Disclaimer: The text below is a publicity article not written by Cryptonews.com reporters.
In recent years, the crypto market has continued to grow and the total cryptocurrency market cap peaked at nearly $3 trillion last year. Thanks to their growing potential and exceptional performance, more and more users around the world are starting to adopt and invest in these types of leading emerging assets. As the number of crypto investors grows, the market has expanded and matured. Meanwhile, derivatives, which are an essential part of conventional financial markets, play a unique role in the crypto world.
Futures trading volume is increasing and facilitating market growth
The introduction of conventional derivatives gives investors more tools to avoid risk, hedge amortization risks and build reasonable portfolios. As the crypto market expands in breadth and depth, the futures market often outperforms the spot market when it comes to key 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 commonly used crypto derivatives. In 2018, BitMEX introduced perpetual futures, making it the first crypto exchange to launch such derivatives. Later on, many other exchanges also released crypto futures, backing contracts with a margin of mainstream cryptos and USDT. Meanwhile, the trading volume of perpetual futures continued to grow.
According to a report by TokenInsight, the total spot trading volume recorded by centralized and decentralized exchanges in 2021 reached $49 trillion, while the total trading volume of perpetual futures reached $56.8 trillion, an increase of 358% from $12.4 trillion. . trading volume in derivatives in 2020.
Perpetual Futures Contracts Remain Promising, Bringing 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, the trading volume of perpetual futures was not greatly affected and most traders remained highly active, Coinglass said.
Exchanges are fully aware of the importance of futures in the crypto market. Currently, of the more than 500 exchanges listed on CoinMarketCap, more than 50 offer derivative services. Since BitMEX first launched perpetual futures, we have seen many changes in the landscape of major futures exchanges. Struck by compliance issues, pioneer BitMEX gradually lost its leadership position. Meanwhile, Huobi and OKEX, which were once two of the top three exchanges in terms of futures trading volume, are seeing their wealth plummet as a result of local politics.
As an emerging market with huge potential, crypto futures are becoming a new area of fierce competition between exchanges. For now, the outcome of the race remains uncertain. Some newer exchanges have grown stronger over the years, especially those with unique features, including the professional FTX exchange and the easy-to-use CoinEx exchange.
A unique “challenger” that aims to facilitate futures trading
FTX was born to meet the demand of professional traders in conventional finance, and its products are designed for veterans too. 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 newcomers with its beginner-friendly features. The exchange is dedicated to product design and 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 their website or mobile app. CoinEx provides detailed position information and 180 days of PNL analysis, allowing investors to review their trades and make sound decisions based on the latest figures.
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 others, the exchange now offers more than 100 futures markets, and that number is 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 costs, a versatile selection of simple and easy-to-use services, and a secure and stable system, the product-focused CoinEx could be the exchange of choice for more than just futures novices in the current bear market.
The crypto market is never short of professionally focused exchanges. Meanwhile, conventional financial markets are also gearing up for a breakthrough in crypto derivatives. Thus, 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” such as CoinEx could be the new challengers in the futures race in 2022.