Amidst a turbulent time for crypto assets, Bybit, a global derivatives trading platform, has announced new functionality that’s ready to support derivatives traders. CEO Ben Zhou announced today on a CoinTelegraph AMA that the platform is adding Tether (USDT) perpetual contracts to its crypto-backed derivative products, where USDT will be used as both the quote and settlement currency.
Consequently, traders can establish long and short positions at the same time, each with unique leverages that can help minimize individual volatility during uncertain times. These contracts will mimic the underlying spot market. Still, they will provide increased leverage, and, like other Bybit perpetual contracts, are enacted without an expiration date.
In addition to adding USDT perpetual contracts to the platform, Bybit released several other platform enhancements that make it ideal for traders considering derivative contracts. Notably, traders can quickly open and close options, allowing them to execute positions during market volatility. Similarly, investors can flip positions directly on charts.
Many traders, worried about loss during volatile trading periods, will also find that the platform’s shared insurance fund for traders launching multiple contracts helps mitigate the threat of investment losses, ideally inspiring users to invest with confidence, even during periods of uncertainty.
At the same time, new aesthetic changes, like a new dark mode UI and new frontend architecture to reduce lag, combine to create a compelling investment experience for derivative traders. These features are available immediately, making them just in time for traders during operating in this unprecedented investment period.
Crypto Responds to Market Forces
Cryptocurrency traders are accustomed to rapid price fluctuations, but March 2020 has been a turbulent time for digital assets. The overwhelming consensus that we are heading for a global recession because of social distancing maneuvers to slow the spread of COVID-19 has caused both traditional investment assets and digital currencies to plummet.
At the time of writing, the top ten cryptocurrencies by market cap, except for Tether whose value is tied to the US dollar, are all enjoying 24-hour price increases between 4.5% and nearly 10%, according to CoinMarketCap. In the US, quantitative easing programs including the purchase of corporate bonds, mortgage backed securities, business lending initiatives, are just a few measures that the Federal Reserve is taking to offset the financial consequences of veritably shutting down the economy to stop the spread of COVID-19. Importantly, these policies could cause long-term inflation that lowers the value of national currencies.
As a result, investors are looking to gold and crypto markets to hedge against the long-term implications of programs intended to solve short-term problems.
In other words, cryptocurrencies, like gold, offer an intriguing investment option for traders who are unsure how these extensive programs will impact the long-term economy.
Since the effects of COVID-19 are unlikely to abate anytime soon, March won’t be the only month with such volatile investment markets. Instead, volatility is the new norm. Crypto investors see an opportunity to capitalize on the moment, and given the inherent risk of these chaotic times, hedged investments through derivatives contracts look like a compelling option.