CryptoWallCity vs MEXC Exchange

Futures Trading: The Future of the Crypto Space, and a New Battlefield for Crypto Exchanges

Over the past few years, the crypto market has continued to expand, and the total crypto market capitalization peaked at nearly $3 trillion last year. Thanks to its growing potential and outstanding performance, more and more users worldwide are starting to adopt and invest in this leading emerging asset class. As the number of crypto investors increased, the market expanded and matured. Meanwhile, derivatives, which are an essential component of the conventional financial market, are playing unique roles in the crypto space.

Futures trading volume increased and created conditions for the market to develop

The advent of conventional derivatives provides investors with more tools to avoid risk, hedge against devaluation, and build a sound portfolio. As the cryptocurrency market expands in both breadth and depth, the futures market often dominates the spot market when it comes to leading price discoveries. A large financial market facilitates the development of derivatives, and in turn, derivatives will make financial markets official.

Perpetual futures contracts are the most widely used cryptocurrency derivatives. In 2018, BitMEX introduced perpetual futures contracts, making it the first crypto exchange to ever launch such derivative products. After that, many other exchanges also issued crypto futures contracts, including contracts signed by mainstream crypto and USDT. Meanwhile, the volume of perpetual futures contracts continued to grow.

According to a report by TokenInsight, the total spot trading volume recorded by centralized and decentralized exchanges in 2021 will reach $49 trillion, while the total trading volume of futures contracts will reach $49 trillion. permanently reached $56.8 trillion, up 358% from $12.4 trillion. derivatives trading volume in 2020.

Source: TokenInsight
Source: TokenInsight

Perpetual futures contracts remain promising, bringing an abrupt change to the crypto exchange sector

Although the crypto perpetual futures market is growing rapidly, there is still much room for improvement in trading volume compared to conventional futures exchanges. According to coinglass, despite the sharp drop in the price of cryptocurrencies, the trading volume of perpetual futures has not been affected much and most traders are still active.

Source: coinglass
Source: Coinglass

Exchanges are fully aware of the importance of futures contracts for the crypto market. Currently, of the more than 500 exchanges listed on CoinMarketCap, more than 50 of them offer derivative services. Since BitMEX first launched perpetual futures, we have seen many changes in the landscape of the leading futures exchanges. Affected by compliance issues, the pioneering BitMEX gradually lost its lead. Meanwhile, Huobi and OKEX, once two of the top three exchanges in terms of futures trading volume, have prospered on the decline due to local policies.

As an emerging market with huge potential, crypto futures are becoming a new area of ​​fierce competition among exchanges. So far, the outcome of the race remains uncertain. Several new exchanges have grown stronger over the years, especially those with unique features, including the professional-focused FTX exchange and the easy-to-use exchange CoinEx.

A single “challenger” looking to make futures trading easier

FTX was born to meet the needs of professional traders in the conventional financial sector, and its products are also designed for veterans. This exchange is very similar to regular exchanges in terms of product website and user guide. Such style has also helped it attract a lot of professional investors.

Committed to “making crypto trading easier”, CoinEx is not like FTX. It has attracted a lot of crypto newbies with its beginner-friendly features. Dedicated to product designs, the exchange offers more intuitive video tutorials and illustrated tutorials. On CoinEx, opening/closing a position is extremely easy. More specifically, a user can start a slot or choose to close all on its website or mobile app. CoinEx provides 180-day detailed position information and PNL analysis, allowing investors to review their trades and make the right decisions according to the latest metrics.

Furthermore, being a global platform, CoinEx is available in 16 languages ​​and has received recognition from users from different regions with its localization services. To help retail investors stay ahead of everyone else, the exchange currently offers over 100 futures markets and the number is constantly growing.

Backed by a strong technology team, CoinEx features advanced security and has never suffered any security breach. Relying on its many advantages, including low transaction fees, flexible selection of simple and easy-to-use services, and stable, secure system, CoinEx focuses on the product that can be an exchange. favorite of many more future newcomers in today’s bear market.

The crypto market is never short of professional-focused exchanges. Meanwhile, conventional financial markets are also gearing up to promote crypto derivatives products. For example, CBOE and CME took the lead and launched Bitcoin futures in 2017. Later, SIX Swiss Exchange and Eurex also introduced crypto derivatives. Exchanges that are “on the path of less travel” like CoinEx could be the new challengers in the future race in 2022.