【#Crypto 17】 Still trading in Crypto Spot market? How about "Crypto Derivatives" ?
Photo by Didier Weemaels on Unsplash
I believe that people who started to contact blockchain technology or cryptocurrency earlier will remember that ICO(Initial Token Offering) was very popular. New ICO projects were coming out nearly every day at that time. The convenience of borderless transfer transactions and the speculation of cryptocurrency prices had prompted more and more people to invest in this market, and the overall market value of cryptocurrencies even surpassed JP Morgan, industry giant of US finance, in early December of 2017.
With the expansion of the cryptocurrency market, certainly, traditional financial institutions couldn't easily let this precious opportunity go, starting to launch different crypto related derivatives into the market since December 2017.
After CBOE Global Markets and CME Group successively launched Bitcoin futures contracts for investors, causing the price of BTC skyrocketed to around $20,000 USD.
It is undeniable that if there is a traditional financial derivative coming out, it will inevitably cause a large impact on the cash flow, triggering the reorganization of the overall cryptocurrency market, many people are still wondering whether the influence "crypto derivative wave" brings is positive or negative.
In addition to the traditional financial institutions, since Q3 of 2018, many crypto exchanges had paid more and more attention to the crypto derivatives, and the types are becoming more and more diversified, such as futures index, perpetual contract, ETF and ETP, etc. There are also exchanges that mainly trading crypto derivatives like BitMEX.
This may also explain why the amount of margin on the Bitmex platform that uses Bitcoin for trading could still increase month by month in such a bearish market. Even by the end of 2018, the amount of Bitcoin margin had accounted for 0.12% of Bitcoin's in total.
About Next Article
I will introduce the source and type of futures in detail. What is the difference between cryptocurrency futures and the impact of cryptocurrency derivatives on the market?
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