OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders.

Daily Top Performer — AI Rig Complex (ARC)

The S&P 500 gained 1.04%, driven by optimism despite strong inflation data and boosted by positive earnings. Gold nears record high at $2,925 on USD weakness, trade fears, and central bank demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.06%, with Bitcoin and Ether dropping by 0.79% and 0.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is ARC, which surged nearly 7.0% following the debut of Arc Forge with AskJ, overcoming launch hurdles for a stronger future.

AI Rig Complex (ARC), launched in 2024, is a high-performance AI framework built with Rust, enabling intuitive, context-aware interactions. Its core platform, Playgrounds, integrates multiple LLMs and AI workflows, streamlining development while eliminating vendor lock-in. 

, a token launch platform built on Meteora’s DLMM and integrated with Jupiter routing, ensures deep liquidity, sniper protection, and synergy with ARC by routing all trades through it. Each launched token now features "arc" in its contract address as an emblem of the ecosystem. The first launch, AskJ by AskJimmy—an AI-driven trading platform—went live on Feb 13 at 9 AM EST. Despite initial technical issues causing frustration, the Arc team has resolved frontend problems and is preparing a post-mortem to improve future launches. Their focus remains on high-quality, vetted projects over volume.

Check Out the Latest Prices, Charts, and Data of 

OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders, featuring NFT and token integration, enhanced discovery tools, support for 14 blockchains, native cross-chain purchasing, and reduced fees (0.5% marketplace, 0% swap). The platform also confirmed the upcoming $SEA token, with eligibility based on historical usage and a simple claim process. While no release date is set, OpenSea emphasizes long-term sustainability and community support.

Yesterday, BTC Spot ETFs had $183M in net outflows, with GBTC losing $6.9M and non-GBTC funds $176.1M.

 its $SEA token, prioritizing historical users over recent activity. U.S. users are eligible, but the exact timing remains unannounced. Stay tuned for more details.

Beginner

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OpenSea Unveils OS2 Beta With Cross-Chain Trading and Upcoming $SEA Token

Diamante uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. Learn more here.

Though Diamante has been around for a while, its recent rebrand and upcoming token generation events have propelled it back into the news cycle. The Diamante chain's big claim to fame is that it's the first 

 in existence. What does this mean for the typical crypto user or investor? Keep reading this guide to learn more about how Diamante works — and why it could be so revolutionary.

 is an independently operated Layer 1 blockchain. It uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. This results in a chain that’s particularly scalable, secure and decentralized.

 in 2018. Patel has 25 years of experience in business and finance, and Jetani is an engineer and long-time blockchain enthusiast. Much of the project was born out of Jetani's passion for creating a blockchain system that could meet the complete needs of its users.

. This rebrand included dropping half of the project's name, and redesigning the company's logo and website. Jetani explains that this rebrand is meant to help the chain diversify and expand. By emphasizing its broad ecosystem with a variety of applications, the team hopes to showcase that Diamante is more than just a standard blockchain. 

A lot of Diamante's design comes from a desire to address the 

. Many early blockchains realized it was difficult to create a system that was equally secure, scalable and decentralized. Inevitably, they ended up having to sacrifice one of these features to promote the other two. 

Diamante hopes that its unusual hybrid design can provide users with a blend of all three features. By solving the blockchain trilemma, Diamante believes it can become the most flexible chain in the world. Instead of only working for specific use cases, the blockchain hopes to be equally useful for any project. Whether a big business seeks a secure way of recording data, or a startup application is looking for scalable transactions, Diamante believes it can help.

The Diamante ecosystem infrastructure starts with a decentralized network of servers. Each server holds a copy of the same ledger that lists all transactions every user makes. Diamante has set up its servers to communicate with each other and 

 (FBA) is used to update the servers and reconcile any disagreements while syncing. This creates a tiered system that prioritizes resilience and decentralization. All of the various products within the Diamante blockchain network are run on this blockchain, while the software on Diamante’s website provides a convenient and straightforward interface for accessing its services.

