Binance Reveals the Secret Behind Its Cryptocurrency Futures Success

Aaron Gong, vice president of futures at major cryptocurrency exchange Binance, explained to Cointelegraph how the firm managed to become one of the top crypto futures trading platforms.

As Cointelegraph reported earlier this week, Binance recently overtook BitMEX and became the second-largest platform in terms of 24-hour Bitcoin (BTC) futures trading volume. When asked whether he is surprised by such success, Gong said that the firm created the product with the plan of becoming the top Bitcoin futures trading platform:

“We knew we would be there soon, and we made it in slightly more than 6 months’ time.”

The reasons for Binance’s futures success

According to Gong, the three primary reasons behind the success of Binance’s futures products are the low taker fees, new features and a large amount of altcoin pairs. He said that too many exchanges offer 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.”

Gong also said that innovation also drives trading volumes when it comes to Binance’s futures. He claimed that the exchange has had a few firsts when it comes to the crypto 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 reason for the success of Binance’s futures contracts, Gong explained, is the number of altcoin contracts. He said that the firm launched 24 futures contracts on the platform, adding:

“As of today, Binance Futures houses half of the top 10 most liquid altcoin contracts, many of which are also the most traded pairs amongst all futures exchanges.”

Binance’s key to future success

Gong’s strategy to drive the volume of futures contracts on…

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