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Interview with Marcus Fetherston, Head of Operations at Eightcap, on current trends in crypto derivatives trading

By on December 8, 2021 0


Over the past few years, crypto derivatives trading has taken off. There is another way to buy and hold crypto that has appealed to traders who want to get the most out of price movements using leverage.

However, there are risks associated with trading CFDs, especially when it comes to cryptocurrency. In 2021, major exchanges had to go out of business due to regulatory issues, leaving crypto derivatives traders with no place to trade. This is where Eightcap, a multi-award-winning regulated CFD broker, came in, with a new offering that stands out for its wide range of cryptocurrencies, crossovers and indices, all associated with low spreads. On top of that, derivatives traders with Eightcap have access to several funding options and super fast withdrawals.

We spoke with Marcus Fetherston, Head of Operations at Eightcap, to discuss the broker’s award-winning crypto derivatives offering, current crypto trends, and to dig deeper into the issues that derivatives traders face. That’s what he had to say.

With the increasing volatility of the crypto market, why should people trade crypto derivatives?

There hasn’t been a better time for derivatives, especially crypto. We have seen crypto assets move towards downtrends and sideways markets over the past year. Bitcoin has reached historic highs and we have seen crypto coins like Dogecoin, Shiba Inu, and Cardano gain momentum in the markets as well. This has resulted in an influx of traders who want to make the most of the moves in the crypto market. One of the ways to do this is to use crypto derivatives, as they allow derivatives traders to be long or short. Additionally, the use of leverage on CFD accounts allows traders to profit from price fluctuations without the need to place large amounts of capital to enter the crypto derivatives market.

What are the current issues facing crypto derivatives traders?

There are several issues that crypto derivatives traders have faced and still face when trading crypto CFDs. There has been a divergence in product offerings to meet the current demand for crypto trading. Many licensed entities are now offering crypto CFDs while meeting strict regulatory requirements. However, while there are many crypto CFD providers out there, most of them have a lackluster product offering coupled with wide spreads. Thus, crypto derivative transactions are not exposed to a diverse and extensive suite of crypto CFDs, and they do not get the best price when it comes to trading derivatives. There are also centralized offshore exchanges that offer a wide range of commodities to trade. Yet the flip side is that crypto derivatives traders will not have the peace of mind they would have when trading with a regulated broker.

More recently, Binance encountered an issue, which ultimately prevented crypto-derivatives traders from withdrawing Dogecoin for two weeks. Earlier this year, we also saw Binance cease operations in regions such as Italy and Hong Kong. This left crypto derivatives traders unhappy and worried about their active trades and wondering where they could go to trade crypto derivatives.

Eightcap stepped in with a solution to the issues I mentioned. In September 2021, we deployed 250 crypto derivatives, including coins, crypto crosses, and indices. We continue to meet the demand for crypto by adding more and more coins to our offering. Eightcap received the Best Crypto Broker Award at AtoZ Markets Annual Awards 2021 due to our latest Crypto Derivatives offering. We have a full suite, and with that, we also offer ultra-low spreads.

How does Eightcap’s Crypto Derivatives offer stand out from that of other brokers and exchanges?

Our offer is distinguished in the crypto derivatives market by the wide range of crypto derivatives available to our clients. As mentioned earlier, we have over 250 crypto derivatives including Dogecoin, Bitcoin, Ethereum, Polkadot, Cardano, Solana, and more. We also offer crypto-indices and crypto-crosses.

In addition to our award-winning offering, we are committed to being the new home for crypto derivatives traders. We aim to offer ultra-low spreads with our entire suite of crypto derivatives. Our clients can trade Bitcoin with spreads from 12p / coin, Cardano from 0.004p / coin, Dogecoin from 0.0002p / coin and Ether from 0.45p / coin, for no name a few. In addition, our withdrawal process is transparent and fast. Crypto Derivatives clients have several options to fund their trading account with us including BTC, Tether, PayPal, Credit / Debit Card, Skrill, Neteller, Wire Transfer and many more. Customers can also be assured that they are trading with a regulated broker. Eightcap is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).

There has been substantial growth in the Metaverse community. How do you meet the needs of traders who want to get the most out of it?

The metaverse is a fascinating concept, and if we move to an augmented world, it changes everyday life as we know it. A virtual world centered around a fully functional economy built entirely using blockchain and dApps is a big concept, and we still don’t know what that world will look like. Yet we already have some big names in tech racing to claim a stake in the Metaverse. Facebook announced in June 2021 that it would help bring the Metaverse to life. We already have companies like Decentraland that can bring crypto into its virtual world. As an award-winning crypto derivatives provider, we provide products to our derivatives traders who are enthusiastic about blockchain trending topics. Currently, we offer CFDs in both Decentraland and AXS, so that our clients can speculate on the price as the news of this new Metaverse progresses.

For those who want to trade Crypto but don’t know where to start, how does Eightcap meet their educational needs?

There has certainly been an influx of new crypto traders who want to profit from the volatility. We don’t just deliver the products to trade with; we are also focusing on building a home for crypto derivatives traders. We have a series of webinars for new derivatives traders who don’t know where to start. This six-part webinar series begins by explaining the fundamentals of crypto trading that everyone should know before entering the derivatives markets, then builds on the basics with more technical aspects. We recently partnered up with BK Forex to host CryptoFest, an annual event where several professional crypto traders share their knowledge on many crypto related topics. Additionally, we regularly update our crypto market updates and educational articles that explain the latest trends, price movements, and news regarding crypto derivatives.

How is Crypto Derivatives Trading Different from More Traditional Asset Classes?

Believe it or not, there are similarities between more traditional asset classes and crypto derivatives, like forex, for example. We have seen the establishment of rigorous support and resistance channels forming after periods of large-scale volatility. In these moments, we can see how crypto pricing behaves the same way as forex over twenty years ago before it was dominated by institutional trading. This creates a great opportunity for swing trading, momentum strategies, and general technical analysis. We can even see how crypto derivatives trading mirrors equity derivatives trading. What determines crypto prices at a fundamental level is the underlying technology, mass adoption, and social coverage, allowing traders to analyze crypto’s growth potential by studying these factors.

What does the future of crypto trading look like and how does Eightcap fit into this vision?

With NFTs being a huge social phenomenon where a growing community has jumped on the idea of ​​owning things like art and music in the digital realm using crypto, this is where crypto trading could. then move on.

With new technological advancements, we will see blockchain apply to more industries, providing traders with more opportunities and cryptos to trade on. Since the introduction of DeFi last year, we also continue to see more technologies introduced that can add value that extends beyond traditional finance – not only in APY rates, but also in technology. that can add value to derivatives trading. As cryptos start to see more sideways moves and downtrends, the emphasis on technical trading and the use of derivatives to do so will also increase. Therefore, the key is to ensure that we at Eightcap evolve our offering to meet new crypto trends. This is what we are focusing on right now and will continue to do so next year.

Additionally, working on providing resources alongside our derivatives that educate our clients is also part of how we can contribute to the future of crypto trading as an award winning CFD provider.