Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: cryptodabbin on October 20, 2020, 05:41:44 AM
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KuCoin Futures may well have joined the domain of derivatives late, however, it has developed its position in the industry even among users in no time. The reason behind the rise was really the array of altcoins, together with the major coins, provided by the exchange. 2020 was the year in which DeFi and KuCoin recognized it, adding DeFi tokens to encourage interested users to transact on their exchange.
(https://imgur.com/qrMRuAg.jpg) (https://www.kucoin.com/news/en-kucoin-futures-launched-xrp-ada-perpetual-futures)
According to the announcement (https://www.kucoin.com/news/en-kucoin-futures-will-launch-xrp-and-ada-futures), KuCoin is improving its position as the preferred futures trading platform for traders worldwide with the addition of USDT-Margined Ripple (XRP) and Cardano (ADA) Perpetual Futures.
What is Perpetual Contract?
A perpetual contract, or swap, is basically a contract for futures without maturity date or termination, which has a series of benefits over all other products of futures or options. This kind of contract offers traders the opportunity to use leverage efficiently and conveniently, and liquidity is generally much higher to compete on perpetual swaps.
By encouraging traders to keep plenty of the underlying asset to support their orders, in this case, USDT, perpetual swap markets are retained in value. It should be noted that the use of leverage in volatile markets is highly dangerous, as minor price shifts can rapidly lead to liquidation.
What is USDT-Margined Contract?
A USDT-margined contract is indeed a derivative of linear futures which is measured and resolved in USDT-a Stablecoin linked to the U.S. dollar value. One of the major advantages of USDT settlement would be that in fiat instead of BTC, you can conveniently measure gains. For instance, you can easily calculate that perhaps the profit is worth roughly $500 when you make 500 USDT in profit-because the value of 1 USDT is similarly tied to 1 USD.
Furthermore, USDT-margined contracts may help minimize the chances of major price fluctuations in case of intense volatility. Therefore, one does not have to think about their underlying collateral risk being hedged. Trading with USDT has become a wise option upon many times this year, particularly in volatile periods.
KuCoin Futures currently offers nine perpetual contracts to its users – BTC, ETH, BCH, BSV, LINK, UNI, YFI, EOS, and DOT. Adding arsenal to its list of crypto-based market offerings, KuCoin Futures has stated its users will be able to trade in USDTMargined ADA and XRP perpetual futures with up to 50x leverage as of 16:00:00 on October 20, 2020 (UTC+8).
XRP is a digital, decentralized asset primarily designed for payments. By market cap, it is the third-largest digital asset and one of the most common among crypto users. ADA, on the other hand, is the ninth-largest market cap cryptocurrency, planned to be between 50 and 100 times more decentralized than other major blockchains. By introducing ADA and XRP contracts on the platform, KuCoin Futures offers more options for traders to utilize their preferred assets and drives crypto adoption across the world.