Over the past few years, the cryptocurrency market has continued to expand, with the total cryptocurrency market cap peaking at nearly $3 trillion last year.

With the increasing potential and outstanding performance, more users around the world are starting to embrace and invest in this type of leading emerging asset.

With the rise in the number of cryptocurrency investors, the market has expanded and matured.

Meanwhile, derivatives, which are an essential component of traditional financial markets, play unique roles in the crypto space.

Increased futures trading volume:

The introduction of conventional derivatives provides investors with more tools to avoid risk, hedge against depreciation risk, and build balanced portfolios.

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With the cryptocurrency market expanding in breadth and depth, the futures market often outperforms the spot market when it comes to leading price discoveries.

The large financial market facilitates the development of derivatives, and the derivatives will in turn help the financial market to become full-fledged.

Perpetual futures contracts are the most widely used cryptocurrency derivative.

In 2018, BitMEX introduced perpetual futures contracts, making it the first cryptocurrency exchange to ever launch such derivatives.

Subsequently, several cryptocurrency exchanges also issued cryptocurrency futures contracts, which cover margin contracts through mainstream cryptocurrencies and USDT.

Meanwhile, perpetual futures trading volume continued to grow.

According to a report by TokenInsight, the total volume of spot trading volumes recorded by centralized and decentralized trading platforms in 2021 was $49 trillion, while the total volume of perpetual futures was $56.8 trillion, an increase of 358% compared to the derivatives trading volume of 12.4 trillion dollars in 2020.

This and perpetual futures contracts are still promising, which led to a sudden change in the field of cryptocurrency exchange

Read:Bitcoin outperforms stocks of the world’s largest companies in the first quarter of 2020

Even though the perpetual futures market for cryptocurrency is growing rapidly, there is still much room to improve trading volumes compared to traditional futures exchanges.

Despite the sharp drops in the cryptocurrency spot price, perpetual futures trading volume was not affected much, and most traders remained very active according to coinglass.

Trading platforms are fully aware of how important futures contracts are to the crypto market.

Currently, of the more than 500 trading platforms listed on CoinMarketCap, more than 50 of them offer derivative services.

Since BitMEX first launched perpetual futures contracts, we’ve seen many changes in the landscape of the largest futures trading platforms.

After being hit with compliance issues, the leading BitMEX has gradually lost its leading position.

Meanwhile, Huobi and OKEX, which were once the three largest trading platforms in terms of futures trading volume, have seen a pullback due to domestic policies.

As an emerging market with huge potential, cryptocurrency futures have become a new area of ​​fierce competition between trading platforms.

So far, the outcome of the race remains uncertain.

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Some of the new trading platforms have grown stronger over the years, especially those with unique features, covering professional exchanges such as that offered by FTX and easy-to-use exchanges offered by CoinEx.

CoinEx is unique in seeking to facilitate futures trading:

FTX was born to meet the demand of professional traders in traditional finance, and its products are designed for the veterans.

The FTX trading platform bears great similarity to traditional trading platforms in terms of product webpage and user guides.

This method also helped attract a lot of professional investors.

CoinEx, which is committed to “making cryptocurrency trading easier,” is not like FTX.

It has attracted many crypto beginners with its beginner-friendly features.

CoinEx provides more intuitive video tutorials and illustrated instructions.

On CoinEx, it is extremely easy to open/close a position.

More specifically, users can start a position or choose to close everything on the website or mobile app.

CoinEx provides detailed position information and 180-day PNL analysis, allowing investors to review their trades and make sound decisions according to the latest numbers.

In addition, as a global platform, CoinEx is available in 16 languages ​​and has earned the appreciation of users from different regions through its local services.

To help retail investors survive, the trading platform now offers over 100 futures markets, and the number has continued to grow.

Backed by a strong technical team, CoinEx features enhanced security as you have never experienced any security breach.

Relying on its many advantages, including low trading fees, a variety of simple and easy-to-use services, and a secure and stable system, product-focused CoinEx may be the preferred exchange platform for futures beginners in today’s bear market.

The traditional financial markets are also preparing for a rush towards crypto-derivatives.

For example, the CBOE and CME took the lead and launched bitcoin futures in 2017.

Subsequently, Swiss Exchange and Eurex also entered crypto derivatives.

Trading platforms that have taken the path that many platforms do not, such as CoinEx, may be the new contender in the futures race in 2022 especially given the advantages offered and ease of use.

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