Before we get started, let’s first check out the basics: As a novice 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 features. (PS: personal experience and for reference only)
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 website. To trade Binance options, investors must also download the Binance app. When it comes to leveraged tokens at Binance, as there is no user guide, beginners 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 the current market conditions and order book, while users can select the margin model and order type on the right side of the page. At 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 undergo KYC approval before trading futures on Binance. In addition, old and new users must first undergo KYC approval to begin using Binance products and services (e.g., cryptocurrency deposits, transactions, and withdrawals).
Overall, Binance, as a globally recognized exchange, offers a comprehensive range of Crypto Futures and a well-designed website. However, there are no user guides and users need to spend extra time learning to trade futures on the stock exchange. At the same time, users must complete KYC approval to trade futures on Binance. In addition, they should be careful with the platform as it has faced many issues of protection of user rights including manipulation of candlestick chart and liquidation of malicious positions.
KuCoin’s cryptocurrency segment now offers leveraged futures and tokens. KuCoin’s futures page is quite similar to Binances – current market conditions and order book are on the left, and margin pattern and order type are on the right. Meanwhile, KuCoin also offers a wide range of features, from contract calculator to profit taking and stop losses. But on KuCoin, traders can only place limit / stop orders.
KuCoin offers less than 100 USDT-margined Futures markets, indicating a lack of diversity. In addition, $ 280 million worth of assets were stolen from KuCoin in September 2020, marking the largest cryptocurrency hack that year. Therefore, before joining KuCoin, investors should carefully consider the security of the platform.
At CoinEx, all cryptocurrencies 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.
CoinEx’s 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 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. Futures Tutorial allows users to start trading Futures on CoinEx quickly and easily.
CoinEx also offers features such as TP&SL and a contract calculator. In addition, the platform allows users to close positions with a single click. Overall, CoinEx’s futures side is simpler than Binances or KuCoins and easier on the eye. In addition, CoinEx does not require Futures traders to undergo KYC approval, which is more convenient for people like me who do not plan to undergo KYC approval anytime soon. To open a position and start trading futures on CoinEx, users simply log in to their CoinEx account and transfer assets to the futures account.
It should be mentioned that CoinEx has always been considered an extremely secure platform in the industry. The stock market has never been hacked in the last 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 covers a large number of markets but requires KYC approval, which is bad news for traders, beginners or users in a country / area 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 features and easy operations. But 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 invest only the money you can afford to lose.