![]() ![]() HODLers can hedge their positions with COIN-Margined contracts even when the markets turn red because they don’t need to sell any cryptocurrencies at a compromised price. Instead, market participants can continue to HODL and grow their portfolios when their trades return a profit, benefiting from the non-linear payout structure COIN-Margined contracts have. Long-term investors don’t have to convert their digital assets into stablecoins like USDT and BUSD. Settled and denominated in their base cryptocurrency, Binance Futures’ COIN-Margined contracts enable traders to fund their accounts with their crypto of choice. Not only can traders benefit from their profitable trades, but as prices increase, the value of their collateral also increases.ĬOIN-Margined contracts simply represent a great way to increase cryptocurrency holdings over the long run. For instance, Bitcoin-Margined contracts can return a profit in BTC, making them preferable in an uptrend. HODLers can take advantage of COIN-Margined contracts to grow their portfolios because these are settled in the underlying cryptocurrency. They also provide a unique opportunity for long-term investors to participate in the futures markets without converting their crypto assets to stablecoins. These financial tools offer an alternative way to gain exposure to cryptos without owning them. Some traders may prefer to trade this type of derivatives contract as they represent a safer option, especially during prolonged downtrends.ĬOIN-Margined contracts are a type of derivatives that obtain their value from the underlying cryptocurrency they represent. On the other hand, USDⓈ-Margined contracts provide a versatile settlement currency denominated in USDT and BUSD. ![]() This type of contract is ideal for those who seek to optimize their gains during times of growth. Therefore, traders can continue to HODL their crypto assets as collateral instead of stablecoins. Traders on the world’s leading crypto futures exchange can choose from two types of crypto derivatives, including COIN-Margined and USDⓈ-Margined contracts.ĬOIN-Margined contracts are settled and collateralized in their based cryptocurrency. USDⓈ-Margined Contractsīinance Futures offers a wide selection of crypto derivatives with over 500 trading pairs. Binance Futures has captured a significant share of this market, becoming one of the most liquid derivatives exchanges in the world.Īlthough there are many features in Binance Futures that are catered to traders, such as grid trading and TWAP, in the following article, we will explore the two types of derivatives contracts the platform offers. The crypto futures market records trillions of dollars in monthly trading volume, promoting price discovery and enabling traders to transact more efficiently. ![]() In contrast, traders in the spot markets can only benefit when the cryptocurrencies they hold increase in market value over time. These futures contracts enable traders to profit from short-term price movements in either direction. On the other hand, USDⓈ-Margined contracts are quoted and settled in USDT or BUSD, enabling efficient calculation of returns.Ĭrypto derivatives are financial instruments that represent the value of an underlying digital asset. Binance Futures offers two types of futures contracts: COIN-Margined and USDⓈ-Margined contracts.ĬOIN-Margined contracts allow users to hold the underlying asset, which is beneficial for long-term investors, especially in a bull market. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |