How to Trade Bitcoin and Ethereum with Coin-Margined Perpetual Contracts on BloFin

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Narendra Shah

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Trading Bitcoin and Ethereum Coin-Margined Perpetual Contracts on BloFin: A Simple Guide

BloFin logo

BloFin has introduced coin-margined perpetual contracts for Bitcoin and Ethereum, opening up a new way for users to trade and manage their crypto portfolios. For those curious or wanting to start, this guide breaks down what this new trading option is, how it works, and what makes it attractive, even if you’re not an experienced trader.

What Are Coin-Margined Perpetual Contracts?

Coin-margined perpetual contracts let you use your cryptocurrency—like Bitcoin or Ethereum—as collateral for trades. This means you don’t need to keep stablecoins (like USDT) to trade. Instead, you set up trades, settle profits, and manage your margin directly in BTC or ETH. These contracts don’t have an expiry date, so you can hold them for as long as you want—unlike regular futures contracts that come with end dates.

This is especially useful if you want to keep all your value in crypto or if you’re looking for a way to grow your crypto stack without swapping it for fiat or stablecoins.

How Do Coin-Margined Contracts Differ from USDT-Margined Contracts?

Most crypto traders up until now have used USDT-margined contracts, which require users to deposit and trade with USDT (a stablecoin). With coin-margined contracts, you use the actual cryptocurrency you are trading (like BTC for Bitcoin contracts or ETH for Ethereum contracts).

  • USDT-margined contracts: Require you to use USDT for trading and settlement.
  • Coin-margined contracts: Trades, profits, and losses are managed in crypto (BTC or ETH), keeping you fully exposed to the market movements.

For more details, BloFin has a helpful support article:
Read here.

Why Trade Coin-Margined Perpetual Contracts?

  • Stay invested in Bitcoin or Ethereum: Your gains (or losses) are paid directly in the original coin, not stablecoin or fiat money.
  • Hedge your Bitcoin and Ethereum positions: Set up strategies to shield yourself from price drops, or profit if the price moves as you expect.
  • No expiration date: You don’t need to worry about rolling over positions or closing out contracts at a set time.
  • Flexible use of existing crypto: Put your crypto to work without swapping it out or bringing in outside capital.

Getting Started on BloFin

BloFin is a popular crypto exchange with a focus on futures and derivatives trading. If you don’t have an account, it’s easy to sign up on their website:
BloFin.com

How to Start Trading Coin-Margined Perpetual Contracts:

  1. Deposit BTC or ETH: Transfer some Bitcoin or Ethereum to your BloFin account. This will serve as the margin for your trades.
  2. Select the contract: Go to the derivatives or futures section, and look for coins labeled BTCUSD (coin-margined) or ETHUSD (coin-margined).
  3. Choose your position: Decide if you think the price will go up (long) or down (short).
  4. Set your leverage: Leverage allows you to control a larger position with a smaller amount of crypto. Be careful—higher leverage increases both potential gain and risk.
  5. Place your order: Enter the amount you want to trade, review all details, and submit your order.
  6. Monitor and manage: Keep an eye on your position. You can close it any time, lock in your profit, or cut your loss.

Key Benefits for All Users

BloFin’s setup is made to be approachable for individuals, but it’s powerful enough for pros, too. Here’s what stands out:

  • Profit in crypto: Your earnings add to your Bitcoin or Ethereum holdings, instead of converting to stablecoins or dollars.
  • Long-term appreciation: If the price of the coin goes up while you’re holding, your gains are even stronger.
  • Improved capital efficiency: You can use your coins both as collateral and for potential growth, instead of letting them sit idle.
  • Flexible strategies: Set up different strategies to fit your comfort level and goals, using straightforward tools on BloFin’s trading platform.

Security and Compliance

BloFin has built its reputation on security and trust. They use partners like Fireblocks and Chainalysis to protect assets, making sure safety is at the center of each transaction.

What’s Next on BloFin?

With the launch of Bitcoin and Ethereum contracts, BloFin plans to roll out more coin-margined trading pairs soon. This means you’ll have even more choices when it comes to trading with your favorite coins and building custom strategies.

Conclusion

Trading coin-margined perpetual contracts can be a great fit for anyone who wants to use their Bitcoin or Ethereum for more than just holding. Thanks to BloFin’s latest move, users have the chance to grow, manage risk, and stay fully in crypto—all with a few simple steps.

For complete beginner guides and the latest updates, you can check out BloFin’s official announcements and resources:

This approach helps you make the most out of crypto trading—simply, securely, and with full control over your coins.

also read:Bitcoin Miners Hold Assets Amid Revenue Drop Signaling Confidence in Future Price Recovery

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