After opening an account, users can trade. The characteristics of each commodity are different.
| Characteristics | Suited For | |
|---|---|---|
| Currency transaction (Spot) | Spot transactions provided in general digital currency exchanges. Please invest cautiously after analyzing relevant tokens. | Suitable for investors who are interested in the future value of tokens. |
| Perpetual contract (Contract) | Mainstream digital currency contract transactions with frequent fluctuations are traded by short or long. Compared with traditional contract trading, Wisebitcoin provides perpetual contract trading services. | The use of leverage will make perpetual futures contract commodities attractive to investors who can tolerate high risks and high-frequency trading. Higher leverage means higher risk. |
Physical vs Perpetual Contracts
1. Buying income
User S -> holding coins, user F -> holding permanent contracts, if 1 BTC = 8,000 USDT, 1 contract = 1 USDT, if it is predicted that the price of Bitcoin will rise, user S buys 1 BTC with 8,000 USDT, User F uses 8,000 USDT and 10 times leverage to buy a 10*8000 BTC contract.
When the price of Bitcoin rises to 8,800 USDT, the income of two users is:
| S: | (8,800-8,000)*1=800USDT -> Yield rate 10% |
|---|---|
| F: | [(1/8,000-1/8,800)*10*8,000 ]*8,800=8,000USDT -> 100% yield |
2. Selling income
User S -> holds coins, user F -> holds a permanent contract, if 1 BTC = 5,000 USDT, 1 contract = 1 USDT, if it is predicted that the price of Bitcoin will fall, user S sells 1 BTC and holds 5,000 USDT , User F uses 5,000 USDT and uses 10 times leverage to sell 10*5,000 BTC contracts.
When the price of BTC Bitcoin drops to 4,500 USDT, the income of the two users is:
| S: | Assets 5,000 USDT, no profit or loss changes -> The rate of return is 0% |
|---|---|
| F: | [(1/4,500-1/5,000)*10*5000 ]*4,500=5,000USDT -> 100% yield |
3. Loss on buying
User S -> holds coins, user F -> holds a permanent contract, if 1 BTC = 5,000 USDT, 1 contract = 1 USDT, if it is predicted that the price of Bitcoin will rise, user S buys 1 BTC with 5,000 USDT , User F uses 5,000 USDT and 10 times leverage to buy 10*5,000 BTC contracts.
When the price of BTC does not rise, but drops to 4,700 USDT, the income of the two users is:
| S: | (4700-5000)*1=-300USDT -> Yield rate -6% |
|---|---|
| F: | [(1/5000-1 /4700)*10*5000)*4700=-3,000USDT -> Yield -60% |
Even if the price does not rise, if you can use it well, you can get more benefits.
However, it will also bring high risks. Users must fully evaluate the risks within the scope that they can bear before conducting permanent contract transactions.
Please click "Introduction of Wisebitcoin", if you want to know the details and the company information of Wisebitcoin.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...