What is the difference between linear and inverse contracts?

In contrast, inverse futures contracts follow a different settlement mechanism. Instead of using a stablecoin, these contracts are settled in the underlying cryptocurrency itself, such as Bitcoin (BTC). This means that traders who engage in inverse futures contracts will ultimately receive or owe amounts in the same cryptocurrency that the contract is based on.

Another key aspect of linear futures contracts is the currency used for trading and earnings. In the case of linear futures, traders use the same currency for both their trades and their earnings. This consistency simplifies the trading process and eliminates the need for traders to convert between different currencies, thereby streamlining their financial transactions.

BTCC, a leading cryptocurrency exchange, offers a comprehensive range of services that cater to the diverse needs of traders. Among its offerings are spot trading, futures trading, and wallet services. These services are designed to provide traders with a seamless and efficient trading experience.

Understanding the nuances between linear futures contracts and inverse futures contracts is crucial for traders in the cryptocurrency market. Linear futures contracts operate differently from their inverse counterparts in terms of settlement. Specifically, linear futures contracts are settled using a stablecoin, such as USDT. This stablecoin acts as a medium of exchange that maintains a relatively stable value compared to volatile cryptocurrencies.

BTCC's futures trading service, in particular, encompasses both linear and inverse futures contracts. This allows traders to choose the type of contract that best suits their trading strategy and risk tolerance. Whether traders prefer the stability of a stablecoin settlement or the direct exposure to the underlying cryptocurrency, BTCC has them covered.