![]() We’ll get into how that works next.Ī crypto funding rate is a small percentage of your position’s value that you pay to (or receive from) traders on the other side of the trade. There’s a cost to holding a position that’s on the opposite side of the market sentiment. You can keep a perpetual contract open as long as you want - or as long as you can afford it. A short position is a bet the price will go down.A long position is a bet on the price going up.Perpetual futures trades are just a bet on price, whether up or down. Perpetual trading is popular because it’s waaaay easier than traditional futures trading, and you can bet on the price of all sorts of weird cryptos - or even real-world fiat currencies - without the risk of actually owning any of them. You can still bet on the future price, but you don’t ever have to take delivery, and the contract never expires. Well, that’s where crypto perpetual contracts come in, also called perpetual trading, perpetual swaps, or just perpetuals. Yeah, you can lose money with futures too.īuuuut - what if you never had to take delivery of the Bitcoin? Maybe you weren’t wrong about the price direction, just a bit early. Bitcoin could have fallen to, say, $16,000 by the expiration date. Of course, it could have gone the other way, too. You paid $20,000 (you genius) per your contract. On the contract expiration date, the BTC spot rate has risen to $22,000, meaning that’s what you could sell it for right now. Let’s say you buy a BTC futures contract today at $20,000. This is a physical settlement because you’ll deliver one real-world bowling ball next Thursday in exchange for $50 cash. Price: $50 for one bowling ball (the spot price). ![]() Item and quantity: One bowling ball (the asset or commodity).There are three parts to this futures deal: When you buy Bitcoin or another crypto on an exchange, you’re paying the spot price, not the next-Thursday price. It gets its name from “on the spot,” meaning the amount you’d pay to buy it right now. That agreed price is called the spot price. If there’s a nationwide bowling ball shortage and the value of bowling balls shoots up to $200, it doesn’t matter. Both parties know the date and the price. It’s like when you make a deal with your bowling buddy to sell him your spare bowling ball for $50 next Thursday when he gets paid. However, there are differences in the amount of crypto available to trade.In a traditional crypto futures contract, two traders agree to buy and sell a crypto asset on or before a future date. You'll find the same interface at both platforms, as well as many of the same features.Users in the United States still can't use the international Binance platform. Binance.US was formed in 2019 in response to Binance's decision to stop accepting U.S. No, they are different platforms intended for different users.In addition, Binance has partnered with third parties to allow users to buy coins using Single Euro Payments Area, or SEPA, payments or bank transfers.Binance also accepts debit and credit cards for purchasing dozens of cryptocurrencies for a fee. Peer-to-peer trading connects buyers and sellers and accepts multiple payment options. Binance offers a simplified platform that lets you exchange fiat for bitcoin and other cryptos through different methods.Binance allows trades, deposits and withdrawals in over 350 types of crypto, including bitcoin, tether, chainlink, ethereum and litecoin.Which cryptos are available on Binance?.Here are the answers to some of the most frequently asked questions about Binance.
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