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Over the past few years, the crypto market has grown steadily, and total cryptocurrency market capitalization reached nearly $ 3 trillion last year. Thanks to their growing potential and exceptional performance, more and more users around the world have begun to embrace and invest in this type of leading emerging asset. The market has expanded and matured as the number of crypto investors has increased. Meanwhile, derivatives, which are an essential component of conventional financial markets, play a unique role in the crypto space.
Futures trading increases volume and facilitates market growth
The introduction of conventional derivatives gives investors more tools to avoid risk, hedge against depreciation risk and build a reasonable portfolio. As the crypto market expands in breadth and depth, the futures market often ignores the spot market when it comes to major price discovery. A large financial market facilitates the development of derivatives and as a result the derivatives will help the financial market to become full-fledged.
Permanent futures contracts are the most widely used crypto derivatives. In 2018, BitMEX launched Permanent Futures, making it the first crypto exchange to launch such a derivative. Subsequently, many other exchanges also publish crypto futures, covering marginal contracts by mainstream crypto and USDT. Meanwhile, perpetual futures trading volume continues to rise.
According to a report by TokenInsight, the total spot trading volume recorded by Centralized Exchange and Decentralized Exchange in 2021 reached USD 49 trillion, while the total trading volume of Permanent Futures reached USD 56.8 trillion. , An increase of 358% from 12.4 trillion USD. The amount of derivatives trade in 2020.
Permanent futures contracts remain promising, crypto exchanges bring abrupt changes to the state
Although the cryptocurrency futures market is growing rapidly, it still has a long way to go to improve trading volume compared to conventional futures exchanges. Despite the sharp fall in crypto spot prices, perpetual futures trading volume was not much affected and most traders were very active, according to Coinglass.
Exchanges are fully aware of the importance of futures in the crypto market. Currently, CoinMarketCap offers more than 50 derivative services in more than 500 exchanges listed on it. Since Bitmax first launched Permanent Futures, we have seen many changes in the landscape of major futures exchanges. Affected by compliance issues, the pioneer BitMEX has gradually lost its leadership position. Meanwhile, Huobi and OKEX, which were once two of the top three exchanges in futures trading volume, are seeing their prosperity dwindle due to local politics.
As an emerging market with huge potential, crypto futures are becoming a new field of intense competition among exchanges. So far, the outcome of the race has remained uncertain. Some new exchanges have grown from strong to strong over the years, especially with a wide range of uniquely featured, professional FTX exchanges and easy-to-use CoinEx exchanges.
A unique “challenger” that seeks to facilitate futures trading
FTX was born to meet the needs of professional traders in the conventional sense and its products are also designed for the experienced. The exchange is the same as the conventional exchange in terms of product webpages and user guides. Such a style helped him attract many professional investors.
CoinEx has nothing to do with FTX, committed to “making crypto trading easier”. It has attracted many crypto newcomers with its beginner-friendly features. Dedicated to product design, the exchange offers more intuitive video tutorials and illustrated instructions. In CoinEx, it is very easy to open / close a position. Specifically, users can start a location or choose to turn everything off on its website or mobile app. CoinEx provides detailed position information and a 180-day PNL analysis, which allows investors to review their trades and make the right decision based on the latest numbers.
Furthermore, as a global platform, CoinEx is available in 16 languages and has gained recognition from users in different regions with its localized services. To help retail investors stay ahead of others, the exchange now offers more than 100 futures markets, and that number continues to grow.
Backed by a strong technical team, CoinEx provides strong security and has never encountered security breaches. Based on its many advantages, including a low trading fee, a versatile selection of easy and easy-to-use services, and a secure and stable system, product-centric CoinEx may be the preferred exchange in today’s beer market. .
The crypto market never lacks professional-centric exchanges. Meanwhile, conventional financial markets are also preparing for a breakthrough in crypto derivatives. For example, CBOE and CME took the lead and launched Bitcoin Futures in 2017. Subsequently, the Six Swiss Exchange and Eurex also introduced crypto derivatives. Exchanges like CoinEx that have “traveled less on the road” could be the new challengers in the 2022 futures race.