By leveraging proprietary blockchain infrastructure, Diamante has been able to create an entire 

 so that any user who accesses it can enjoy all of its features.

Diamante calls itself “hybrid” due to its ability to use the same chain for drastically different purposes. It offers both centralized and decentralized features at the same time, so users can choose secure options for institutional applications or scalable options for 

A secure validation method is part of establishing concrete trust in a system, and Diamante has certainly delivered on this aspect of a Layer 1 blockchain. It uses a combination of proof of stake, proof of history and asynchronous Byzantine fault tolerance 

 to validate its chain. In addition to being secure, this also approach helps the chain stay compatible with a variety of other blockchains.

Diamante aims to future-proof itself by being resilient to attacks from quantum computers. This will help ensure its system remains secure even if this advanced new technology is developed.

. While settling a transaction on a larger chain like Bitcoin or Ethereum can take minutes, Diamante claims it can get settlements finalized in around four seconds.

 trends, Diamante's products are built to address real-world needs. It offers a variety of banking, payment and credit applications that people can use to manage their finances and work with brick-and-mortar businesses.

Diamante's architecture is set up to use as little computing power as possible. This results in an eco-friendly design and a system that doesn’t encourage its users to waste electricity and other resources.

Since 2024, Diamante has been working on a road map that’s meant to revolutionize global finance, and to center Diamante as a leading ecosystem. The company has already refined its technology and streamlined its marketing with a rebrand. It’s currently working on expanding to the U.S. and launching a new cryptocurrency token. 

 focuses on offering more services centered on payments and trade. It plans to integrate credit provision, banking, accounting and investment services in one convenient location. By 2026, Diamante plans to be a payments super-app whose users can access a variety of financial solutions from a secure and decentralized environment. 

To help launch its new token, DIAM, Diamante has hosted an 

 for its users. Eligibility for the airdrop is based on on-chain activity, so the more you use Diamante for its transaction and recording services, the more tokens you can receive. 

Diamante reports that over 600,000 people have already participated in the airdrop, and it will continue running until the token generation event on Feb 12, 2025. Users can claim their portion of the airdrop by 

. Syncing your wallet to your account will allow you to automatically claim DIAM.

DIAM, the native token of Diamante, will be used to manage a variety of fees and services throughout the blockchain ecosystem. It has a larger-than-average total supply of 

 that will be distributed according to the following plan.

Since DIAM is still quite new and hasn't been released on most markets yet, there isn't a lot of pricing data for analysts to discuss. An impressive 

 has been reported for token presales so far. However, with such a large token supply, users shouldn’t expect an extremely high price per token. 

Typically, crypto price predictions are heavily related to the amount of positive press a crypto is receiving. DIAM has captured a lot of attention from crypto influencers and generated 

. However, no one can quite agree on whether the token has a bullish or bearish outlook. While some social media comments praise the forward-thinking nature of the ecosystem’s creators, other commenters believe Diamante will struggle to compete with Solana and other similar chains.

Looking to trade Diamante tokens? Bybit now offers the DIAM/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

By leveraging proprietary blockchain infrastructure, Diamante could potentially become a critical part of the financial ecosystem. It's backed by a lot of reputable funders, and has a highly dedicated marketing team providing plenty of detailed information about how the project works. These are usually positive indications that a new crypto token will receive enough support to perform well. 

However, establishing concrete trust with an audience can take time, and there are some understandable concerns as to whether Diamante can deliver on all its claims. Though it does have some unique tech, other chains are providing similar services already. This uncertainty may combine with inherent market volatility to provide some issues for the DIAM token. Users who want to invest in it need to remain cautious and use smart 

The Diamante's blockchain’s hybrid design makes it a very promising Layer 1 project. Its ability to maintain numerous services across countless nodes could be quite useful. However, it's difficult to predict how many of its plans this highly ambitious project will actually accomplish in the near future. Interested investors should make sure to keep a close eye on Diamante.

