Ethereum is a decentralized blockchain that enables smart contracts and dApps, not just digital payments. While Bitcoin is mainly used as a store of value, Ethereum powers entire ecosystems in DeFi, NFTs, and beyond.
Perpetuals (or perpetual futures) are derivatives that let you trade the price of a crypto asset—like Ethereum—without an expiration date. They behave like futures but can be held indefinitely, making them ideal for short-term or long-term trading strategies.
To trade Ethereum perpetuals, you need to use a trading platform that supports perpetual contracts. You'll choose your position (long or short), select leverage, and manage risk using tools like stop-loss and liquidation protection. Many DeFi platforms now offer on-chain perpetual trading with wallet-based access.
While perpetuals offer flexibility and leverage, they come with high volatility and liquidation risk. If the market moves against your position too quickly, you could lose your entire margin. Use proper risk management, including limit orders and small position sizes.
Yes, Ethereum’s high liquidity and volatility make it a popular asset for leveraged trading. Many platforms offer up to 50x or even 100x leverage on ETH perpetuals. However, with great power comes great risk—always know your limits.
Absolutely. There are Web3-native platforms that let you trade perpetuals directly from your wallet using smart contracts—no centralized custody or KYC required. These include protocols built on Ethereum, Arbitrum, and other L2s.
Spot trading involves buying or selling the actual asset (like ETH) at the current market price. Perpetual trading is a contract that lets you speculate on price without owning the underlying asset—often with leverage and without expiry.
Funding rates are periodic payments exchanged between long and short traders to keep perpetual contract prices aligned with the spot market. Positive funding means longs pay shorts; negative means the opposite. Always check the funding rate—it affects your P&L.
Use a reputable platform that supports non-custodial wallets and audited smart contracts. Hardware wallets (like Ledger) and browser wallet extensions (like MetaMask) help ensure your private keys stay secure during trading.
Yes! Many advanced platforms now support AI-driven trading bots or custom strategies. In the DeFi space, smart contracts or integrations with tools like Chainlink, Gelato, or custom APIs allow automation of trades based on market conditions or technical indicators.