How Crypto.com plays perpetual contracts

Crypto.com's perpetual contracts trading allows you to speculate on the future price of cryptocurrencies with adjustable leverage and the flexibility of indefinite holding.

Nov 26, 2024 at 02:28 am

How Crypto.com Plays Perpetual Contracts

Perpetual contracts are a type of derivative contract that allows traders to speculate on the future price of an underlying asset, such as a cryptocurrency. Unlike traditional futures contracts, perpetual contracts do not have a fixed expiration date and can be held indefinitely. This makes them ideal for traders who want to maintain long-term positions without having to worry about contract rollovers.

Crypto.com is one of the leading cryptocurrency exchanges that offer perpetual contracts trading. The exchange offers a wide range of perpetual contracts on a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple.

To trade perpetual contracts on Crypto.com, you will need to first create an account and deposit funds into your account. Once you have funded your account, you can start trading perpetual contracts by following these steps:

1. Choose a Trading Pair

The first step is to choose a trading pair. A trading pair is a pair of cryptocurrencies that you want to trade against each other. For example, if you want to trade Bitcoin against Ethereum, you would choose the BTC/ETH trading pair.

2. Set Your Position Size

Once you have chosen a trading pair, you need to set your position size. Your position size is the amount of the underlying asset that you want to buy or sell. For example, if you want to buy 1 Bitcoin, you would set your position size to 1 BTC.

3. Set Your Leverage

Leverage is a tool that allows you to trade with more capital than you have in your account. However, it is important to use leverage wisely, as it can also amplify your losses. When you trade perpetual contracts, you can choose your leverage level. The leverage level is expressed as a multiplier, such as 10x or 20x. For example, if you set your leverage level to 10x, you will be able to trade with 10 times the amount of capital that you have in your account.

4. Place Your Order

Once you have set your position size and leverage, you can place your order. There are two types of orders that you can place: market orders and limit orders. Market orders are executed immediately at the current market price, while limit orders are executed only when the market price reaches a certain level.

5. Monitor Your Position

Once you have placed your order, you need to monitor your position. You can do this by checking the order status page on Crypto.com. The order status page will show you your open positions, as well as their current profit or loss.

6. Close Your Position

When you are ready to close your position, you can do so by placing a closing order. Closing orders are executed immediately and will close your position at the current market price.

7. Withdraw Your Profits

Once you have closed your position, you can withdraw your profits to your bank account or cryptocurrency wallet. To withdraw your profits, you will need to go to the withdrawal page on Crypto.com.

Conclusion

Perpetual contracts are a powerful tool that can be used to speculate on the future price of cryptocurrencies. However, it is important to use leverage wisely and to understand the risks involved before trading perpetual contracts.