Intermediate

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Diamante (DIAM): The First Hybrid Layer 1 Blockchain Ecosystem

Get started with Bybit trading competition at ease & never miss out on any opportunities to win bonuses and rewards!

The benefits you gain from joining trading competitions are boundless. You can make money, hone your trading skills, explore untried strategies and so much more. Bybit hosts a plethora of trading competitions, from small but frequent product-specific competitions held once a month or bimonthly to annual grand events like the 

 (WSOT) competition. These contests are a perfect avenue to help you reap profits, regardless of the market condition. 

With so many types of competitions, you may need more clarification on what types you’re eligible to join and what kind of rewards you can gain from them. With this handy guide, you’ll wonder no more as we break down the nitty-gritty of participating in Bybit's trading competitions.

With all its varying products, Bybit has many different kinds of competitions, ranging from 

. Regardless of the type of competition, participants are usually ranked on the leaderboard based on either profit and loss (P&L, or PnL) ratio or trading volume. 

P&L refers to the total amount of revenue and costs of your trading throughout the competition. Hence, when you compete to rank for P&L, you're competing to show how profitable you are.

P&L (%) = (Profit / Initial Equity + Total Deposits) * 100%

If you have the same P&L% as another participant, your total trading volume will then determine your ranking.

Trading volume measures the total number of contracts or crypto traded during the competition. If you achieve the same trading volume as another competitor, you’ll then be ranked based on the time you took to reach that trading volume. 

Benefits of Joining a Crypto Trading Competition

Participating in a crypto trading competition offers numerous benefits to uplift your trading journey. These competitions bring exciting rewards that can increase your gains during a bull market, or offset your losses and reignite your motivation to seek financial gains during a bear market. Moreover, the experience gained from live trading is invaluable, surpassing theoretical knowledge. Competitions provide real-life insights, opening your eyes to new opportunities.

Competing also inspires you to explore innovative trading strategies, going beyond your comfort zone and potentially yielding astounding gains. Comparing your performance with other traders on a level playing field allows you to gauge your abilities and even earn coveted bragging rights if you emerge victorious.

Please be aware of several registration criteria, as they’ll affect your eligibility to join the competitions.

Depending upon the specific competition, the registration criteria will look at the amount of net assets or net equity you have in your Bybit account. But what’s the difference between net assets and net equity? Net assets are your total assets minus your liabilities, and include unrealized gains and losses, whereas net equity excludes unrealized gains and losses.

Besides net assets and net equity, other elements also come to play in influencing your eligibility to join a competition. For instance, a single user shouldn’t have more than one account. If you create multiple accounts to join competitions on Bybit, you’ll be considered a fraud and will consequently be disqualified. Furthermore, you can only participate in one competition within the same time frame, except for grand-scale competitions like WSOT and Copy Trading Fiesta that hold several events within one competition. In such cases, you’ll be able to participate in more than one event simultaneously.

While you may only open one main Bybit account, you can open up to 20 

 connected to your main account, while four Subaccounts can be used to link to your Main Account for competitions. With Subaccounts, you can now join multiple competitions simultaneously to maximize your rewards.

Similarly, Market Makers and Pro users are prohibited from joining Bybit competitions, as they’re typically institutional traders who can make use of their high trading volumes to gain an edge in the competitions.

While most Bybit competitions only specify net assets or net equity as their registration criteria, certain competitions also require a referral link or code on top of the minimum net assets or net equity amount. Through joining such competitions, you can also expect exclusive rewards not found in other competitions.

Speaking of rewards, Bybit generally offers two types of rewards for its competitions: the prize pool and lucky draw. It’s important first to ensure you’re eligible for rewards, especially for P&L-ranked competitions. Even if the competition is ranked by P&L, you’ll still need to hit a minimum specified trading volume before you qualify for rewards. For example, the 

 held in September 2024 required participants to reach a derivatives trading volume of at least $10,000,000 before they could earn any rewards.

