Trading Fundamentals
Over the past decade, cryptocurrencies and blockchain technology have emerged as disruptive forces in finance. By introducing groundbreaking solutions for trust and immutability, they've enabled innovative products offering unprecedented efficiency and convenience. One such example is crypto derivatives, which have gained popularity due to the high volatility of many digital assets.
Introduction to Derivatives Trading
Derivatives are financial contracts whose value derives from an underlying asset or index. Their prices fluctuate based on the asset's market movements. When used strategically, derivatives empower traders to hedge risks and amplify returns.
In traditional finance, common derivatives include:
- Options
- Swaps
- Futures contracts
The crypto market has adopted these instruments while adding unique innovations.
Types of Crypto Derivatives
1. Options
These grant buyers the right (without obligation) to purchase/sell assets at predetermined prices by specific dates. Ideal for:
- Risk hedging
- Speculating on future price movements
2. Swaps
Contracts allowing crypto-to-crypto exchanges at fixed rates. Useful for:
- Portfolio diversification
- Exposure management
3. Futures
Agreements to buy/sell assets at future dates and prices. Key characteristics:
- Binding obligations for both parties
- Fixed expiration dates
- Margin-based trading
👉 Explore advanced trading strategies
Perpetual Contracts: The Game Changer
Perpetual contracts dominate crypto derivatives due to their:
- No expiration dates
- Continuous trading opportunities
- Price alignment mechanism via funding rates
Unlike traditional futures, these contracts:
- Don't require physical delivery
- Use margin trading
- Adjust positions through periodic payments
Bitget's Contract Trading Ecosystem
As a top-five global crypto derivatives platform, Bitget serves 8M+ users across 100+ countries. Key offerings:
| Product | Best For | Features |
|---|---|---|
| USDT-Margined Contracts | Versatile traders | 130+ trading pairs |
| USDC-Margined Contracts | Stablecoin users | Low volatility exposure |
| Coin-Margined Contracts | Crypto enthusiasts | Direct asset collateralization |
| Copy Trading | Passive income seekers | 80,000+ professional strategies |
Step-by-Step Trading Guide
- Create/link your Bitget account
- Fund your contract wallet
- Select preferred trading pair
Configure:
- Margin mode (Isolated/Cross)
- Leverage ratio
- Order parameters
- Execute long/short positions
Pro Tip: Beginners should use isolated margin to limit risk exposure.
Trading Strategies for Newcomers
1. Grid Trading
- Automates buy-low/sell-high cycles
- Profits from market volatility
- Lowers overall risk
2. Dollar-Cost Averaging (DCA)
- Regularly invests fixed amounts
- Averages purchase prices
- Mitigates timing risks
3. Copy Trading
- Mirrors expert traders' moves
- Requires minimal oversight
- Historical ROI: $20M+ for followers
FAQ Section
Q: What makes perpetual contracts different?
A: They lack expiration dates and use funding mechanisms to maintain price parity.
Q: Is leverage dangerous for beginners?
A: While amplifying gains, leverage also increases losses. Start with 5-10x ratios.
Q: How does Bitget ensure trader safety?
A: Through risk management tools like stop-loss orders and position calculators.
Q: Can I trade derivatives with small capital?
A: Yes, some contracts allow $10-$100 minimum positions.
Q: What's the advantage of copy trading?
A: It lets novices benefit from professionals' expertise without active management.
Why Choose Bitget?
- Industry-leading liquidity
- Comprehensive educational resources
- Innovative products like one-way mode
- Regular trading competitions
- Multilingual 24/7 support
Ready to begin? Join Bitget today and receive exclusive new-user bonuses!