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Understanding Crypto Trading and Derivative Trading
October 03, 2023
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(The cryptocurrency market operates on a 24/7 basis, which means you can buy and sell cryptocurrencies anywhere, anytime. So it is crucial to understand trading in the cryptocurrency market. Below introduces cryptocurrencies' two main financial instruments: "Spot" and "Derivatives" to pave the way for you to start trading smart. ~D) 

Guide

  1. What is Spot Trading?
  2. How to Spot Trade (BingX Platform Guide) - YouTube
  3. What is Derivatives Trading?
  4. What is Futures?
  5. What is Perpetual Futures?
  6. What is Option?
  7. How to trade contracts on BingX?

 

What is Spot Trading?

A spot trade is the purchase or sale of a cryptocurrency for immediate delivery. Delivery means that the buyer and seller fulfill their commitment to the transaction. Spot Trading is characterized by the immediate delivery of cryptocurrencies by the buyer and seller in a successful transaction, satisfying the needs of both sides for trading now.

Examples:

Suppose the spot price of Bitcoin is $40,000 right now, and a buyer is buying one BTC in the spot market, which costs $40,000.

  • 📈 Suppose after one month, the price of Bitcoin rises to $60,000.

If the buyer sells the BTC, according to [PnL Amount = (Selling Price - Buying Price) * Trade Volume], ($60,000 - $40,000) * 1 = $20,000, the buyer makes a profit of $20,000.

  • 📉 Suppose after one month, the price of Bitcoin falls to $20,000.

If the buyer sells the position, according to [PnL Amount = (Selling Price - Buying Price) * Trade Volume], ($20,000 - $40,000) * 1 = -$20,000, the buyer loses $20,000.

 

How to Spot Trade on BingX?

The K-line service of the BingX trading platform takes the spot market data from many mainstream exchanges, and synthesizes them to achieve an absolutely fair K-line. If you want to trade in the spot market on BingX, please visit BingX App [Buy/Sell - Spot] .You can also watch the below Spot Trading video to learn about the Spot Trading process.

 

After understanding spot trading, coming up is derivatives trading.

Before cryptocurrency, derivatives are already the popular financial instruments in the traditional financial industry. Derivatives cover a wide range of assets, such as financial products of underlying instruments like stocks, bonds, commodities, currencies, market indices, and cryptocurrencies. Unlike spot trading, derivatives offer leveraged trading, allowing investors to increase their potential profits. However, it should be noted that margin trading (the user trades with borrowed funds) also increases the investment risk, and the margin may be liquidated. As a result, derivatives are also considered to be high-risk assets.

 

What is Derivatives Trading?

Derivative is a financial contract between two or more parties with a value derived from a single or a group of crypto assets. Derivatives include futures contracts, options, warrants, forwards contracts, swaps, etc. There are different trading methods and uses for different derivative financial instruments.

Currently, the mainstream derivatives in the cryptocurrency market are futures contract, perpetual futures, and option contract.

 

What is Futures?

Futures, an early derivative product launched in the cryptocurrency market, is the most traded derivative today. There are two types of futures in the cryptocurrency market: Delivery Futures and Perpetual Futures, which are currently the most popular products in the cryptocurrency market.

Futures is traded with leverage on margin trading, allowing investors to take higher risks and profit from the price fluctuations of different crypto investments. Margin trading is performed by the investor with the trust provided by the broker or the exchange. Margin trading uses the principle of leveraged investment, allowing small capital as a margin to amplify your potential profits while trading, and also magnifying your potential risk of loss, enabling investors with limited capital to trade in the financial markets.

Unlike the spot market, you trade contracts in the futures market but do not own the crypto asset. In fact, futures is designed to avoid market volatility. When you trade the BTC/USDT contract, you are not buying or selling BTC but trading based on the predicted value of BTC. In other words, you are betting on the changes of BTC price parallel to the contract value, and do not own the asset.

In short, contract is a crypto asset derivative that allows users to choose to buy and long or sell and short to profit from the rise or fall of digital asset prices by judging the market.

In the cryptocurrency market, contracts can be divided into USDT-Margined Contract and Coin-Margined Standard Futures in terms of margin trading.

  • USDT-Margined Contract

The USDT is used to open positions and for final delivery. Whether you long or short a contract, you only need to deposit USDT in your contract account, and the final profit or loss will be settled in USDT.

