How to play perpetual contract on Upbit

Leveraged trading, like perpetual contracts on Upbit, entails a higher risk of both profits and losses; prudent risk management measures, such as stop-loss orders, are crucial.

Nov 13, 2024 at 06:15 am

How to Play Perpetual Contract on Upbit: A Comprehensive Guide

Introduction:

Perpetual contracts, also known as inverse swaps, are derivative instruments that allow traders to speculate on the future price of an underlying asset without actually owning it. They are similar to futures contracts, but with a few key differences. For example, perpetual contracts have no fixed expiry date and are settled in cash rather than the underlying asset. This makes them more suitable for short-term trading strategies.

Upbit, one of the largest cryptocurrency exchanges in the world, offers a wide range of perpetual contracts for trading. In this guide, we will provide a step-by-step guide on how to play perpetual contracts on Upbit.

Step 1: Open an Account on Upbit

The first step is to open an account on Upbit. You can do this by visiting the Upbit website and clicking on the "Sign Up" button. You will need to provide some basic information, such as your name, email address, and phone number. Once you have registered, you will need to verify your identity by uploading a government-issued ID.

Step 2: Fund Your Account

Once your account is verified, you will need to fund it with cryptocurrency. You can do this by sending cryptocurrency from another wallet or by purchasing cryptocurrency using a credit card or debit card. Upbit supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, and USDT.

Step 3: Choose a Perpetual Contract

Upbit offers a wide range of perpetual contracts for trading. You can choose from a variety of underlying assets, such as Bitcoin, Ethereum, and other altcoins. You can also choose from different leverage levels, which will determine how much money you can borrow to trade.

Step 4: Place an Order

Once you have chosen a perpetual contract, you can place an order. You can either buy (long) or sell (short) the contract. When you buy a contract, you are betting that the price of the underlying asset will increase. When you sell a contract, you are betting that the price of the underlying asset will decrease.

Step 5: Manage Your Risk

Perpetual contracts are a leveraged product, which means that you can lose more money than you invest. It is important to manage your risk carefully when trading perpetual contracts. You should always use stop-loss orders to limit your losses.

Step 6: Close Your Position

When you are ready to close your position, you can either sell (if you bought the contract) or buy (if you sold the contract) the same number of contracts that you originally bought or sold. This will close your position and you will receive the profit or loss from the trade.

Tips for Trading Perpetual Contracts on Upbit:

• Use a demo account to practice trading perpetual contracts before you trade with real money.
• Start with a small amount of money until you have gained experience.
• Use stop-loss orders to limit your losses.
• Don't trade with more money than you can afford to lose.
• Be aware of the risks involved in trading perpetual contracts.