MEXC cryptocurrency derivatives
MEXC Global Exchange
Although there are many large exchanges with well-known and respected names that users around the world know, it is important to remember that they are not the only ones. Too often, crypto users tend to forget that there are smaller exchanges that offer just as much, and sometimes even more.
MEXC Global is a digital asset service provider known for exchanging high-performance mega-transaction matching technologies. The exchange provides real-time prices for crypto tokens such as Bitcoin BTC, Litecoin LTC and Ethereum ETH.
It has a mobile app for Android and iOS, as well as a web version and a desktop app for Windows.
Founded in 2018, MEXC crypto derivatives trading platform serves users in over 70 countries around the world. It is present on all continents, has received key licenses and passed the jurisdiction in many countries, such as Canada, Australia, Estonia and the USA.
First of all, the MEXC derivatives trading platform aims to be a user-friendly platform for both new traders and experienced investors. MEXC Global is available worldwide in 13 languages.
The MEXC Global exchange is a high performance trading engine capable of 1.4 million transactions per second. This engine was developed by experts from the banking industry, resulting in revolutionary efficiency and performance improvements.
The native MEXC token, the MX token, was first introduced in 2018 with a total supply of 1 billion. The MX token allowed users to pay trading fees at a reduced rate on the platform.
As the years went by, MX Token became more and more popular. Millions of users regularly use MX Token to reduce trading and transaction fees. In addition, users require MX tokens to participate in Launchpad, Kickstarter, M-Day, MX-DeFi, Voting, PoS Pool, and other MEXC Global products.
MX Token has become one of the most popular exchange tokens in the top 200 during 2020 (at the time of this writing in 2022 it was in #300). Since 2020, over 200,000 MX holders have received $70 million in appropriations from its operations. Early investors saw their returns exceed 400 times.
MEXC Launchpad is a program that gives users around the world the opportunity to invest in well-chosen project tokens at a low cost. It is held exclusively for MX token holders and the only requirement to participate is to have an MX token.
MEXC Kickstarter is a listing campaign where users can list tokens to vote on reaching a pre-defined goal. The listing process will be launched as soon as the goal is reached, and free token giveaways will be arranged in advance for participating users. The purpose of this event is to identify high quality projects as well as provide giveaway benefits to MEXC users.
The MEXC M-Day program is a marketing campaign in which part of the project offers several tokens at a discount. However, users who want to use the discount token must join the draw.
Users must have a MEXC account to participate in M-Day programs.
MEXC Pioneer is committed to identifying, investing, building communities around, co-selling and funding industry projects that "empower the future."
MEXC Global has a reputation for being a growth leader, especially when supported by new and visionary projects. In a few short years, he has already supported over 100 new projects. This includes supporting projects in ecosystems such as Polygon, Solana, Avalanche and Algorand in their early stages. Now these projects have become much more. MEXC Pioneer is the result of turning this support into a formula for future projects.
To mark the launch of MEXC Pioneer, it is accompanied by a $100 million growth fund to support the blockchain industry and infrastructure projects. Most importantly, those focused on NFTs, games, decentralized financial systems, and building cross-chain infrastructures.
The launch of MEXC Pioneer represents the vision of MEXC Global CEO John Chen Ju to help new ideas grow and flourish.
MEXC Pioneer aims to increase stability and trust between projects, users and investors. At the same time helping users and partners grow and prosper.
Advantages of the MEXC crypto exchange:
- Large selection of altcoins and trading pairs
- Has its own cryptography
- Standard trading fees
- High security
- High daily trading volume
- Advanced matching technology
- Ease of use of the platform
MEXC derivatives in India are represented by futures and ETFs.
Derivatives - what is it in simple words?
A derivative is an instrument, the value of which depends on or is a derivative of the underlying asset or group of assets. In essence, this is a type of contract between parties who undertake to transfer a predetermined asset (or amount of money) within a certain period and at a certain price.
The most common underlying assets in derivatives transactions are commodities, currencies, cryptocurrencies, bonds, stocks, interest rates and market indices, which are usually purchased through exchanges.
Pros and Cons of Derivatives
Advantages of derivatives:
- Reduce financial risks (hedging).
- Provide leverage as they are often purchased on margin.
- Give more room for speculative politics.
- Provide an opportunity to earn on the sale and purchase at a low cost of a derivative asset.
Cons of derivatives:
- Leverage can be negative if the price moves in the opposite direction from the position.
- Sensitivity to changes before expiration, such as the cost of ownership of the underlying asset and interest rates.
MEXC cryptocurrency derivatives in India are very popular. Below we will look at the main types of crypto derivatives traded on the platform for MEXC crypto derivatives trading
Investments in cryptocurrency are becoming more and more popular, bitcoin periodically updates price highs, there is an increase in demand for tokens that are included in the top ratings all over the world. Significant interest in cryptocurrency investments is shown by private investors from different countries. Until recently, the list of possible options for such an investment was limited to trading on cryptocurrency exchanges or buying coins through online exchangers. Currently, the list has become somewhat wider: the first ETFs for cryptocurrency have been earned on the stock exchanges.
Where Cryptocurrency ETFs Are Traded?
The United States is rightly considered a trendsetter in the segment of exchange-traded funds: the number of such assets on the American stock market exceeds their total number worldwide. Almost the same can be said about the volumes: the turnover of ETFs on US exchanges exceeds the performance of other sites at times.
