On Friday the 29th of November 2019, Binance announced that Ethereum leverage contracts would be coming to the Binance Futures platform with up to 50x leverage available to traders. The recent addition of Ethereum comes at no suprise to the Binance community as the platform has made a very heavy impact on the derivatives sector as a whole. Competitors like ByBit and FTX continue to power forward with their own features and Binance looks like it’s making up for lost time.
Despite Binance being relatively new to the futures scene launching their product in September 2019, they’ve made a relatively big impact on the industry in terms of volume traded with just over $1.3 Billion in USD value traded over the past 24 hours at the time of writing (CoinGecko). Bitmex reigned king for a time while platforms before Deribit, ByBit and FTX started to provide cleaner user experiences and more feature-rich trading for their customers. Binance appears to have taken their time to analyze their competitors in an attempt to have a more flawless launch and avoid ending up like the numerous failed derivatives platforms we’ve seen rise and fall over the past year or two.
While derivatives platforms are inherently more risky to inexperienced traders due to the allure of high leverage contracts where Traders can multiply not only their winning but their losses in a short amount of time, Binance has taken a more conservative approach to their platform in what could be described as a protective measure to avoid people getting liquidated on high leverage contracts, slowly increasing the leverage allowed and releasing educational material to explain the dangers around using high leverage. Ethereum contracts will start with 50x leverage but that limit could be increased in the future as more volume pours in.
What’s next for Binance Futures? We can only assume Altcoins such as Ripple (XRP), Cardano (ADA) and EOS (EOS) are on the way as they’re extremely popular on other futures platforms. Again, Binance seems to be moving a bit slower than the rest but we’re expecting Q1 2020 to be a big growth period for the Binance Futures platform as a whole.
About Binance – Binance is a blockchain ecosystem comprised of several arms to serve the greater mission of blockchain advancement and the freedom of money. Binance Exchange is the leading global cryptocurrency exchange by trading volume, with users from over 180 countries and regions.