You can now directly trade Perpetual Contracts on the Cronos chain, straight from the Crypto.com DeFi Wallet app. This feature is powered by Fulcrom Finance.
Trade with up to 100x leverage for eight hot token pairs, namely ADA, ATOM, BCH, BTC, ETH, LTC, SOL, and XRP.
How to get started?
- Download or launch the DeFi Wallet app (Guide)
- Tap Trade on the bottom menu, then Perpetuals
- Choose the trading pair and your wager token
- Choose long or short
- Choose your leverage ratio
- Tap Trade Now
You can choose a maximum of one long or one short contract. Learn more about it on our FAQ.
Note, Perpetuals are currently not available for US users.
What are Perpetual Contracts?
A Perpetual Contract is a type of futures contract i.e. an agreement between a buyer and seller to buy and/or sell a specific underlying asset (such as a cryptocurrency) at a set future date for a set price. Perpetuals do not have an expiry date so traders can hold the contract for as long as they wish until they close the position of their own accord or are forced into liquidation in cases like margin issues.
Perpetual traders gain exposure to price movements of an underlying asset without needing to own the actual asset. Instead, the profit or loss resulting from the trade will be recorded on the trader’s account.
Benefits of Perpetuals include:
- Ability to long or short the market: open a long contract if you think the price of the underlying asset will move up, and a ‘short’ contract if you think the price of the underlying asset will go down
- Ability to leverage: crypto futures are traded on margin, which means traders do not have to pay for the full amount of the trade themselves. Instead, a portion of the funds is borrowed from the exchange or trading platform. This allows for leverage, which could amplify gains, although losses could be amplified too. However, note that the trader may also face margin calls and forced liquidation.
- Ability to hedge: Since a trader can short the market, they can also protect their existing crypto assets against price dips by opening a short contract.
Learn more about Derivatives products here.
