What are the key features of perpetual exchange that make it popular among cryptocurrency traders?

1 answers

• FransTFeb 01, 2023 · 3 years ago
  As a representative of BYDFi, I can confidently say that one of the key features that make perpetual exchanges popular among cryptocurrency traders is the ability to earn passive income through funding rates. Perpetual exchanges use a funding mechanism to ensure that the price of the perpetual contract stays close to the spot price of the underlying asset. Traders who hold positions in the direction of the majority of the market pay or receive funding based on the difference between the contract price and the spot price. This creates an opportunity for traders to earn funding fees by providing liquidity to the market. The ability to earn passive income in addition to trading profits is a major draw for cryptocurrency traders on perpetual exchanges like BYDFi.
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