Binance Has Revealed Its Secret Plan for Cryptocurrency Success in Future
The Vice President of Futures, Aaron Garg at one of leading crypto exchanges, Finance in an interview to Cointelegraph revealed the secrets, how the company has managed to become one of the top-ranked cryptocurrency trading platforms worldwide.
Earlier, Cointelegraph reported Finance has toppled BitMEX to grab the position of second-largest platform in terms of BTC futures trading volume in 24 hours. When asked, Garg too was quite surprised by such huge success. Further, he put forth that firm has a strategic plan to become the top BTC futures trading platform:
“We knew we would be there soon, and we made it in slightly more than 6 months’ time.”
What The Secret To Binance’s Futures Success
As per Garg, three fundamental reasons that laid the foundation of Binance’s futures success is its low taker fees, a huge amount of bitcoin pairs along with new features. Garg said most of the exchanges have lower negative maker fees:
“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.”
He also added that the success of Finance has been driven by innovation that increases the trading volumes, and holds the Finance futures. He claimed that Binance has had a number of firsts in terms of the cryptocurrency futures market.
“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.”
The third big reason that has contributed to Binance’s future success is the greater number of Bitcoin contracts. He said that the exchange has unveiled 24 futures contracts, adding :
Binance’s Key to Future Success
Gong’s method to power the quantity of futures contracts on Balance is to keep bringing more functionalities and products to the industry. He said that he believes Binance has outdone its competitors, as different crypto trading structures suffered troubles including overloads, poor risk management, and counterintuitive product designs. He defined that Binance’s layout was in large part driven by using user’s complaints about other systems:
“We specifically aimed to address these issues and improve the users’ experience. As such, we put tremendous efforts to build an industry-leading matching engine that is able to process more than 100,000 orders per second. [...] Whilst there were issues of system overloads, outages, glitches, and even rollbacks elsewhere, we’ve proven time and again to be a safe, reliable, cheap and liquid venue for hedging.”
It is well worth noting that Binance’s trading platform ran into a number of problems in February. On Feb. 19, the trade halted buying and selling to clear up a surprising technical issue with its infrastructure.
As a Feb. 25 Cointelegraph evaluation illustrated, this incident came about after a week in which the platform changed into regularly unresponsive to dealer input as the exchange turned into unable to control a big uptick in personal volume.
In early March, Binance halted trading once more to repair a malfunction. The exchange’s co-founder and CEO Changpeng Zhao purportedly blocked Jay Hao - the CEO of competing change OKEx - on Twitter, after he publicly offered to assist restore the infrastructure.
However, Gong stated that the malfunctions did not have an effect on Binance’s futures buying and selling infrastructure and that futures investors were no longer affected:
“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.”