The main reward base for Bybit competitions is the prize pool. The prize pools can consist of hundreds of thousands of USDT, or even millions of USDT, depending on the scale of the competition. For large-scale competitions like WSOT and Copy Trading Fiesta, participants can enter several events under these competitions and obtain more rewards. 

It's good to embrace a positive and encouraging mindset as you participate in trading competitions. Observe and learn from the strategies employed by other contestants to refine your own trading plan. By analyzing their moves, you can gain valuable insights and give yourself a competitive edge. Remember, however, that it's also essential to think critically and avoid blindly copying others.

Always analyze your own performance and adjust your strategy accordingly, even in short-term competitions. Also, stay informed about market events and developments that can impact your performance, as this knowledge will maximize your chances of success. With the right mindset and strategic approach, you can excel in trading competitions.

Bybit is actively organizing trading competitions to provide users with a chance to maximize rewards. 

The TradeMasters Grand Prix trading competition and the World Series of Trading (WSOT) are among the biggest annual competitions on Bybit.

TradeMasters Grand Prix Trading Competition

Bybit’s TradeMasters Grand Prix trading competition is a year-long series of derivatives trading contests with a prize pool of 10,000,000 USDT. This year, it opens its first series with a prize pool of 1,000,000 USDT. The competition runs from Feb 18, 2025, 10AM UTC to Mar 11, 2025, 10AM UTC, with registration held between Feb 11, 2025, 10AM UTC and Mar 6, 2025, 10AM UTC. 

You’ll need to hold at least 5,000 USDT worth of crypto in your Bybit account in order to participate and be eligible for rewards, and you’ll be ranked based on either your trading volume or your PnL%. If you reach a trading volume of over $6 million, using specific tools like the 

, you’ll unlock an extra 50,000 USDT prize pool. 

Additionally, if you become a Bybit VIP during the competition period,, you’ll enjoy an exclusive welcome bonus of up to 800 USDT.

Launched in 2020, Bybit’s World Series of Trading (WSOT) has grown continually. In 2024, WSOT broke records with an all-time high of $100 billion in trading volume and over $137 million in profits for its participants. 

 offered a grand prize pool of 10,000,000 USDT and consisted of several trading competitions. 

 competition featured a prize pool of 7,150,000 USDT, split into four reward categories: Squad PnL% Ranking, Regional Squad PnL% Ranking, Individual Profit and Individual Trading Volume. There were also side competitions like 

, open to both Master Traders and Followers, and 

 a vote-based competition whose voters shared in an 800,000 MNT prize pool by voting for a top ten–ranked web3 project. 

How do I know my rewards distribution status?

There will be a Bybit Announcement post regarding rewards distribution and dates.

You can only collect your rewards after a competition ends, with the waiting period ranging from one week to a month. A risk review will be conducted after each competition ends, after which the rewards will be given on the date specified in the announcement post. 

As highlighted above, creating multiple accounts to earn more rewards in competitions is considered fraudulent behavior and will lead to disqualification. Other fraudulent behaviors include 

, volume faking, market manipulation and more. Be sure to read the competition’s terms and conditions carefully to avoid getting disqualified. 

Now that you’ve learned about all the rankings, registration criteria and rewards in Bybit trading competitions, you might be eager to flex your muscles in some of them. But before you do, remember that it’s important to carefully pore over the terms and conditions to ensure you get properly reimbursed for your efforts.

We hope our tips will help your competition journey be a fun and fruitful one. May you enjoy the process and savor the sweetness of winning!

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How to Join Bybit Trading Competitions (Ultimate Guide)

Our monthly report delves into insights from options volatility to inspire your next crypto move.

: In January 2025, Bitcoin (BTC) and Ethereum (ETH) faced significant weekend sell-offs driven by macroeconomic factors, including Donald Trump’s U.S. tariff policies, expectations of a strategic Bitcoin reserve and disruptions from AI competitors like DeepSeek.

