Guide: Bitcoin Perpetual Swap Contracts VS Futures

Where can I trade Bitcoin Futures and Swaps

In this guide you will learn what Bitcoin perpetual swap contracts are and how they differ from Bitcoin futures.

Many people likes to trade Bitcoin derivative products, like perpetual swaps and futures.

Why?

Because they offer you the opportunity to trade with great leverage and make fast and great profits. Its great, is´nt it?

However…

Remember, when you put more money on stake you also take higher risks and such trading instruments go very fast in both directions.

Risk management is VERY important to master before you will be successful in derivative trading with high leverage.

 

Bitcoin Perpetual Swap Contracts VS Bitcoin Futures

Bitcoin perpetual swaps are derivatives that let you buy or sell the value of Bitcoin. The main advantage is that there is no expiry date. That is also the main different from Bitcoin futures.

Since…

Bitcoin futures are contracts that do have an expiry date. They are agreements to purchase, or sell, a specific asset (Bitcoin) at a specific price on a future date.

What are Bitcoin Derivatives?

Bitcoin derivatives are trading contracts that derive their value from Bitcoin as the underlying asset. When you are trading Bitcoin derivatives you are not trading Bitcoin and you don´t own Bitcoin.

Bitcoin derivatives are common trading instruments for Bitcoin margin trading. Margin trading is a wide term used for all leverage trading. Read more about margin trading in our specialized article about the best margin trading platforms for Bitcoin 2020.

Where can I trade Bitcoin Perpetual Swaps?

What trading platforms do offer Bitcoin perpetual trading? We have listed a few of the best Bitcoin perpetual trading sites here

  • BitMEX
  • ByBit
  • Binance
  • Bitfinex

Trading Perpetual Swaps on BitMEX

So, you have decided to try Bitcoin perpetual swaps on BitMEX.

  1. Create a BitMEX account.  Set up a two-factor authentication to protect your account from hackers. 
  2. Login to your account. Press Account in the header menu and after this Deposit.
  3. Deposit Bitcoin
  4.  Now, Click on Bitcoin, just the below Trade in the header menu, as you can see in the screenshot below.
  5. Also, below Bitcoin you can see, Perpetual (100x) 10.300,5. This is the perpetual contract you are looking for. 100x means that you can trade this perpetual swap up to 100x leverage and 10.300,5 was the Bitcoin price in USD at the time the screenshot was taken. To the right of the perpetual swap you can see the Bitcoin futures contracts.
Bitmex leverage trading review 2020 with fees, Bitmex screenshot of cryptocurrencies

The success of Bitmex and its constant growth in the world of cryptocurrencies has increased thanks to the ability to keep its customers satisfied, with an extremely fast and transparent communication and support and offering a strong security system within this highly advanced platform and convenient in its use. Read more about the BitMEX crypto trading platform in our BitMEX review.

Check Dashboard

After registration you will be taken to your Dashboard where you will check and manage all your orders.

Balance: At the top right corner of the dashboard you will see your current balance.

Market Selection: In this section you have to choose the market in which you want to operate. Clicking on each of the markets will load all relevant market information.

Order square: This space will be where you place your orders (Market) by entering the total quantity (Quantity) in USD. For example: if you open a position with $100 with lever x10 you will have a position from 1000 contracts equal to 0.0236XBT.

Buy market (green button) = open LONG position

Sell market (red button) = open SHORT position

You will also find the value of the order you wish to open in XBT and the available budget.

Leverage: In the “your position” section, where there will be the number of entry contracts, the ROE% (Return on Equity), and the selection of the lever (Leverage available from 1x up to x100).

Contract details: Within it you will find all the additional information of your contract based on the market on which you want to operate.

Select contract type

This selection is valid only for XBT and will be selected among the following types of contracts available:

  • XBTUSD / Perpetual Swap (100x): The value of each contract is $1 of Bitcoin. The rollover will be paid every 8 hours.
  • XBTZ18: It is a traditional futures contract which expires at the end of 2018. The contract is recommended for speculators. Available leverage is 100x.
  • XBTU18
  • XBTH19
  • XBT7D_U105
  • XBT7D_D95

ADA (Cardano)

  • Cardano Series (ADA) Guide
  • ADAU18
  • ADAZ18

BCH (Bitcoin Cash)

  • Bitcoin Cash Series (BCH) Guide
  • BCHU18
  • BCHZ18

EOS (EOS Token)

  • EOS Token Series (EOS) Guide
  • EOSU18
  • EOSZ18

ETH (Ethereum)

LTC (Litecoin)

TRX (Tron)

XRP (Ripple)

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