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The Trading Volume of Bitcoin Derivatives Surged 10 to 18 Times That of Spot

“This is the place to make money with cryptocurrencies, which is the largest casino ever.” An insider said. The heat of the derivatives market is catching up with the spot market and becoming the “new darling” of investors.

The main trading volume of cryptocurrency derivatives is Asian Exchanges, such as Huobi and Binance. In addition, BitMex ranks first in terms of transaction volume. They provide bitcoin and small token futures contracts with contract leverage of up to 100X and bitcoin perpetual contracts. Bitcoin has fallen nearly 60% since the end of 2017, which is especially attractive to traders.

Sid Shekhar, a co-founder of data company TokenAnalyst, said: “ BitMex may now be at the center of the entire derivatives market.” He believes that BitMex, which has the largest market share of cryptocurrency derivatives in the world, can earn at least $700,000 a day from derivatives trading.

Andy Cheung, head of Hong Kong operations at OKEx, said the exchange’s number of people who traded derivatives this year is twice that of spot trading.

In addition, Binance has also launched its futures products about a month ago. More than 34,000 derivatives trading clients have been registered as a member so far. It handles about $500 million in futures trading every day. On October 18, Binance (Hong Kong) began to provide up to 125X leverage for its futures products.

In traditional markets, derivatives are often used to hedge commercial transactions. These are not common in the cryptocurrency industry.

Skew’s CEO, Emmanuel Goh, a former derivatives trader at JPMorgan Chase, said: “So far, the main use for this product (encrypted derivatives) is to speculate.”

According to data from the exchange BitMex, the volatility of converting bitcoin has recently fallen to less than 2% per day, and traders are always looking for new ways to make money. Many people are turning to the derivatives market.