Phemex Cryptocurrency Derivative Exchange: What Makes it Special?

Last week’s Bitcoin Futures trading volumes clearly indicated the crypto derivatives market is on its way to explosive growth. Phemex is aiming to be at the forefront.

As a highly-sophisticated cryptocurrency derivatives exchange, Phemex is a project led by former Morgan Stanley Executives. Post its 25^th Nov 2019 launch, the exchange has attracted close to 35000 users, and an impressive maximum trading volume of $400 million.

Aggressively competing against the cryptocurrency derivative exchange leaders, Phemex is an exchange promising higher performance and reliability.

Why Phemex?   

The former Morgan Stanley Executives felt the cryptocurrency market was missing something crucial. With extensive experience from the traditional finance sector, the leaders eyed the gaps quickly. And it was the lack of a user-oriented approach and trustworthiness for both retail and institutional investors that urged them to build Phemex.

Source: Phemex.com

Phemex CEO Jack Tao believes currently cryptocurrency derivatives market is supported by exchanges that complicate the derivatives trading. Especially for retail traders who feel derivative trading is complex and risky territory. And this helped set the design criteria for Phemex.

Is Phemex easy to use?

Built with a completely user-centric approach, Phemex claims to minimize the entry barrier to cryptocurrency derivative trading. Packed with powerful features, the exchange ensures even novice traders can easily buy & sell contracts in a trustless ecosystem.

What makes Phemex a high-performance platform?

Phemex was designed with a clear understanding that cryptocurrency is a highly volatile market. Despairingly, the existing market is plagued by exchanges with extremely low TPS. As a result, they fail to handle high trade volumes due to which traders are not able to book desired profits.

Design Criteria

• Phemex promises to be 10 times faster than traditional crypto platforms
• The exchange operates with a latency speed of 1ms. As a result, the order entry and response times for both retail and institutional investors are invariably low.
• Work with unmatched throughput of 300,000 TPS
• The promised uptime of 99.999% gives it an upper hand over existing leaders

Its optimum design criteria will be open for public testing very soon.

Additionally, Jack Tao, CEO Phemex compares the proficiency of Phemex matching, trading, and risk engine to that of CME.

How secure is Phemex?

The security of the trader’s crypto assets is a high-ticket item for Phemex. To ensure high-grade security, Phemex developed its propriety Hierarchical Deterministic cold wallet system. As each user is allocated an independent deposit account, it offers cold wallet level security.

Bitcoin collection and transfers use an offline signature channel. And is fortified by 2-level human security.

Moreover, Phemex has all the trader assets covered in case of an unlikely event.

What uniqueness does Phemex promise?

The institutional background of the leadership and developer team strengthens the position of Phemex in a highly competitive market. But the product features make Phemex stands out of the rest:

• State of art FIX API is a highly stable API for algorithmic trading. This makes it an ideal exchange for intuitional investors.
• The Sub-Accounts set up allow traders to hold both long and short positions at the same time. Additionally, the traders can lend their accounts to experience fund managers.
• Supports both BTC and USD settled contracts. With USD settled contracts it eases the derivatives trading and supports risk mitigation.
• Unlike traditional crypto exchanges, it offers more flexible withdrawals. The exchange allows the trader to make 3 Withdrawals per day
• Very soon it will provide L3 market data on the exchange

Phemex 2020

Working in a highly dynamic space, Phemex team seems to be geared up for its 2020 roadmap

• On community demand, the exchange will soon be launching its Mobile App too
• Treading beyond crypto derivative trading, the exchange plans to introduce Traditional financial products. It plans to add derivatives for stock indexes, interest rates, FOREX, commodities, metals, energy, and more once it receives the license from MAS
•        Will soon be adding new pairs

Phemex Referral Program

• A generous referral program ensures Phemex All-stars earn a permanent 50% commission on the trading fees of all the members in their network.
• If an All-star convinces a Key Opinion Leader (KOLs) to join the All-Star program he earns an extra 10% commission.
• KOLs are well compensated as the sub-affiliate commission are not split above the commission line
• Normal users can also earn a $100 invitation bonus when a newly referred user activates his account

Source: Phemex.com

Summary:

Phemex promises to revolutionize the crypto derivatives market that has already overtaken the spot trading market. By offering high leverage and low risk, Phemex uncomplicates the cryptocurrency derivatives market for traders. And such projects are expected to play a pivotal role in accelerating mass adoption.

DISCLAIMER:

The information discussed by Altcoin Buzz is not financial advice. This information is for educational, informational and entertainment purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.
Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This interview, overview or update article has been compensated for media cooperation and has been sponsored for by the interviewed or reviewed organization. Copyright Altcoin Buzz Pte Ltd. All rights reserved.