4 Essential Components of a Crypto Derivatives Exchange

There is a mantra for success – come out early. The mantra holds true regardless of the sector you are in. If you have a plan to expand the service line of your crypto exchange and include crypto derivatives, we have free advice for you –

Be an early starter.

These are still early days in the crypto sector and things haven’t yet become crowded. Not many exchanges around offer crypto derivatives and there is a pretty good chance of you shooting success if you follow the mantra.

BitMEX, the oldest player among the exchanges, set sailing in 2014 when the rest were dozing off. They were the creators of the perpetual swap, which is now the most traded crypto derivative, earning over 90% of the exchange’s volume.

FTX is also a young crypto derivatives exchange that has drawn the attention of retail and institutional traders.

Perhaps you have now agreed with the mantra and want to dash with blazing speed to the developer.

But wait

Here are the four essential features in the best derivatives exchange development you should know about before you pick your phone to place a call to an exchange developer.

• Leverage

This feature lets traders borrow funds from the exchange to trade and earn several times more than they otherwise could. They can open a larger position with a smaller fund in their kitty. The facility of leverage, integrated with a robust risk management process, allows traders to multiply their gains. Some exchanges go to the extent of offering up to 100x leverage, indicating that the traders can multiply their profits by up to 100 times the amount they originally invested.

• Advanced trading engine

Make sure your crypto derivatives exchange is powered by an advanced trading engine, which will allow traders to go long or short on various cryptocurrencies. This will help them immensely in increasing their margin of profit.

Along with an advanced trading engine, the exchange should also have an easy-to-use interface and a robust admin panel.

• Secure wallet

Ensuring secure wallet integration during futures exchange development will ascertain that your customers don’t have to move their digital coins to the exchange every time they want to trade. This will not only make the process faster, but the traders too may end up trading more than they would have usually done, thus enhancing your profit line.

• Crypto and fiat support

Support derivates trading on your exchange with a volley of currencies, including fiat and crypto coins. Have a scalable architecture in place that allows you to add as many currencies to the exchange that may emerge. The crypto industry is still in the nascent stage and you can reasonably expect the emergence of a lot of digital currencies before the market consolidates.

Summing up

Being an early starter will ramp up your chances of clocking success as a crypto derivatives exchange. Begin before others think of it and see your earnings soaring up.

If you are keen on adding derivatives trading to your crypto exchange, Antier can assist. Counted among the best derivate exchange development companies, we leverage our technical prowess and domain knowledge to execute your vision.

Work out a friendly chat with us regarding your requirements for a crypto derivatives exchange.