Intro to Perpetual Exchanges

Overview

Perpetual exchanges are a relatively new concept. They offer a unique way for traders to speculate on the future price movements of cryptocurrencies without the need for an expiration date. This article will introduce you to the concept of perpetual exchanges, why they are becoming increasingly popular, and some of the platforms where you can trade.

What are Perpetual Exchanges?

Perpetual exchanges are a type of derivatives market where traders can buy and sell contracts that speculate on the price of an underlying asset. Unlike traditional futures contracts, these contracts do not have an expiration date, hence the term "perpetual". This means that traders can hold their positions indefinitely, provided they have enough margin to cover their potential losses. In crypto, they are also known as perpetual contracts or crypto perpetual.

Why are Perpetual Exchanges Important?

The main advantage of perpetual exchanges is that they allow traders to speculate on price movements without the need to own the underlying asset. This opens up a lot of possibilities for traders, especially in the volatile world of cryptocurrencies. Traders can profit from both rising and falling markets, and they can use leverage to amplify their potential profits (or losses).

Examples of Perpetual Exchanges

Several platforms offer perpetual exchanges. Here are two examples:

GMX

GMX (Global Markets Exchange) is a decentralized perpetual exchange that allows users to trade top cryptocurrencies like BTC, ETH, and AVAX with up to 50x leverage. It operates on the Arbitrum and Avalanche networks, offering users a fast and inexpensive trading experience. GMX has its own utility and governance token, $GMX, which accrues a portion of the platform's generated fees. You can check out our guide to GMX here.

nftperp

nftperp is another decentralized exchange that specializes in perpetual futures contracts for NFTs. It allows users to speculate on the floor prices of blue-chip NFT projects like Bored Ape Yacht Club and CryptoPunks. The platform is deployed on Arbitrum, and it offers a fast and responsive trading experience. You can check out our guide to nftperp here.

Conclusion

In summary, perpetual exchanges are a fresh approach to crypto trading, letting users speculate on price movements without worrying about contract expirations. This flexibility attracts traders to benefit from both rising and falling markets, using leverage to enhance potential gains or losses. Platforms like GMX and nftperp showcase this trend, offering decentralized options with unique features. Overall, perpetual exchanges present a dynamic and accessible way for traders to navigate the ever-changing crypto landscape.

Remember, while the profit potential is high, so too is the risk. Always trade responsibly and never risk more than you can afford to lose. #NFA