The Future Of The Crypto Space And A New Battleground For Crypto Exchanges

The Future Of The Crypto Space And A New Battleground For Crypto Exchanges

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Disclaimer: The text below is a publicity article that was not written by Cryptonews.com reporters.

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Over the past few years, the crypto market has continued to grow, and the total cryptocurrency market capitalization peaked at nearly $3 trillion last year. Thanks to their growing potential and exceptional performance, more and more users around the world are beginning to adopt and invest in this type of leading emerging assets. As the number of crypto investors increases, the market has expanded and matured. Meanwhile, derivatives, which are an essential component of conventional financial markets, play a unique role in the crypto space.

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Futures Trading Volume Increases and Facilitates Market Growth

The introduction of conventional derivatives gives investors more tools to avoid risks, hedge against depreciation risks and build reasonable portfolios. As the crypto market expands in breadth and depth, the futures market often trumps the spot market when it comes to major price discoveries. A large financial market facilitates the development of derivatives, and derivatives in turn will help the financial market to become fully fledged.

Perpetual futures contracts are the most widely used crypto derivatives. In 2018, BitMEX introduced perpetual futures, making it the first crypto exchange to launch such derivatives. Later, many other exchanges also released crypto futures, covering contracts margined by mainstream cryptos and USDT. Meanwhile, perpetual futures trading volume continued to grow.

According to a report by TokenInsight, the total spot trading volume recorded by centralized exchanges and decentralized exchanges in 2021 reached USD 49 trillion, while the total trading volume of perpetual futures reached USD 56.8 trillion. , an increase of 358% from 12.4 trillion USD. volume of trade in derivatives in 2020.

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Source: TokenInsight

Perpetual Futures Contracts Remain Promising, Bringing A Sudden Change To The Crypto Exchange Realm

Although the crypto perpetual futures market is growing rapidly, there is still a long way to go to improve trading volume compared to conventional futures exchanges. Despite the sharp declines in the crypto spot price, perpetual futures trading volume was not greatly affected and most traders remained very active, according to coinglass.

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Source: coinglass

Exchanges are fully aware of the importance of futures in the crypto market. Currently, out of more than 500 exchanges listed on CoinMarketCap, more than 50 of them provide derivatives services. Since BitMEX first launched perpetual futures, we have seen many changes in the landscape of major futures exchanges. Hit by compliance issues, pioneer BitMEX gradually lost its leadership position. Meanwhile, Huobi and OKEX, which were once two of the top three exchanges by futures trading volume, are seeing their prosperity decline due to local politics.

As an emerging market with huge potential, crypto futures are becoming a new area of ​​fierce competition between exchanges. So far, the outcome of the race remains uncertain. Some newer exchanges have gone from strength to strength over the years, especially those with unique features, spanning the professional FTX exchange and the easy-to-use CoinEx exchange.

A unique “challenger” that seeks to facilitate futures trading

FTX was born to meet the demand of professional traders in conventional finance, and its products are also designed for veterans. The exchange is very similar to conventional exchanges in terms of product webpage and user guides. Such a style also helped him attract many professional investors.

Committed to “making crypto trading easier”, CoinEx has nothing to do with FTX. It has attracted many crypto newbies with its beginner-friendly features. Dedicated to product designs, the exchange offers more intuitive video tutorials and illustrated instructions. On CoinEx, it is extremely easy to open/close a position. Specifically, users can start a position or choose to close everything on its website or mobile app. CoinEx provides detailed position information and 180-day PNL analysis, allowing investors to review their trades and make sound decisions based on the latest numbers.

Moreover, 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 the crowd, the exchange now offers over 100 futures markets, and that number has been steadily growing.

Backed by a strong technical team, CoinEx offers strong security and has never experienced a security breach. Building on its many advantages, including low trading fees, a versatile selection of simple and easy-to-use services, and a secure and stable system, the product-centric CoinEx could be the preferred exchange of more than futures beginners in today’s bear market.

The crypto market is never short of professional-focused exchanges. Meanwhile, conventional financial markets are also gearing up for a breakthrough in crypto derivatives. For example, CBOE and CME took the lead and launched Bitcoin futures in 2017. Subsequently, SIX Swiss Exchange and Eurex also introduced crypto derivatives. Exchanges that “took the road less traveled” like CoinEx could be the new challengers in the futures race in 2022.

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