CoinTiger Crypto Derivatives - How to trade CoinTiger Derivatives in Malaysia
          

CoinTiger cryptocurrency derivatives trading platform

CoinTiger is a centralized crypto asset exchange targeting retail and large traders. The service is operated by CoinTiger Labs, which is legally registered in Singapore. The exchange itself was launched in November 2017, and since the launch has been operating on its platform, forming an ecosystem. According to the site's website, the development team includes specialists in the field of finance, e-commerce and digital asset management.

Popularity of CoinTiger derivatives in Malaysia is growing.

Story

CoinTiger was founded by a Chinese entrepreneur, Jiyuan Bao, who gathered a competent team around him. Yuxin Zhang took the post of Development Director, and Michelle Zhang took the place of Chief Marketing Officer. The former chairman of RippleFox, which is the largest Ripple and Stellar community in China, has become the CTO and Chief Advisor. The platform was launched on November 15, 2017, and in April 2018, the CoinTiger fund, specializing in investments in blockchain projects, appeared on the basis of the exchange.

After the launch of the service, the developers launched the internal exchange cryptocurrency TigerCash to implement the loyalty program. In March 2019, the service allocated 50% of its annual profit to holders of the internal TCH token. CoinTiger had 2 million registered accounts as of mid-2019, according to management. 

The clients of the exchange are users from 100 countries of North America, Europe, Asia and Africa.

CoinTiger
CoinTiger

Features of CoinTiger 

The CoinTiger exchange is a cryptocurrency trading platform that provides comprehensive services for working with digital assets. 

The site provides an opportunity for storage, investment, a voting program for the listing of assets and an IEO. The service is accessed through the website and apps on Android or IOS. It is also possible to programmatically access the service through the API. The site is also considered to be aimed at a wide audience and supports English, Chinese, Vietnamese, Russian, Korean, Japanese, Thai and other languages.

Trading on CoinTiger

The interface of the site is presented with a pleasant good usability. You can trade on the service through the spot and futures markets. Major spot markets include BTC, ETH, BitCNY, and USDT. The futures trading section provides a large number of derivatives for the largest cryptocurrencies. Both sections are represented by scalable charts, order books and a list with the history of transactions.

Trading by CoinTiger Crypto Futures in Malaysia is very popular now.

CoinTiger fees

CoinTiger commissions are 0.15% for Taker and 0.08% for Maker on all orders. Also, there is a program of rewards and incentives on the site, which was implemented using the internal TCH token. Holders of the exchange coin receive discounts on trading fees. In addition, the exchange provides users with investment tools for passive income. Users can replenish their trading account and withdraw funds only with cryptocurrency. The minimum commission for withdrawing funds is set, which is individual for each asset. On average, it ranges from 0.05% to 10%.

Trading on CoinTiger
Trading on CoinTiger

Security on CoinTiger 

The site provides for two-factor authentication via Google Authenticator or SMS. After registration, the user can trade without going through additional checks. The service also provides customers with the KYC service, which provides for confirmation of the identity of users. When authenticating, you need to fill out a questionnaire with personal data and provide a photo of identity documents. For verified users, there are no withdrawal limits, which is an amount equivalent to 2 BTC per day.

Conclusions

CoinTiger is a centralized cryptocurrency exchange. The platform is aimed at a wide audience of users, most of whom are residents of Asian countries. Also, the exchange provides CoinTiger / CoinTiger crypto futures trading. There is also a basic level of security in the form of two-factor authentication and user verification.

CoinTiger mobile app
CoinTiger mobile app

What are cryptocurrency derivatives?

Today, investors have access to a wide variety of instruments for trading on the global financial markets: from currency pairs to orange juice futures. For a newcomer to the investment environment, terms such as derivatives, futures and swaps may seem complicated and confusing, although in reality they describe fairly simple and straightforward instruments. Let's take a look at the basic concepts of financial derivatives.

