Cryptocurrency trading has undergone unbelievable transformation from when it first began. From being shrouded in mystery to the President of the United States launching his own crypto token. This is certainly a space you can’t afford to miss out on.
As the cryptocurrency space advances, perpetual contracts are increasingly becoming the popular way of trading crypto. This holds true for traders of all skill levels, whether beginner, intermediate, or professional. For beginners, perpetual contracts are a great entry point to learn the ropes of trading due to their flexibility. But as all smart traders know, choosing the right trading platform is the most critical decision a trader can make. That’s because its usually the difference between phenomenal success or devastating failure.
This article highlights crucial factors novice traders must consider when choosing the best exchange for perpetual contracts. It further outlines why BYDFi (which stands for ‘Build Your Dream Finance’) is emerging as the irresistible choice for traders worldwide.
What are Perpetual Contracts?
Perpetual contracts are a unique class of derivative that enable traders to speculate on the prices of cryptocurrencies without owning the underlying assets. They are different from futures contracts because they do not have fixed expiration dates. For this reason, they offer greater flexibility to traders.
Perpetual contracts are particularly attractive to traders for their leverage. This enables traders to do more with less and control larger positions with comparatively smaller amounts of capital.
Important Things to Look for When Picking an Exchange
Selecting a trading platform can be challenging for beginners. We therefore took it upon ourselves to highlight the critical considerations. The main factors to look out for when selecting an exchange are as follows:
1) Transaction Fees and Hidden Costs
Fees and trading costs are the most important consideration due to their ability to directly impact profitability. Special attention should therefore be paid to them. This is particularly true for active traders that execute huge transactions. As a beginner, ensure you settle for a transparent exchange with competitive pricing. High trading fees are often red flags. In addition, make sure you look out for hidden fees because these can significantly eat into your profits over time.
BYDFi is one of the most competitive options when it comes to transaction fees and costs. The platform offers unparalleled transparency on matters of pricing. It additionally has a low-cost trading structure that is among the most competitive in the crypto market. This is specifically the case when it comes to XRP perpetual contracts.
2) Liquidity and Enhanced Market Depth
A feature that is vital in extremely volatile markets is high liquidity. High liquidity is particularly important for traders who rely on precision when setting their entry and exit points. Beginner traders need to ensure that they select an exchange with high liquidity and considerable market depth. This helps to reduce slippage as well as optimizes trading speed and accuracy.
BYDFI is exemplary when it comes to liquidity. The platform boasts substantial market depth and liquidity. It further possesses an advanced Trade Matching System which amplifies transaction speed and precision. In this way, seamless order execution is guaranteed for traders even under highly volatile market conditions. This aspect greatly benefits its traders with precision timing strategies.
3) Optimized Security and Rigorous Compliance
Matters of security are a non-negotiable when choosing an exchange. Beginner traders must therefore ensure that they choose a platform with a strong track record of protecting user funds. They must additionally ensure that their chosen platform strictly complies with relevant laws and regulations.
BYDFi excels in matters of security. It provides robust security features and possesses licenses in all the jurisdictions that it operates. BYDFi holds dual MSB licenses in the U.S. and Canada. It is also a member of South Korea’s CODE VASP Alliance. This is further coupled with Travel Rule compliance solutions which include but are not limited to:
- Cold Wallet Storage: This entails that digital assets are stored offline in cold wallets to alleviate hacking risks.
- Multi-Signature Technology: This bolsters fund management security.
- Two-Factor Authentication (2FA): This security feature protects accounts from unauthorized access by requiring additional verification.
- Anti-Phishing Measures: These protect users by inhibiting account theft through phishing attacks.
- Exchange Reputation and User Reviews
The reputation of the platform is another great barometer to factor in when choosing an exchange. As a beginner, it is prudent to conduct due diligence and verify the platform’s reliability. This includes things like reading user reviews and hearing the experiences of other traders within the community.
When it comes to reputation, BYDFi is a highly credible platform for perpetual contracts. Its stellar reputation has caused it to gain the trust and loyalty of over 1,ooo,00o users worldwide! BYDFi has been existence for years and recently rebranded from BitYard to BYDFi. Its impeccable track record led to it being recognized by Forbes as one of the Top 10 global crypto exchanges. Most notably, BYDFi was acknowledged as one of the best exchanges and apps for beginners. This clearly makes it one of the best choices a novice trader can make when selecting an exchange.
4) Customer Care and User-Friendly Interface
An easy-to-navigate user interface is of significant importance to beginners. The exchange’s platform should be easy to understand and operate. This optimizes beginner’s trading significantly and sets them on their way to professional success. The platform you select should also have a highly responsive, competent, and helpful customer care team. This is essential for helping you clarify and resolve any queries or challenges you may experience on the platform as a new trader.
