Quick facts about perpetual futures
Whilst prediction market sites initially rose to prominence due to their innovative markets for trading on the outcomes of sporting, cultural, political and economic events, the recent introduction of perpetual futures has taken the concept to a brand new level. Here are some quick facts you need to know about how perpetual futures work:
- Perpetual futures allow you to place trades on the price of cryptocurrencies, such as Bitcoin, Tether, Ethereum and Dogecoin. (Please note: When you trade on perpetual futures markets, you are not actually buying or holding the crypto; you are simply placing trades on how the market price will change)
- Whilst standard prediction markets have a fixed end point and outcome, you can trade out of your perpetual futures positions at any time.
- To make your futures trades, you need to ‘Long’ or ‘Short’ the current market price.
- If you go long on a price and the market goes up, you will make a profit. However, if the price of that crypto falls, you will make a loss.
- On the flip side, if you short a market, you need the price of the crypto to go down in order to earn a profit.
- Before placing your trades, you first need to leverage your position. This requires you to maximise your exposure by applying a multiplier to your trading amount.
- Your funds for perpetual futures trading are kept in a perpetual margins account, which exists outside of your standard prediction market account funds.
- Most leading sites also provide optional ‘Stop Loss’ and ‘Take Profit’ boxes that allow you to set limits on the maximum amount you can gain or lose from your trade. If you use these tools, you will automatically exit your trade when it reaches the stated threshold.
What are the pros and cons of perpetual futures trading?
The big question is: Should you place trades on perpetual futures markets? To help you make your decision, here are some of the main pros and cons of using the markets:
- Markets cover a wide range of cryptocurrencies
- Set limits on your losses
- Trades available on a range of different cryptocurrencies
- Crypto prices can be highly volatile
Which cryptocurrencies are covered by perpetual futures markets?
By now, you are probably wondering which specific cryptocurrencies are available on perpetual futures markets. Whilst you may find minor variations between different sites, the table below (which uses Kalshi as the example site) includes details of the amount of crypto represented by one contract and the minimum order sizes you will be able to place:
| Crypto | Contract size | Minimum order size |
|---|---|---|
| Bitcoin (BTC) | 1 BTC | 0.0001 BTC |
| Ethereum (ETH) | 10 ETH | 0.001 ETH |
| Solana (SOL) | 1,000 SOl | 0.10 SOL |
| Ripple (XRP | 10,000 XRP | 1 XRP |
| Dogecoin (DOGE) | 1,000,000 DOGE | 100 DOGE |
| Stellar (XLM) | 100,000 XLM | 10 XLM |
| Shiba Inu(SHIB) | 10,000,000,000 kSHIB | 1,000,000.00 SHIB |
| Hedara (HBAR) | 1,000,000 HBAR | 100 HBAR |
| Chainlink (LINK) | 10,000 LINK | 1 LINK |
| Polkadot (DOT) | 100,000 DOT | 10 DOT |
| Litecoin (LTC) | 1,000 LTC | 0.10 LTC |
| Bitcoin Cash (BCH | 100 BCH | 0.01 BCH |
| Sui (SUI) | 100,000 SUI | 10 SUI |
How are perpetual futures regulated?
As is the case with the other markets at sports, culture, economic, and politics prediction markets sites, perpetual futures are regulated by the Commodity Futures Trading Commission (CFTC).
To help ensure you are fully aware of the risks involved in trading crypto futures, the sites require you to submit a margin application form, plus complete some mandatory training, before making your first crypto futures trade. Reputable sites will also have extensive FAQ articles that contain in-depth information on futures, plus all of the other market options. In short, reputable perpetual futures brands are committed to ensuring that you are fully aware of the risks involved in trading and have extensive measures in place to help you trade responsibly at all times.
Introducing Kalshi - THE leading prediction market site in the United States
- Sports, politics, and crypto predictions
- Economics, culture, and climate events
- Optimized Android and iOS apps
- 2% debit card deposit fee
Whilst there are a lot of prediction market and perpetual futures websites out there, we think that Kalshi is just about the best brand on the market. If you’ve not previously encountered prediction market sites such as Kalshi, try to think of them as standard trading platforms where you buy and sell shares. The big difference is that instead of buying and selling shares in financial markets, you trade contracts on the potential outcomes of events. If your trades are on correct outcomes, you receive a payout, but if they are incorrect, you lose the value of your contracts.
Kalshi’s range of prediction markets covers a vast range of topics, including sports, politics, culture, economics, and the weather. And thanks to Kalshi’s expertly designed trading platform, it is incredibly easy to view the markets and place your trades, especially if you are playing on Kalshi’s mobile app, which is one of the very best prediction markets apps you will ever find. On top of that, Kalshi also provides extensive tools to help you get to grips with how to make trades, plus a user-friendly payment area that allows you to easily make deposits and withdrawals. A lot of new names have entered the prediction market industry in recent times, but, in our expert opinion, Kalshi remains the number one option if you are new to the world of prediction markets. Better yet, thanks to Kalshi’s superb range of cryptocurrency markets, they are now the top choice if you want to give perpetual futures trading a try.
How to open your Kalshi account and collect a $10 bonus
If you do decide that Kalshi perpetual futures are right for you, then now is the perfect time to sign up at the site. That’s because new traders at Kalshi can currently claim a $10 bonus when they open an account and trade at least $10 in contracts. Here’s how to claim this superb new player promotion:
- Go to the Kalshi prediction market site by clicking the banners on this page.
- Hit the Sign Up button at the top of the homepage.
- Enter your phone number into the text box, and Kalshi will send you an SMS containing a unique verification code. Just enter this code on the sign-up form to verify your phone number.
