Understanding Perpetual Futures and Why They Dominate Crypto Trading

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Perpetual futures — commonly known as “perps” — are one of the most influential innovations in crypto markets. First popularized by platforms like BitMEX, these contracts allow traders to speculate on price movements without worrying about expiration dates. Unlike traditional futures, which must be rolled over periodically, perps provide continuous exposure, making them ideal for both short-term speculation and long-term positioning.

Another key feature is leverage, which enables traders to control larger positions with relatively small amounts of capital. While this amplifies potential gains, it also increases risk, contributing to the high volatility often seen in crypto markets. Despite these risks, perpetual futures remain extremely popular, with daily trading volumes frequently reaching tens of billions of dollars globally. Kalshi’s potential entry into this space reflects just how central perps have become to modern crypto trading infrastructure.

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continuous exposure so you can lose money continuously too