Once again, BYDFi shines on both of these fronts. Its equipped with a very user-friendly interface that allows for seamless and hassle-free trading for traders of varying skill. Further and more impressively, BYDFi has a second-to-none multilingual customer support team which supports over 20 international languages. This team is available 24/7 to guide traders to success. The very competent support team prides itself in attending to all trader queries and challenges. Specific attention is paid to the needs and concerns of less experienced traders.
5) Payment Gateways and Account Funding Options
New traders also need to select an exchange which provides easy, safe, and secure account funding options. This is important to prevent undue difficulty and transaction fees that could frustrate their trading.
BYDFi offers many gateways and funding options. For instance, it offers a Fiat gateway which allows for user-friendly deposit options for new traders. This allows new traders to fund their accounts using credit/debit cards as well as bank transfers. It supports over 100 currencies. BYDFi further has partnerships with BANXA, Alchemy Pay, Transak, Mercuryo, and Coinify for comprehensive coverage of payment options globally. BYDFi is therefore a great choice for new traders because of these seamless options.
6) Cutting-Edge Trading Features and Trading Technologies
Staying ahead of the market creates an unnoticeable but significant advantage for traders. However, most platforms do not understand this nuance and tend to lag behind. Innovative trading tools can significantly amplify trading flexibility and efficiency. This in turn increases a trader’s overall effectiveness.
Aware of this reality, the BYDFi platform offers traders many state-of-the-art trading features and tools that keep them at the head of the game. The platform offers multiple innovations such as hedging options and automated trading in its desire to give its users a competitive edge.
Under its perpetual contract system, BYDFi offers the following innovative trading features:
- Unrealized Profits as Margin: This feature enables traders to use their unrealized profits to open new positions and maximize the efficiency of their capital. Due to this feature, traders are able to do considerably more than they traditionally would in their trading.
- Hedging Options: This function optimizes traders’ risk management and allows them to limit their risk. It does this by allowing traders to maintain both long and short positions on the same trading pair.
- Cross-Margin Mode: This feature alleviates liquidation risks and ensures increased fund stability for traders. It achieves this by allowing shared account funds to automatically support multiple positions.
In addition to these impressive features, BYDFi also furnishes traders with advanced trading bots. Plus, to optimize trading strategies and ensure even greater automation, the platform also offers Auto-Invest Strategies, Martingale, as well as Grid Trading.
Beyond the Basics
BYDFI understands that beginner traders don’t want to remain beginners forever. It therefore provides additional tools and options which cater to new traders’ advancement. These features include:
1) Demo Trading
This allows users access to a demo account with 100K USDT. This is particularly helpful for beginners it is a great way for them to get familiar with the platform and the market. Beginners also get to learn and practice trading without risking real funds.
2) Copy trading
BYDFi has a unique edge in the market due to being a leader in the market with regards copy trading. Some of the important things traders can do under this option are listed below.
- Trade with as little as $10 – The platform has lowered thresholds for new traders and small investors to participate in the crypto market.
- Flexible Margin Options – This allows traders to choose between isolated or cross margins.
- Multi-Asset Contract Trading Support – Which supports a variety of cryptos including mainstream currencies like Bitcoin, Ethereum, and Ripple. As well as meme coins like Dogecoin and Solana.
3) Flexible Leverage up to 200X
A feature that sets BYDFi apart from its competition is leverage. Specifically, where the maximum leverage for perpetual contracts is typically 100x or 125x. BYDFi offers up to 200x leverage. This supports the objectives of traders who seek to accomplish more in the markets.
4) Ease of Signing Up
Lastly, the final consideration should the ease of signing up and creating an account on the platform. Although, the exchange must prioritize security, it must not have unnecessary requirements. Unnecessary requirements can limit traders and even frustrate traders.
Future Outlook of the Cryptocurrency Markets and Conclusion
The crypto market is projected to grow at a compound growth rate (CAGR) of 15%. Perpetual markets are increasingly likely to gain popularity for the many reasons outlined in this article and increased adoption by traders. Exchanges which stay ahead of the market trends and continue innovating and prioritizing their traders will set themselves apart and lead the pack.
BYDFi is poised to lead the pack due to its dedication to improvement, innovation and commitment to customer satisfaction. It will therefore serve beginner traders well to choose an exchange that encompasses and embodies the qualities and features set out throughout this article.
Start your journey, visit BYDFi today and take advantage of their generous welcome bonus of 8100 USDT for new users. Don’t miss the opportunity to build your dream finance with BYDFi.
