How to play perpetual contract in Bithumb

To trade perpetual contracts on Bithumb, you must first open an account, fund it, choose a contract, place an order, and monitor its performance before closing it and withdrawing any profits.

Nov 15, 2024 at 07:52 am

How to Play Perpetual Contracts in Bithumb: A Step-by-Step Guide

Step 1: Introduction

Perpetual contracts are a type of derivative instrument that allows traders to speculate on the future price of an underlying asset. Unlike traditional futures contracts, perpetual contracts do not have an expiry date, meaning that they can be held indefinitely. This makes them a popular choice for traders who want to maintain exposure to an underlying asset for extended periods of time.

Step 2: Opening a Bithumb Account

To trade perpetual contracts on Bithumb, you will first need to open an account. You can do this by visiting the Bithumb website and clicking on the "Sign Up" button. Once you have entered your personal information and created a password, you will need to verify your email address and phone number.

Step 3: Funding Your Account

Once you have opened a Bithumb account, you will need to fund your account in order to trade perpetual contracts. You can do this by depositing cryptocurrency or fiat currency into your account. Bithumb supports a variety of deposit methods, including bank transfer, credit card, and debit card.

Step 4: Choosing a Perpetual Contract

Bithumb offers a variety of perpetual contracts to trade, including perpetual contracts on Bitcoin, Ethereum, and other cryptocurrencies. To choose a perpetual contract, you will need to click on the "Derivatives" tab on the Bithumb website and then select "Perpetual" from the dropdown menu.

Step 5: Placing an Order

Once you have chosen a perpetual contract, you will need to place an order. You can do this by clicking on the "Buy" or "Sell" button on the order form. When placing an order, you will need to specify the quantity of the contract that you want to buy or sell, as well as the price at which you want to execute the order.

Step 6: Monitoring Your Position

Once you have placed an order, you will need to monitor your position to ensure that it is performing as expected. You can do this by clicking on the "Positions" tab on the Bithumb website. The Positions tab will show you the current status of your open positions, as well as their profit and loss.

Step 7: Closing Your Position

When you are ready to close your position, you will need to place a closing order. You can do this by clicking on the "Close Position" button on the order form. When placing a closing order, you will need to specify the quantity of the contract that you want to sell or buy, as well as the price at which you want to execute the order.

Step 8: Withdrawing Your Profits

Once you have closed your position, you can withdraw your profits from Bithumb. To do this, you will need to click on the "Withdraw" tab on the Bithumb website and then select "Cryptocurrency" from the dropdown menu. You will then need to enter the amount of cryptocurrency that you want to withdraw, as well as the address of the wallet that you want to withdraw to.