Derivatives as financial instruments - what are they?

A derivative or derivative financial instrument is a contract by which parties are entitled to perform specific actions in relation to an underlying asset. 

For example, in the BTCUSD trading pair, bitcoin is the underlying asset, and the dollar is the quoted one. Simply put, the value of bitcoin is measured in dollars. A derivative makes it possible to trade bitcoin without actually sending it from seller to buyer. Unlike a direct, paper-based purchase / sale agreement, a derivative as a contract is formal. Simply put, derivatives trading is a bet on the rise or fall of an asset. By clicking a buy order, the trader is counting on the growth of the asset. If the asset rises in price, the trader won, if the asset falls in price, he loses.

Please note that the total number of derivatives transactions is completely unrelated to the total amount of mined bitcoins. For example, if you have 1 BTC in your cold wallet, then you can conclude transactions for the growth or fall of its value as many times as the margin collateral is enough under the terms of the site where the trading position is opened. Every year, investors trade tens of billions of derivatives around the world.

Derivatives as an instrument of financial markets have existed since time immemorial. 

For example, 300 years ago, tulip bulb options were actively traded in Holland, and rice futures were traded in Japan. As financial markets and the economic system developed, derivatives also evolved to the state we are accustomed to today. Derivatives trading first appeared on the London Stock Exchange in the 1830s and later in the United States.

In the modern economy, derivative financial instruments are widely used on almost all exchanges and trading floors. This also applies to the cryptocurrency industry, where traders can trade crypto derivatives in the form of perpetual contracts, futures and options.

Types of derivative financial instruments

Derivatives are divided into 4 main types of contracts: futures, forwards, options and swaps. Each of them can be used for hedging, speculating and diversifying the investment portfolio. Like any other financial instrument, they can bring both profits and losses.

  • Forward is an agreement under which the seller undertakes to transfer the goods (underlying asset) to the buyer at a specified time, and the buyer undertakes to pay for it. In this case, the price of the transaction is fixed at the time of the conclusion of the contract and regardless of whether the goods rise in price or lose in price, the buyer will pay the price that was specified in the contract. At the same time, additional conditions, for example, packaging or the quality of goods, can also be specified in the contract, which distinguishes a forward contract from a futures contract. This type of derivative is traded on over-the-counter markets.
  • An option is a contract that gives the investor the right to buy or sell, but does not oblige him to buy the underlying asset at the price fixed in the contract for a certain period of time. An option is a contract, at the conclusion of which the subject of the bargaining becomes not the asset itself, but the right of its preemptive sale or purchase. The option holder may not exercise his right to trade the asset.
  • Futures is a contract for the purchase and sale of an underlying asset. When concluding a futures contract, the seller and the buyer agree only on the price and delivery time. For example, when buying a Bitcoin futures contract for $ 10,000 for September delivery, the seller agrees to transfer bitcoin to the buyer in September, and the buyer pays $ 10,000, even if the price has risen to $ 20,000 by the time the bitcoin is transferred. There are two types of futures: Deliverable futures are an agreement under which the seller undertakes to deliver the goods to the buyer within the terms set by the contract, and the buyer to pay for the goods at a price fixed in the contract. Settlement futures is a contract whereby when buying an underlying asset, for example, for $ 100, a trader must sell it in a month. If the asset has risen in price by $ 10, then the trader, having sold the asset, will receive a profit of $ 10. If an asset falls in price, then buying it at $ 100 and selling it at $ 90, the trader incurs a loss of $ 10.
  • A swap is an agreement under which the buyer, purchasing an asset, undertakes to return it back within a certain period and at a price fixed in the agreement. Swap contracts have many subtypes: currency, interest rate, commodity, spot, forward, simple, basic and others. The most striking example is currency swaps. For example, you borrow 100,000 EUR in a European bank at 0.5% per annum and exchange them at an American bank for 110,000 USD, making a deposit at 1% per annum. Accordingly, you will need to pay 0.5% of the loan amount to a European bank annually, and an American bank will pay you 1% on the deposit. A positive difference of 0.5% is a currency swap.

