As the trading scene evolves, one of the popular options for traders in the US is perpetual futures. These are derivatives that allow you to take long or short positions on an asset’s price movements without an expiry date. So, as long as you meet the margin requirements, you can hold a position as long as you want.
One of the top platforms for engaging in perpetual futures is BYDFi, a leading cryptocurrency exchange that offers spot trading, derivatives, and leveraged trading on multiple cryptocurrencies. BYDFi also features multiple margin modes and advanced features for perpetual futures trading. Let’s take a closer look at why BYDFi is a top option for this form of trading.
Up to 200x Leverage on Perpetuals
One of the highlights of BYDFi is the fact that it offers up to 200x leverage on some perpetual contract pairs. That means that you can control a very large position relative to your margin. This is much higher than other platforms, which usually have about 100x or 125x leverage.
With a higher leverage on the top US perpetual trading platform BYDFi, you can amplify even small moves in the underlying asset and turn your investment into a larger profit potential. But with a higher leverage, the risk is also magnified. A small adverse move can result in large losses or even total liquidation of your margin. This high leverage is attractive to traders comfortable with risk, but beginners should proceed cautiously.
Broad Variety of Perpetual Contract Pairs
BYDFi advertises over 500 perpetual contract pairs, including both USDT-margined and coin-margined versions. Some of the USDT-margined contracts include:
- BTC/USDT
- ETH/USDT
- XRP/USDT
- DOGE/USDT
- SOL/USDT
- WLFI/USDT
- BTR/USDT
- MITO/USDT
- IN/USDT
- TOWNS/USDT
- MERL/USDT
- PORT3/USDT
- ORCA/USDT
- LDO/USDT
- FARTCOIN/USDT
There are also some crypto-margined contracts like BTCUSD and ETHUSD and USDC-margined contracts like LINK/USDC.
You can trade many altcoins aside from just the popular cryptocurrencies. Also, with both USDT-margined and coin-margined contracts available, you can choose a settlement mode that aligns with your strategy. For a US trader, having access to a wide range of contract pairs means you can explore both the major pairs and niche opportunities.
Flexible Margin Modes and Advanced Features
In December 2024, BYDFi upgraded its perpetual trading system to include features like holding both long and short positions on the same trading pair and using unrealized profits as margin for new positions. All these features allow you to hedge when the market is uncertain, use your position efficiently, and support multiple positions. These upgrades include:
- Unrealized Profits Open New Positions: You can use unrealized profits in a position to open new ones, improving fund efficiency. This will multiply your profits and is especially beneficial in fast-moving markets where traders want to seize opportunities. Instead of waiting for settlement, you can reinvest your funds immediately.
- Hedging or Long-Short Positioning: You can hold both long and short orders in the same trading pair, which helps with risk management or hedging strategies. Whether you’re dealing with severe market volatility or uncertain trends, you can hedge operations and prevent risks.
- Cross Margin Mode: Another feature offered for US perpetual futures traders is the cross margin mode, where all the funds in an account are aggregated to support multiple positions. Instead of each position needing an isolated margin, you can reduce the risk of one blowing up while others are left unbuffered.
Competitive Fee Structure and US Accessibility
BYDFi offers fairly transparent and competitive fees. The maker and taker fees on perpetuals are around 0.02% and 0.06%, respectively. The fees can decrease depending on the trading volume, so a higher 30-day volume means a lower fee.
Traders might also deal with funding rates, which are regular fees that are paid between traders to keep the perpetual futures price in line with the spot price. Who pays whom depends on the difference between the futures price and the spot price. Other fees include deposit and withdrawal fees.
BYDFi perpetual futures are accessible to US traders. The platform holds money services business licenses in the US and is suitable for Americans that want to trade crypto derivatives. Users can start trading and withdraw up to 1.5 BTC daily without completing the KYC process.
Beginner-Friendly and Feature-Rich
Even though perpetual futures involve higher complexity and risk, BYDFi markets itself as being suitable to both newer and experienced traders. You can explore the beginner guides, which include tutorials that teach how to fund your account, choose pairs, set leverage, and explore stop-loss and take-profit.
If you’re a US trader starting out in perpetuals, this combination of advanced features and a beginner-friendly interface makes BYDFi a suitable choice.
How to Use BYDFi for Perpetual Futures Trading
If you want to start trading perpetual futures pairs on BYDFi, you can follow the steps below.
Get Started
- Sign up and deposit: Create an account on BYDFi and deposit cryptocurrency or fiat.
- Convert to USDT: If you deposited in a different cryptocurrency, convert it to USDT in your spot account.
- Transfer to futures account: Move your funds from the spot account to the USDTM futures account.
Place a Trade
- Select a trading pair: Choose the crypto pair you want to trade from the platform’s offerings.
- Set leverage: Choose the leverage level for your trade, up to 200x.
- Choose the order type: Select an order type, like market or limit.
- Set position size: Determine the amount of your position.
- Manage risk: Set your take-profit and stop-loss levels to manage your risk.
Manage Your Trade
- Monitor positions: View your open positions on the trading platform.
- Edit orders: You can edit your take profit, stop loss, and close a portion of the trade directly on the chart.
- Close a trade: Click market close to exit your position.
Final Take
For US traders interested in perpetual futures, BYDFi is very worth considering thanks to its combination of high leverage, large selection of contract pairs, flexible margin modes, and features aimed at both new and experienced traders.
But keep in mind that high reward comes with high risk, so the key is to approach with a strategy, sound risk management, and understanding of how the pair works. If you’re ready to trade futures and want a platform with advanced tools, BYDFi offers compelling value.
