While many groups and startup projects focus on enabling newcomers to adapt to the world of cryptocurrency trading, the International Digital Asset Platform (IDAP) has decided to take a different approach: to develop incentives for seasoned businesspeople and investors with experience, which means coming up with options to mitigate risks while not sacrificing a huge part of possible incomes.
And their vision of these options comes in the form of derivatives: indirect investments whose value derives from the corresponding cryptocurrency. In some sort of way, you may be investing in the future of a currency’s value instead of the currency itself.
This alternative allows for more cautious investments with the drawback of lesser income, but these become more steady and become new assets for investors to trade with each other, widening their opportunities to set course into the vast, ever-growing landscape of cryptocurrencies.
Futures contract – The backbone
Besides traditional cryptocurrency trading options, the main feature of IDAP, as it’s the foundation for many others, are the futures contract. A futures contract allows the user to invest in a cryptocurrency for its current value but receive it later. This opens incredible opportunities for experienced investors to purchase contracts which they can trade these contracts, earning margins over their initial price.
Investors and customers are allowed to select a certain cryptocurrency of their choice, purchase a certain quantity at the price they are currently marketed, but use this initial value as leverage to sell the contract, basing their earning margin in the currency’s value at day 0 instead of the day they sell or trade the contract.
IDAP also offers options that branch out from the futures contracts into trading assets with wider spans to compensate for variations: calendar spreads and butterflies. Calendar spreads are derivatives based on the difference between two futures contracts, which ends up generating value based on a less volatile concept. Similarly, butterflies represent the difference between two calendar spreads, which represents even lesser risks.
All of these concepts are particularly useful in the crypto environment because they “smooth” the short-term fluctuations in the currencies’ price, relieving the investor from the worries of tracking the price constantly if they perceive or predict the way it can vary in a month.
That way of thinking not only benefits the customers, but also the cryptocurrency environment itself, as the conception of a highly volatile, ever-changing virtual asset can be circumvented and transformed. Seeing them with different eyes, by minimizing the risks associated with them, will most surely have a very positive effect on the whole market.
Trading Tools for every necessity
IDAP also provides different tools on its platform to allow users to track their investments in derivatives, while also planning their next options. The IDAP Ladder and IDAP Matrix allow users to keep track of single products and all the futures market instruments, respectively. Also, the IDAP Spreader is a way for users to create their own spreads based on the many different futures contracts available.
However, the most interesting tool is the IDAP Simulator. As its name implies, is a way for users “who are new to futures trading”. The simulations are programmed to recreate real time data, but users perform their investments with simulated currencies instead of real ones. This would also help experienced investors who are new to the cryptocurrency trading market.
To manage of all this, the platform is built upon technologies that not only ensure the safety of the transactions, but also allow the deployment of its many component in a way to keep them running in a simultaneous way while not sacrificing its integrity. These components include:
A Matching Engine that supports direct market access, implied orders for futures, fast price-time priority, an advance risk control system, and much more.
User-friendly web and mobile applications, including a desktop version oriented to traders with additional functionalities like arranging charts, history books, market data and many others in a customized way for the trader to manage their data.
Top-level security in compliance with standards from the US, the EU, SSL certification, multi-firewall protection and additional measures for wallet management.
Low latency and high availability from servers across multiple regions.
This makes IDAP one of the best protected environments for customers, which is a crucial aspect as they are aiming towards attracting experienced investors.
And, as usual with cryptocurrency platforms, IDAP also offers a token (IDAP), which can be used to pay lower trading fees within the site, while also offering complete exception from these if the user owns 20,000 IDAP tokens or more.
Basing their transactions in their own token not only works as a customer engaging strategy, but also allows them to keep track of the movements in a tightly encrypted blockchain, which makes issues like fraud and double-transactions nearly erradicated, encouraging people to either perform multiple transactions or make larger ones.
In general, IDAP offers an entry to the crypto market for those who seem outcasted by its current actors just as new investors are intimidated when entering traditional trading environments: those who have years of experience in trading with other assets, like stock, by presenting them with equivalents to low-risk concepts they probably have managed before, which in turn increases the population of knowledgeable businesspeople among the active crypto users, possibly working towards the stabilization of currencies’ prices in the future.
You can get more information by visiting www.idap.io