The difference between Bitcoin and Bitcoin contracts
Jul 15, 2025 pm 08:18 PMThe core difference between Bitcoin and Bitcoin contracts lies in their essential attributes, transaction purpose and risk characteristics. 1. In essence, Bitcoin is a decentralized digital asset with actual value; Bitcoin contracts are financial derivatives, and are based on the price of Bitcoin. 2. In terms of transaction purpose and method, Bitcoin is used for investment or payment and needs to be actually held; contracts are used for hedging or leverage speculation, and there is no need to hold physical objects. 3. In terms of risk and return, Bitcoin price fluctuates greatly but has limited risks. Contracts may lose their positions due to leverage amplification of risks and returns. 4. In terms of investor adaptability, Bitcoin is suitable for long-term investors and contracts are suitable for professional speculators.
Bitcoin trading platform:
Ouyi OKX:
Binance Binance:
Huobi:
Gateio Sesame Opening:
1. Different essential attributes
- Bitcoin
It is a decentralized cryptocurrency that is itself a valuable digital asset, similar to "digital gold". It has a fixed total (21 million pieces), and it realizes decentralized accounting through blockchain technology. It can be directly used for transfer, payment or long-term holding. Its price is determined by the market supply and demand relationship and fluctuates greatly. - Bitcoin Futures/Contracts
It is a financial derivative, not an actual holding of Bitcoin assets, but a standardized contract based on the price of Bitcoin. It is essentially a deal that the two parties to the transaction agree to buy and sell Bitcoin at a specific price at a certain point in the future. The contract itself does not directly correspond to the entity Bitcoin.
2. The purpose and method of transaction are different
-
Bitcoin Trading
- Purpose: Earn the difference by buying low and selling high, or holding for a long time to wait for value growth, which can also be used for payment in actual scenarios (although the scope of application is limited).
- Method: Buy or sell Bitcoin directly on the exchange, and after transaction, you will actually hold Bitcoin assets (need to be deposited into the storage address or exchange account), and the transaction price is the real-time market price.
-
Bitcoin contract transactions
- Purpose: Mainly used for hedging risks or leverage speculation. For example, investors can participate in price fluctuations by "short" (when expected to make a profit when the price falls) or "long" (when expected to make a profit when the price rises), without actually holding Bitcoin.
- Method: Based on the margin system, leveraged trading (such as 10 times, 50 times or even 100 times leverage), that is, you only need to pay a small amount of margin to leverage a larger transaction scale. When a contract expires, it is usually settled in cash (the difference price difference) rather than actual delivery of Bitcoin (some contracts support physical delivery, but are rarely used).
3. The characteristics of risk and return are different
Contrast dimensions | Bitcoin | Bitcoin Contract |
---|---|---|
Price fluctuation risk | Price itself fluctuates greatly, but the risk is limited to the asset itself | Leverage amplifies risks, small price fluctuations may lead to liquidation (margin loss) |
Transaction Cost | Mainly transaction fees, no leverage interest | In addition to handling fees, overnight fees, funding rates, etc. may be incurred. |
Cost of holding | No additional costs for long-term holding (storage security risks are required) | Leveraged positions need to be maintained in margin, otherwise they may be forced to close the position |
Revenue limit | Depending on the price increase, there is no limit in theory | Leverage amplifies returns, but may also lose quickly due to reverse fluctuations |
Regulation and compliance | As an asset, supervision is mostly aimed at trading and circulation | As derivatives, supervision is stricter (banned in some areas) |
4. Different suitable investors
- Bitcoin: Suitable for investors with medium risk tolerance, long-term layout of cryptocurrency market, or have a belief in blockchain technology, and prefer the "asset allocation" attribute.
- Bitcoin contract: suitable for professional investors or speculators with extremely high risk tolerance, they must have the ability to accurately judge market trends and be able to withstand the high risks brought by leverage (may be quick profitable, or they may have instantaneous liquidation).
Summarize
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