Perpetual contracts have become a favored instrument among traders and investors in the digital asset space. Unlike traditional futures, these contracts have no expiry date, offering greater flexibility. This popularity has led to a surge in platforms offering perpetual contract trading. However, for newcomers, identifying a trustworthy and professional platform can be challenging. A reliable trading venue is foundational to safeguarding one's digital assets.
This guide provides an overview of some of the notable platforms facilitating perpetual contract trading, based on factors like trading volume, security features, and global reach.
Overview of Leading Perpetual Contract Trading Platforms
Binance
Binance is a global cryptocurrency exchange established by a group of digital asset enthusiasts. It has grown to become one of the most influential platforms in the industry. The name 'Binance' is a portmanteau of 'binary' and 'finance,' signifying the fusion of digital technology and finance.
The exchange serves users in over 180 countries and regions and offers trading for more than 600 cryptocurrencies. It boasts a massive user base of over 120 million registered users globally. Since 2018, it has frequently been recognized as the world's largest crypto exchange by trading volume, often reporting a 24-hour trading volume exceeding $76 billion.
Binance has evolved into a comprehensive ecosystem over the years. It is known for its wide range of tradable assets, low trading fees, high liquidity, robust security protocols, and multilingual customer support. The platform has established regulated entities in several jurisdictions, including Japan, France, Italy, Spain, and the UAE, to offer fiat on-ramp services.
Coinbase
Coinbase Pro is a U.S.-based platform providing a secure environment for digital asset investment. The interface is known for being user-friendly, featuring real-time order books, charting tools, trade history, and a straightforward order process.
Security is a paramount focus for Coinbase, which has earned a reputation as one of the most secure platforms. It employs two-factor authentication (2FA) for all traders. Beyond technical measures, Coinbase uses a combination of online and offline storage solutions to protect client funds. Reportedly, less than 2% of assets are kept in online hot wallets for trading, while the remaining 98% are stored in offline cold storage, significantly mitigating the risk of theft.
The platform serves over 30 million users across more than 100 countries, though its primary services are focused on North America and Europe. It supports fiat currency deposits and trading but does not offer full Chinese language support. Coinbase became a publicly traded company on the Nasdaq in April 2021 under the ticker symbol COIN.
Bybit
Established in 2018, Bybit has rapidly grown to become one of the world's most popular cryptocurrency derivatives exchanges, with a particularly strong user base in Europe and Asia. The platform's growth has been partly attributed to its attractive referral program.
Bybit specializes in derivatives trading and offers a variety of cryptocurrency perpetual and futures contracts. Key trading pairs include Bitcoin (BTC) and Ethereum (ETH), among others. Its fee structure for makers and takers varies based on the user's trading volume and level.
Kraken
Founded in 2011 and headquartered in San Francisco, Kraken is one of the longest-operating cryptocurrency exchanges. It holds the distinction of having the largest Euro-denominated Bitcoin trading volume in the international market. The platform supports trading in numerous currencies, including GBP, JPY, USD, and CAD.
After two years of development and testing, Kraken launched publicly in 2013. It started by offering trading between Bitcoin, Litecoin, and the Euro, later expanding its offerings to include more currencies and margin trading. In a significant milestone, Kraken received approval from the Wyoming Banking Board in 2020 to become the first recognized crypto asset exchange in the U.S. to establish a bank.
Gate.io
Gate.io, also known as "芝麻开门" (Sesame Open), is a global blockchain asset exchange founded in 2013. It provides trading and investment services for nearly 500 high-quality blockchain assets to millions of users from over 224 countries. The platform is committed to being a secure, stable, and credible international station for blockchain assets.
The exchange was originally known as "Bter" in China before rebranding to Gate.io and moving its operations overseas following regulatory changes. It now has a presence in Canada, Korea, Japan, and Hong Kong. Gate.io employs advanced security measures, including super secure SSL links, offline Bitcoin wallet technology, and multi-currency address sharing technology.
KuCoin
KuCoin is a globally popular cryptocurrency platform founded in 2017, with offices in several countries. It supports a wide range of cryptocurrencies and services, including futures trading, and provides customer support in multiple languages, including Simplified and Traditional Chinese.