Popular cryptocurrency derivatives

The most popular cryptocurrency derivatives are contracts for the most liquid coins: Bitcoin (BTCUSD), XRP, Ethereum (ETHUSD), XGRAM, ADA and others. 

Since some jurisdictions prohibit any transactions with digital assets or have no regulatory rules, derivatives for bitcoin, ethereum and other coins enable local traders to profit from changes in their exchange rates.

In traditional markets, derivatives are traded not only on over-the-counter exchanges, but also on regulated exchanges, such as the CME (Chicago Mercantile Exchange) - the world's largest derivatives exchange.

Derivatives trading

In an investment environment, financial derivatives or derivatives provide certain advantages to traders as they allow them to make trading more profitable due to their flexibility, for example, the use of leverage. When trading directly the underlying asset, for example, bitcoin, stock, bond or currency on exchanges, the maximum leverage is x2 or x3. When trading derivatives, the leverage is significantly higher and can be up to x100. Cryptocurrency derivatives trading volumes amount to tens of billions of dollars monthly.

The use of derivatives in risk management is very common. For example, an investor bought a futures contract for Bitcoin delivery in September at $ 10,000. In other words, in September, the seller agrees to deliver bitcoin to the buyer, and the buyer agrees to pay $ 10,000 for it. In August, bitcoin begins to fall rapidly and its delivery in September became unprofitable. What can a trader do? Hedge (protect) futures with an BTCUSD derivative by opening a sell trade. Let's say that by the time of delivery, the bitcoin price has dropped to $ 8,000, causing a loss to the trader. However, opening a short position in the derivative earned the trader a profit of $ 2,000 or more if leverage was used. Thus, the trader was able not only to protect himself from a loss on a futures contract, but also to earn extra money on the hedge.

To manage risk when trading a derivative, investors can use special orders such as stop loss or trailing stop to protect the position from sudden price reversals. On the trading platform, traders have access to various types of orders that allow protecting trading capital from losses, fixing profits on time and entering the market at the right time.

Financial risks of derivatives

The volatility of cryptocurrency markets combined with leverage can lead to losses even for an experienced trader. Before you start trading cryptocurrency derivatives for bitcoin and other digital assets, you should conduct technical analysis, including using various indicators: RSI, MACD, Elliott waves, Fibonacci tools, etc.

Investing in derivatives requires a deep understanding of how they work. Since the international derivatives trading market is estimated at trillions of dollars, there will certainly be scammers who will try to enrich themselves due to the incompetence of novice investors and traders. Before you start trading cryptocurrency derivatives, make sure the trading platform is reliable.

Since cryptocurrency derivatives are a highly volatile instrument, keep in mind the old wisdom of not putting all your eggs in one basket. Use derivatives as a hedging or diversification tool for your trading portfolio, not just as a speculative tool for quick profit.

Investing in derivatives requires a deep understanding of how they work
Investing in derivatives requires a deep understanding of how they work

What is a crypto derivatives exchange?

The cryptocurrency market in its development follows the path of development of classical markets. The difference is that the evolution of classical financial markets took several decades, and cryptocurrencies are moving many times faster. Now the cryptocurrency derivatives market already offers a wide range of instruments - from simple CFDs to complex options.

By evolution

The essence of the evolution of any financial market is a gradual increase in liquidity and trading volumes. When the market has already accumulated a certain amount of liquidity, instruments appear that, as their popularity grows, help to increase it further. This is how the movement from the spot market to the emergence of derivatives markets occurs. The higher the liquidity, the more complex these instruments become.

Schematically, the process goes like this: first, simple derivatives - CFDs and futures - appear. With a further increase in liquidity, options appear on the market. In the case of cryptocurrencies, these are options for both the cryptocurrency itself and futures.

