How to operate Bithumb perpetual contract

To operate a perpetual contract on Bithumb, create an account, fund it, select a contract, enter a position with desired leverage and parameters, monitor it through the Positions tab, and close it when desired.

Nov 09, 2024 at 07:40 am

How to Operate Bithumb Perpetual Contract

Understanding Perpetual Contracts

Perpetual contracts are a type of derivative financial instrument that allows traders to speculate on the future price of an underlying asset, without the obligation to deliver or take delivery of the physical asset. Unlike traditional futures contracts, perpetual contracts have no fixed expiration date and can be held indefinitely.

Benefits of Trading Perpetual Contracts on Bithumb

• Leverage: Bithumb offers leverage of up to 100x on perpetual contracts, allowing traders to amplify their potential profits (and losses).
• High Liquidity: Bithumb is one of the largest cryptocurrency exchanges in the world, providing deep liquidity for perpetual contract trading.
• Low Trading Fees: Bithumb charges competitive trading fees, making it an attractive option for active traders.

Steps to Operate a Perpetual Contract on Bithumb

1. Create an Account on Bithumb

To begin trading perpetual contracts on Bithumb, you must first create an account on the exchange. You will need to provide personal information, such as your name, email address, and phone number. Once your account is created, you will need to verify your identity by providing a government-issued ID and proof of address.

2. Fund Your Account

After your account is verified, you need to fund it with cryptocurrency. Bithumb supports deposits in a variety of cryptocurrencies, including Bitcoin, Ethereum, and USDT.

3. Access the Perpetual Contract Trading Page

Once you have funded your account, you can access the perpetual contract trading page. You can do this by clicking on the "Derivatives" tab in the top menu and then selecting "Perpetual Contracts."

4. Choose a Contract and Enter a Position

On the perpetual contract trading page, you will see a list of available contracts. Each contract is based on a different underlying asset, such as Bitcoin, Ethereum, or Dogecoin. Choose the contract you wish to trade and enter a position. You can choose to buy (long) or sell (short) the contract.

5. Select Leverage and Enter Order Parameters

When entering a position, you will need to select the amount of leverage you wish to use. Remember that leverage can amplify both profits and losses, so it is important to use it wisely. You will also need to specify the order price and the number of contracts you wish to trade.

6. Monitor Your Position

Once you have entered a position, you can monitor it in the "Positions" tab. Here you can view the current profit or loss, the average entry price, and the margin balance of the order.

7. Close Your Position

To close your position, click on the "Close" button in the "Positions" tab. You can choose to close the entire position or close a portion of it.

8. Withdraw Your Funds

Once you have closed your position and made a profit (or loss), you can withdraw your funds from Bithumb. To do this, click on the "Account" tab and then select "Withdraw." You will need to provide the destination address for your funds and the amount you wish to withdraw.