3 factors to consider before trading crypto perpetual futures contracts

Over the past few years, numerous exchanges began to offer altcoin futures quoted in Tether (USDT) and stablecoin pairs, which eventually became the standard. Before opening any trade at an exchange offering perpetual futures, traders should be aware that stronger wicks can run stop losses, investors lose the ability to stake their altcoins for lucrative yields, and the variable funding rate can significantly increase the costs of carrying a trade.

Therefore, the possibility of errant wicks are the main reason traders should avoid carrying futures positions for more extended periods. Futures liquidation engines use a price index composed of multiple spot (regular) exchanges to avoid price manipulation.

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