Choosing a cryptocurrency exchange is not as easy it is made out to be. Before putting our funds in an exchange, it is important to do some due diligence and check if an exchange is reliable enough.
While there are a lot of cryptocurrency exchanges in the market, there are relatively fewer exchanges that offer leveraged contracts in Bitcoin. BitMex or Bitcoin Mercantile Exchange is one such peer to peer trading platform. Another platform, Delta Exchange, has also been making ripples in the same field.
A few months ago, BitMex said it was “undergoing maintenance” after it tweeted out that it had been a victim of a “DDOS attack.” A Medium article posted by a trader highlighted the discrepancies in the subsequent tweets that the exchange sent out. The tweets sent in quick succession said that the exchange would first resume trading services by 1:30 PM UTC, then said it had been pushed back to 1:35 PM and then to 2 PM , which gave out the impression, that it was not very consistent with timings.
Defending its maintenance it had said, “Services are back to normal. Combination of DDoS and price action caused heavy load on data mirrors. Trading and marketdata feed response times remained normal while data fetches were slow. We are scaling that system and moving it out of the critical path of login.”
In the midst of all this chaos, Delta has appeared on the scene like a messiah. However, we need to ask ourselves this question: Is Delta truly better than BitMex?
Like Bitmex, Delta is also a cryptocurrency derivatives exchange. At the moment, they offer Futures contracts on BTC, ETH, XRP and XLM, with the maximum allowed leverage of 100x. The BTC and XLM Futures are settled in bitcoin and the rest of the contracts are margined and settled in USDC (the stablecoin launched by Goldman Sachs backed Circle).
Delta is currently the only crypto derivatives exchange to have support for stablecoin. Traders can easily convert their non-trading balances to USDC and get protection against market volatility. Moreover, the exchange has recently launched stablecoin settled futures contracts.
Pankaj Balani, the Chief Executive Officer (CEO), of Delta announced the launch of the world’s first Bitcoin futures settled in stablecoin (USDC). He said, “We explored offering StableCoin futures, which will be quoted, margined and settled in USDC. We chose USDC because of the strong names behind it, its growing traction and clean image. This still doesn’t cut-it though, because there is not enough volume in USDC pairs on spot exchanges. BTC-USDC pairs trade less than 10Mn USD a day on top spot exchanges together. We wanted the underlying to be fairly liquid and represent the true price of Bitcoin-USD.”
BitMex as well as Delta charges, 0.075% as taker fee and -0.025% as maker fee for bitcoin futures. For Ethereum, Delta charges -0.05% of the maker fees and 0.25% as taker fees. For other cryotocurrency futures such as XRP and XLM, the maker and taker fees are the same as Ethereum. For the uninitiated, a negative fee implies that the trader would receive a rebate.
BitMex as a relatively more established brand offers futures of different coins such as XBT Futures, XBT Perpetual, ETH Futures, ETH Perpetual, LTC Futures, XRP Futures, TRX Futures, EOS Futures, ADA Futures, Bcash Futures. However, Delta isn’t too shabby as it offers BTC, ETH, XRP and XLM, as mentioned above.
To be perfectly candid, BitMex’s strengths are its user interface and the sheer volume of its liquidity. Delta on the other hand, focuses on customer focus, tech leadership and financial innovation. It also boasts of as sturdy security system. In its own words, it offers, “Strong risk management. Enterprise-grade multi-factor security for digital assets.”
In conclusion, both exchanges appear to be evenly matched against each other. Although at this point, despite BitMex’s reputation having taken a hit post August, it can’t be denied that it is still the numero uno. It is however, prudent to say, given time and liquidity, Delta could emerge as a strong rival.
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