A new way to invest in real-world assets

Bitget, one of the world’s largest cryptocurrency platforms, has launched a new way for South Africans to invest in traditional assets like stocks, using cryptocurrency.

This new product, known as the Real-World Asset (RWA) Index, lets users trade digital versions of well-known company stocks such as Tesla, Nvidia, Amazon and Circle, without needing a traditional stockbroker account.

Bitget’s RWA Index is like a digital investment package that tracks the value of real-world stocks, but it’s bought and sold using cryptocurrency. Instead of owning the actual stock, you’re investing in a digital token tied to the stock’s price.

These tokens are combined into a single “index” to make investing simpler and more reliable. Bitget pulls price data from multiple trusted sources to ensure the price you see is fair and accurate. The RWA Index is a composite of tokenised stock indices already operating in the market.

The composition of the RWA Index Perpetual Contract is dynamically adjusted based on factors such as market activity, trading volume, and liquidity. The aim is to provide pricing transparency to the market while remaining flexible to changing conditions.

The RWA Index Perpetual Contract works similarly to trading cryptocurrencies like bitcoin. You use Bitget’s platform to buy or sell these digital stock tokens. It’s designed to be familiar to crypto users, so it’s easy to learn.

Unlike cryptocurrencies, which trade 24/7, these stock tokens are available for trading five days a week, 24 hours a day, and pause over weekends and stock market holidays to match traditional markets. During these pauses, prices stay fixed to avoid sudden losses, although you can still adjust your account or cancel orders.

When trading is closed, the market price is frozen to prevent liquidation in the case of an adverse market move. However, users can still add margin in anticipation of sharp market moves upon market reopening.

Funding fees are also paused during market closures, with settlements resuming on an hourly cycle when trading becomes active again.

One of the key advantages of this product is the ability to gain exposure to well-known companies like Nvidia and Tesla without leaving the crypto world. It operates as a bridge between traditional stock investing and cryptocurrency, making it easier for crypto investors to diversify their portfolios into the traditional finance space – while still retaining all the benefits of the crypto world, such as long low costs, extended trading hours, and lightning fast transaction speeds.

What are perpetual contracts?

Perpetual contracts are a type of financial agreement used in cryptocurrency trading that allow you to bet on the price of an asset, like bitcoin or Tesla, without owning it or having an expiration date. Unlike traditional futures contracts, which have a set end date, perpetual contracts can be held indefinitely, as long as you maintain enough funds in your account.

10X leverage

Investors in RWA perpetual contracts must choose whether to go long or short, and then decide on what leverage they want – up to a maximum of 10X the capital on account. Those with low risk appetites should opt for lower leverage.

Anyone familiar with perpetual futures already available in the crypto market will easily understand the RWA perpetual contract. You need to keep some money (called margin) in your account to cover potential losses when the market moves against you. Should this happen and your margin runs low, the platform could close your trade (known as liquidation) to prevent you owing more than what you have.

“Bitget thrives on innovation that stems from the emerging crypto space,” said Gracy Chen, CEO at Bitget.

“With the world’s first RWA Index Perpetual Contract, we are slowly transitioning into a comprehensive ecosystem of all things finance. This product shows the platform’s advancement as compared to other players, as it enables traders with exposure to a modern and traditional range of asset classes, bridging the gap between TradFi (traditional finance) and DeFi (decentralised finance).”

What can be traded currently:

A detailed guide on how to access the assets can be found here.

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

Brought to you by Bitget.

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