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Bittime - Knowing about open interest, funding rates, and differences in futures contracts is crucial for anyone looking to trade crypto derivatives.

Futures Contracts Popularity

Over the last couple of years, futures contracts have gained significant popularity among cryptocurrency traders, evident from the more than doubling of total open interest in just three months.

Future Contracts Surpassing Gold Market

This popularity was further highlighted when futures trading volume surpassed that of gold, a market with a daily volume of $107 billion.

However, each exchange operates with its unique order book, index calculation, leverage limits, and margin rules, which may seem insignificant but can greatly impact traders' strategies.

Open Interest Insights

Total aggregate futures open interest surged from $19 billion to $41 billion in three months, with daily trading volume exceeding $120 billion, surpassing gold's volume.

Binance Future Market Dominance

While Binance futures dominate this market, other platforms like FTX, Bybit, and OKEx also boast significant volumes and open interest. Some differences between exchanges are apparent, like FTX's hourly charges for perpetual contracts, unlike the usual 8-hour window.

Take note of CME ranking third in Bitcoin futures, despite offering only monthly contracts. CME's traditional derivatives markets stand out for requiring a 60% margin deposit, though brokers may offer leverage to specific clients.

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Stablecoin vs. Token-Margined Contracts

Most crypto exchanges permit up to 100x leverage, with Tether orders typically in BTC terms. Inverse perpetual contracts are usually displayed in contract units, varying in value depending on the exchange.

For instance, Bybit's USDT futures require a BTC-denominated quantity for order entry, similar to Binance. Conversely, OKEx and FTX provide an easier option, allowing clients to input a USDT quantity, automatically converting it to BTC terms.

In addition to USDT-based contracts, OKEx offers a USDK pair, and Binance perpetual futures feature a Binance USD (BUSD) book, providing alternatives for those averse to using Tether.

Variable Funding Rates

While some exchanges offer very high leverage, potentially increasing funding rates, there are mechanisms like liquidation engines and insurance funds to manage risks. However, this can lead to higher funding rates, typically penalizing long positions.

Bybit and Binance tend to display higher funding rates, whereas OKEx consistently presents lower rates. Traders should be aware that these rates are not regulated, and they may fluctuate between assets or with changes in leverage demand.

Even a slight 0.05% difference in funding rates can result in a 1% increase in costs weekly, underscoring the importance of regularly comparing funding rates, especially during bullish market conditions when fees tend to rise rapidly.

How To Buy Crypto From Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.