Can Binance’s Winning Strategy Be Replicated For Crypto Derivatives? Delta Exchange Thinks So


In 2017 Binance came out of nowhere and raced to the top position in crypto exchanges. It took Binance less than six months to beat well-established incumbents like Coinbase, Kraken, and Bitfinex. Binance’s success in large measure driven by its altcoin strategy. By becoming the one-stop-shop for trading altcoins, Binance was able to win the hearts, minds, and wallets of crypto traders. Now, Delta Exchange is looking to follow Binance’s playbook to winning the crypto derivatives market.

Delta Exchange is an altcoins-focused derivatives exchange. The exchange offers trading in futures and perpetual contracts on bitcoin and 13 leading altcoins such as BNB and LEO. Using these derivative products, traders can profit from both rising (go long) and falling (go short) crypto assets, and use leverage to amplify their gains. Further, all futures and perpetual contracts on Delta Exchange are settled in either BTC or USDC. This means that traders can get exposure to altcoins without actually owning them.

Delta Exchange Trading Terminal

2019 has been the year of cryptocurrency derivatives. Early entrants like BitMex and Deribit are thriving. At the same time, a handful of new players have entered this exciting segment of crypto trading. The new and old players have one thing in common – they both are focused on the top 10 market cap coins like BTC, XRP, and LTC. To be sure, Delta Exchange too offers derivative contracts on these coins. However, it is perpetual on altcoins like ATOM, Tezos, RVN, and BAT that are exclusive to Delta Exchange that make it outshine peers. So far, Delta’s altcoin strategy seems to be working. The exchange is increasingly becoming the destination of choice for leveraged trading of altcoins.

The combination of high volatility, limited spot liquidity and leverage makes creating well-functioning altcoin derivatives market rather challenging. The experiences of the founding team of Delta have come in handy here. The team cut their teeth at top Wall Street firms like Citi and UBS and has the experience of building products that can scale for millions. Delta Exchange has a blazing-fast matching engine. But more importantly, the exchange has an equally capable liquidation engine and robust risk management practices that are critical for derivatives trading. The benefits of having strong tech and risk management are evident in the fact that Delta Exchange has been able to avoid issues like socializing losses which are all too common in other crypto derivatives exchanges.

In a short period of time, Delta Exchange has carved a niche for itself through its unique offerings (altcoin derivatives, stablecoin-settled futures) and trader-friendly promotions (50% fee payback scheme). The exchange aims to continue its streak of financial innovation and launch products such as options and interest rate derivatives. If Delta Exchange can build upon the success of its altcoin derivatives, it can become a force to be reckoned with in the fascinating space of cryptocurrency derivatives.

Disclaimer: This is a guest post from Delta Exchange. BitcoinExchangeGuide does not endorse nor are we responsible for the content included in this release. We encourage all of our readers to do their own research before interacting with the company.

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