On the front lines

The emergence of CFDs on the crypto market as one of the first derivatives is quite understandable - this is a tool that is already familiar to traders. For the market to move further, CFDs need to spread among users and increase liquidity and turnover in the spot market.

Cryptocurrency CFDs are a standard CFD contract where the underlying asset is digital currencies: bitcoin, ether, litecoin, etc.

Cryptocurrency CFDs are closely related to the spot market. A CFD is executed by a broker on the spot market, rather than simply price-pegged (like a futures contract). Consequently, CFDs affect the increase in liquidity in the spot market. This is where they differ from futures, which function as a marketplace without an intermediary. Futures contracts are traded between contract buyers and sellers in the derivatives market itself. At the same time, such contracts do not go to the spot market, and the price quotation is most often given in the format of a price index.

The reasons for interest in CFDs are that these financial instruments often allow a trader to avoid significant trading costs, and also increase his purchasing power in comparison with operations with traditional assets. Cryptocurrency CFDs have similar advantages.

These derivatives have been on the market for a long time: brokers started offering crypto CFDs on their platforms as soon as it became clear that interest in cryptocurrencies would grow. However, these tools gained real popularity only when professional crypto players began to enter the market, and traders appreciated exactly how they can use crypto CFDs in their trading. Cryptocurrency CFDs emerged when traders needed new instruments suitable for both speculation and hedging. One spot market did not provide such opportunities.

CFDs allow a trader to avoid significant trading costs
CFDs allow a trader to avoid significant trading costs

Liquidity and volatility

Traders started looking at cryptocurrency CFDs. The principle of operation of CFDs is the same as for classic instruments, and there are more opportunities to earn money, due to the higher volatility of cryptocurrencies compared to fiat currency pairs.

Let's consider other advantages of trading CFDs on cryptocurrencies using a specific example.

Firstly, trading CFDs requires significantly less capital than if you decided to work with cryptocurrencies directly.

If the exchange, for example, does not have a minimum deposit, you only need the minimum possible amount to conclude a deal, for example 0.001 BTC.

Secondly, these are the already mentioned possibilities of margin trading. If the leverage is 1:10, starting with $ 100, you are actually using $ 1000 of trading capital. But remember that leverage increases both potential profits and potential risks.

Thirdly, you can use CFDs not only to invest and make money on short-term market movements, but also to hedge (insure the exchange rate risks of spot positions).

Are there any downsides to cryptocurrency CFDs? Undoubtedly. This toolkit is more complicated, you will have to learn to understand the collateral and commissions. You will also need to learn how to work with more active market movements: often trading CFDs on cryptocurrencies can resemble a roller coaster, which means that risk management will need to be given a lot of attention.

How to trade CoinTiger derivatives in Malaysia?

How to register for the CoinTiger derivatives trading platform?

  • Go to the CoinTiger official website, click "Register" Enter your mobile phone or email and create a password.
  • Enter the code that came to your phone or email.
Registration form
Registration form

How to deposit funds on CoinTiger derivatives trading?

  • Click in the upper right corner of "Funds" - "Deposit";
  • Select the coin you want to deposit.

You can check your deposit at "Deposit Records".

Smart contract or block reward deposits are currently not supported.

Deposit replenishment
Deposit replenishment

How to withdraw money?

  • Click "Funds" - "Balance";
  • If you've never set a funds password before, set a funds password first;
  • Select the withdrawal token, click "Address Management" - "Add Address" and enter the relevant information;
  • Write the withdrawal amount, confirmation code, asset password and other available information on the withdrawal page; 
  • –°lick "Submit" after double checking.

You can check the progress of the withdrawal in "Record Withdrawal" after the withdrawal.

The minimum withdrawal amount and withdrawal fees are different for each token, please check the additional information after you click the token on the withdrawal page.

We wish you the best of luck with CoinTiger cryptocurrency derivatives trading!

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