Binance Coin-M futures. What is the difference between Binance Usdt-M futures?
By Yuriy Bishko Updated November 15, 2022
According to the Binance platform, futures coin-m occupies on average about a third of the total trading volume on the exchange's derivative account.
In the last article, we talked about what Binance Futures USDT-M is and wrote a step-by-step tutorial on how to use this. But a large number of traders often ask us similar questions:
- What are Binance coin-m futures?
- What is the difference between usdt-m and coin-m futures?
- How does coin-m futures work?
- How does bitcoin futures work?
- How to use or trade coin m futures?
- Coin-m futures vs usdt futures
In this article, we will answer all these questions and provide a coin-m futures Binance tutorial.
What are Binance usdt-m and coin-m futures?
USDT-margin futures are similar to traditional standard futures with margin and settlement in fiat currency (dollars, euros, etc.).
COIN-margin futures have a margin and are calculated instead of an asset (i.e. in Bitcoin or altcoins).
Simply put, in the first case you get a profit in dollars, in the case of coin-m futures you get a reward in coins. (Bitcoin or altcoin, depending on which coin you trade)
Watch Now on YouTube: Difference between USDT-M Futures vs Coin-M Futures
What is the difference between Binance usdt-m and coin-m futures?
The main difference between the two types of futures is that with USDT-M you can hold and make a profit only in stablecoins (USDT or BUSD). It's the opposite at Coin-M. Here you can hold and make a profit only in the coins that you trade (Bitcoin or altcoins). Let`s get into details.
When you trade the crypto using USDT-M futures, you get profit in USDT or BUSD (stablecoins).
Imagine that you have balance of $5000. For example, you think that Bitcoin will rise and you decide to open a long trade using all your $5000 with x1 leverage. The current BTC price is $5000. In a few days Bitcoin growth to $10,000 and brings +100% profit to your balance. Now you have an initial balance of $5,000 and +$5,000 in profit. The current balance is $10,000.
This is an easy way to increase your balance in stabelcoins. But what's so special about Coin-M?
When you trade the crypto using Coin-M futures, you get a profit in the COINS (Bitcoin, Ethereum, Solana, Polkadot etc.) in which you open a trade.
Imagine that you bought 1 Bitcoin at $5000 and you want to increase it`s amount. To do this, you open a long trade at $5000 per BTC using Coin-M futures. In a few days Bitcoin rises to $10,000 by 100%.
As a result, you make a profit in Bitcoin, and now you have 1 Bitcoin + 100% profit in BTC = 2 Bitcoins in total. But the most important thing is that you now have 2 Bitcoins for $10,000 each, because the price of BTC is also rise for 100%. Now you have 2 BTC on your balance ($20,000 in total).
If you want to grow the number of your Ethereums, you can open a trade on Coin-M futures and get profit in it. The same with the other altcoins which you want to trade.
USDT-M and Coin-M futures has the different panels for trading at the Binance. In this case you can transfer only stablecoin to USDT-M wallets and only altcoins or BTC to Coin-M futures wallets. This helps to avoid confusion while trading and use different approaches to increase your balance.
How to use Coin-m futures?
The simplest way to explain this is with an example. This is an simple way to grow your deposit using Coin-M futures. The chart below shows Bitcoin cycles. Bitcoin moves in cycles, one cycle is approximately 4 years. Each cycle can be clearly divided into up trend and down trend.
Some traders use this to make a profit and significantly outperform the growth of the cryptocurrency itself.
Traders start buying Bitcoins at the bottom of the cycle. Then the number of bitcoins increases throughout the upward trend. Then record profits at market highs. As a result, they earn twice as much due to the fact that bitcoin grows on its own, and they earn even more bitcoins. In our community there is such a trading system, which in the last cycle give you about x130 profit to your initial deposit. You can read Greenwhich trading system in this article.
Step by step tutorial on how to use coin-m futures
1. Once you have confirmed the futures agreement, you need to go to the wallet section and transfer funds from the spot account to the futures Coin-M account.
2. Click the "Transfer" funds button.
3. In the field that appears, select the spot account from which we transfer funds to the Coin-M futures. Next, select the BTC or other currency and enter the amount of coins you want to transfer.
4. After we have transferred the required amount, go to the futures account, the account button is also at the bottom of the screen.
5. On the futures page, select the COIN-M account and the required number of leverage On the binance exchange you can choose leverage up to x125.
6. In order to open a position, we choose: type of position (long, short), type of order (limit, market, etc.), the amount for which we want to open a position, and click the buy button.
The position on COIN-M futures is measured in contracts. The minimum amount to open a position must be at least 1 contract or 0.0012 btc (or other coins, depending on whether you trade btc or altcoins)
You will also receive loss and profit in the amount of coins. In our case in btc. If the position goes in our direction we will get more btc, if the position goes the other way our amount of btk will decrease.
7. Scrolling down will be the form of our position and all the detailed information (entry price, liquidation point, position size, PNL(profit/loss) etc.
8. With the help of the lower buttons we can set our stop, take or close the position.
Futures COIN-M are ideal for coin-holding traders who hold long-term positions, while trading increases the number of these coins and as a result receive several times more profit. Futures and leverage are a good tool to increase your results and profits, but only if you have a clear trading system and an understanding of risk management. Otherwise, you will only lose your money.