When trading cryptocurrencies or other assets, you may come across two common types of contracts: cash market agreements and perpetual derivatives. While both allow you to enter long or short positions, they work in very different ways.

A cash transaction is the most direct way to transact. When you enter a spot transaction, you are executing a direct exchange at its live price, and the delivery occurs without delay. For example, آرش وداد if you buy one bitcoin at a current market rate of $60K, you gain full custody of the coin and it is added to your wallet. There is no borrowing, no borrowed capital, and no expiration date. Cash trading is perfect for long-term holders, utilize it as currency, or simply avoid the risks associated with leverage and margin.

On the other hand, a perpetual future is a financial instrument that mimics the price of an underlying asset but allows speculation without possession. Perp contracts are structured similarly to traditional futures but without an expiration date. This means you can hold your position indefinitely, as long as you maintain sufficient collateral and pay funding fees. These contracts often offer amplified positions, which can increase upside and downside potential. For example, with a 10-fold multiplier, you can trade a $10K worth of assets with only a tenth of the total value. However, this also means you can suffer losses exceeding your margin if the market moves against you.

One key feature of perpetual contracts is the funding rate. This is a recurring transfer made among opposing positions to keep the contract price closely aligned with the spot price. If the perp price exceeds spot value, bulls compensate bears. If it trades at a discount to, short positions fund long positions. This mechanism helps prevent the contract from drifting too far from the actual asset value.

Spot trading is more conservative and more suitable for beginners and asset accumulators. It gives you full custody and eliminates the complexities of leverage, margin calls, and funding rates. Perp trading, while offering higher potential returns, carry heightened volatility. They are ideal for seasoned market participants who can assess exposure accurately, track market movements in real time, and adapt to volatility swiftly.

In summary, cash transactions are about holding the real coin, while perpetual contracts are about betting on price trends. Choosing between them depends on your goals, risk tolerance, and skill level. If you want to hold and use an asset, go with spot. If you want to capitalize on short-term fluctuations and are comfortable with funding fees and margin, perpetual contracts might be the suitable instrument.