3 factors to consider before trading crypto perpetual futures contracts
Traders are making massive gains from perpetual futures contracts but there are three risks to be aware of before trading. As tempting as it can be to buy altcoins using perpetual futures, there are a few hidden traps that one should monitor closely. Over the past few years, numerous exchanges began to offer altcoin futures quoted in Tether (USDT) and stablecoin pairs, which eventually became the standard. This change is more convenient for most traders but still presents some serious issues for those willing to keep long positions open for more than a couple of weeks.Before opening any....
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PRESS RELEASE. YFX, the first DEX that offers 100x trading leverage on perpetual contracts has just launched, adding an important piece to the DeFi money legos, and creating a direct competition against CEX on derivatives trading. The most traded Bitcoin product in centralized exchanges is Bitcoin futures, which is 10 times bigger than spot trading in terms of the trading volume. But in DEX, spot trading platforms like Uniswap are occupying a large portion of the total trading volume, and there is not a single decentralized futures trading platform that could reach even 1/10 of....
Institutional inflow to crypto is only getting started, but the technology promises to improve the futures markets beyond crypto. Many traders entering cryptocurrency markets from traditional finance may look to derivatives as vehicles for price speculation and hedging. There are plenty of choices when it comes to exchanges and instruments; however, traders should consider a few key differences between crypto futures and traditional futures before dipping a toe into this rapidly growing market.Related: 3 things every crypto trader should know about derivatives exchangesDifferent....
Binance suspended withdrawals for LUNA and UST amid the UST stablecoin losing its peg to the U.S. dollar on Tuesday. Amid collapsing Terra network’s cryptocurrencies Luna (LUNA) and TerraUSD (UST), crypto exchange Binance continues deactivating related trading services.Binance’s derivatives arm Binance Futures has delisted coin-margined LUNA perpetual contracts, the firm officially announced on May 12.“Users are advised to close any open positions prior to the delisting time to avoid automatic settlement,” the statement by the platform reads.Binance Futures has also started conducting....
Crypto exchanges offer USDT and BTC settled perpetual futures contracts but which is best suited for the average trader? When BitMEX launched its Bitcoin (BTC) perpetual futures market in 2016, it created a new paradigm for cryptocurrency traders. Although this was not the first platform to offer BTC-settled inverse swaps, BitMEX brought usability and liquidity to a broader audience of investors.BitMEX contracts did not involve fiat or stablecoins and even though the reference price was calculated in USD all profits and losses were paid in BTC.Fast forward to 2021, and the Tether (USDT)....
Recently, funding for bitcoin futures contracts has flipped negative and perpetual futures are trading below spot.