CoinfloorEX claims to be the world’s first crypto futures exchange with physical deliveries. Find out what that means today in our review.
What Is CoinfloorEX?
CoinfloorEX is the first physically delivered cryptocurrency futures exchange. The exchange aims to unlock the financial potential of cryptocurrency to enable more transparent participation in the crypto futures market. Key features include 24/7 access, transparent pricing, strong security, and cash flow hedging.
CoinfloorEX was launched by Coinfloor, the popular UK-based cryptocurrency exchange that caters to institutional investors. By launching CoinfloorEX, Coinfloor aims to expand its offerings while attracting all types of individual and institutional investors.
What’s the big deal with physical deliveries of crypto futures? Well, it limits the risk at settlement: there’s no cash price settlement risk because you have the actual physical asset. That means there’s nothing to manipulate at settlement.
How Does CoinfloorEX Work?
CoinfloorEX offers physically delivered crypto futures with no cash price settlement risk. You receive or deliver the actual physical asset, which means there’s nothing to manipulate at settlement.
Physical delivery of cryptocurrency at settlement allows you to grow your crypto balances to benefit from long-term appreciation of the asset. Furthermore, the ability to post margin in crypto or fiat currencies enables greater flexibility for your choice of funding.
Another advantage of having physical ownership of cryptocurrencies is that you can trade out of your futures position before contract expiry. You can convert your futures position before the contract expires by converting cryptocurrency into fiat, for example. That means users can “roll” a position by trading out of the expiring month’s contract and opening the same position in the next month if they’re intending to take delivery and maintain the same position.
CoinfloorEX also emphasizes transparent pricing. Unlike other crypto futures exchanges, CoinfloorEX’s futures contracts are based on the CoinfloorEX price – not composite index pricing. The CoinfloorEX tick size is also designed to create a fairer, more transparent futures exchange compared to exchanges with tighter or wider tick sizes.
Users can access CoinfloorEX 24 hours a day, 7 days a week. The exchange also offers APIs.
CoinfloorEX Cryptocurrency Futures Exchange For Trading Features
CoinfloorEX’s core features include:
Physically Delivered Crypto Futures:
Secure physical delivery of cryptocurrency at a set future exchange rate, then get the ability to convert to other currencies as needed.
All CoinfloorEX futures contracts are based on the CoinfloorEX price – not composite index pricing.
Reliable And Convenient Access:
CoinfloorEX is available 24/7. You can also connect to the platform’s APIs and enjoy reliable, low-latency connectivity.
Like all good cryptocurrency exchanges, CoinfloorEX emphasizes strong security. Crypto assets are stored in 100% multi-signature cold storage. Users are required to go through KYC verification. The exchange also goes through monthly cryptographic solvency audits.
How To Use CoinfloorEX
Here’s the basic process used to establish, settle, and exit futures contracts on CoinfloorEX:
Step 1) Establish the futures contract. A buyer of cryptocurrency uses CoinfloorEX to arrange a futures contract with a seller of cryptocurrencies. This establishes the CoinfloorEX crypto futures contract.
Step 2) Settle the futures contract. The buyer of cryptocurrency pays the seller based on the agreed price and quantity of cryptocurrency. The seller transfers the agreed quantity of cryptocurrency, and the buyer takes physical delivery of the cryptocurrency.
Step 3) Exit your position early (optional). Either party does not need to wait until the contract settlement to get out of their position or to profit from the futures contract. CoinfloorEX provides the ability to trade out of their futures position before contract settlement by passing their side of the contract to another party.
Step 4) Post physical delivery of cryptocurrency. At this point, the buyer of cryptocurrency can hold the cryptocurrency in CoinfloorEX’s secure cold storage. Or, the buyer can convert from cryptocurrencies to other currencies.
Who Can Use CoinfloorEX?
Anyone can use CoinfloorEX. Some of the specific use cases include:
Institutional investors can use CoinfloorEX to access a secure emerging asset class with high returns. Portfolio managers can access unique contract features and governance systems to confidently allocate client investments into cryptocurrency markets while hedging risk.
Miners can precisely hedge their future crypto production and have certainty of the dollar value of their revenue thanks to CoinfloorEX’s physical delivery.
Individual traders can use CoinfloorEX to monitor and take a position in the crypto market.
Investors can diversify their investment portfolio into an emerging asset class with high potential.
CoinfloorEX has a simple fee structure: all clients are charged 0.03% of the value of the trade. This fee doesn’t change regardless of the amount you trade each month.
CoinfloorEX has a designated market maker program where participants can pay fees of 0.01% (a 66% discount) for bitcoin futures trading. Participants will qualify for this market maker discount “based on the strength of their quoting performance”. Basically, if you have a history of posting tight spread offers on the market, then you may be eligible for discount fee trading. You can view more information about the CoinfloorEX market maker program here.
About CoinfloorEX Ltd
Coinfloor Ltd. is based in the British Virgin Islands. The company was founded in 2013. Today, it’s the UK’s leading institutionally-focused cryptocurrency exchange. The company offers a full-service exchange for corporate, institutional, and private clients.
Coinfloor Exchange UK began trading in 2014 as a cryptocurrency spot trading platform. In March 2018, the company launched CoinfloorEX, the cryptocurrency futures exchange we’re reviewing today.
CoinfloorEX is the world’s first physically delivered cryptocurrency futures and spot exchange. The exchange was launched by Coinfloor, the popular UK-based cryptocurrency exchange catered to institutional investors.
To learn more about CoinfloorEX and how it works, visit online today at CoinfloorEX.com.