  • Coin-Margined Standard Futures

Coin-Margined Standard Futures means that the corresponding cryptocurrency is used to open positions and for final delivery. For example, if you want to long or short BTC, you need to deposit BTC in your contract account, and the final loss or profit will be settled in BTC.

In general, investors can choose the contract type according to the trend. When the short-term price is up, you can choose to long the Coin-Margined Standard Futures; when the short-term price is down, you can choose to short the USDT-Margined Standard Futures.

 

What is Perpetual Futures?

Perpetual Futures is an innovative derivative in the cryptocurrency market similar to Delivery Futures. However, there is no delivery date for Perpetual Futures, and users can hold them forever. The exchanges will generally adopt funding rate to ensure long-term convergence between Perpetual Futures price and Spot price.

The funding rate is the settlement of funds between all longs and shorts in the Perpetual Futures market, which is settled every 8 hours. If the funding rate is positive, the longs pay funds to the shorts. If negative, the shorts pay to the longs.It can be considered as a fee for the trader to hold a contract position or a refund. This mechanism balances the demand for Perpetual Futures between buyers and sellers and keeps the price of Perpetual Futures largely in line with the price of the crypto asset. Perpetual Futures is currently the mainstream of cryptocurrency exchanges, with leverage of up to 125x, and is the most popular derivative in the market now.

From trading perspective, it is divided into long position and short position.

  • Long Position = Buy Up

When you think the value of the contract or the price of the crypto will rise in the future, you can choose to long the contract and make a profit if the crypto price rises in the future.

  • Short Position = Buy Down

When you think the value of the contract or the price of the crypto will fall in the future, you can choose to short the contract and make a profit if the crypto price drops in the future.

Examples:

Suppose a buyer thinks that the price of Bitcoin will rise in the future and opens a long position with 5X leverage and chooses [Isolated Margin]. The following scenarios will happen:

  • 📈 When Bitcoin price rises by 10%, the buyer closes the position with a 50% profit.
  • 📉 When Bitcoin price drops by 10%, the buyer closes the position with a 50% loss; when Bitcoin price drops by 20%, the buyer suffers from forced liquidation with a 100% loss. If the buyer chooses [Isolated Margin], the buyer's margin will be zero.

Suppose a buyer thinks that the price of Bitcoin will drop in the future and opens a short position with 5X leverage and chooses [Isolated Margin]. The following scenarios will happen:

  • 📉 When Bitcoin price drops by 10%, the buyer closes the position with a 50% profit.
  • 📈 When Bitcoin price rises by 10%, the buyer closes the position with a 50% loss; when Bitcoin price rises by 20%, the buyer suffers from forced liquidation with a 100% loss. If the buyer chooses [Isolated Margin], the buyer's margin will be zero.

 

What is Option?

Option is a derivative product that gives a trader the right, but not the obligation, to buy or sell an asset at a specific price in the future. The main difference between Futures and Option is that the trader is not obligated to settle the Option.

Option Contract (or Option) is very similar to Futures as they also include an agreement between two parties to buy and sell cryptocurrencies at a predetermined price and date. However, the main difference between these two derivatives is that the holder does not necessarily have to buy or sell on the date of maturity. To enter into an Option, the trader must pay a premium. If they do not want to exercise their rights at the end of the contract, they must still pay the premium.The innovation of Option in the cryptocurrency market enables traders to trade Options in a shorter specified time.

Options can be divided into two main types: Call Options and Put Options.

Call Option: Buy a specific amount of a particular cryptocurrency at a specific price for a certain period or at a certain point in the future.

Put Option: Sell a specific amount of a particular cryptocurrency at a specific price for a certain period or at a certain point in the future.

Examples:

Suppose the Bitcoin price is now $60,000, and the buyer purchases a call option with a strike price of $70,000 for a premium of $200.

  • 📈 Suppose the Bitcoin price rises to $80,000 at expiration.

If the buyer exercises the option, according to [PnL Amount = BTC Spot Price - Strike Price - Premium], [(80,000 - 70,000) - 200 = $9,800], the buyer makes a profit of $9,800.

  • 📉 Suppose the Bitcoin price falls to $50,000 at expiration.

If the buyer exercises the option, according to [PnL Amount = BTC Spot Price - Strike Price - Premium], [(50,000 - 70,000) - 200 = -$20,200], the buyer loses $20,200. However, one crucial feature of Options is that [when the buyer purchases an option, they are buying a right to execute, and the buyer can choose not to execute at expiration], so if the buyer decides not to execute at expiration, they will only lose $200 premium.

 

How to trade contracts on BingX?

