What advantages do perpetual swaps offer compared to futures in the world of cryptocurrencies?

5 answers

• Bathvv BathvvJul 05, 2022 · 3 years ago
  Perpetual swaps offer several advantages over futures in the world of cryptocurrencies. Firstly, perpetual swaps do not have an expiration date, unlike futures contracts which have a set expiration date. This means that traders can hold their positions for as long as they want without worrying about contract expiration. Additionally, perpetual swaps are settled in the underlying cryptocurrency, whereas futures contracts are settled in cash. This allows traders to directly hold the cryptocurrency and potentially benefit from any price appreciation. Furthermore, perpetual swaps often have higher liquidity compared to futures contracts, making it easier for traders to enter and exit positions. Overall, perpetual swaps provide more flexibility, direct exposure to the underlying asset, and better liquidity compared to futures contracts in the world of cryptocurrencies.
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• Heath NorwoodJun 25, 2024 · a year ago
  When it comes to cryptocurrencies, perpetual swaps have some advantages over futures contracts. One major advantage is the absence of an expiration date. Unlike futures contracts that have a fixed expiration date, perpetual swaps can be held indefinitely. This gives traders the freedom to hold their positions for as long as they want, without the need to roll over contracts or worry about expiration. Another advantage is the settlement method. Perpetual swaps are settled in the underlying cryptocurrency, which means that traders can directly hold the cryptocurrency and potentially benefit from its price movements. On the other hand, futures contracts are settled in cash, which may not provide the same level of exposure to the cryptocurrency market. Lastly, perpetual swaps often have higher liquidity compared to futures contracts, which means that traders can easily enter and exit positions without facing significant slippage. Overall, perpetual swaps offer more flexibility, direct exposure to the underlying asset, and better liquidity in the world of cryptocurrencies.
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• Sergio LJun 09, 2023 · 2 years ago
  Perpetual swaps have gained popularity in the world of cryptocurrencies due to their unique advantages over futures contracts. Unlike futures, perpetual swaps do not have an expiration date. This means that traders can hold their positions for as long as they want without worrying about contract rollover or expiration. Additionally, perpetual swaps are settled in the underlying cryptocurrency, which allows traders to directly hold the asset and potentially benefit from any price appreciation. This is in contrast to futures contracts, which are settled in cash. Moreover, perpetual swaps often have higher liquidity compared to futures, making it easier for traders to enter and exit positions at their desired prices. Overall, perpetual swaps offer greater flexibility, direct exposure to the cryptocurrency, and improved liquidity compared to futures contracts in the world of cryptocurrencies.
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• Md RanaApr 01, 2025 · 4 months ago
  Perpetual swaps offer several advantages over futures contracts in the world of cryptocurrencies. Firstly, perpetual swaps do not have an expiration date, which means that traders can hold their positions for as long as they want without worrying about contract rollover or expiration. This provides greater flexibility and eliminates the need for constant contract management. Secondly, perpetual swaps are settled in the underlying cryptocurrency, allowing traders to directly hold the asset and potentially benefit from any price appreciation. On the other hand, futures contracts are settled in cash, which may not provide the same level of exposure to the cryptocurrency market. Lastly, perpetual swaps often have higher liquidity compared to futures contracts, making it easier for traders to enter and exit positions without significant slippage. Overall, perpetual swaps offer more flexibility, direct exposure to the underlying asset, and improved liquidity in the world of cryptocurrencies.
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• DDladniaJul 27, 2023 · 2 years ago
  Perpetual swaps have become increasingly popular in the world of cryptocurrencies due to their advantages over futures contracts. One key advantage is the absence of an expiration date. Unlike futures contracts that have a fixed expiration date, perpetual swaps can be held indefinitely. This provides traders with greater flexibility and eliminates the need for contract rollover. Additionally, perpetual swaps are settled in the underlying cryptocurrency, which allows traders to directly hold the asset and potentially benefit from its price movements. In contrast, futures contracts are settled in cash, which may not provide the same level of exposure to the cryptocurrency market. Lastly, perpetual swaps often have higher liquidity compared to futures contracts, making it easier for traders to enter and exit positions at their desired prices. Overall, perpetual swaps offer more flexibility, direct exposure to the underlying asset, and improved liquidity in the world of cryptocurrencies.
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