Aaron Gong, vice president of futures at major cryptocurrency substitution Binance, explained to Cointelegraph how the firm managed to become one of the pinnacle crypto futures trading platforms.

As Cointelegraph reported earlier this week, Binance recently overtook BitMEX and became the 2nd-largest platform in terms of 24-hour Bitcoin (BTC) futures trading volume. When asked whether he is surprised by such success, Gong said that the firm created the product with the plan of becoming the top Bitcoin futures trading platform:

"Nosotros knew we would be there soon, and we fabricated information technology in slightly more than than half-dozen months' time."

The reasons for Binance's futures success

According to Gong, the 3 chief reasons backside the success of Binance'southward futures products are the low taker fees, new features and a large amount of altcoin pairs. He said that too many exchanges offer negative maker fees:

"Too many other exchanges offering negative maker fees, where most orders are simply computerized market makers competing for best bid and enquire with extremely limited taker interest during periods of low-volatility."

Gong as well said that innovation also drives trading volumes when it comes to Binance's futures. He claimed that the exchange has had a few firsts when it comes to the crypto futures market:

"We are the start major crypto exchange to launch max 125X leverage for BTC contracts, and the first of its kind to launch cross collateral and smart liquidation mechanism. These features have gained tremendous popularity amid our users."

The third reason for the success of Binance's futures contracts, Gong explained, is the number of altcoin contracts. He said that the firm launched 24 futures contracts on the platform, calculation:

"As of today, Binance Futures houses half of the top x nigh liquid altcoin contracts, many of which are as well the almost traded pairs amidst all futures exchanges."

Binance's primal to future success

Gong's strategy to drive the volume of futures contracts on Binance is to continue bringing more functionalities and products to the industry. He said that he believes Binance has outdone its competitors, as other crypto trading platforms suffered problems such as overloads, poor risk management, and counterintuitive product designs. He explained that Binance's blueprint was largely driven by user's complaints well-nigh other platforms:

"We specifically aimed to address these bug and amend the users' experience. As such, nosotros put tremendous efforts to build an manufacture-leading matching engine that is able to procedure more than than 100,000 orders per 2nd. [...] Whilst there were issues of organization overloads, outages, glitches, and even rollbacks elsewhere, we've proven time and again to be a safe, reliable, cheap and liquid venue for hedging."

It is worth noting that Binance'due south trading platform ran into a number of issues in February. On February. 19, the exchange halted trading to resolve an unexpected technical issue with its infrastructure.

Every bit a Feb. 25 Cointelegraph assay illustrated, this incident took place after a week in which the platform was often unresponsive to trader input as the substitution was unable to manage a big uptick in user book.

In early March, Binance halted trading again to prepare a malfunction. The exchange'south co-founder and CEO Changpeng Zhao purportedly blocked Jay Hao — the CEO of competing exchange OKEx — on Twitter, subsequently he publicly offered to help ready the infrastructure.

However, Gong said that the malfunctions did non touch on Binance's futures trading infrastructure and that futures traders were not affected:

"Our futures system has been proving to exist performing well during the most volatile period since we launched. The futures marketplace is running on a separate matching engine."