As the world's leading derivatives trading platform, BingX provides the ultimate derivatives trading services, mainly Standard Futures and Perpetual Futures, suitable for ordinary and advanced investors in cryptocurrencies.

Standard Futures supports USDT-Margined Contract and Coin-Margined Standard Futures, which is easy to use and suitable for beginners or ordinary investors to get started quickly.

Perpetual Futures currently supports USDT-Margined Standard Futures, allowing users to complete tighter limit strategies, position management, etc., and is suitable for advanced investors.

 

Below is a great video with some tips to live by and shows common mistakes made by newer traders...

OR.. and here is one of my favorites, Copy Trading.. But do your research on his/her past trades and their profit sharing commission. The more you make, the more they make so it is beneficial for both parties. 

 

I do hope this helps some of you with building your wealth portfolio...

Best of Luck, and remember trade smart and be patient! ~D

 

The Dinarian On Locals is a labor of love that I pour my heart and soul into during my personal time. Countless hours are dedicated to delivering you the most up-to-date, unfiltered, and authentic news and information. Your support means the world to me, and I invite you to consider making a donation or becoming a dedicated supporter of this project. Any amount of XRP donations can be sent to XRP address: rqEy1PDACRg3p9RaVEZz6jU1g9RgguP91 or by scanning the QR code below and are not only appreciated but needed... No amount is too little and every one helps. Those that know me personally know that I would not be asking this if I had any other option. To those already backing my efforts, I extend my deepest gratitude. Your generosity fuels this mission and keeps a roof over my families heads, and I genuinely thank you from the depths of my heart. Together, we can continue to bring you the best results and make a positive impact in everyones future moving forward! ~ Namaste🙏🏼The Dinarian

 

 

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Revolut Leak Shows the Cost of Constant ID Collection
Revolut’s mistake is the news, but the bigger problem is the growing number of companies being encouraged or required to keep copies of our most sensitive identity documents.

Online bank Revolut has revealed that it gave out sensitive personal and financial information of an undisclosed number of its customers in response to a fake government request.

The information that was handed over to an “unauthorized third party” reportedly includes names, dates of birth, occupations, addresses, phone numbers, account numbers, transaction histories (including Bitcoin), and even copies of government-issued IDs and onboarding verification selfies.

Revolut claims that derived biometric face data was not.

The company said that the data was handed over in response to an email that came from a real government agency’s domain, but was not actually sent or authorized by that agency.

The email passed several authentication checks (SPF, DKIM, and DMARC) that are designed to establish the authenticity of a message’s origin and integrity, but do not verify the legitimacy of the legal request itself.

Revolut said that it complied with the request “under the reasonable belief that it was an authentic government agency request” – and only later found out that it was not.

Revolut said it later realized its mistake, blocked the email address, and reported the incident to the relevant authorities.

Revolut said that only a “limited” number of its customers were affected by the data leak, and that the company’s systems were not hacked, nor was any money stolen.

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Revolut notice explaining customer identity and financial data was shared after an unauthorized government email request.

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This means that even if you close your account, your identity documents don’t disappear.

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The more companies are forced to collect and store such information, and the more of it they have, the more opportunities there are for this data to be leaked, either by the company itself or a third party it works with. That's what makes governments' push for more ID checks just to access ordinary parts of life so reckless.

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This Is The Income A Family Needs To Live Comfortably In Every US State

Here’s the short version of what it takes for a family of four to live comfortably in 2026 by state:

In Massachusetts, you’d need nearly $330,000 a year - the highest figure in the entire country. Only three states clear the $300,000 mark: Massachusetts, Hawaii, and California. At the other end of the spectrum, Mississippi is the most affordable at about $188,000. That’s a full $142,000 less than what you’d need in Massachusetts.

So… how much does a family of four need in your state?

This map shows the pre-tax income a household with two working adults and two kids needs to live comfortably in every U.S. state.

The numbers come from SmartAsset (as of February 2026). They’re based on the familiar 50/30/20 budget: 50% for necessities, 30% for discretionary spending, and 20% for savings or other goals. These aren’t bare-minimum survival numbers—they’re what it takes to live pretty well while still putting money aside.

And as Visual Capitalist notes, Massachusetts sits at the very top of that list. Massachusetts tops the ranking, with a family of four needing $329,555 per year to meet the 50/30/20 benchmark.

Hawaii follows at $313,165, while California ranks third at $302,682.

