Who will get the 10 bitcoins? – Ignoring derivative markets has become simply impossible. A tool of speculation for some, a possibility of strategic balancing for others, since their appearance they have made and undone fortunes. Having no desire to interfere in your personal choices, our duty remains to guide you to the best platforms in the sector.

Bitcoin Bank scam does us the honor of having chosen the Journal du Coin to introduce the challenges and opportunities inherent in derivatives trading . After a reminder of the fundamentals, we will explain why and how ByBit became the fourth platform on the market, putting Bitmex in its sights.

This is promotional content produced in partnership with ByBit. To thank you for your attention, we offer some good tips to find at the end of the article

Entering the abyss of derivatives markets is a complex task. Yet it is the key to any self-respecting trader , both in traditional finance and in cryptocurrencies.

It goes without saying that the lack of regulation around the crypto sector allows private investors to be in possession of overpowered tools . We invite you to use them with great care and allow ourselves to give some advice.

Derivatives markets and the use of “perpetual swaps” allow you to bet on the fall or rise of an asset. This is the opposite of “classic trading” where you buy bitcoin directly in the expectation of a future profitable resale. The perpetual swap allow you to bet on rising and falling Bitcoin without ever possess.

A parallel can be drawn with sports betting. You can bet on the fact that Dijon FC will supplant Toulouse in the next league game, without owning shares in the club. It’s the same mechanism that happens behind the scenes with perpetual swaps .

Unlike sports betting, you can limit your losses by stopping the bet at any time. The magic takes place in the opposite situation. If your prediction turns out to be correct, then you can let your bet run for several months, and see your profits fluctuate with the movements of an asset.

The major attribute of perpetual swaps is as exciting as it is perilous. Leverage makes possible a bet that is 2 to 100 times more than the amount you actually own. Result ? You get rich in record time or things take a turn for the worse.

If you are the head of a trading capital of 1000 euros, and use a leverage x5, you have fictitiously in your possession 5000 euros. As a result, the accumulation of earnings is greater if your prediction is correct. If your flair is failing, the reverse happens.

Despite the absurd aspect of this tool, its usefulness is indeed real and allows any self-respecting investor better management of his portfolio

Take the example of an investment fund that has decided to sell its bitcoins predicting an upcoming drop. In order to limit the impacts of such a decision, the fund then uses the derivative markets, and thanks to them, bets on the rise of Bitcoin. This double bet saves money in both situations, and minimizes the consequences of a bad decision.

The other example is that of a company specializing in Bitcoin mining . It is betting on the future, by investing millions of euros in its mining infrastructure. Its survival depends on the future price of Bitcoin, which will or will not allow it to recover its operational costs. Wishing to mitigate her risks, she uses the derivative markets to bet on a fall in Bitcoin, improving her cash flow in both cases.

Bitcoin trading BTC

The usefulness of perpetual swaps is therefore crucial in a balanced portfolio management. It is therefore natural that the potential market is massive, giving way to a pitched battle between exchange platforms.

Since its creation in 2018, ByBit has risen to the top of the ranking of derivative platforms. This meteoric rise is anything but the result of chance. Let us illustrate the reasons for this progression, and the competitive advantages of a leader in the making.