The iPhone moment for crypto? How futures trading could change everything

Just as the iPhone transformed the tech industry, futures trading could redefine the crypto market by bringing stability, transparency, and broader participation.

When Steve Jobs first introduced the ‘iPhone’ to the world in 2007, he called it revolutionary. While ‘revolutionary’ might be the most overused word in the tech space today, the iPhone was indeed revolutionary. It transformed not just Apple’s business but the entire tech industry and, arguably, all of our lives. 

If we were to analyze matters from a purely business perspective, the iPhone catapulted Apple’s revenue from $19.3 billion in 2006 to $215.6 billion in 2016. In the nearly twenty years since its release, Apple has sold over 2.3 billion iPhones and boasts over 1.5 billion users. 

But the iPhone is not just a successful product; it’s a transformative one. In an interview with CNBC, Gene Munster at the Asset Management firm Deepwater says this about the iPhone: The App Store allowed your phone to become a lot more. He states this as the reason behind the iPhone’s market takeover at a time when Nokia was seen as unbeatable. 

In a similar fashion, experts now believe that futures trading could transform the crypto space. Crypto trading is known for its ability to offer massive returns. However, this promise comes with high volatility and regulatory uncertainty. Futures trading could change this aspect of the crypto industry. By providing more stability, transparency, and liquidity, futures trading allows crypto trading to become a lot more. 

Let’s take a deeper look at how futures trading can transform the crypto space and how firms like BingX can play a major role in shaping the future of crypto.

What is futures trading and how can it transform crypto?

Before we discuss the role of futures trading in crypto, let’s have a quick refresher on what futures trading is. Futures trading is a type of Derivatives trading. Derivatives trading allows traders to profit from the price movements of assets without having to own them directly. Futures are a type of derivative contracts that allow investors to buy or sell an asset at a future date at an agreed-upon price. 

Here’s an example to help readers understand futures trading better. Say a trader predicts Bitcoin’s price to rise in the next month. Instead of buying Bitcoin directly, they enter a Bitcoin futures contract, agreeing to buy 1 BTC at $90,000 in 30 days. If Bitcoin’s price rises to $95,000, they still get to buy it for $90,000, making a $5,000 profit. If Bitcoin drops to $85,000, they still have to buy at $90,000, meaning a $5,000 loss. 

Futures trading exists in all markets, such as stocks and commodities. Traders can buy futures on commodities like coffee or stock indexes like the S&P 500. 

But how do derivatives like futures trading benefit the crypto industry? Futures trading allows investors to gain access to the market without owning assets, which makes it easier for more people to participate in the space. This ease of accessibility can lead to higher trading activity and possibly bigger profits for investors.

Futures trading also tends to attract more institutional players since it is a regulated and structured way to get crypto without directly holding digital assets. This process tends to attract more risk-averse players. And more institutional investors means more stability and deeper market participation.

So, now that we know that futures could transform the crypto market, who do we turn to for expert guidance?

What BingX brings to the table 

BingX is a leading global cryptocurrency exchange serving over 20 million users worldwide. The trusted platform has recently unveiled its newly designed futures trading page. This move highlights BingX’s strategic commitment to futures trading. 

A reflection of its growth and appeal, BingX was recognized by CoinGecko and Coinglass as among the world’s top five derivatives platforms in 2024. This ranking highlights not just BingX’s impressive trading volumes but also its strategic brand evolution, adherence to market trends, and inventiveness.

Addressing BingX’s expansion into the futures trading space, Chief Product Officer & Head of BingX Lab Vivien Lin stated: “BingX’s rise to a top-tier position is a testament to our dedication to providing superior trading experiences. We are significantly increasing our investment in futures to further solidify our strategic position within the industry.”

An interesting feature of BingX’s futures trading is that it provides access to the latest and most popular coins, even trending meme tokens. In addition, BingX offers both perpetual futures and standard futures. For context, perpetual future contracts have no expiration date, while standard futures contracts have a set expiry date. 

BingX’s features do not end here. For more advanced traders, BingX also provides specialized trading tools such as grid trading and dollar-cost averaging (DCA). And, through the Guaranteed Price Feature, users can execute trades at preset prices without worrying about slippage, even during periods of market volatility. Plus, the Dual Price Mechanism protects users from unfair liquidations by validating prices through a reliable dual-price system.

The platform also focuses on enhancing the user experience at every turn. In addition to all the above, the project even makes sure traders at all levels of expertise can navigate the platform with ease through step-by-step tutorials and beginner guides.

Conclusion

Today, it’s hard to believe that before the iPhone, the phone was merely a device to make calls. The iPhone transformed the way humans communicate and interact with each other and technology. This is what futures trading could do to the crypto space. There may be a time in the distant future when investors think back to this time in crypto’s history and think about how monumental futures trading was. Futures trading could be the foundation of a more stable crypto market, and BingX is paving the way to this exciting future.