Monfex is a cryptocurrency trading platform which operates on a different level than most. It is actively offering the best features to its users, ranging from high leverage and a wide range of digital assets to trade. It is also a very convenient and easy platform to use, which makes it of great interest to the ever-growing global cryptocurrency community.
Rising to the top Quickly
For a platform which only launched in December of 2018, Monfex has quickly risen to the top in many different ways. This cryptocurrency trading platforms is best-known for its margin trading feature. Combined with a very easy and quick signup process, users can gain exposure to the 12 supported digital assets in rather quick succession. To top it all off, the company maintains one of the lowest commission structures ever seen in this industry. No one enjoys paying high trading fees for placing or completing buy and sell orders on an exchange. Monfex acknowledges something needs to change, and they are maintaining a tight structure to enforce that change.
Margin Trading in a Nutshell
Most cryptocurrency users know by now how risky margin trading can be. This particular structure allows users to borrow funds from other Monfex users to trade assets in an aggressive manner. While this added “leverage’ can yield users a lot more profit along the way, it can also incur significant losses if the market heads south. The volatile nature of cryptocurrencies and digital assets is often underestimated. Thankfully, there are some countermeasures in place on this platform to ensure users do not lose an arm and a leg if their position is liquidated.
More specifically, if a margin trader gets liquidated, they usually owe the exchange more money than they initially deposited. What makes this platform different is how the company ensures users can never lose more money than what they originally deposited. This is despite them offering up to 50x leverage, which would allow users to trade with 50 times their own deposit. Putting such safety measures in place is an absolute must, as novice cryptocurrency users are often unaware of the risky trading behavior they engage in.
A Clean Interface Makes Monfex Approachable
One of the main selling points the platform has to offer is how its user interface is clean, simple, and straightforward to use. It does not require any technical knowledge to use. Users can benefit from great charts, as well as some advanced features. More advanced traders will also appreciate the variety of chart types they can choose from. Combined with a vast collection of indicators, determining the current and future market conditions becomes a lot more straightforward. This also makes Monfex suitable as a learning platform for those looking to venture into the world of technical analysis.
Which Assets can be Traded?
In the cryptocurrency industry, there are thousands of different currencies, tokens, and assets up for grabs. Not all of these offerings will make their way to an exchange or trading platform. Monfex tries to cull the weed from the chaff by focusing on the trusted and reputable assets first and foremost. As of right now, they support a dozen offerings: Bitcoin, Ethereum, XRP, EOS, Litecoin, Bitcoin Cash, Dash, Ethereum Classic, NEO, OmiseGO, ZCash, and Monero. All of these markets have a rather high market valuation and generate sufficient trading volume to ensure sufficient market liquidity at all times.
It is also worth noting users are not buying these currencies directly through Monfex. Instead, they engage in perpetual contract trading by speculating on whether the price will go up or down in the near future. This approach means users will not own the underlying asset in question, while they are still able to benefit from the market changes which occur. It is a good way to introduce novice traders to assets and cryptocurrencies. Futures contracts such as the ones on this platform are becoming increasingly popular on a global scale. Monfex also plans to introduce futures trading for Telegram’s tokens in the near future. More information on the Telegram Open Network can be found on the company’s blog.
Depositing Funds Requires Bitcoin
Albeit users are not able to own the actual assets on Monfex, they will need to get their hands on some cryptocurrency prior to accessing the platform. At this time, the platform only supports Bitcoin deposits, although fiat currency deposits will be introduced at a later date. Obtaining Bitcoin can be done through most of the trading platforms in existence today, or by visiting a local Bitcoin ATM, among other means. Users who deposit Bitcoin will not pay a fee other than the regular transaction costs associated with the Bitcoin network itself.
Can Anyone Access the Platform?
As is usually the case when it comes to cryptocurrency trading, local laws and regulations will apply. It is for this reason Monfex does not serve US customers at this time, along with other regions including Cuba, Iran, North Korea, and so forth. Given the current regulatory uncertainties in the United States, it is only normal most companies do not want to engage in this dance of proverbial red tape. Until the situation clears up a bit, it seems unlikely Monfex will become accessible in the United States moving forward.
The Mandatory KYC Verification Process
Whereas some people may claim cryptocurrency trading platforms are unregulated, the opposite is true. Monfex is a good example, as it requires all users to go through a Know-your-Customer and Anti-Money Laundering screening procedure. This is on par with most other major platforms providing exposure to financial services. With a valid proof-of-address, most customers will be up and running in rather quick succession. Once their account is created, users can begin depositing Bitcoin and gain exposure to the different assets supported by the platform.
Security is Crucial
To ensure all users can benefit from top-level security, Monfex is maintaining a tight structure. All deposited funds will be stored in cold storage, which means the funds can only be accessible during active trading. Users can add a secondary layer of protection to their account by enabling two-factor authentication. It is advised everyone performs this course of action, primarily because users need to do their part to keep an account safe. Should any issues arise with one’s account along the way, Monfex will offer 24/7 customer support.