What are ”Crypto Derivatives”? Also Learn Leveraged Trading at Bityard

The only way to earn crypto income is not by creating some content, using your community as referral income, or managing crypto community. Even with a little cash and time, you can earn a lot of money when trading crypto assets. Basically, trading is imagined as ‘buy on down, sell on top’ for many people. This imagination is theoretically correct but it is not clear how many of us can apply that simple theory to trading. So it leads to wrong decisions and loss of funds.

The basic scheme is as above. This is true for all types of asset trading. We call this the simpler spot trading method. You have the right to own the asset, trade it and get a positive result only in case of an up move or a green candle. But we, as a trading community, don’t like limited options and we also don’t like waiting to buy a dip or sell a high. So we have more than 1 option to spend time on trading. That is Crypto Derivatives.

For centuries, people traded with each other all kinds of assets. There are different types of contracts to trade. So there is no real buyer and seller but there are contracts to trade in each of the 2 possible ways.

What is a “Contract”? How to use?

As I stated above, contract terms reflect the object being traded. If we want to compare with spot trading, you have to trade directly the price in the spot market. But you should trade the price difference when you are dealing with the derivatives market. This means that even if you don’t have assets in your wallet, you can earn when prices fluctuate.

In addition, the derivatives market gives you the opportunity to short sell which means you bet lower prices and have the opportunity to earn without waiting for lower prices.

The examples are always better to explain! Let me show you a Crude Oil chart.

The chart shows the weekly price changes from early 2016. But we have to focus on the correct part, 2022. There are very large price fluctuations as shown above. Now first of all think as a standard trader. The only way to get cash from such a fluctuating asset, you have to sell on the left of and buy back on the right of .

This is the main difference between derivatives traders. In the beginning, you don’t have to hold any amount of oil so you don’t have to worry about a possible price drop like we were facing in early 2022. Second, you have more than one option for each . On the left, you can shorten it, this leaves you with an advantage to the right. In addition, you have the right to take long positions on the right until the week.

I see some questions in your mind after the example. “How is short selling a better option than spot selling?” And “How is buying long a better option than spot buying? “Just a few of them. Don’t worry and continue reading.

What is Leverage? How Can It Be Better Than the Spot Market?

Suppose you have $100 and you want to double it when trading Crude Oil. The only option to have $200 is to buy it for $20 and sell it for $40. Congratulations if you are one of the most patient traders on Earth. But what about the others? This is the spirit of levers…

Leverage means you have $100 but you can use it like $500, $1000, or even $10,000 with the right amount of leverage. Yes, this is possible! As you can see below, some trading pairs are highlighted with 5X or 10X. This means you can use your $100 as $500 or $1,000.

Now suppose you want to trade the XRP/USDT pair and you expect the price to go up. In this situation, you have the right to open a long position with 10X leverage. Let’s say you used up all $100 with 10X leverage and desired XRPUSDT at $0.50. After some time, the price rose to $0.5073, which is 1.46% higher.

Currently, you multiply your earnings by 10X so that the profit ratio equals 14.6% and your initial $100 becomes 114.6% instead of $101.46. But the opposite is true. If you open a short position with 5X leverage say at 0.5123 $, at the current price you get 4.87% instead of 0.97%.

In short, if you use the right amount of leverage, your derivatives market is richer than expected. But never forget that the amount of loss will also be doubled if your bet is wrong!

So far, I’d like to introduce you to the basics of using leverage and trading derivatives. The most famous crypto derivatives exchange is BitMEX, of course! But everyone has some complaints about BitMEX. Some complain about overfilling and not using BitMEX all the time, some say BitMEX opens counter positions to liquidate open positions. Anyway, today’s topic is Bityard and I will compare these 2 exchanges in terms of derivatives market, user experience and so on.

What is Bityard, in a nutshell?

Bityard is another example of a crypto derivatives exchange that was founded in 2022. But not only does it provide leveraged trading, Bityard users also have different options such as spot trading or trading on some conventional assets like Gold, Silver or Natural Gas.

“Bityard is the world’s leading cryptocurrency contract exchange. Headquartered in Singapore, we provide safe, easy and fast crypto asset trading services in more than 150 countries. Bityard adheres to the product concept of “Simple Trading Complex Contracts”, and aims to bring customers the most simplified trading experience. “

Bityard welcomes you with a simple and easy to understand dashboard, doesn’t go directly to the trading page. On the home page, you will face too many positive features that Bityard has. Some of them include 4 different licenses in 3 different countries, easy registration and deposit process, user-friendly digital currency display, and more.

But perhaps the most important one does not include: you can trade for as little as 5 USDT! The minimum trade amount is generally set around $10 or 0.001 BTC on many exchanges and this leaves newcomers unsatisfied. Maybe it can be added to the dashboard to encourage more newbies while BTC is poised to see new ATH in the near future. I think the team thinks that the Welcome Bonus is better than featuring that feature. As a result, you can see a pop-up stating that you got up to 258 USDT Welcome Bonus.

There are 8 different tasks to complete. After each, you will be awarded several bonuses and in the end, the total will be 258 USDT. I know many exchanges give out such Welcome Bonuses but most of them are limited to $100. For example, Phemex, the 7th most liquid derivatives exchange according to CoinMarketCap data, promises all newcomers a welcome bonus of up to $80. Bityard takes advantage of more than 3X the bonus.

Advantages and Disadvantages of Trading at Bityard

Apart from the home page, the trading segment contains 3 different pages: Spot, Contracts and Derivatives. Spot trading is conventional trading with more than 30 pairs to trade. Contract trading is one that I wanted to teach you above under the common name Crypto Derivatives. There are 10 different trading pairs to use with up to 50, 80, and 100X leverage. Don’t think Bityard is everything, there’s still 1 more section to explore: Derivatives. It contains 11 different conventional assets including Silver, Gold and Copper to trade with up to 200X leverage for each asset.

Trading page simplified, in my opinion. Even though there is only 1 page available instead of 5 on Binance for example, buy and sell positions are easy to accept. Apart from that, there are several built-in features on Bityard. For example Overnight mode. If you choose overnight mode, the system will force your order to be canceled at 05.55.00 Singapore time. This may be useful for Asian traders but the default Overnight mode can cause some problems for European or American users. You can disable it in the Settings section just above the leverage box.

When we check trading fees, it is standard for each trade of 0.05%. This ratio is stable for maker and taker orders. Compared to most exchanges, it is lower for taker orders but there are some exchanges that offer 0% or even negative fees for maker orders. I hope the Bityard team will reduce costs to compete with others. But if you’re an influencer, no problem! You can supply your wallet with referral income so fees won’t be a real problem for you. Enjoy trading on Bityard in 5 different ways to earn referrals up to 60% commission. Or you can join Mining activity every day to earn a little USDT to cover our trading fees. So Bityard offers many ways to reduce standard trading fees.


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