The User Experience of Futures Trading on Three Cryptocurrency Exchanges

Before we start, let’s check the basics first: As a newbie investor who just joined the crypto industry and tried entry-level products like spot trading (Spot) on several exchanges, I now plan to venture into the futures market (Futures) and earn more profits by trading Futures. Today let’s see how I opened a position on three exchanges (Binance, KuCoin and CoinEx) and see which platform offers the best functions. (PS: personal experience and for reference only)

I. Binance

Let’s start with Binance’s futures segment, which mainly covers cryptocurrency futures, including USDT-M futures (linear contracts), Coin-M futures (inverse contracts), tokens with 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 also download the Binance app. When it comes to leveraged tokens on Binance, since there is no user guide, novices who are unfamiliar with leveraged tokens might 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 the current market conditions and order book, while users can select the margin model and order type on the right side of the page. On Binance, users can place 7 types of orders, 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 (e.g. cryptocurrency deposits, transactions, and withdrawals), old and new users must first undergo KYC authentication.

Overall, as a globally recognized exchange, Binance offers a comprehensive 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 a lot of user rights protection issues including candlestick chart manipulation and malicious position liquidation.

II. KuCoin

KuCoin’s crypto contracts segment now offers leveraged futures and tokens. KuCoin’s futures page is quite similar to Binance’s – current market conditions and order book are on the left, and margin pattern and order type are on the right. Meanwhile, KuCoin also provides a wide range of functions, ranging from contract calculator to take profit and stop loss. However, on KuCoin, traders can only place limit/stop orders.

KuCoin provides less than 100 USDT-margined Futures markets, indicating a lack of diversity. Additionally, assets worth $280 million were stolen from KuCoin in September 2020, which marked the largest crypto hack that year. Therefore, before joining KuCoin, investors should carefully consider the security of the platform.

III. CoinEx

On CoinEx all crypto contracts 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 trading Futures.

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 placed the Futures Tutorial at the top of the order settings to help users learn how to trade futures contracts by simply watching the tutorial video and taking the quiz. The Futures Tutorial allows users to start trading Futures on CoinEx quickly and easily.

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 than Binance’s or KuCoin’s, and easier on the eye. Additionally, CoinEx does not require Futures traders to go through KYC authentication, which is more convenient for people like me who are not planning on going through KYC authentication anytime soon. To open a position and start trading futures on CoinEx, users simply need to log into their CoinEx account and transfer assets to the futures account.

It should be mentioned that CoinEx has always been considered an extremely safe platform in the industry. The exchange has never been hacked in the past 5 years since its inception. As a reassuring platform, CoinEx relies on solid products and technologies, 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. beginners or users in a country/region where KYC authentication is not allowed. In addition, Binance has experienced many scandals. On the other hand, the futures products provided by KuCoin and CoinEx are both suitable for beginners, with a full range of basic functions and easy operations. However, when it comes to security and ease of use, CoinEx is the clear winner.

Warning: This article is promotional content and does not constitute investment advice. Do your own research and only invest the money you can afford to lose.

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