Rank State Income needed for family of four (2026)

  • 1 - Massachusetts - $329,555
  • 2 - Hawaii - $313,165
  • 3 - California - $302,682
  • 4 - Connecticut - $298,189
  • 5 - New Jersey - $295,110
  • 6 - New York - $291,533
  • 7 - Colorado - $283,213
  • 8 - Washington - $281,798
  • 9 - Oregon - $280,966
  • 10 - Vermont - $280,384
  • 11 - Alaska - $272,064
  • 12 - New Hampshire - $267,904
  • 13 - Rhode Island - $264,659
  • 14 - Minnesota - $263,078
  • 15 - Maryland - $257,837
  • 16 - Maine - $250,931
  • 17 - Montana - $249,434
  • 18 - Pennsylvania - $247,936
  • 19 - Illinois - $244,109
  • 20 - Virginia - $242,944
  • 21 - Nevada - $242,278
  • 22 - Indiana - $241,696
  • 23 - Wisconsin - $238,451
  • 24 - Arizona - $236,870
  • 25 - Utah - $235,789
  • 26 - Delaware - $228,134
  • 27 - Ohio - $226,221
  • 28 - Idaho - $226,054
  • 29 - Florida - $223,392
  • 30 - New Mexico - $223,142
  • 31 - Nebraska - $223,059
  • 32 - Missouri - $217,734
  • 33 - Georgia - $214,573
  • 34 - Michigan - $214,323
  • 35 - South Carolina - $212,909
  • 36 - North Carolina - $212,410
  • 37 - Wyoming - $212,410
  • 38 - Oklahoma - $211,910
  • 39 - North Dakota - $210,496
  • 40 - Kansas - $207,917
  • 41 - Iowa - $204,422
  • 42 - Texas - $203,424
  • 43 - West Virginia - $202,592
  • 44 - South Dakota - $201,760
  • 45 - Alabama - $198,931
  • 46 - Louisiana - $197,933
  • 47 - Tennessee - $197,267
  • 48 - Arkansas - $195,437
  • 49 - Kentucky - $194,854
  • 50 - Mississippi - $187,533

Connecticut, New Jersey, and New York aren't far behind, bringing the number of states with comfortable-income thresholds above $290,000 to six.

Colorado and Vermont Make the Top 10

As expected, many of the highest income thresholds are concentrated in the Northeast and along the West Coast.

However, Colorado has the seventh-highest threshold in the country at $283,213, ranking above Washington and Oregon.

Vermont rounds out the top 10 at $280,384, despite having the second-smallest population of any U.S. state. Meanwhile, nearby states like New Hampshire, Maine, and Rhode Island all fall outside the top 10.

Just Six States Come in Below $200,000

Despite the wide range in living costs across the country, only six states have a comfortable-income threshold below $200,000 for a family of four.

Mississippi ranks lowest at $187,533, followed by Kentucky. The states of Arkansas, Tennessee, Louisiana, and Alabama also fall below the $200,000 mark.

The gap between Massachusetts and Mississippi exceeds $142,000 per year, meaning the Massachusetts benchmark is about 76% higher.

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The race to build the future of robotics is no longer just about robots. It's about who controls the intelligence behind them.
 
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Now that AI is moving into the physical world, many are asking a bigger question:
 
Will these same companies end up controlling robotics too?
 
It's a valid concern.
 
The latest generation of robots relies on enormous amounts of compute, simulation, training data, and foundation models. Many robotics startups today are built on infrastructure provided by large technology companies. NVIDIA's Omniverse is becoming a key simulation environment for robot training. Microsoft Azure is powering the training of robotics foundation models. Physical AI startups increasingly depend on hyperscale cloud infrastructure to train and deploy intelligent systems. Recent partnerships across the industry show just how central Big Tech has become to robotics development.
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That movement is decentralized AI.
 
Why Decentralized AI Exists
 
The idea behind decentralized AI is simple. Instead of a handful of companies owning the models, compute infrastructure, data pipelines, and intelligence networks, these resources are distributed across thousands of participants.
 
This means anyone can contribute compute, contribute models, validate outputs and can participate.
The most visible example today is the decentralized AI network known as Bittensor (@bittensor). The network has evolved into a large ecosystem of specialized AI markets called subnets, where participants compete to provide useful machine intelligence and are rewarded based on performance. Rather than relying on a single company, intelligence is generated and validated by a distributed network of miners and validators.
 
Think of it as an attempt to build an open marketplace for AI instead of a world where intelligence is rented from a few centralized providers.
 
