The Red Ocean of the Derivatives Market: How Gate.io Stands Out
In Brief
The cryptocurrency market experienced significant growth in 2024, driven by Bitcoin’s ascent and altcoin boom, with derivatives trading accounting for over 70% of 24-hour trading activity.
The cryptocurrency market looks back on a year of tremendous change and expansion as 2024 comes to a year. The industry’s quick development has been driven by the strong ascent of Bitcoin and the boom of altcoins. In the midst of a turbulent year, the spot market has appeared to be slowing down, while the number of traders in derivatives has increased. The worldwide contract market’s transaction volume has been continuously rising, and derivatives currently make up over 70% of the 24-hour overall trading activity, according to the most recent market statistics. As a result, the main arena for exchanges fighting for market supremacy is derivatives trading.
Derivatives are getting more and more standardized as more exchanges enter this market. The critical question for exchanges is how to attract new user funds and enhance user retention. What are the key strategies to capture and retain customers? Which exchange excels in the finer details and can take the lead?
The Matthew Effect in Full Force: Gate.io’s Success in Derivatives Breakthrough
In the derivatives market, the Matthew Effect—a a winner-take dynamic where the strong become stronger and the weak get weaker—is now clearly visible. Over the last six months, this pattern has been more obvious. The first quarter of 2024 witnessed a consistent trend in the amounts of derivatives trading, according to statistics from TokenInsight. However, trading volumes in the derivatives market increased dramatically, leading to a market breakthrough, as a result of the adoption of ETFs and crypto-friendly regulations backed by former President Trump.
In contrast, the number of contract trading users rose by 135.38%, according to official statistics from Gate.io. These numbers demonstrate how quickly Gate.io’s derivatives business has expanded over the last 12 months, drawing a sizable user base worldwide. Notably, Gate.io’s derivatives products showed impressive growth velocity in the Asian market. Gate.io has experienced tremendous growth in the number of active users and trade volume in the area thanks to improved market operations and regional product enhancements.
How did Gate.io, long ranked among the top three exchanges due to its strong position in the spot market, successfully establish itself in the derivatives space in such a short time? Beyond its decade of experience as an exchange, robust market depth, and liquidity, the keys to its breakthrough lie in its innovative derivatives products, comprehensive risk control systems, and meticulous user experience optimizations. As Gate.io has demonstrated, refined details in derivatives product design are what determine a platform’s competitive edge in the derivatives market.
From Product Innovation to Leading Depth and Liquidity
Gate.io’s product innovation is directly linked to the derivatives trading platform’s explosive development. The platform’s derivatives features have been systematically improved, with a focus on both product diversity and function optimization. This guarantees that each customer may take advantage of a convenient and customized trading experience.
With more than 600 small-cap contracts accessible, Gate.io is now among the platforms providing the largest selection of derivatives. Due to this, it has become a well-rounded trading center that can accommodate a range of investment requirements, making it an excellent option for novices who want to trade small-cap derivatives. Users may access a wider variety of investment opportunities through small-cap contracts. They can also explore new options even in tumultuous markets by utilizing accurate market research and adaptable trading tactics.
Perpetual contracts, the most detail-oriented product in derivatives trading, showcase Gate.io’s exceptional innovation and risk control mechanisms.
Innovative Risk Control Mechanisms
One of the biggest challenges in contract trading is the risk of liquidation. To address this, Gate.io has implemented multiple innovative risk control mechanisms. Users can flexibly set stop-loss and take-profit levels to avoid uncontrollable losses caused by market volatility. Additionally, Gate.io’s intelligent risk control system leverages big data to monitor market trends in real-time, dynamically adjusting leverage ratios to ensure a safer trading environment.
Flexible Leverage Options
Gate.io offers highly flexible leverage settings, ranging from 1x to 100x, allowing users to choose leverage based on their risk tolerance and market analysis. This precise leverage customization enhances the usability of Gate.io’s products and provides a personalized trading experience, enabling users to maximize their advantages in contract trading.
High-Performance Trading Engine
Gate.io has optimized its trading engine to ensure real-time performance and efficiency in contract trading. The platform’s matching system can handle millions of transactions per second, ensuring smooth operations even during periods of high market volatility. Additionally, by reducing latency through architectural optimizations, Gate.io delivers a seamless and responsive trading experience.
Depth and Liquidity: The Key Advantages
Gate.io’s market depth and liquidity are critical to its leadership in the competitive contract market. According to recent data, Gate.io ranks Top 2 in contract market depth globally. Notably, in BTC contracts, Gate.io ranks Top 1, providing users with significant trading advantages. This depth ensures that every trade is executed swiftly and smoothly, minimizing slippage caused by market fluctuations.
Gate.io’s strong depth and liquidity, combined with its innovative product design, establish its position as a leader in the derivatives market, delivering unparalleled trading experiences for users.
Whether for large single trades or high-frequency transactions, Gate.io’s depth and liquidity ensure that users can execute trades at prices close to the market rate, significantly reducing costs caused by market impact. The platform’s exceptional liquidity allows users to seize more trading opportunities in fast-moving markets while avoiding profit losses due to price slippage. At Gate.io, depth reigns supreme, and liquidity comes first. Users benefit from more precise trade execution and reduced slippage risk. Whether you are a beginner or a professional trader, Gate.io provides a first-class contract trading experience, helping you navigate the market steadily and enjoy efficient, accurate trading.
The booming derivatives market is unlikely to slow down due to increased competition. Instead, it will push exchanges to continuously improve their product quality and service levels. In this increasingly competitive environment, Gate.io has won widespread user support through refined product design, comprehensive risk control measures, and exceptional user experience, establishing itself as a force to be reckoned with in the derivatives market. Looking ahead, the path to success for trading platforms lies in a deep focus on product innovation, as demonstrated by Gate.io.
Disclaimer
The content herein does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. Please be noted that Gate.io may restrict or prohibit the use of all or a portion of the Services from Restricted Locations. For more information, please read the User Agreement via https://www.gate.io/zh/user-agreement.
Disclaimer
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
More articlesVictoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.