The crypto industry has evolved dramatically over the last few years with growing crypto adoption fuelled by their recognition as an important asset. One of the factors that catalyzed this process was the entry of crypto derivatives in the market. Bitcoin derivatives opened more doors for investors, and today, space has a market cap of over $250 Bn.
What are crypto derivatives?
Crypto derivatives are financial assets whose value is derived from underlying crypto assets. The crypto asset can be bitcoin or altcoins. There are two main types of crypto derivatives in the existing market – futures contracts and perpetual contracts.
In a futures contract, a trader agrees to buy or sell a specific crypto asset at a predetermined price at a specified time in the future. A trader goes long crypto futures when she believes that the price of the underlying crypto will go up. Conversely, a trader will short crypto futures when she believes that the price of the underlying crypto will go down.
The advantages of futures are two-fold:
- traders can go both long or short and thus make money in both rising and falling markets, and
- Futures have in-built leverage, which means the size of the trader’s position could be several times the amount of capital she has.
Futures contracts have fixed maturities. This means that traders have to reinitiate their positions whenever a futures contract expired. Perpetual contracts solve this problem. The perpetual contract never expires. Therefore, traders can hold their positions for as long as they like.
Delta Exchange’s Unique Offering
A little over two years, when the crypto market was experiencing an explosion of new coins, Binance was launched. Binance disrupted the crypto market by enabling crypto enthusiasts to invest in tokens of promising new projects. This helped Binance become the go-to exchange for altcoin trading. Now, Delta Exchange is poised to become the Binance of the emerging crypto derivatives market, by pioneering altcoin derivatives.
Delta is focused on making crypto derivatives easily available to investors, both beginner and advanced. It not only offers Bitcoin derivatives but altcoin derivatives as well. In a very short amount of time, Delta Exchange has established itself as a secure derivatives exchange with a healthy customer base.
What differentiates Delta exchange from other exchanges is its product offerings consisting of derivatives based on altcoins. While BitMex and Deribit, the early entrants in the cryptocurrency derivative platform have conventional contracts based on BTC, XRP and LTC, Delta Exchange, offers its traders an array of perpetual contracts to participate in. Its offerings include products based on ATOM, Tezos, RVN, and BAT, a few of which are exclusive to Delta.
Delta exchange has understood and has been responsive towards traders’ interests in the listing of new perpetual altcoins. It currently offers futures and perpetual contracts on Bitcoin & 13 altcoins. Its existing offerings include BTC – USD Futures, BNB – BTC Perpetual, BAT – BTC Perpetual, XTZ – BTC Perpetual, LEO – USD Quanto Perpetual, XLM – BTC Perpetual, ATOM – BTC Perpetual and LINK – BTC Perpetual. This makes Delta Exchange a one-stop-shop for traders who are looking to long /short these contracts with the use of leverage.
Delta Exchange’s Robust Security and Other Features
What sets Delta apart from its peers is how well it can combine the challenges of high volatility, limited spot liquidity, and leverage of the available altcoins. Here’s why traders prefer it –
- No glitch since inception – It has been up and running for over a year and the system, which is backed by a great tech engine and strong risk management system, has not seen any glitches.
- Leverage Trading – Derivatives have built-in leverage. This means that a trader can take positions that are several times bigger than capital. The futures and perpetual contracts allow up to 100x leverage. Moreover, traders have the ability to go both long or short.
- Bitcoin and USDC settlement – A trader can enter into a futures or perpetual contract on an altcoin without actually owning the altcoin. On Delta Exchange, all derivative contracts are leveraged and settled in BTC or USDC. This makes lives of traders quite simple as they need to have only BTC or USDC to speculate in a number of coins. Moreover, they can convert their BTC balances to USDC and protect themselves against market down-moves.
- Active Customer Support – Many traders have praised Delta Exchange for the active, prompt, and helpful customer support that it provides to its traders. Delta Exchange has not failed on its back end and has been able to resolve queries promptly.
- Promotional Offers – It has always been active on the promotional end giving out attractive offers either through references or giveaways on their social media platforms. Recently, it offered 50% fee payback offer on their exchange. They currently also offer $10 Welcome Bonus to new users. Complete details about these offers can be found here.
Delta has very attractive trading fees for users. They range between 0% to 0.01%. The withdrawal fees are also very reasonable, the maximum being 0.1%. Here’s the complete fee schedule –
Delta Exchange’s Products Enjoy a Healthy Trading Volume
Getting trading volume is one of the major challenges faced by the most new exchanges. However, Delta Exchange, with its innovative products, marketing strategies, and attractive offers, has garnered a healthy trading volume in a short duration of time, and it will only grow in the future.
At press time, Delta Exchange’s BTCUSD perpetual contracts have a 24-hour trade volume of $829,670, XTZBTC trading volume stands at $146,111, LTCUSDQ at $93,010, BNBBTC at $85,136 and LINKBTC at $75,760.
Three Simple Steps to Start Trading on Delta Exchange
Trading on Delta Exchange is simple and efficient. It has a user-friendly and intuitive interface, which makes the website suitable for both new and advanced traders. Here’s how you can begin to trade on Delta exchange –
Create your wallet
- Go to the Delta Exchange website – https://www.delta.exchange. Click on the “SignUp” tab in the top right corner of the page.
- Fill in your full name, email address, phone number (optional), country and reference id (optional).
- Click on the “Sign Up” button.
- Complete the email verification and then log into your account.
1.Login to your account with your email id and password.
- Go to “My Wallet”. Select your preferred coin from the list ,and then click on the “Deposit” button.
- Copy your DeltaExchange deposit address and make your deposit to the given address. Note that some coins have a minimum deposit amount.
Buy or Sell Orders
- Go to the Delta Exchange website (https://www.delta.exchange/app/markets) and log in with your email and password.
- On the trading portal, you will see the price chart on the left-hand side. On it right, you have the order book, followed by the order placement section. The contract that you wish to trade can be selected from the drop-down list that opens when you click on the box next to the Delta Exchange logo in the top left.
- Once you have selected the desired contract, you can first analyze the order book and then place your order. For placing an order, in addition to specifying the order size and limit price (only for limit orders), you’d also need to select the preferred order leverage.
Delta Exchange comprises of a set of highly skilled and experienced individuals. The founding team has a strong grip on the derivatives market because of the members’ background in executive positions in companies including Citigroup and UBS. They have also co-founded companies that were backed by marquee VCs such as Sequoia and that scale to millions of users.
Delta Exchange has been live for over a year now and it has maintained and grown its customer base. Now, it is looking to introduce new products such as options and interest rate derivatives. The new products will attract more customers and give a boost to the trading volume on the exchange.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com