How to play Bithumb perpetual contract

Traders can engage in Bithumb perpetual contract trading by funding their accounts, selecting a trading pair, adjusting leverage, placing orders, and monitoring their positions.

Nov 08, 2024 at 01:16 pm

How to Play Bithumb Perpetual Contract: A Comprehensive Guide

What are Bithumb Perpetual Contracts?

Bithumb perpetual contracts are futures contracts that allow traders to speculate on the future price movements of cryptocurrencies without an expiry date. Unlike traditional futures contracts, perpetual contracts never expire and are settled based on the underlying index price, such as the Spot price on Bithumb.

Benefits of Trading Bithumb Perpetual Contracts:

• High Leverage: Traders can use leverage of up to 100x to amplify their potential gains and losses.
• 24/7 Trading: Perpetual contracts allow for around-the-clock trading, providing traders with more flexibility and access to market opportunities.
• No Expiry Dates: Traders can hold their positions indefinitely, allowing them to capture long-term market trends.
• Low Trading Fees: Bithumb offers competitive trading fees, making it cost-effective to trade perpetual contracts.
• Variety of Trading Pairs: Bithumb offers a wide selection of cryptocurrency trading pairs, catering to different market preferences.

Steps to Play Bithumb Perpetual Contracts:

1. Create a Bithumb Account:

• Visit the Bithumb website (https://www.bithumb.com) and click on "Sign Up."
• Follow the instructions to create an account, including providing personal information and verifying your identity.

2. Fund Your Account:

• Log into your Bithumb account and go to the "Deposit" section.
• Select your desired funding method (e.g., bank transfer, credit/debit card, crypto deposit).
• Follow the instructions to deposit funds into your trading account.

3. Access the Perpetual Contracts Interface:

• Navigate to the "Derivatives" section of the Bithumb website or mobile app.
• Click on "Perpetual" to access the trading interface.

4. Choose a Trading Pair:

• Select the desired cryptocurrency trading pair from the available options (e.g., BTC/USDT, ETH/USDT).

5. Set Leverage:

• Adjust the leverage ratio according to your risk tolerance (e.g., 1x, 5x, 10x).
• Higher leverage amplifies potential gains and losses.

6. Place an Order:

• Determine the type of order you wish to place (e.g., limit order, market order).
• Specify the desired price, quantity, and order type.
• Click "Buy/Long" or "Sell/Short" to submit your order.

7. Manage Your Position:

• Monitor your open positions and adjust your strategy as needed.
• You can close your position by placing an opposite order (e.g., close a long position with a short order).

Tips for Trading Bithumb Perpetual Contracts:

• Use a stop-loss order to limit potential losses.
• Manage your risk by adjusting leverage based on market volatility.
• Monitor the funding rate to understand the cost of holding your position.
• Research and stay informed about market trends and cryptocurrency fundamentals.
• Practice responsible trading by understanding the risks involved.