- Complete your registration by entering details such as your full postal address, email address, national ID number, and date of birth.
- Tick the box to confirm that you agree with Kalshi’s terms and conditions and are at least 18 years old.
- Kalshi will then send you an email containing a verification link. Once you have clicked the link in the email, your Kalshi account will be open.
- Next, go to Kalshi’s payment page and deposit at least $10 into your account.
- Head to the Kalshi prediction markets and place at least $10 in contracts on any upcoming event.
- Once your contracts have settled, Kalshi will reward you with a $10 bonus that can be used on any prediction market or perpetual futures market at Kalshi. This bonus needs to be used within 30 days, and any profits you make from the bonus will be yours to keep.
Six top tips for perpetual futures trades
Perpetual futures are significantly different from the other markets you see at crypto prediction markets apps and websites. As such, making successful trades can be a tricky task. Luckily, help is at hand thanks to our six expert tips for perpetual futures trading at sites like Kalshi:
Do more than just the mandatory training
Before you make your first perpetual futures trade, you need to complete a short, mandatory training course that outlines how to make perpetual futures trades. In addition to reading this compulsory training, we can also highly recommend reading other extensive articles on the subject, including the expert articles here at Betting.net. In short, arm yourself with as much knowledge as possible before you place your first trade.
Set your budget and always stick to it
A big difference between standard prediction markets and perpetual futures is that whilst the former gives you a definitive outcome and therefore a definitive profit or loss amount, perpetual futures have no end date. If you have previously traded on crypto, you will know the market price can fluctuate wildly and rapidly. As such, you can quickly incur very large losses if the market price goes against your trade position. Because of this, you need to carefully consider your budget before you begin to trade. In particular, decide on the maximum loss you are willing to take if your trades do not go to plan. Once you have decided this, you can leverage your trades accordingly to ensure that you do not exceed this maximum amount.
Use the Stop Loss and Take Profit tools
Another great way of staying in control of your perpetual futures trades is to use the Stop Loss and Take Profit tools. The Stop Loss tool is especially useful as it automatically trades out of your position if your losses reach a stated amount. Whilst these tools are optional, we strongly recommend that you use them whenever you make a trade, as this will further ensure that you stay within budget and do not rack up any uncomfortable losses.
Do your research
Although you did not buy or hold any crypto when trading perpetual futures, you still need to diligently research the markets before you make your trades. To help you out with this, most leading sites provide detailed information on how the market price has recently changed, including a useful line graph and an order book showing recent trade activity. As well as carefully assessing this information, you should also conduct your own additional research by looking at the latest economic news concerning issues such as potential changes to interest rates and alterations to crypto regulations. To help you do this, brands such as Kalshi provide direct links to the latest relevant crypto news at the bottom of each of their trading pages. Try to read as many of these articles as possible, because the more information you have, the better placed you will be to make successful perpetual crypto trades.
Stay on top of your trades
Crypto market prices can move up or down at an incredibly rapid rate. This means that the value of your trades can alter rapidly in either direction at any time. Because of this market volatility, it is essential that you keep a close eye on how your trades are performing, as doing this will enable you to exit your position at the optimum possible time. Again, looking at trends and researching the latest news will help you decide when to stick with your trade and when to exit.
Don’t be afraid to take a loss
If you are incurring a loss on your trade, there is a big temptation to let it continue in the hope that the market price will soon begin to go up. Unfortunately, there is no guarantee that this will happen. Therefore, in some cases, the smart move is to trade out even when you are making a loss. Whilst this may seem counterintuitive, it is important to remember that doing this will exit your position and eliminate the chance of your loss getting any larger.
Final thoughts on perpetual futures
Perpetual futures are incredibly innovative and offer a very interesting alternative for prediction market traders. The range of futures you can trade at leading sites like Kalshi covers pretty much every major cryptocurrency, so if you are a keen follower of the crypto markets, you should be able to find plenty of trading opportunities at the sites.
As you can see from this article, there are risks attached to making futures trades, so make sure that you diligently research how to make your trades before you begin, then thoroughly research the markets and industry news every time you want to place a trade. Last but not least, when you are ready to join Kalshi and begin your perpetual futures journey, remember to use our exclusive banners when accessing the site. Doing this will ensure that you automatically qualify for the $10 welcome bonus featured in this article.
Try these top economic prediction market bonuses
Perpetual futures - FAQs
Are Kalshi perpetual futures legit?
Yes. Kalshi perpetual futures are fully regulated by the Commodity Futures Trading Commission (CFTC) and cleared through Kalshi Klear LLC (DCO). This means you can make your trades safe in the knowledge that your funds are secure and your trades will be honored.
Who can make perpetual futures trades at Kalshi?
Kalshi is available in [count-available-states] US states. So if you are in the US and at least 18 years of age, you can sign up at Kalshi and trade on their perpetual futures.
Which cryptocurrencies are available for perpetual futures trading at Kalshi?
There are currently 13 different cryptocurrencies available to trade at Kalshi, including Ripple, Ethereum and Bitcoin. For a full list of the cryptos you can trade at Kalshi, make sure you read our expert Kalshi perpetual futures guide.
Can I limit my losses when I make perpetual futures trades?
Yes. Kalshi provides an optional ‘Set Loss’ tool that allows you to set a maximum overall loss amount for your trades. If your losses reach this amount, you will automatically exit the trade and thus avoid incurring any further losses.
Can I get a welcome bonus when I join Kalshi?
Yes. If you join Kalshi via our exclusive banners, you will be able to claim a $10 bonus when you place your first $10 in contracts. This bonus has a 30 day expiry date and can be used on any of the prediction markets or perpetual futures at Kalshi.
