The Crypto.com Exchange app is a reliable and secure platform for experienced cryptocurrency traders. As a forerunner in the crypto trading ecosystem, the app is constantly being upgraded with new and improved features.
Soon, it will release a significant, game-changing update.
Called Gen 3.0 Crypto.com exchange, it should significantly enhance the trading experience for advanced traders that use this app.
Just like its name suggests, this marks the app’s transition from a gen 2.0 to a gen 3.0 cryptocurrency exchange.
What makes this update so important?
Let’s go over everything you need to know about the Gen 3.0 Crypto.com exchange.
Spot + Derivatives Exchange = Gen 3.0 Crypto.com Exchange
With the new Crypto.com release, two of its features – Spot and Derivatives exchange, will merge into the Gen 3.0 Crypto.com exchange.
This merger will result in ultra-low latency (even lower than before), and an improved tech stack for order matching, execution, positions management, account service, liquidation engine, etc.
In the previous Exchange versions, there were three separate Wallets per account (Spot, Margin, and Derivatives “Wallet [Pro]”).
With the new update, every account will hold only one corresponding Wallet, carrying out the functions of all three Wallets combined.
Gen 3.0 Crypto.com Exchange: Key Benefits
The “Gen 3.0 Crypto.com exchange” and “One Wallet” experience will provide traders with significant value and benefits, such as:
- Multi-collateral support
- Multi-product trading
- Smart cross-margin policy
- Efficient collateral management
Multi-collateral Support: Use your Spot Assets as Collateral
In the previous versions of the app, to obtain instant loans, users could use CRO, BTC, ETH, LTC, and stablecoins as collateral.
With the Gen 3.0 Crypto.com exchange, users are getting more flexibility in managing their margin and collateral balance. Precisely, 89 spot assets in the users’ One Wallet will now qualify as collateral supporting their margin balance.
Multi-Product Trading: Trade Everything in One Wallet
Spot, Margine, and Derivatives Trading are some of the most significant features of Crypto.com Exchange.
Here’s an explanation of each, and how they will change with the introduction of the Gen 3.0 Crypto.com exchange.
1. Spot Trading
Spot trading is a process of buying or selling cryptocurrencies at current market prices, characterized by instant delivery.
How will Gen 3.0 Crypto.com Exchange Affect Spot Trading?
In order to trade pairs, users will no longer need to use a separate Spot Wallet. Now, all the 393 spot trading pairs from the Spot Wallet will be available in one single Wallet.
2. Margin Trading
Margin trading allows users to increase their trading profits by borrowing funds during up and down market fluctuations. This gives users access to up to 10% leverage for more than 100 supported pairs, including SOL, XLM, and LINK.
How will Gen 3.0 Crypto.com Exchange Affect Margin Trading?
Introducing a single Wallet will turn margin trading into a more user-friendly, “one-click” experience.
There will be 89 spot assets available for margin trading with a 10x leverage. As a result, the users’ margin balance will be multi-collateral supported. On top of that, thanks to the Smart Cross Margin policy, the margin requirement will be lower.
3. Derivatives Trading
A derivative is a two-party contract based on the price or value of one or more crypto assets. Some examples of derivatives are futures contracts, perpetual futures, option contracts, swaps, warrants, etc.
For each one of these product types, there are different uses and trading approaches.
How will Gen 3.0 Crypto.com Exchange Affect Derivatives Trading?
Perpetual and futures trading will now come with a 100x leverage – previously, it went up to 50x. Also, the users’ margin balance will be multi-collateral supported and margin requirements will decrease.
Smart Cross Margin Policy: Lower Margin Requirements and More Capital Efficiency
Cross Margin is a margin strategy that utilizes the entire available balance of the relevant cryptocurrency.
By implementing the Smart Cross Margin Policy, Crypto.com Exchange brings multiple important benefits to its users.
Significant Margin Decrease
In margin and derivatives trading, the required margin depends on the users’ position size. It is only required to cover the long or short side of the same underlying asset that carries a larger risk.
With the introduction of this policy, Crypto.com offsets the need for margin for positions in the opposite direction. For a typical calendar spread strategy, all long/short positions with the same underlying benefit may profit from a margin reduction of up to 50%.
More Efficient Collateral Management
When there’s a need for collateral, the new system will use any existing collateral available.
This reduces both risk and costs for the user. On top of that, it will automatically decrease their leverage, margin, and loan interest rates.
Cross-Product Margin Offset
This policy supports several product types – including spot margin, perpetuals, and futures trading. Thanks to that, it improves the margin calculation process to allow for offsets in margin requirements between various product types.
Gen 3.0 Crypto.com Exchange Update: Wrap Up
As you can see, Gen 3.0 Crypto.com Exchange is pretty big news for the users of this app. By the looks of it, it should make the trading experience smoother, simpler, and more efficient. We are curious to see how the users will react to all these changes.
If you want more information about the product, visit Crypto.com!