: BTC and ETH reacted more quickly and sharply than traditional equities did to economic and geopolitical news as leading indicators for Monday market movements, similar to the earlier yen carry trade unwinding in August 2024.

: Ethereum consistently underperformed Bitcoin during market dips in January 2025. However, the options markets reflected a lower implied volatility premium for ETH than expected, based on recent volatility comparisons.

Please check out the report’s highlights.

Macro Factors Influencing Crypto Sentiment

In January 2025, the cryptocurrency market — particularly Bitcoin (BTC) and Ethereum (ETH) — experienced significant volatility largely driven by macroeconomic events. Key influences included U.S. president Donald Trump's unpredictable tariff policies and the emergence of artificial intelligence (AI) competitors such as DeepSeek, both of which created uncertainty in traditional and crypto markets. 

The turbulent sell-offs of BTC and ETH contrasted starkly with the relatively stable conditions observed during the Christmas 2024 period. This volatility was particularly evident on weekends, as crypto markets reacted more sharply to macroeconomic news than traditional equities, often serving as a leading indicator for market movements in the following week. For instance, the reaction to both subsequent labor market data and the hawkish tone from the Federal Reserve resulted in a notable sell-off of crypto assets before traditional markets opened.

Throughout January, a pattern emerged whereby the cryptocurrency market exhibited heightened volatility during weekend trading sessions, especially on Sundays. This trend was characterized by significant sell-offs that preceded the opening of traditional markets on Mondays. The chaotic environment was exacerbated by the launch of Trump-family meme coins and heightened expectations surrounding a strategic Bitcoin reserve, which led to rapid price fluctuations in crypto assets. 

Despite the initial bullish sentiment, these expectations were tempered by conflicting tariff reports, resulting in further volatility. This analysis highlights that the realized volatility — measured by 10-minute returns — spiked significantly during weekends, indicating that the crypto market is particularly sensitive to developments that unfold over the weekend.

Ethereum's Underperformance and Volatility Trends

January 2025 marked a challenging month for Ethereum, which consistently underperformed relative to Bitcoin during periods of market downturns. Despite ETH’s historical tendency to exhibit higher volatility than BTC, the options markets were pricing ETH’s implied volatility at a lower premium than its realized volatility. This discrepancy suggests that investors weren’t fully accounting for ETH’s increasing volatility in their market expectations. 

The emerging trends indicated a growing volatility premium for ETH as compared to BTC, with ETH exhibiting sharper price movements in both upward and downward directions. As January progressed, the divergence in performance between BTC and ETH underscored the unique dynamics within the crypto market, particularly as macroeconomic pressures continued to shape trader sentiment.

Events of January 2025 highlighted the intricate relationship between macroeconomic factors and cryptocurrency volatility. The sharp reactions of BTC and ETH to external events signify their role as leading indicators in the financial landscape, and the pronounced volatility during weekends and the distinct behavior of Ethereum relative to Bitcoin reflect an evolving market characterized by rapid changes and heightened sensitivity to external influences. As the landscape continues to shift, these trends will be critical for traders and investors navigating the complexities of the crypto market.

Advanced

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Bybit X Block Scholes Option Volatility Report (February 2025): January 2025 Marks New Start for Crypto, Shaped by Macro and Policies

Trading

The spot market is distinctively different from futures market. Here are the top highlights you must know about the spot vs. futures market.

Spot-vs-Futures-Market-1068x712.jpeg

 is where the commodities are traded on the spot with immediate delivery. While a futures market, as the name suggests, settles the delivery of commodities and futures contracts on a specific future date.

 are terms used in the financial market, like stocks or forex. But did you know they’re also the fundamentals to shape the crypto market?

