Binance reveals the secret to the success of their future contracts
Trading cryptocurrencies is one of the most lucrative and risky activities in the crypto world. Make huge profits and losses in just a few minutes. But far from what people believe, you don’t have to buy virtual currencies to enter the crypto market. You can use other financial products such as futures contracts on Bitcoin. Who Binance reveals the secret of success.
Future contracts: A growing market
The classic way to invest in an asset is to buy it at a price and wait for its price to skyrocket to sell it at a profit. This is the easiest way to make profits in the market, buy cheap and sell expensive.
However, the financial markets have continued to grow over time. New products that allow you to invest in an asset, even if you never buy it. Or give them the opportunity not to bet on the price increase but on the collapse. With Binance you can explore this area of crypto trading.
This is where future contracts for an asset come into play. Well, in simple terms, they consist of a contract between two parties that commit to exchanging a particular asset at a predetermined price at a pre-arranged future time.
In other words, the price given by the market for this asset is irrelevant, but the price set in advance by the two parties. If the obligation to sell 1 Bitcoin at $ 50,000 exists within two months, regardless of whether Bitcoin is trading at $ 1,000, the sale will be for $ 50,000.
Nowadays, most future contracts are never executed, but are financial products with which traders rely on the performance of an asset. An even larger cryptocurrency market than the direct transaction market.
Binance’s secret to success
In the world of buying and selling future Bitcoin contracts, there is a group of major exchanges that offer this product. As some of the traditional market leaders, the huge CME Group and the important BitMEX stock exchange.
However, a new actor recently entered this market by pounding. We are referring to Binance, one of the world’s largest exchangesthat launched Binance Futures a little over half a year ago. Your platform for the exchange of future contracts via Bitcoin.
In this short time it has already succeeded in positioning itself as a second force on the futures market and recently switching to BitMEX. Earlier, Aaron Gong, Vice President of Futures at Binance, said in a interview What would be the secret of success of the exchange in this area:
“”We are the first major cryptocurrency exchange to introduce a maximum leverage of 125X for BTC contracts and the first of its kind to introduce an intelligent settlement and cross-guarantee mechanism. These functions have become extremely popular with our users.Aaron Gong commented in the interview.
Therefore, Binance would explain that the secret to the success of its future contracts is the technical characteristics of its platform. Offers features that no other exchange offers and that would allow them to earn user loyalty. An interesting vision that makes this our data of the day here at 100Count.