Delegated Investment and Crypto Assets Trading: A Cross-Border Choice for Modern Investors

The concept of re-delegation is a service that allows investors to trade in overseas markets through domestic brokers. In the Web3 era, this concept has an interesting comparison with Crypto Assets trading platforms. Let's delve into the core features of re-delegation and explore its application in the digital asset era.

Basic Concept of Re-Delegation

The main features of re-delegation include:

• Use local currency (such as TWD) for settlement, providing convenience and security.
• Dividends are directly credited to domestic accounts
• Taxes are handled by brokers, simplifying the process.
• The transaction fees are relatively high.
• The range of investable products is limited

These features are somewhat similar to Crypto Assets trading platforms, such as supporting local currency deposits and automatically processing dividends (like staking rewards), but there are differences in product diversity and fee structures.

Re-entrusted Trading Rules

The rules for delegated trading are as follows:

• Only limit orders are accepted (similar to limit orders in Crypto Assets trading)
• Transactions cannot be completed when the account deposit is insufficient (similar to the balance check of CEX)
• Does not support margin trading (in contrast to leveraged trading on some crypto trading platforms)
• Follow overseas market trading hours (while the Crypto Assets market operates around the clock)
• Settlement at a fixed exchange rate (crypto transactions usually adopt real-time exchange rates)

How to open a delegated account

Steps to open a re-delegation account:

1. Prepare identification documents and bank account information
2. Go to the broker to open an account or apply online.
3. Sign the agreement and choose the settlement coin

This process is somewhat similar to opening an account on mainstream CEX platforms, but typically, the re-delegation account opening places more emphasis on localized services and document requirements.

Re-delegation Fee Structure

The fees involved in the delegation of re-delegation include:

• Transaction fee: 0.1%-1%, usually with a minimum consumption
• Transaction fees: vary by market
• Bank transfer fees
• Taxes: such as 30% income tax on dividends and so on

In contrast, crypto assets trading platforms usually adopt a more simplified fee structure, primarily including transaction fees and withdrawal fees.

Re-Delegation vs Overseas Brokers vs Crypto Assets Trading

Advantages of re-delegation:

• The account opening process is simple and convenient.
• Support local currency trading
• Provide local language services

Disadvantages:

• The transaction fees are relatively high.
• Limited tradable products
• Margin trading is not supported.

Overseas brokers allow direct trading of more products, with lower fees, but the account opening threshold is relatively high.

Crypto Assets trading platform provides:

• 24/7 Trading
• Diversified digital asset
• Usually supports leveraged trading
• Global trading environment

Choose a trading method that suits you

For traditional investors who engage in long-term investments and do not trade frequently, re-delegation may be a good choice. However, for investors who wish to trade frequently or focus on digital assets, a Crypto Assets trading platform may be more suitable.

When choosing a trading method, investors should consider their investment goals, risk tolerance, and understanding of different asset classes. Regardless of the method chosen, one should fully understand the relevant rules and risks, and properly manage asset allocation and risk.