USDT-M vs COIN-M Crypto Futures
USDT-M Vs. Coin-M Crypto Trading Futures
Cryptocurrency futures trading is a type of derivative trading that allows traders to speculate on the future price of a cryptocurrency. Futures contracts are agreements to buy or sell a certain amount of cryptocurrency at a predetermined price on a specific date.
There are two main types of cryptocurrency futures contracts: USDT-M and Coin-M. USDT-M futures contracts are settled in USDT, while Coin-M futures contracts are settled in the underlying cryptocurrency.
USDT-M Futures
USDT-M futures contracts are the most common type of cryptocurrency futures contracts. They are denominated and settled in USDT, a stablecoin pegged to the US dollar. This means that USDT-M futures contracts are less volatile than Coin-M futures contracts, as they are not directly exposed to the fluctuations in the price of the underlying cryptocurrency.
USDT-M futures contracts are also more liquid than Coin-M futures contracts, as there is a larger market for USDT. This means that it is easier to enter and exit USDT-M futures positions.
Coin-M Futures
Coin-M futures contracts are denominated and settled in the underlying cryptocurrency. This means that Coin-M futures contracts are more volatile than USDT-M futures contracts, as they are directly exposed to the fluctuations in the price of the underlying cryptocurrency.
Coin-M futures contracts are also less liquid than USDT-M futures contracts, as there is a smaller market for Coin-M. This means that it can be more difficult to enter and exit Coin-M futures positions.
Advantages and Disadvantages of USDT-M and Coin-M Futures
Advantages of USDT-M Futures
- Less volatile
- More liquid
- More accessible to enter and exit positions
Disadvantages of USDT-M Futures
- Not directly exposed to the price of the underlying cryptocurrency
Advantages of Coin-M Futures
- Directly exposed to the cost of the underlying cryptocurrency
Disadvantages of Coin-M Futures
- More volatile
- Less liquid
- More challenging to enter and exit positions
Which Type of Futures Contract is Right for You?
The type of futures contract that is right for you depends on your trading goals and risk tolerance. If you want a less volatile and more liquid futures contract, USDT-M futures are a good option. Coin-M futures are a good option if you are looking for a futures contract that is directly exposed to the price of the underlying cryptocurrency.
Here is a table that summarizes the key differences between USDT-M and Coin-M futures:
| Feature | USDT-M Futures | Coin-M Futures |
|---|---|---|
| Denomination | USDT | Underlying cryptocurrency |
| Settlement currency | USDT | Underlying cryptocurrency |
| Volatility | Less volatile | More volatile |
| Liquidity | More liquid | Less liquid |
The post USDT-M vs COIN-M Crypto Futures appeared first on Cryptocointrade.
Read more: https://www.cryptocointrade.com/trading-platforms/usdt-m-vs-coin-m-crypto-futures/
Text source: Cryptocointrade