Crypto market has had its fair share of ups and downs, in particular, the significant plunge of Bitcoin (BTC) prices from the neighborhood of $20,000 to $3,000 after the rally in 2017. Then goes the ever-changing regulations towards the adoption of Bitcoin. Until the recent BTC’s bull that sky-rocketed to its 

. That is still shocking to the majority of Bitcoin spot and futures market traders.

So why is understanding the difference between spot trading and futures trading so important?

Spot market is referred to as the cash market because of the way payments are immediately processed. In other words, the contract between the buyer and seller will be performed on the spot at the prevailing price with a determined quantity.

Let’s say Harry (buyer) wants to buy BTC from fiat (USD) in the spot market — he would need to look for a seller who’s in search of USD to perform the exchange. So, Harry could go to a crypto exchange spot market to look for the BTC/USD trading pair by setting a limit order at a predetermined price and quantity for the execution. 

In any case a buyer and seller make an equivalent offer in the spot market, the trades will be executed immediately. 

The crypto market operates 24/7, which means you can buy and sell crypto any time and any day. All transactions are settled with a ruling price known as spot rate, aka spot price in the spot market. Anyone who’s holding spot market contracts can hold and find a better deal if they are not immediately satisfied with the current prices. But there should be an active demand and supply for traders to execute to trade. 

There are two main spot markets; over-the-counter (OTC) and market exchanges. 

OTC in crypto trading is when you can trade in a decentralized market without an intermediary. There will be no need for a broker or any other central exchange involved in the process. 

The OTC market mainly deals with immense volumes with seeming opacity outside the public eye’s periphery. That’s because the trades in the OTC markets are usually private. On the other hand, the execution process is relatively straightforward. Whenever two parties agree on a price, trading volume, and transfer method, a trade can be executed directly without the involvement of an intermediary. 

Market exchanges is a regulated market where you can place orders through a trading platform or broker. Crypto prices will be shown immediately through real-time quotes. This type of spot market follows exchange hours. 

On the other hand, exchanges act as intermediaries for buyers and sellers to bid and ask for an asset. When there’s a match for the bid and an asking price, the exchange will facilitate the trade. 

When comparing it with the futures market, the spot market would be ideal for you if you’re looking for a long-term investment. On the contrary, if you intend to leverage or hedge your trade, the futures market should best suit you. 

A futures market is where you make a contract with another party to agree on an asset’s price for a date in the future. This speculation is placed on a specific day, but the transaction is not on the spot. So your crypto will only be bought or sold at a specific set price and date that have been agreed upon in a futures contract.

Unlike the spot market, you’re trading contracts in the futures market without actually owning an underlying asset. In fact, futures contracts are made in an attempt to avoid market volatility. For example, when you’re trading a 

, you’re not actually buying or selling BTC, but rather trading on the presumed value of BTC.

In other words, you are betting on the price movement of BTC that is parallel to the value of the contract without owning the asset. 

Volatility in crypto trading is inevitable, and it has been a concern for many traders. Still, the price swings offer trading opportunities for traders to predict the price movements. 

 are a form of a futures contract. Prior to signing the agreement, buyers and sellers must predetermine the price and date. And hedging is common to a futures contract. 

For example, Bybit offers x100 leverage to allow traders hedge capital to fund the contract without the need to fund a position upfront. What Bybit offers is to provide traders with a more substantial amount of capital to open a long position with the anticipation for the price to go up or short for the asset’s price to drop. 

Understanding key differences in the spot vs. futures market is vital to a successful trade. Once you understand their characteristics, you can easily identify each of these financial opportunities’ advantages and limitations. 

Let’s say you place a trade in the spot market, the transaction will be made right away. However, in the futures market, your asset has a locked price to be traded in the future based on the agreed terms. 

Spot price fluctuations are based on the volatility of an asset. For example, Bitcoin’s spot price can swing up or down significantly within minutes and hours. So when 

A common assumption is the futures prices are often higher than spot prices. But that is not always the case. 

Truth is, futures contracts involve many factors before you can start speculating an asset’s price and eventually agreeing on a trading price. Still, you should decide whether to bet that the futures price will benefit them or otherwise based on the real-world perception of volatility and price arbitrage.

