Bitcoin has the qualities that make it the best currency to use in gambling online. It enables anonymity in all transactions, it speeds up the payment system, and it makes this leisure activity open to gambling aficionados across the globe. However, it has a distinct characteristic, which makes it rather difficult to use—its price is volatile.
Bitcoin enthusiasts, who are largely comprised of online bettors, may have found the answer to this problem as OKCoin’s futures trading is set to go live before this month ends.
One of the largest Bitcoin exchanges in the world, OKCoin is expanding its services to include futures trading to the list of products available on its platform. Running in beta for two weeks, the new trading service is believed to solve the price volatility of Bitcoin and reduce the risks involved by empowering traders to ‘lock in’ a future price.
OKCoin’s Bitcoin futures trading takes advantage of the algorithmic trading tools the exchange introduced during the previous month. The introduction of the new tools was warmly received by institutional and individual investors. The same is expected with the debut of the futures trading as it is aimed with capabilities to limit Bitcoin volatility.
“We are helping to make participation in Bitcoin a more safe and stable process,” said OKCoin Founder and CEO Star Xu as the digital currency’s price instability is one of the reasons that hinder full Bitcoin adoption.
Aside from locking in a future price and minimizing risks, the Bitcoin futures trading will help sophisticated investors to utilize higher leverage opportunities for price speculation, as well as for an increase in the predictability of the Bitcoin price.
These benefits will not only favor users, Bitcoin gambling enthusiasts for instance, but these will also serve as the green light for more individuals to enter the Bitcoin ecosystem and for it to penetrate the mainstream market.
The Beijing-based Bitcoin exchange will use a comprehensive USD price index derived from the prices posted on 10 different Bitcoin exchanges to guarantee accuracy in its pricing date, according to Chief Technology Officer Changpeng Zhao of OKCoin.