Could Futures Trading Transform Crypto, Bringing Its 'iPhone Moment'?

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Just like the iPhone revolutionized the tech sector, futures trading has the potential to reshape the crypto market by introducing stability, transparency, and wider participation.

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When Steve Jobs first unveiled the 'iPhone' in 2007, he hailed it as revolutionary. Although 'revolutionary' is now a frequently used term in the tech world, the iPhone was truly groundbreaking. It not only transformed Apple's business but also the entire tech industry and, arguably, our lives.

From a purely business perspective, the iPhone skyrocketed Apple's revenue from $19.3 billion in 2006 to $215.6 billion in 2016. Since its launch, Apple has sold more than 2.3 billion iPhones and has over 1.5 billion users.

However, the iPhone is not just a successful product; it's a transformative one. In an interview with CNBC, Gene Munster from the Asset Management firm Deepwater explains that the App Store allowed your phone to become a lot more. This ability is cited as the reason behind the iPhone's market domination at a time when Nokia seemed invincible.

Similarly, experts now believe that futures trading could transform the crypto space. While crypto trading offers significant returns, it also comes with high volatility and regulatory uncertainty. Futures trading could change this aspect of the crypto industry by providing more stability, transparency, and liquidity, allowing crypto trading to become a lot more.

Let's delve deeper into how futures trading can transform the crypto space and how firms like BingX can play a pivotal role in shaping the future of crypto.

What is futures trading and how can it reshape crypto?

Before discussing the role of futures trading in crypto, let's briefly refresh our understanding of what futures trading is. Futures trading is a form of Derivatives trading. Derivatives trading allows traders to profit from the price movements of assets without directly owning them. Futures are a type of derivative contract that enables investors to buy or sell an asset at a future date at an agreed-upon price.

To illustrate futures trading better, let's consider an example. If a trader anticipates Bitcoin's price to rise in the next month, instead of buying Bitcoin directly, they enter a Bitcoin futures contract, agreeing to buy 1 BTC at $90,000 in 30 days. If Bitcoin's price increases to $95,000, they can still buy it for $90,000, making a $5,000 profit. Conversely, if Bitcoin drops to $85,000, they still have to buy at $90,000, resulting in a $5,000 loss.

Futures trading exists in various markets, including stocks and commodities. Traders can buy futures on commodities like coffee or stock indexes like the S&P 500.

So, how do derivatives like futures trading benefit the crypto industry? Futures trading enables investors to access the market without owning assets, making it easier for more people to participate in the space. This increased accessibility can lead to higher trading activity and potentially larger profits for investors.

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Futures trading also tends to attract more institutional players as it is a regulated and structured way to invest in crypto without directly holding digital assets. This process tends to attract more risk-averse players. More institutional investors mean more stability and deeper market participation.

Now that we understand that futures could reshape the crypto market, who do we turn to for expert guidance?

What BingX brings to the table

BingX is a leading global cryptocurrency exchange serving over 20 million users worldwide. The trusted platform has recently launched its newly designed futures trading page. This move highlights BingX’s strategic commitment to futures trading.

BingX's growth and appeal are evident in its recognition by CoinGecko and Coinglass as one of the world's top five derivatives platforms in 2024. This ranking underscores not just BingX's impressive trading volumes but also its strategic brand evolution, adherence to market trends, and inventiveness.

Addressing BingX's expansion into the futures trading space, Chief Product Officer & Head of BingX Lab Vivien Lin stated: “BingX’s rise to a top-tier position is a testament to our dedication to providing superior trading experiences. We are significantly increasing our investment in futures to further solidify our strategic position within the industry.”

An intriguing feature of BingX’s futures trading is that it provides access to the latest and most popular coins, including trending meme tokens. Additionally, BingX offers both perpetual futures and standard futures. For context, perpetual future contracts have no expiration date, while standard futures contracts have a set expiry date.

BingX's features extend beyond this. For advanced traders, BingX also offers specialized trading tools such as grid trading and dollar-cost averaging (DCA). Moreover, the Guaranteed Price Feature allows users to execute trades at preset prices without worrying about slippage, even during periods of market volatility. Plus, the Dual Price Mechanism protects users from unfair liquidations by validating prices through a reliable dual-price system.

The platform also prioritizes enhancing the user experience. In addition to all the above, the project ensures that traders at all levels of expertise can navigate the platform with ease through step-by-step tutorials and beginner guides.

Conclusion

At present, it's hard to imagine that before the iPhone, the phone was merely a device for making calls. The iPhone transformed the way humans communicate and interact with each other and technology. This is what futures trading could do to the crypto space. There may come a time in the distant future when investors look back at this period in crypto's history and think about how monumental futures trading was. Futures trading could be the foundation of a more stable crypto market, and BingX is paving the way to this exciting future.

Disclaimer: The following content is provided by a third party. This platform does not endorse any product mentioned on this page. Users must conduct their own research before taking any actions related to the company.

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