The delivery date is the expiration date of a futures contract. To simplify it, it is the futures contract’s final date where the specified price and the crypto asset must be delivered. When the delivery date arrives, a contract holder must receive his or her underlying asset. 

However, this date differs from one contract to another. Some traders or investors can set a specific day, while others might decide on a month. Suppose you have agreed on the date of delivery in a month, the trade must be transacted a few days before the end of that particular month. 

Also, each delivery date has a unique code which is made up of numbers and letters. The exchange will act as an intermediary, but the last two symbols will be the month and the year, in that order. However, depending on the exchange, the last two symbols can be the month and date. For example, 

 is BTCUSD0625, settling on June 25, 2021.

But, if you decide to trade a forward contract instead of a futures contract, you are trading or investing through an over-the-counter spot market. Forward contracts allow the date to be adjusted when both the buyer and the seller agree to do so. 

If you want to use leverage in a spot market, you must first buy crypto coins and pay a transaction fee according to the exchange. It is, however, essential to note that their lending is not greatly funded. That means the leverage offered is usually not too high because their loaning balance isn’t either. 

On the other hand, futures markets have sufficient funds in their lending pools, which means they can offer higher leverage.

When you use leverage on a futures contract, you don’t need to pay the full amount of the contract. You can enter a specific percentage of the contract’s total value, which is known as the initial margin amount. 

 Initial margin is the amount of collateral required to open a position for leverage trading.

 usually ranges between 3% to 12% of the total value of the contract. But it is highly different from one exchange to another. For example, Bybit allows traders to add or reduce their margin to a position under isolated margin mode. However, the flexibility is subject to change based on the conditions. 

Whether you end up trading crypto with the spot market or futures contracts through market exchange, it is necessary to understand the risks. Every trader or investor’s goal is to minimize risk and maximize gains. 

One of the situations you could see yourself in is counterparty risk. That means the other party does not meet the obligations. This could happen because the opposite party is either unable to meet the terms or is unwilling to reciprocate.

However, since futures contracts mean you are trading through an intermediary, it is less probable to encounter a counterparty risk because the value is based on the market rate.

On the other hand, forward contracts are not regulated by the market like futures. They are agreed upon according to the buyer and the seller. These contracts finalize when the crypto is exchanged, which means you will only know your profit and loss when the date comes around. 

Other than you as an individual trader, is anyone else involved?

The answer is yes, and the relevance is significant. 

Both spot markets and futures markets have two main parties involved in the transaction; a 

. The spot market boasts with immediate transactions. So when the buyer’s and seller’s prices match, the trade will be executed. 

As for the futures market, there is often an intermediary that is involved within the process.

Fees are always a concern when it comes to trading. That is because they can pile up and decrease your overall gains. 

Spot market crypto trading usually charges a transaction fee that is set around 0.1% to 0.2%. There could also be transaction fees that depend on the trading volume of the total of buyers and sellers in the market. 

Despite the trading fees, futures contracts usually have a settlement date too. When a settlement date is met, 100% of all the positions must be closed entirely. Therefore, when traders decide not to close their position manually, the system will automatically settle the position at the point of reaching the settlement date. And an outstanding position will be subject to a settlement fee.

, who seek liquidity and take liquidity off the book immediately will be charged a trading fee.

, who provide liquidity and increase the market depth of order books will receive a rebate.

structure (0.075% taker fees) and (-0.025% maker fees) for all perpetual contracts when the futures order is manually placed to open or close the positions. 

So, is the futures market better than spot? That will depend on your needs and trading strategies.

 may be better paired with the spot market, where you can instantly buy or sell regularly. But if you would rather speculate the crypto price, then future contracts could be a better option. 

A clear understanding of the trading market and paired with controlled emotions yields the best results.

Crypto Spot Market vs. Futures Market: The Key Differences

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards