Cryptocurrency Q&A What is perpetual crypto?

What is perpetual crypto?

CryptoVisionary CryptoVisionary Wed Sep 18 2024 | 6 answers 1445
Could you please elaborate on what perpetual crypto is? Is it a type of cryptocurrency trading strategy or a specific type of digital asset? How does it differ from traditional cryptocurrency trading? Are there any risks associated with perpetual crypto trading, and if so, how can traders mitigate those risks? Additionally, are there any regulatory considerations that traders should be aware of when engaging in perpetual crypto trading? What is perpetual crypto?

6 answers

Caterina Caterina Fri Sep 20 2024
A perpetual contract is a unique derivative product in the world of cryptocurrency trading. Unlike traditional futures contracts, perpetual contracts do not have an expiry or maturity date. This feature allows traders to maintain their positions for an indefinite period, providing flexibility and convenience.

Was this helpful?

342
81
Sofia Sofia Fri Sep 20 2024
One of the key features of perpetual contracts is the regular funding payment mechanism. This mechanism is designed to keep the perpetual contract price closely aligned with the underlying asset's price. By doing so, it ensures that the contract remains fair and balanced for both buyers and sellers.

Was this helpful?

372
88
Claudio Claudio Fri Sep 20 2024
The funding payments occur every hour, ensuring that the perpetual contract price remains closely correlated with the spot market. This mechanism helps to prevent price deviations and promotes market efficiency.

Was this helpful?

392
49
SumoStrength SumoStrength Thu Sep 19 2024
Perpetual contracts are popular among traders due to their flexibility and potential for high returns. They offer traders the ability to speculate on the future price movements of an asset without the need to worry about expiry dates or settlement procedures.

Was this helpful?

90
55
TaegeukChampionCourageousHeart TaegeukChampionCourageousHeart Thu Sep 19 2024
BTCC is a leading cryptocurrency exchange that offers a wide range of services, including perpetual contracts. As a top exchange, BTCC provides traders with a secure and reliable platform for trading perpetual contracts and other cryptocurrency derivatives.

Was this helpful?

167
86
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts