Posted 1 year ago | by Ben Armstrong
Binance Works to Become Top Crypto Futures Trading Platform
According to recent reports, Binance has overtaken BitMEX to become the second-largest crypto trading platform in terms of 24-hour Bitcoin futures trading volume.
Aaron Gong, vice president of futures at Binance, commented:
“We knew we would be there soon, and we made it in slightly more than 6 months’ time.”
Gong said the three primary reasons behind the success of Binance’s futures products are low taker fees, new features and a large number of altcoin pairs. According to the vice president, negative maker fees are being offered by many exchanges.
“Too many other exchanges offer negative maker fees, where most orders are just computerized market makers competing for best bid and ask with extremely limited taker interest during periods of low-volatility.”
Binance Thinks Innovation is Key
There are many areas in the crypto trading industry that can benefit from innovation. Binance has brought fresh thinking to the marketplace, and has shown that its dedication to making new ideas a reality can lead to market success.
Gong also stated the crypto futures market is ready for more trading options:
“We are the first major crypto exchange to launch max 125X leverage for BTC contracts and the first of its kind to launch cross collateral and smart liquidation mechanism. These features have gained tremendous popularity amongst our users...As of today, Binance Futures houses half of the top 10 most liquid altcoin contracts, many of which are also the most traded pairs amongst all futures exchanges.”
According to Gong, Binance adopted a design strategy that was guided by the issues that traders were having on other platforms. Many competitors suffered problems such as overloads, risk management issues, and platform designs that were difficult to use.
New Challenges for Everyone
Although Binance does have a solid track record as a crypto exchange, it has to deal with difficulties from time to time. Binance’s trading platform did face some outages in Feb and March. These has been a lot of volatility in the marketplace, and many other exchanges experienced similar issues.
However, Binance’s futures trading infrastructure seems to be more stable than many other platforms.
Gong stated that:
“Our futures system has been proving to be performing well during the most volatile period since we launched. The futures market is running on a separate matching engine.”
Like any industry, crypto derivatives trading will take time to evolve. Binance is working to become one of the most powerful platforms in crypto tradings, and as the market matures, the company is in a great position to grow.