According to TokenInsight 2021 Crypto Trading Industry Annual Review, the industry continues to break through, with 2021 full-year trading volume reaching $112 trillion, of which about half is futures contracts ($57 trillion), compared with spot trading that accounts for 43% ($49 trillion). In addition, the total crypto trading volume increased 3.37 times year on year. To be specific, futures contracts have grown the most by nearly 6 times, spot 2.3 times, and delivery contracts 2.36 times only. The overall data presented in the Review shows rapid growth in the futures market in 2021. It has now surpassed the spot market and become a mainstream investment channel, which indicates the market’s growing popularity.
In contrast to the lack of diversity in the spot market, futures, especially linear contracts, allow users to earn profits through long-term holding and high leverage, without having to hold different types of cryptos. Thanks to such an advantage, a growing number of crypto investors are venturing into the futures market. It is clear that a large group of investors recognize the great market prospects of futures, while the futures category has also captured the crypto spotlight. Under such circumstances, crypto exchanges can gain a foothold in the futures market and register fast growth in trading volumes only by improving their futures products while providing more user-friendly trading services.
Although the futures market has become the primary investment choice of many crypto users, futures contracts remain inaccessible to most newcomers to this industry. First of all, the futures market, a place for trading crypto derivatives, is highly fragmented and lacks unified standards. In addition, futures contracts offered by different crypto exchanges come with varying structures, and their terms and conditions drastically differ. For instance, futures contracts provided by some exchanges are complicated and require high learning costs, while others…
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