Another promising, up and coming exchange has caught our attention, CryptoFacilities. CryptoFacilities Exchange is founded by a pair of ex “city” (London) bankers from Goldman and BNP Paribas.CryptoFacilities currently lets customers trade just one instrument, a forward contract on the bitcoin price. It currently offers the contract with three expiry dates. A trader can lock in the price of a bitcoin by selling or shorting a forward. Basically its a newer exchange founded by a team with an expansive background in the banking financial sector operating out of London. Bitcoin Hedging & Trading. Their forward is a well built, highly capitalized bitcoin derivative exchange. You can hedge your exposure or go long & short with up to 7x leverage. They appear to comply with many traditional financial regulatory standards imposed by the city of London.
CryptoFacilities is one of the more heavily regulated exchanges. Before you’re able to do anything at all, you’ll need to verify by uploading address and identification. This is because CryptoFacilities is a regulated by the City of London exchange, and they need to do full KYC/AML in order to comply with regulators. Once verified, you can deposit. The site is 100% bitcoin.
Bitcoin Derivatives Exchanges
CryptoFacilities currently lets customers trade just one instrument, a forward contract on the bitcoin price. It currently offers the contract with three expiry dates. A trader can lock in the price of a bitcoin by selling or shorting a forward. CryptoFacilities primary concern is hedging Bitcoin investments via derivatives trading. Its first offering will be the trusty forward contract, a trading mechanism utilized in all derivatives markets. A forward contract is trading today at a price in the future, in hope that it will move towards that price. The forward contracts, if used properly by Bitcoin investors, can provide a degree of price stability to a relatively volatile market.
CryptoFacilities Exchange Features
Crypto Facilities boasts being the first and only bitcoin trading venue to insure all client accounts and settle them daily on the blockchain. They have partnerships with Elliptic, part of a big four accounting firm KPMG-accredited blockchain security firm. Crypto Facilities accounts are hosted in its physically secure, multi-signature, cold storage Elliptic Vault. This partnership allows Crypto Facilities to claim the US Dollar value of your bitcoins are insured by an A-rated, Fortune 100 underwriter.
BTCe is our current favorite exchange because of accessibility, volume and anonymity. BTCe does not however have the full range of capabilities that BitFinex and CryptoFacilities offer. Our BTC-E Review and Bitfinex review decipher our reasons for why they remain our main trading exchanges. Each exchange has their own feature set, henceforth we use many exchanges, and this insures us against losses in case any other them close shop. CryptoFacilities provides expert traders with expert features in an accessible exchange.