Bitcoin’s price surge in 2017 certainly put all eyes on the cryptocurrency market. And while the prices have since tumbled, 2018 has been a year which saw a lot being done in this space. There are now thousands of cryptocurrencies, hundreds of projects, and numerous cryptocurrency trading platforms. Yet, the industry is still in its nascent stage and there is a long way ahead.
Expanding Cryptocurrency Derivatives Trading
As the market expands, so do the requirements of traders. While there are plenty of cryptocurrency exchanges out there, there is a shortage of platforms for trading cryptocurrency derivatives.
Touching on the matter is Jesse Wu, CEO of cryptocurrency derivatives trading platform BaseFEX, who noted:
“For the past two years, the Bitcoin and cryptocurrency market has seen ups and downs, but it eventually got into the sight of the mainstream and became a household name. There are now numerous exchanges for spot market where people simply buy and sell coins, and only a few exchanges for crypto derivatives where traders speculate coin prices with leverage. In the case of trading crypto derivatives, traders are obviously still in need of a fair place where they can successfully place orders anytime they want, under any market conditions. That’s why we built BaseFEX.”
BaseFEX will start with a leveraged swap product of BTCUSD perpetual – it is intended to be a lot like bitcoin futures but with no settlement at all. As such, it allows users to trade BTC/USD with a leverage of up to 100x.
Despite starting with only one product, BaseFEX promises that it will soon add more derivatives to its product portfolio.
Solving Existing Issues
Besides allowing for a wider portfolio of trading products, BaseFEX is also on a mission to resolve another pressing issue – the lack of processing speed, which is experienced by many on platforms like BitMEX and others.
Cryptocurrency day trading, or any type of day trading which requires engaging highly volatile asset classes, is largely predicated on timely market enters and exits. However, a lot of the existing solutions are simply unable to cater to these requirements.
Tackling this issue in particular, BaseFEX tends to stand out with its high processing power.
The architecture of BaseFEX’s trading engine was designed with high processing power in mind in the very beginning. Also we took advantage of a set of cutting-edge technologies from the ever-evolving internet industry to further ensure fast processing and high throughput. – said Wu.
It’s also worth noting, though, that major institutional players are also eyeing expansion towards Bitcoin derivatives. It was recently reported that NASDAQ might launch Bitcoin futures in the first quarter of 2019 – a move dubbed a “game changer” by market analyst David Cheetham.