Disclaimer: The following text is an advertorial article not written by Cryptonews.com journalists.
Before we get started, let’s first have a look at the background information: As a beginner investor who just got into the crypto industry and has tried entry level products like spot trading on several exchanges, I am now planning to venture into the futures market and make more profits Trading futures. Today, let’s look at how I opened a futures position on three crypto exchanges (Binance, KuCoin, and CoinEx) and which platform offers the best features (PS: personal experience & for reference only).
I.Binance
Let’s start with Binance’s Futures segment, which mainly consists of crypto futures, including USDT-M Futures (linear contracts), Coin-M Futures (inverse contracts), Binance Leveraged Tokens, and Binance Options. More specifically, users can trade USDT-M futures and Coin-M futures directly on the Binance website. However, in order to trade Binance options, investors must also download the Binance app. Since Binance Leveraged Tokens has no instruction manuals, beginners who are unfamiliar with leveraged tokens might get confused right from the start.
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 long or sell short. After opening a position, you can check open orders and trading history at the bottom of the page.
It should be noted that users must go through KYC authentication before trading futures on Binance. In addition, both old and new users must first complete KYC authentication in order to start using Binance products and services (e.g. crypto deposits, trading and withdrawals).
Overall, as the world’s leading crypto exchange, Binance offers a full range of crypto futures and a well-designed website. However, there are no instruction manuals and users have to spend extra time to learn how to trade futures on the exchange. At the same time, users must complete KYC authentication to trade futures on Binance. Moreover, they should also be careful with the platform as it has faced many issues in protecting user rights, including candlestick chart manipulation and malicious liquidation of positions.
II. KuCoin
KuCoin’s crypto contracts segment now includes futures contracts and leveraged tokens. KuCoin’s futures page is quite similar to Binance’s – the current market conditions and order book are on the left, and the margin model and order type are on the right. Meanwhile, KuCoin also offers a wide range of functions ranging from contract calculator to take profit & stop loss. However, traders can only place limit/stop orders on KuCoin.
KuCoin offers fewer than 100 USDT margined futures markets, indicating a lack of variety. Additionally, assets worth $280 million were stolen from KuCoin in September 2020, making it the biggest crypto hack this year. Therefore, investors should carefully consider the security of the platform before joining KuCoin.
III. CoinEx
On CoinEx, all crypto contracts are futures. Users can trade linear/inverse contracts (the equivalent of USDT-M futures and Coin-M futures on Binance and KuCoin). Users can click [Futures] in the navigation bar to start futures trading.
CoinEx’s futures page is simple and straightforward, with clearly outlined 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 has placed the futures tutorial at the top of the order settings to help users learn how to trade futures by simply watching the tutorial video and completing the quiz. The futures tutorial allows users to start trading futures on CoinEx quickly and conveniently.
CoinEx also offers features like TP & SL and a contract calculator. In addition, the platform allows users to close positions with one click. Overall, CoinEx’s futures side is simpler than Binance or KuCoin and easier on the eye. Additionally, CoinEx does not require KYC authentication from futures traders, which is more convenient for people like me who are not planning to perform KYC authentication in the near future. To open a position and start trading futures on CoinEx, users just need to log into their CoinEx account and transfer assets to the futures account.
It is worth mentioning that CoinEx has always been considered a highly secure platform in the industry. The exchange has never been hacked in the last 5 years since its inception. As a reassuring exchange, CoinEx is backed by strong products and technology and enhanced asset security.
In summary, after comparing the futures provided by the three platforms, Binance offers a comprehensive, professional futures segment that covers a large number of markets but requires KYC authentication, which is bad news for beginners or users in one country/region with KYC authentication is not allowed. In addition, Binance has suffered many scandals. On the other hand, the futures products offered by KuCoin and CoinEx are beginner-friendly, with a full set of basic features and ease of use. But when it comes to security and ease of use, CoinEx is the clear winner.
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