Are perpetual contracts a better choice for long-term investments in the world of cryptocurrencies compared to futures?

1 answers

• Dec 29, 2021 · 3 years ago
  Perpetual contracts can indeed be a better choice for long-term investments in the world of cryptocurrencies compared to futures contracts. As an expert in the field, I have observed that perpetual contracts offer several advantages for long-term investors. Firstly, perpetual contracts do not have an expiration date, allowing investors to hold their positions for as long as they desire. This eliminates the need to constantly roll over contracts and provides more flexibility in managing long-term investment strategies. Additionally, perpetual contracts often have higher liquidity compared to futures contracts, making it easier for investors to enter or exit positions. However, it's important to note that perpetual contracts also come with their own risks, such as funding fees and the potential for liquidation if the market moves against the investor. Therefore, it's crucial for investors to carefully evaluate their risk tolerance and investment objectives before deciding whether perpetual contracts are a better choice for their long-term investments in cryptocurrencies.
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