Crypto derivatives boom during crypto winter — Q&A with Eightcap
This year saw the crypto market rocked by numerous crises while the bearish climate was a constant presence. Considering this, many traders have lost confidence in traditional CEX trading and are looking to diversify their strategies.
Turning to alternative trading patterns and products is a way to minimize risk and reduce losses. Cointelegraph’s interview with Eightcap contains more about derivatives trading in the crypto space.
Q: FTX has become one of the biggest crypto disasters lately. What could have been done to avoid that?
The collapse of FTX has taught investors and crypto providers major lessons about security, transparency and trust. FTX was one of the largest crypto exchanges in the world. It is evident they lacked a number of controls across the board, but one thing is certain: The exchange should never have used its customer funds to pay for its own expenses, debts and loans to subsidiary companies (in this case Alameda Research). Unfortunately, in the wake of FTX’s collapse, there is now a considerable amount of distrust in the crypto space, not only from investors but also from government bodies who were once accepting of the benefits of digital currencies.
Q: How can investors approach the market differently in order to make more secure investments?
Understandably, investor trust has taken a hit after the collapse of a significantly prominent and renowned crypto exchange. Due diligence is needed going forward when opening accounts with exchanges and brokers alike. One of the major considerations centers around regulation. It is crucial for investors and traders to research the regulation and licensing of their providers to understand what regulatory body they are licensed under.
Eightcap is regulated in
Read more on cointelegraph.com
