Crypto's Big Bet: Perpetual Futures and the Future of Trading

The New Trend in Crypto Trading

Crypto trading is evolving. While many people buy crypto at its current price, something called perpetual futures is becoming more popular. These are like bets on future crypto prices, but they don't expire. Traders can use a lot of borrowed money, called leverage, to make big gains—or big losses.

The October Crash

In October, Bitcoin's price dropped suddenly. This was partly because of these perpetual futures. The price fell below $85,000, and many traders lost a lot of money. But Bitcoin has since recovered to almost $100,000. However, the market is not as active as it was last year.

A Bright Future?

Some leaders in crypto, like Vlad Novakovski, think the future is bright. They believe that in 2026, things will improve. Novakovski thinks that clearer rules from the U.S. government will help. He says this could open up big opportunities for crypto.

Beyond Crypto

Novakovski and others believe that decentralized exchanges won't just be for crypto. They think these platforms will soon trade tokenized versions of many things, like stocks and regular money. Novakovski hopes that big institutions will start trading perpetual futures soon. This could bring together traditional finance and decentralized finance.

Risks and Uncertainties

But there are risks. The use of high leverage can lead to big losses, as seen in the October crash. It's important for traders to understand these risks. The future of crypto trading is uncertain, but perpetual futures are likely to play a big role.