Cryptocurrency derivatives exchange like FTX, Binance, and Bybit have become the preferred choice of advanced-level traders to participate in the global crypto asset markets. These platforms enable users to speculate on the price movement of various cryptocurrencies and execute their trading strategies accordingly. Thereby offering great revenue potential and attractive benefits to both users and platform owners.
Given the advantages of launching such a platform, many startup founders are eager to enter the crypto market by launching a cryptocurrency derivative exchange like FTX or Binance. However, they are often faced with the dilemma of whether to opt for cryptocurrency exchange development or go for a ready-to-deploy solution like an FTX clone script.
To help clarify this decision, this blog will cover the basic things and ways to crypto derivatives exchange development for startup founders.
What is FTX Cryptocurrency Derivatives Exchange?
FTX Cryptocurrency Derivatives Exchange is a popular trading platform that offers tools for engaging in cryptocurrency trading through speculative and hedging techniques. By using financial contract facilities, users can speculate on or hedge against the price movements of cryptocurrencies and hold their value to get a profit.
To delve deeper, a cryptocurrency derivatives exchange like FTX functions analogously to traditional derivatives by establishing a contract for the buy or sell of a crypto asset. Consequently, users can forecast price movements without actually owning the underlying asset.
The FTX platform provides three types of derivatives contracts for trading, namely:
Futures Contracts
In futures contracts, the agreements involve buying or selling a specified amount of cryptocurrency at a predetermined price on a specific future date. Traders have the flexibility to take either long (buy) or short (sell) positions, depending on their price expectations.
Option Contracts
In FTX, option contracts grant traders the right, but not the obligation, to buy (call option) or sell (put option) a specific amount of a cryptocurrency at a preset price on or before an expiration date.
Perpetual Contracts
Perpetual contracts perform similar to futures contracts but don’t have an expiration date. They often employ a funding mechanism to maintain the contract’s price close to the spot price of the underlying asset.
Cryptocurrency derivatives exchanges like FTX have gained popularity among institutional investors, hedge funds, and traders aiming to capitalize on fluctuations in crypto prices. The platform owners generate profits through attractive revenue streams.
For those interested in creating a cryptocurrency exchange like FTX, understanding the methods for launching it is crucial. This knowledge will provide you with a deep understanding of launching the derivatives trading platform.
Ways to Launch Cryptocurrency Derivatives Exchange like FTX
If you want to attract users worldwide, it is essential that you explore innovative ideas related to your business. Knowing the development methods will help you to make the right decisions for creating a cryptocurrency derivatives exchange like FTX.
In this regard, it is important to understand the possible ways to build your trading platform. There are two methods to create a cryptocurrency derivatives exchange like FTX – the first method involves creating it from scratch, and the second method uses the FTX clone script.
Each strategy has its advantages, and it’s important to weigh them carefully before making a decision. Let’s see the overview of each method below.
#1. Crypto Derivative Exchange Development like FTX
In this method, you can develop your cryptocurrency derivative exchange like FTX with your idea right from the start itself. Also, you can implement all your ideas along with existing features and functionalities at every stage of the development process. With this approach, your trading platform can meet all your expectations in the end.
Hope you understand, we don’t need to explain this method further as here everything is built from scratch.
#2. FTX Clone Script
The FTX Clone Script is a pre-built software that comes with a multitude of derivatives trading features, from basic to advanced levels of FTX. This script allows startups to customize the solution according to their specific needs. Moreover, users can enjoy all the benefits and owners have revenue streams like FTX with this solution.
If you’re looking to create a derivative platform on a budget, then the FTX clone script can be a great starting point. It’s a pre-built software that comes with the basic trading features of the FTX platform and can be customized according to your business requirements.
This method can save you a lot of time and effort in developing your platform from scratch. With the FTX clone script, you can quickly launch your platform and start implementing your business ideas effectively.
Before investing in an FTX clone script or developing a new platform from scratch, it is important to carefully consider the software features that will provide value to your platform.
The features you choose will be crucial in highlighting the platform’s value to users. If you are unsure about what features to include in your software, the next section will provide useful information to help guide your decision-making process.
Features for Cryptocurrency Derivatives Exchange Development
Let’s take some of the FTX clone script core and security features to list here.
- Margin trading
- Advanced order types
- Auto deleveraging (ADL)
- Crypto payment gateway integration
- Mobile apps for Android and iOS
- Stop loss/take profit
- Partial close orders
- KYC/AML
- Multi-cryptocurrency wallets
- Robust admin panel, and more.
Security Features
- HTTPS authentication
- Data encryption
- Two-factor authentication
- Protection against SQL injection
- DoS, CSRF, SSRF, and more.
It is noteworthy that the key and security features of your crypto derivative exchange platform stand out as the most reliable and stable platform for trading cryptocurrencies. This advantage positions your platform to compete favorably with other global players in the crypto market.
If you aim to become a successful business person in the crypto market, it is important to prioritize the value you provide to your customers. Besides, making sure your platform is secure and reliable is a great way to demonstrate this value to your customers.
Final Words
We have covered the fundamentals and techniques required for creating your own cryptocurrency derivatives exchange platform similar to FTX. Additionally, we have highlighted the appealing features that you must incorporate into your software.
Hope, this blog aims to provide you with a clear understanding of the development of derivatives trading platforms. You can choose the most appropriate method from the two options discussed in the blog that best suits your business.
As a top-tier cryptocurrency exchange development company, Zodeak offers customized software and FTX clone scripts to meet your specific requirements and budget. Our team is committed to delivering crypto exchange software that meets the highest standards of quality. We provide a software demo to help you explore the features and the option to compare our solution with other market alternatives.
