BitMex is currently the leader in cryptocurrency Futures trading. The exchange claims to be 1500% more liquid for BTC-USD trading than any other platform. However, trading on BitMex also has some hidden costs. At times of high volatility, their order engine chokes and traders are unable to close their position or enter into new ones. Google search for ‘BitMex order submission error’ throws up over 50,000 results, highlighting how frequent this problem is. It has been alleged that BitMex manipulates its market, gives special privileges to its in-house market maker and makes money at the expense of its traders. This blog post explains these allegations in greater detail. In light of these issues, if you are looking for alternatives to BitMex for your margin trading, I’d highly recommend checking out Delta Exchange.
Delta is a relatively new entrant in the bitcoin Futures trading space. The exchange was launched in August 2018. I discovered it through one of their blog posts that offers details about the team behind Delta, their vision and plans for the future. I was both intrigued and impressed with both the level of transparency and the clarity of thought process of the Delta team. It was evident to me that this is a project worth tracking. In the past couple of months in which I have followed
I believe Delta has the potential to become a force to reckoned with in the crypto derivatives and margin trading space. While I’d encourage you to do your own research, I enlist below the things that make me bullish on Delta.
Customer- first approach
As things stand today, market manipulation, front-running and overall mismanagement are quite common, even in exchanges doing billions in daily traded volumes. In this backdrop, Delta comes across as an idealistic whiff of fresh air. They list Fairness, Transparency
Healthy order books
The current trading volumes at Delta are relatively low compared to its more established competitors. However, the order book is healthy and the quality of liquidity at Delta is at par with its peers. For example, in the BTC-USD Futures contract, the spread in the order book is at tight as in BitMex and the order book has
Innovative financial products & features
Given the background of the founders, Delta team is quite strong in financial engineering and seems to have a deep understanding
Focus on security
If you running a
Strong team – problem fit
The founding team has the right mix of skills and experience for building and running a crypto Futures exchange. Two of the founders are alumni of blue-chip Wall Street firms viz. Citigroup and UBS and have cumulatively about 15 years of experience in financial markets, with emphasis on derivatives trading. The third founder is a tech whiz and has previously built and sold companies that were backed by the likes of Softbank and Sequoia.
Few but noteworthy advisors
The exchanges advisory board has
I believe Delta checks all the boxes and has the potential to become a strong competitor to incumbents like BitMex. Moreover, the contract specifications at Delta and BitMex are nearly identical and makes it easy for traders to switch from BitMex to Delta and even run arbitrage strategies between the two exchanges. Would love to hear your thoughts on Delta.