Why This Matters for Robotics
 
Robotics has a unique problem. Unlike chatbots, robots operate in the physical world. They need to perceive environments, make decisions, move safely and they need to learn continuously.
 
The challenge is that collecting and training on real-world robotic data is incredibly expensive. That's one reason large companies have such an advantage. They can afford the compute, simulation environments, and data infrastructure needed to train robotics models at scale.
 
This is where decentralized systems become interesting.
 
Instead of one company collecting all the data and training all the models, decentralized networks could allow thousands of contributors to participate in building robotic intelligence.
 
Imagine a future where:
  • Warehouse robots contribute operational data.
  • Delivery robots contribute navigation data.
  • Factory robots contribute manipulation data.
  • Developers contribute models.
  • Validators evaluate performance.
The resulting intelligence becomes a shared network rather than a proprietary asset.
 
That vision is beginning to emerge.
 
Bittensor's Move Toward Physical AI
 
While many people associate Bittensor (@bittensor) with language models and AI services, parts of the ecosystem are increasingly exploring embodied intelligence and robotics.
 
One example is Kinitro, a subnet focused on incentivizing the training and evaluation of embodied AI systems. The goal is to create competitive environments where developers build robotic intelligence and are rewarded based on performance.
 
The broader Bittensor ecosystem has also expanded into compute marketplaces, distributed inference systems, bandwidth infrastructure, and AI coordination layers that could eventually support robotics workloads. Several subnets now focus on decentralized compute, confidential inference, data transfer, and model training, critical components for future robotic systems.
 
In other words, the pieces are starting to appear.
 
Not a decentralized robot network yet.
 
But the infrastructure that could support one.
 
Beyond Bittensor: The Rise of Physical AI Networks
 
Bittensor isn't alone.
 
Across the industry, researchers and builders are experimenting with decentralized approaches to physical AI.
 
New research published in 2026 introduced the concept of DAO-enabled decentralized physical AI, or DePAI. The idea combines robotics, decentralized infrastructure, AI models, governance systems, and human oversight into a single framework. Instead of centralized control, robots and physical infrastructure could be coordinated through transparent rules and distributed ownership models.
 
At the same time, developers are exploring decentralized operating systems for robots that allow machines to communicate directly with each other and with distributed compute resources. These architectures are designed to make robotic systems more resilient and less dependent on a single cloud provider.
 
The goal is not simply decentralization for its own sake.
 
The goal is resilience.
 
If one server fails, the system continues.
 
If one company disappears, the network survives.
 
If one participant leaves, innovation continues.
 
But Here's the Reality
 
Decentralized AI faces the same challenge every decentralized technology faces.
 
Big Tech has resources. A lot of resources.
 
Training advanced robotics models requires enormous compute budgets, sophisticated simulation environments, access to specialized hardware, and vast amounts of real-world data.
 
That's why many robotics startups still partner with major cloud providers and AI companies. It's often the fastest path to deployment.
 
And there are legitimate concerns about whether decentralized networks can maintain quality, reliability, and security at the scale required for industrial robotics. Even researchers studying decentralized AI systems have highlighted risks around concentration, incentives, governance, and network security.
 
The challenge isn't just decentralizing intelligence.
 
It's decentralizing intelligence while maintaining performance.
 
That's much harder.
 
The Most Likely Outcome
 
The future probably won't be fully centralized. And it probably won't be fully decentralized either. Instead, we're likely heading toward a hybrid model.
 
Large technology companies will continue providing chips, cloud infrastructure, simulation platforms, and foundational research.
 
At the same time, decentralized AI networks will emerge as alternative coordination layers where intelligence, data, and economic value can be shared more openly.
 
The companies building robots may use NVIDIA hardware.
 
Train on Azure.
 
Run foundation models from OpenAI.
 
But they may also participate in decentralized data networks, decentralized compute markets, and decentralized intelligence protocols.
 
The future of robotics could end up looking less like a monopoly and more like an ecosystem.
 
The Bigger Question
 
The real question isn't whether decentralized AI can eliminate Big Tech.
 
It can't.
 
At least not anytime soon.
 
The real question is whether decentralized AI can prevent a future where a handful of companies control every robot, every model, every dataset, and every decision made by the machines operating around us.
 
As robots become workers, assistants, delivery drivers, factory operators, and even economic agents, that question becomes increasingly important.
 
Because the battle for the future of robotics is no longer about hardware.
 
It's about who owns the intelligence.
 
And that battle is just getting started.
 
 

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