why should we consider them on the future?

The cryptocurrency market is growing rapidly and new products are being introduced to meet the needs of different types of traders. One of these products is the derivatives market. Derivatives are essential in global markets, allowing traders to hedge or speculate on the price movements of the underlying asset. Bitcoin and Crypto futures, options, swaps and futures are all different types of derivatives. A futures contract is a type of financial derivative and an agreement to buy or sell an asset at a fixed price at a specific time in the future. A Bitcoin / crypto perpetual contract, on the other hand, is similar to futures, but has no expiration or settlement date. In the Bitcoin industry, perpetual settlement of BTC / USD futures is often called “reverse futures” because settlement is done in BTC rather than USD. Perpetual contracts are more attractive than Bitcoin / crypto futures and offer several advantages to traders.

• Bitcoin is generally a volatile asset and traders use futures contracts to lock in profits or hedge risk. However, perpetual contracts are better suited to traders who wish to trade as a regular cash exchange. Unlike Bitcoin futures, perpetual contracts are traded on the basis of the price of the underlying index and therefore trade at a price very close to the spot markets. The price of the index is determined by the average price of an asset according to the main cash markets and their relative trading volume. Traders do not need to repeat the opening action every time as the contract does not expire.
• Perpetual contracts are better suited for Bitcoin speculative traders than futures, because they can hold positions for as long as they want. Traders can also close these positions at any time. To maximize the trading strategy, perpetual contracts allow traders to take advantage of up to 100X. This means that traders with 1 BTC deposit can open positions of 100 BTC. The low capital requirement is attractive to retail traders who are able to profit from the growth of the cryptocurrency market.
• In perpetual contracts, traders do not have to worry about settlement costs, as well as turnover costs, which is the case when trading futures. The financing rate is used to determine the fees to be paid and is transferred between traders and not invoiced by the stock exchange.
• Since perpetual contracts are “reverse futures”, cryptocurrency traders are able to trade without being exposed to fiat. Payment is made in BTC and not in fiat like the USD. This is important because it overcomes many regulatory obstacles involving fiduciary deposits on the stock exchanges.
• Lower transaction costs: since settlements for perpetual futures are made in BTC and not in USD, lower costs are involved as there are no interbank and exchange fees. A normal bank transfer can take 2 to 3 days to settle and incur fees when the money moves from one bank to another. BTC transactions take place from one wallet to another and geographic distances do not matter as there is no use of payment aggregators.