However, until recently, cryptocurrency was not represented in this market segment. Despite numerous requests from managers, the Securities and Exchange Commission (SEC) was in no hurry to approve the creation of an ETF for bitcoin or other cryptoassets.
Canada became a pioneer in this direction: the world’s first exchange-traded fund for bitcoins, Purpose Bitcoin ETF, was launched in mid-February 2021 and in the first 9 days of trading raised a substantial amount of funds for management – 624 million US dollars (more than 10 thousand bitcoins at prices coins at that time).
Cryptocurrency ETFs. Advantages over direct purchase of tokens and possible risks
Stock market experts believe that the launch of cryptocurrency ETFs will allow many investors to replenish their portfolios with new assets.
The main advantages of such investments indicate:
- Regulation. If the cryptocurrency market itself is not regulated at all, then exchange-traded funds fall under the responsibility of stock market regulators. As a result, the level of trust will significantly increase, if not for the entire industry, then for individual blockchain products. Information about projects will become more accessible and understandable. In addition, when funds appear that work with other assets, investors will not face the danger of investing in openly fraudulent projects.
- Costs. When investing directly in tokens on crypto exchanges, a trading participant has to pay commissions: for converting fiat into cryptocurrencies, sending to exchange accounts, and trading operations. At the same time, the level of commissions is far from always fixed: at the time of overload of blockchain networks, it can be very high. With investments in an exchange-traded fund, everything is much simpler: the costs consist of commissions for trading operations with the fund's securities and the manager's remuneration (at the level of 0.7-1%).
- Entry threshold. Some crypto exchanges significantly limit the lower limit for the purchase of tokens. In this regard, the ETF has an added advantage. For example, the face value of BITO securities is only $40. This makes investments attractive to most private retail investors.
- No technical problems. It is technical problems that keep many people from investing in cryptocurrencies. They are not ready to start cold wallets and ensure their safety, and online wallets, including exchange ones, have already been marked by loud scandals due to the low level of reliability and periodic theft of funds placed on them. When working with exchange-traded funds, trading platforms a priori provide a standard level of reliability and safety of investments.
Important note! Some experts believe that the listed benefits are far from exhaustive. They note that an increase in the turnover of cryptocurrency ETFs will also reduce the volatility of tokens.
Traditional futures appeared almost a century ago, but cryptocurrency futures trading became available only recently, at the end of 2017. Since then, many exchanges have become interested in cryptocurrency futures, as they have opened up new opportunities for people to make crypto investments. Today, almost 6,000 cryptocurrencies are available for trading. And this definitely indicates that cryptocurrency trading is becoming more and more popular.
By futures, we mean not only one of the most traded cryptocurrency derivatives. The futures category covers many established derivatives instruments.
People often confuse futures and options. Therefore, before embarking on futures trading, an investor should arm himself with the necessary knowledge about asset trading and be aware of the associated risks.
What are cryptocurrency futures?
With cryptocurrency futures, traders gain access to digital currencies without having to own a real asset.
The tool resembles stock indices or futures contracts for commodities – when an investor can take on the risks of the cryptocurrency value. In accordance with the agreement, the trader uses cash, but does not trade in cryptocurrency in the truest sense of the word.
Trading contracts represent a value equivalent to a particular cryptocurrency. And, as we said, when trading futures, you don't own digital assets.
The main feature of cryptocurrency futures trading is the ability to protect against negative price changes and extreme volatility of cryptocurrencies, be it bitcoin or ether.
The high volatility of digital currencies allows traders to buy assets at low prices, putting them up for sale when the value rises, and vice versa.
Cryptocurrency futures trading is available on derivatives trading platforms. For example, MEXC cryptocurrency derivatives trading platform. Trading in cryptocurrency futures, like spot trading, is conducted around the clock.
Traders should carefully manage risk due to the high volatility of derivatives trading. In addition, it is extremely important to learn the fundamentals of cryptocurrency futures before investing in them.
How are cryptocurrency futures arranged?
Trading digital assets comes with a set of unique challenges ranging from high volatility to a negative image in a number of countries. However, some traders use volatility to their advantage.
The main feature of such trading is that your risks are associated solely with changes in the price of the cryptocurrency and you do not actually own the asset.
Leverage is another important element of futures trading. And also - a significant reason to start trading futures.
Basic Concepts of Cryptocurrency Futures Trading
The complexities of trading cryptocurrency futures require a thorough study of the basics, including the mechanisms of influence on each transaction. If you want to become experts in trading cryptocurrency futures, you need to be familiar with the basic concepts of the market. With this knowledge, you will be able to approach the status of a professional trader.
Leverage is often what makes the futures market so attractive to traders. Leverage allows you to use capital in the futures market with maximum efficiency. For example, to buy 1 BTC in the spot market, you will need several thousand dollars, depending on market prices. A futures contract will give you the opportunity to open a bitcoin futures position for a fraction of the cost. This is made possible through the use of leverage. The more leverage, the less own money you need to invest in a position. Leverage is not available in spot trading. If you have $5,000, then you can only buy $5,000 worth of bitcoin.
How to trade on the MEXC exchange?
It is easy to start trading MEXC crypto derivatives in India, there is a convenient training on the platform.
How to register?
- Click "register" in the upper right corner of the page.
- Next, a window will open prompting what you can do next: activate 2 FA, verify your identity, make a deposit.
That's all, you are ready for MEXC derivatives trading.
Get started and you'll be fine!