understand the crucial role of reliable information in fostering a stable and efficient trading environment. That’s why we’ve integrated sophisticated Price and Risk Oracles into our platform, ensuring that our traders operate with the most accurate and up-to-date information.

Price Oracles

Price Oracles are the lifeline of the CVEX platform, providing real-time prices of underlying assets essential for Mark Price calculations and the settlement of contracts. These oracles ensure that traders’ profit and loss (P&L), margin, and equity are based on accurate and current market data. Here’s how CVEX ensures the reliability of these critical data points:

1. Regular Updates. Price data updates range from 1 to 30 minutes, maintaining the integrity of Mark Prices and reflecting the true value of assets in real-time.
2. Diverse Sources. Platform owners select reputable price sources for each contract, linking them to their respective underlying assets.
3. Off-chain Oracles. Trusted entities that provide flexibility and a broad asset range. They require a degree of trust and involve gas fees for updates.
4. Decentralised Data Feeds. Integrating with renowned decentralised oracles like Chainlink and DIA Data ensures high data integrity, though with potential limitations in asset availability and update frequency.

Risk Oracles

Risk Oracles are equally vital, offering insights into the volatility of underlying assets and their return correlations. This information is crucial for:

• Accurate Margin Calculations. Frequent updates to risk parameters (every 1–48 hours) ensure traders have precise collateral requirements and liquidation thresholds.
• Balancing Leverage and Safety. Platform owners meticulously manage the balance between default risk and trader leverage, ensuring the platform operates within safe risk thresholds.

Initially, Risk Oracles will function as trusted off-chain entities, managed predominantly by Platform Owners. As the cryptocurrency ecosystem matures, CVEX is committed to exploring decentralised solutions for these indispensable parameters.

Precision at the Core of CVEX

At CVEX, we believe in providing our traders with a platform that’s not only advanced but also steadfast and reliable. The integration of Price and Risk Oracles into our ecosystem is a testament to our commitment to precision, transparency, and user safety. As we navigate the future of decentralised trading, we continue to innovate and adapt, ensuring that CVEX remains at the forefront of the industry.

Stay updated with the latest advancements, and join us in shaping the future of decentralised trading at CVEX.

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