The exchange services users in 207 countries and regions, offers over 700 cryptocurrencies, and has amassed 20 million registered users. It claims that one out of every four crypto holders globally is a KuCoin user. The platform has expanded from a simple spot trading exchange to a comprehensive financial services ecosystem offering features like futures, staking, and lending.
OKX
OKX is a major global cryptocurrency exchange and Web3 ecosystem. It provides users around the world with trading services for a variety of virtual currency assets, including Bitcoin (BTC), Ethereum (ETH), and USDT, through spot and derivatives markets. The platform is known for its high credibility and security, serving users in over 100 countries.
OKX offers a comprehensive suite of services, including contract trading, OTC trading, and fiat trading. It supports fiat deposit services in more than 90 countries and regions, making it a significant gateway for converting between fiat and cryptocurrencies. The platform is dedicated to offering secure, stable, and convenient digital asset trading services. 👉 Explore advanced trading strategies
HTX (Formerly Huobi)
HTX, formerly known as Huobi Global, is an innovative digital asset exchange under the Huobi Group. It serves global professional trading users and is dedicated to discovering high-quality innovative digital asset investment opportunities. The platform offers trading for dozens of digital asset categories and is headquartered in Singapore.
Originally established in China, HTX expanded internationally with offices in Hong Kong, Korea, Japan, and the United States. The Huobi Group is a digital asset comprehensive service provider with global competitiveness and influence, serving millions of users in over 130 countries. It is considered a leader in technology platforms, product lines, security risk control systems, and operational services.
Bitget
Established in 2018 and headquartered in Singapore, Bitget is a renowned global digital asset derivatives trading platform. It completed a Series B financing round of tens of millions of U.S. dollars in 2020, led by a top Korean game company, valuing the company at $1 billion. Its contract trading volume consistently ranks in the global top five.
Bitget has established branches in Japan, Korea, Vietnam, and Canada. Its team comprises talented individuals from top-tier international fields like cryptography, financial investment, social media, and electronic games. Beyond standard crypto trading, it offers unique services like copy trading.
Crypto.com Exchange
The Crypto.com Exchange was launched in 2016 by a company that also offers a suite of other crypto products, including a payment solution, a mobile wallet, and a Visa card. Its Visa card allows users to spend their cryptocurrency holdings at any merchant that accepts Visa.
In addition to the card product, users on the Crypto.com Exchange can earn interest on certain cryptocurrencies through staking and can also trade derivative contracts. The exchange is part of a broader ecosystem aimed at increasing the adoption of cryptocurrencies.
Frequently Asked Questions
What is a perpetual contract?
A perpetual contract is a type of derivatives product that allows traders to speculate on the future price of an asset without an expiration date. Unlike traditional futures, these contracts do not require settlement on a specific date, allowing positions to be held indefinitely, provided maintenance margin requirements are met.
How do I choose a perpetual contract trading platform?
Key factors to consider include security measures (like cold storage and 2FA), liquidity, the range of available trading pairs, fee structures, leverage options, and the quality of customer support. It's also crucial to ensure the platform complies with regulations in your jurisdiction.
Are perpetual contracts riskier than spot trading?
Yes, trading perpetual contracts typically involves leverage, which can amplify both gains and losses. This makes them inherently riskier than buying and holding assets in spot trading. It is essential to understand leverage and risk management strategies before engaging in derivatives trading.
What is funding rate in perpetual contracts?
The funding rate is a periodic payment exchanged between long and short traders to tether the contract's market price to the spot price of the underlying asset. If the rate is positive, long positions pay short positions; if negative, shorts pay longs.
Can U.S. citizens use all of these platforms?
No, U.S. citizens are subject to strict regulations. Many international platforms, like Binance, offer a separate, regulated platform for U.S. residents (e.g., Binance.US). Others, like Coinbase and Kraken, offer full services in the U.S. Always check if a platform accepts users from your country before signing up.
Do these platforms require KYC verification?
Most reputable platforms require Know Your Customer (KYC) verification to comply with global anti-money laundering (AML) regulations. This usually involves submitting government-issued identification and proof of address. The level of verification required can vary depending on the platform and the services you wish to use.