User experience of futures trading on three cryptocurrency exchanges
Before we begin, let’s first check the basics: As a newbie investor who has just joined the crypto industry and tried entry-level products like spot trading (spot) on several exchanges, I now plan to move to the futures market (Future) and earn more profit by trading futures. Today let’s see how I opened a position on three exchanges (Binance, Cocaine And CoinEx) and see which platform offers the best functions. (PS: Personal experience and for reference only)
Let’s start with Binance’s futures segment, which mainly covers cryptocurrency futures including tokens including USDT-M futures (linear contract), Coin-M futures (reverse contract), Binance leverage and Binance options. Specifically, users can trade USDT-M futures and Coin-M futures directly on the Binance webpage. To trade Binance options, investors must download the Binance app. When it comes to leveraged tokens on Binance, since there is no user guide, newbies who are unfamiliar with leveraged tokens may get confused at first.
Here I chose USDT-M futures and entered the BTC/USDT futures market. As shown in the image below, the left side of the page shows current market conditions and the order book, while users can select margin models and order types on the right side of the page. On Binance, users can place 7 order types including limit, market, stop limit, etc. and choose to buy short or sell short. After opening a position, they can check open orders and transaction history at the bottom of the page.
It should be noted that users must go through KYC authentication before trading futures on Binance. Additionally, to start using Binance products and services (such as cryptocurrency deposits, transactions and withdrawals), old and new users must first go through KYC authentication.
Overall, as a globally recognized exchange, Binance offers a wide range of crypto futures and a well-designed webpage. However, there are no user guides, and users have to spend extra time learning how to trade futures on the exchange. At the same time, to trade futures on Binance, users must complete KYC authentication. Moreover, they should be careful with the platform as it has faced many user rights protection issues including candlestick chart manipulation and malicious position termination.
KuCoin’s crypto contract segment now offers leveraged futures and tokens. KuCoin’s futures page is quite similar to Binance’s – current market conditions and order book on the left, and margin patterns and order types on the right. Meanwhile, KuCoin offers a wide range of functions from contract calculators to profit taking and stop loss. However, in KuCoin, traders can only place limit/stop orders.
KuCoin offers a futures market of less than 100 USDT, indicating a lack of diversification. Additionally, assets worth $280 million were stolen from KuCoin in September 2020, marking the largest crypto hack of that year. Therefore, before joining KuCoin, investors should carefully consider the security of the platform.
All crypto contracts on CoinEx are futures contracts. Users can trade linear/inverse contracts (equivalent to USDT-M futures and Coin-M futures on Binance and KuCoin). Users can click [Futures] In the navigation bar to start futures trading.
The CoinEx Futures page is simple and straightforward, with well-defined segments. Unlike Binance or KuCoin, CoinEx offers four types of futures: limit orders, market orders, stop-limit orders, and stop-market orders. It should also be noted that CoinEx has placed the futures tutorial at the top of the order settings so that users can learn how to trade futures contracts by simply watching tutorial videos and taking quizzes. The Futures Tutorial allows users to quickly and easily start trading futures on CoinEx.
CoinEx also offers functions such as TP&SL and a contract calculator. Moreover, the platform allows users to close positions with a single click. Overall, CoinEx’s futures page is simpler and easier on the eyes than Binance or KuCoin. Additionally, CoinEx does not require futures traders to go through KYC authentication, which is more convenient for people like me who are not planning to go through KYC authentication anytime soon. To open a position and start futures trading on CoinEx, users simply log into their CoinEx account and transfer assets to the futures account.
It should be noted that CoinEx has always been considered one of the most secure platforms in the industry. The exchange has never been hacked in the last 5 years since its launch. As a trusted platform, CoinEx relies on solid product and technology as well as strong asset security.
In conclusion, after comparing the futures contracts offered by the three platforms, Binance offers a complete and professional futures segment that includes a large number of markets, but requires KYC authentication, which is bad news for traders. New or users from a country/region where KYC authentication is not allowed. In addition, Binance has experienced many scams. On the other hand, the futures products offered by KuCoin and CoinEx are both suitable for beginners, with a full range of basic functions and simple operations. However, when it comes to security and ease of use, CoinEx is the clear winner.
Caution: This article does not constitute promotional content and investment advice. Do your own research and only invest money you can afford to lose.