Crypto Perps Are Easier to Access Than Ever Before—Is That A Good Thing?
Perpetual futures are crypto’s hottest trading strategy right now, with traders flocking to these high-risk bets on high-risk assets in record numbers. But as access to these products gets easier, now available to anyone with a crypto wallet or a Telegram account, analysts warn they present the crypto market with a “double-edged sword.”
Perpetual futures, or perps, are derivative contracts with no expiration date that allow users to place leveraged bets, using borrowed capital, on the future price of an asset, such as Bitcoin. Bet correctly and your winnings are multiplied, based on the amount of leverage on the position. Bet incorrectly and your position can be liquidated, or forcibly closed—like what happened on Oct….
